Ecommerce - The Key Metrics You Need To Measure When Running PPC Ads

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Author: Dan The Marketeer
Date: December 6, 2021

With 100’s of different stats and metrics, which are actually important for eCommerce?

PPC ads are a proven way of targeting the right audiences with adverts, that is why so many businesses use them. But whichever platform is being used (Google, Facebook, etc.) they all have a lot of data.

That data is designed to make the marketers with optimisation and ROI easier, as they can make informed decisions on what ads to run and who to.

But not all of the data and metrics available is useful at any one time. It depends entirely on the kind of PPC ads being run and the objectives of them.

Today I’m going to be focusing on eCommerce ads: Ads that promote a product available for purchase online. Which metrics actually matter?

Spend

Spend is a metric that is important regardless of the kind of ad that is running. In this case, it’s vital to know what has been spent to compare it to the sales received, revealing whether or not there is a positive ROI.

Value

Next up is the value of the purchase. This be hard to determine when there is more than one product for sale. In those situations, PPC ads cannot always determine the value of the sales. But this can be obtained from the store itself and compared to spend shown on the PPC platform.

Purchases

Goes without saying, you need to know how many purchases were made from the ads. If there is only a single product, the number of purchases can easily be X by the value to get the overall return.

Return

Return is the amount of money received as a result of the ads. Again, depending on the PPC platform and number of products this data may be better calculated through the store itself.

Profit

Then of course we have the profit. This is the return minus the costs. Ideally you’d obviously want to see this as a positive number!

Clicks

Next it’s important to know how many clicks your ads generated. This is the number of people who visited your store.

Cost per click

In order to optimise your ads and maximise your return, you must know the cost per click. This is simply your costs divided by the number of clicks. You can then work to reduce this cost.

Conversion rate

This is a biggy. This is the % of people who clicked your ads who actually purchased. This stat is something you want to continually improve because you’re paying for the clicks. If very few clicks turn into sales, you may be making a loss.

Others

Depending on the PPC platform, it may or may not be possible to get this data. But you definitely can through your store. The Facebook Ad pixel for example, can integrate into your store and show this data.

Initiated Checkout

This is the number of people who clicked to order a product, but didn’t put the product in the cart.

% Who initiated checkouts that actually purchased

This is the % of those who started the purchase process, that actually bought. This is a critical number to increase. People are showing interest in your products, but something is standing in their way of buying. Find out that, and you can increase your sales.

Added to cart

This is the number of people who added your product into their cart. This is one step further from Initiated Checkout, and they’re on the verge of buying.

% added to cart who purchased

Again, this is the % who added your product to their cart who then actually finished the purchase process. Lower %’s suggest an issue that is putting people off from buying.

By measuring all of this data, you can start to optimise your ads and even your online store, to ensure you generate the highest return on your ad spend and as much profit as possible.

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