In marketing, the term metrics refers to quantifiable measurements that can be used to effectively track the progress of a campaign. Being able to track campaigns makes it possible for business owners to get a good idea of how effective they are, as well as how engaged customers are with their brand.
If you are new to search engine marketing, the chances are that you don’t know what the main metrics actually are. This post hopes to demystify them, which it will do by offering a definitive guide on the key metrics you can use to measure a search engine marketing campaign.
Running SEM Campaigns
The truth is, you don’t have to manage SEM campaigns yourself. It’s perfectly possible to outsource search engine marketing to an agency. An agency will be able to effectively run campaigns for you. Search engine marketing is one of the most complex forms of modern marketing, so attempting campaigns yourself when you have no formal training or experience is one of the worst things that you can do. You can learn more about working with a search engine marketing agency by getting in touch with one. But how can you tell whether an agency is worth working with or not?
- Level of expertise. The first way of determining an agency’s suitability is to take a look at its level of expertise. How long have they been in business, and what kind of campaigns have they worked on in the past? A good way to find this information out is to check their portfolio. An agency’s portfolio will give you clear insight into the efficacy of past projects and help you to learn about the clients they have worked with in the past.
- Client reviews. Reviews from past clients can be an extremely effective way to decide whether an agency is right for you or not. If an agency has lots of negative reviews, there is a chance that the quality of their service simply isn’t up to par. Bear in mind that an absence of reviews doesn’t necessarily mean an agency isn’t worth hiring. Sometimes agencies that have no reviews simply haven’t done anything to upset customers or haven’t had enough clientele yet to begin generating reviews.
- Speaking with them. While portfolios and reviews can come in very handy and help you to decide whether you should work with an agency or find another, it’s still worth speaking with them. Speaking to an agency in person or via video chat can be a good way to find out what they are like as professionals and see if you get on well with them.
- Consider costs. One last thing to think about is cost. You need to be confident that you can actually afford to work with the agency you have been researching. You can find out how much an agency charges for its services by getting in touch and asking for more information on their pricing.
Key Metrics to Be Aware Of
Even if you partner with a search engine marketing agency, there are still key metrics that you need to be aware of. Understanding what these metrics are and why they matter can give you more insight into your business’s performance. When you actually understand what SEM metrics are and how to interpret them, you can play a more significant role in the marketing process, too. There is even a chance that in the future, you could begin to run your own campaigns. Here are some of the key SEM metrics you need to know about:
- CTR. CTR, or Click-Through Rate, makes it possible for you to see how many people have clicked through to your site after seeing your advertisements.
- CPC. CPC, or Cost Per Click, tells you how much each click costs. This makes it easier for you to manage your business’s ad spend.
- Conversion Rate. Your conversion rate tells you how many clicks turn into actions, i.e., purchases or subscriptions.
- Cost Per Conversion. Your cost per conversion shows you how much each lead or sale actually costs your business, which can make budgeting a lot easier.
- ROAS. ROAS, or Return On Ad Spend, measures revenue generated vs the amount of money that you have spent so far.
- Quality Score. Your quality score is an important metric, as it shows Google’s rating of your keyword relevance. It is based on CTR, ad relevance, and your business’s landing page.
Why Do Metrics Matter?
Insight Into What’s Working
Metrics make it possible for you to get clear insight into how your SEM campaigns are working and what isn’t. Bear in mind that if you have no formal experience interpreting SEM metrics, there is a chance that they won’t make much sense to you. It’s a good idea to get in touch with the agency you have hired and ask them to explain them to you in more detail.
Help You Work Budgets Out
When you know how your SEM campaigns are performing (which metrics can help you with), you can work budgets out a lot more effectively. If you are interested in using SEM metrics to work out a budget, make sure you bring this up to the agency you have partnered with, as they will be able to support budgeting in other ways.
Highlight Areas of Improvement
When you own a business, there are always things you can do to improve overall performance. If you fail to improve performance, your business will begin to suffer over time. In the context of business management, suffering usually translates to financial losses. Protecting against financial losses is an integral part of business ownership.
Guide Future Marketing
When you know how marketing campaigns are performing, you can guide future marketing efforts independently, without the help of agencies. With that said, it is always a good idea to enlist the support of an agency,
SEM campaigns can be hard to manage. Understanding the metrics behind them can simplify marketing involvement. It’s important to always enlist the support of professionals if you plan on launching a marketing campaign. Hopefully, the guidance given above will help you to find a marketing agency to work with and give you insight into how metrics work.
A dad of 3 kids and a keen writer covering a range of topics such as Internet marketing, SEO and more! When not writing, he’s found behind a drum kit.
