You’re starting a new SEM campaign. What metrics should you be tracking?

Clicks and impressions are fundamental metrics in advertising. Clicks count the number of times people click on your ad, and impressions tally how often your ad appears in search engine results. These numbers help you understand how widely your ad is being seen and how engaging it is. They also allow you to calculate your click-through rate (CTR), the ratio of clicks to impressions, showing how effective your ad is at attracting clicks. A high CTR indicates your ad is relevant and appealing to your target audience.

Tracking clicks and impressions in search engine marketing is akin to navigating a ship with a compass and logbook. Clicks represent the compass, guiding you toward the destination – showing which paths (keywords, ads) are leading users to your content. Impressions, on the other hand, are the logbook, recording how often your ship (ad) is seen. Just as a sailor relies on the compass and logbook for course correction and navigation, tracking clicks and impressions guides marketers. It reveals the effectiveness of keywords and ads (compass), and the visibility and reach of the campaign (logbook). This data empowers strategic adjustments, ensuring the marketing voyage stays on course towards optimal performance and results.

Monitoring costs in real-time helps prevent unexpected expenses. Without proper cost tracking, there is a risk of overspending, especially if the campaign is generating a high volume of clicks or impressions Cost tracking provides a benchmark for performance. By comparing costs to key performance indicators (KPIs), we can assess whether campaign is delivering the expected results or if adjustments are needed. Tracking costs in relation to the results (clicks, conversions, revenue) helps you calculate the Return on Ad Spend (ROAS) or ROI. This helps in Budget allocation and ROAS Prediction

Ensure the type of conversion action being optimised. Some of the campaigns could have been optimised for secondary conversions such as Sign-ups, add to cart, checkout and some would be optimised for purchase. Measuring the success of secondary conversion by mapping back end conversion becomes important step.

Here is what else to consider - tying any of the above to actual goals. Metrics are just fluff if you are not quantifying them back to a business goal, which lets face it is pretty much always ROI. There are other reasons and other tactics, but you need meaningful metrics that tie to your goals, not just a list of fancy metrics dressed up as a strategy.