Fresh Tip #5: 5 KPI’s Every Search Advertiser Needs

Fresh Tip #5: 5 KPI's Every Search Advertiser Needs
As we mentioned in our first fresh idea tip, the phrase “what you can’t measure, you can’t control” is very important to remember when creating an SEM campaign during the holidays. SEM driven customer acquisition performance can be measured in multiple ways, but in order to do so in a holisitc manner, retailers need a portfolio of key performance indicators, or KPI’s. KPI’s can be financial or nonfinancial and they will help you determine how successful certain campaigns are and can also help you reach long-term company goals. One question you may ask, however, is “how do I determine what my KPI’s will be?” The following checklist of sample KPI’s are ones we think are important to measure, but note that it is not an exhaustive list:
  • Profit per click
  • Revenue per new customer (through SEM)/ Revenue per customer (overall)
  • Average order value per new customer
  • Cost per conversion (search)/ cost per conversion (all channels)
  • Percentage of (converting keywords/all keywords)
You should always set your KPI benchmarks before beginning your holiday campaigns so you can measure them right from the start. After you begin your campaigns, track them on a weekly basis to understand how well or poorly they are performing. Don’t forget to make sure you understand the campaign variables you need to control.

Good luck!
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