Setting Ads Goals and KPIs
Posted: Sat Feb 01, 2025 10:34 am
The key to the success of ads campaigns is pursuing a clear goal, which should be defined before keyword research. The goal has a significant influence on which keywords and campaign types are even considered.
For example, if ads are to be used as a high-performance online marketing channel to help increase sales in the online shop, high-intent keywords such as “buy sneakers cheap” are essential. If you want to use ads to increase brand awareness and increase traffic on the website, product keywords such as “New Balance sneakers cheap” or “hair straightener review” can also be useful. The defined ad goal is also crucial for the KPIs - the defined target values - with which companies can measure their performance.
Performance KPIs include the cost per acquisition (CPA) or the CUR. If you have a clear idea of how much you are willing to pay for a conversion, you should set a CPA target. Conversions represent goals defined in advance - for find your mobile numbers list example a purchase, a contact request, a registration or an app download. These can be measured using Ads conversion tracking and a specific value can be assigned to them. For e-commerce, it is a good idea to have a dynamic value transmitted by the conversion pixel. This allows costs and sales to be compared relatively accurately in order to check the profitability of the Ads measures.
It is important to think in advance about the target value up to which the advertising measures will be profitable. For example, if you mainly sell shampoos with sales values of around €5, a CPA of €10 is too high. For a contact request that leads to an order worth €2,000, a CPA of €10 seems appropriate.
However, since CPA only considers the cost level, the significance of the metric is put into perspective. It is therefore worth using the KUR, which, as already mentioned, takes into account both the cost and the sales level, as a KPI. However, this metric is only suitable if a clear conversion value can be assigned to each conversion. This usually works very well for online shops. If contact inquiries or leads are measured, a CPA target must be used as a guide.
There are a lot of KPIs that are important for a company. It is of course obvious to use internal Ads metrics - such as CPC, CTR, CPA or conversion rate - to optimize the performance of the campaigns in relation to the goal.
For example, if ads are to be used as a high-performance online marketing channel to help increase sales in the online shop, high-intent keywords such as “buy sneakers cheap” are essential. If you want to use ads to increase brand awareness and increase traffic on the website, product keywords such as “New Balance sneakers cheap” or “hair straightener review” can also be useful. The defined ad goal is also crucial for the KPIs - the defined target values - with which companies can measure their performance.
Performance KPIs include the cost per acquisition (CPA) or the CUR. If you have a clear idea of how much you are willing to pay for a conversion, you should set a CPA target. Conversions represent goals defined in advance - for find your mobile numbers list example a purchase, a contact request, a registration or an app download. These can be measured using Ads conversion tracking and a specific value can be assigned to them. For e-commerce, it is a good idea to have a dynamic value transmitted by the conversion pixel. This allows costs and sales to be compared relatively accurately in order to check the profitability of the Ads measures.
It is important to think in advance about the target value up to which the advertising measures will be profitable. For example, if you mainly sell shampoos with sales values of around €5, a CPA of €10 is too high. For a contact request that leads to an order worth €2,000, a CPA of €10 seems appropriate.
However, since CPA only considers the cost level, the significance of the metric is put into perspective. It is therefore worth using the KUR, which, as already mentioned, takes into account both the cost and the sales level, as a KPI. However, this metric is only suitable if a clear conversion value can be assigned to each conversion. This usually works very well for online shops. If contact inquiries or leads are measured, a CPA target must be used as a guide.
There are a lot of KPIs that are important for a company. It is of course obvious to use internal Ads metrics - such as CPC, CTR, CPA or conversion rate - to optimize the performance of the campaigns in relation to the goal.