Return on advertising spend (ROAS)
To begin with, one of the most important KPIs to track when it comes to SEA is undoubtedly ROAS (Return On Advertising Spend).
This determines financial profitability of your campaign by measuring the ratio between the revenue generated by the advertising and the advertising budget spent.
To calculate ROAS, simply divide your revenue from SEA advertising campaigns by the total cost of your advertising expenditure:
ROAS = (Advertising revenue / Cost of advertising expenditure) x 100
A high ROAS means that your campaign was profitable and generated a good return on investment.
Conversely, a low ROAS indicates poor performance and means you need to review your marketing approach.
Impressions and print rate
Le number of impressions is a basic element in assessing the visibility of your advertising campaign. An impression corresponds to the display of your advert to Internet users.
The more impressions you get, the more your content is seen by users.
Percentage of your adverts that appear on a given results page when a search is carried out. the print ratecan also be a good indicator of the performance of your SEA strategy.
This is calculated by dividing the total number of impressions of your ad by the possible number of impressions, also known as potential impressions:
Impression rate = (Number of actual impressions / Number of potential impressions) x 100
This KPI shows whether your company has good visibility on search engines in terms of market share.
A low print rate can be explained by a poor print quality. referencing or because your keywords do not correspond sufficiently to the searches carried out by Internet users.
Cost per click (CPC)
More than just an exhibition, the CPC (Cost Per Click) measures how much each click costs your company. This KPI is important because it determines the profitability of your advertising expenditure and your entire SEA auction.
The CPC is calculated by dividing the total cost of your ads by the number of clicks generated:
CPC = Total cost of ads / Number of clicks
- A low CPC means that your advertising is profitable because each click costs you little money.
- On the other hand, a high CPC may be indicative of strong competition for the chosen keywords and/or over-aggressive bidding, which may result in a loss of budget to other advertisers. It is therefore advisable to review your strategy in the hope of obtaining a better financial return.
Click-through rate (CTR)
Le CTR (Click-Through Rate) indicates the ratio between the number of clicks on your ad and the total number of times it is displayed (impressions). In other words, it's the percentage of users who saw your ad and clicked on it.
To calculate this KPI, we use the following formula:
CTR = (Number of clicks / Number of impressions) x 100
A high CTR means that your ad attracts attention and encourages users to click to find out more.
A low CTR can be a symptom of poor ad design (unclear message, unattractive design, etc.), unsuitable keywords or inaccurate targeting. You should monitor this KPI and adjust your campaign accordingly to improve the overall quality of your ads.
The conversion rate
Finally, the conversion is undoubtedly the KPI that best reflects the performance of your SEA campaign. It measures the percentage of Internet users who have clicked on your ad and carried out a concrete action (purchase, registration, download, etc.).
To determine the conversion ratethe following formula is used:
Conversion rate = (Number of actions taken / Number of clicks) x 100
A high conversion rate is synonymous with a good match between the advert, the product/service on offer and the expectations of Internet users.
Conversely, a low conversion rate may indicate that your offer does not meet users' needs or that your website is not optimised for conversions.
In addition to the KPIs mentioned above, many other parameters can be analysed to assess the performance of your SEA advertising campaigns in the following areas Google Ads.
Each company must select the most relevant indicators according to its marketing objectives and budgets, in order to carry out its business successfully. digital strategy.
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