PPC Metrics: When CTR and CPC fail (4 examples)

Ad clickthrough rates (CTR) and cost per click (CPC) are common benchmarks of PPC advertising performance. But are they the best numbers to track? Maybe not:

Potential failure #1: Cheap clicks may be acquired through keywords with low CTR. This typically happens with general, broad match keyword phrases.

Potential failure #2: Qualifiers in ad copy usually improve click quality, but can reduce CTR. For example, if you say rates start at $1,200, you’ll probably get fewer clicks – but people who click may be more likely to book a room.

Potential failure #3: Strategically important keywords can yield poor CPC or CTR. Bidding on competively important keywords isn’t always efficient.

Potential failure #4: When your ads aren’t clicked, you receive free branding exposure. This is an important advantage over traditional advertising, and one of my top 10 reasons hotels should invest in PPC.

Of course, you still need to be tracking CPC and CTR for your hotel’s campaign. Ad clickthrough rate is integral to your ad’s cost and position, while cost per click is useful for measuring efficiency. Just understand their limitations, and use other metrics for performance evaluation. Tomorrow I’ll share advanced metrics to use in your PPC campaigns…