Search engine marketing or SEM plays a very important role in the success of every business in Singapore. With the right team coupled with the right SEM campaign strategies, companies will have the chance to compete in their markets online.
However, depending on the industry, investing in AdWords (Google Ads) can actually be quite expensive. But, with the right knowledge and tools, you will be able to advertise cost-effectively.
In this article, we are going to tell you the key data that you must track in order to be able to evaluate the performance of your SEM campaigns, so that you can adjust your campaigns’ strategies accordingly and make well-informed decisions.
Google has a way of measuring the relevance of the keywords that you are targeting in your Google Ads campaign. This metrics is called “quality score”. Your goal here is to ensure that you have a high quality score as it determines the ranking and frequency of the ads, as well as the amount you need to pay for each click.
This other metric will tell you the rate in which a particular targeted keyword is converting into a lead or sale. Hence, the higher the conversion rate is, the higher your sales. This simply means that there is a direct proportionate relationship between the conversion rate or the number of conversion and the return on investment (ROI).
The amount of money that goes into waste because there are no conversions for the ads is called wasted spend. It literally refers to that amount that you are losing for failure to convert clicks into sales. Once you notice that there is an increase in the wasted spend, then it is time for you to re-think or make adjustments to your campaigns’ strategies.
Cost Per Conversion
Look at the cost per conversion in order for you to determine whether the cost for buying the keywords is worth it. If it is higher compared to the profits earned from a successful sale, then you are clearly on the losing end. What you need to do is to study your own market and learn which keywords to target and which to avoid. This is to ensure that the profits you will earn from each converted click is definitely higher compared to the cost of gaining one conversion.
So what are you waiting for? Why not start to check on these key metrics and conduct an evaluation of all your SEM campaigns. The challenge for you is to ensure that you are investing in the campaigns that are giving you the best results. On the other hand, make sure that you will eliminate the campaigns that are not contributing to your profits. Take note that the more you continue investing in ineffective campaigns, the higher the loss will be.
If you have no idea on how to do all of these, do not hesitate to get in touch with a professional SEM Agency or a digital marketing agency. Find the right company to engage in that will ensure that your search engine marketing campaigns are well executed to achieve your company’s business objectives.