Judge a Paid Search Campaign
Updated · By Robert Breen
Find where your funnel leaks, then decide from CPC, CPA and ROAS whether an ad campaign is worth more budget.
The lessons, in order
- The Marketing Funnel Explained, With a Worked Example
The marketing funnel with real numbers: awareness, consideration and conversion, how to find the stage that leaks, and the metric for each stage. About 9 minutes.
- PPC Metrics Explained: CPC, CTR, CPA and ROAS With Examples
Core pay-per-click metrics in one worked campaign: CTR, CPC, conversion rate, CPA and ROAS, how they connect, and which lever to pull first. About 11 minutes.
Start lesson 1: The marketing funnel
Terms you’ll learn
Bounce rateCPA (cost per acquisition)CPC (cost per click)CTR (click-through rate)ImpressionsKeyword researchMarketing funnelPPC (pay-per-click advertising)RetargetingROAS (return on ad spend)
Questions this learning path answers
- What is a good click-through rate?: A good CTR depends on the channel: search ads often get 3% to 6%, display and social ads well under 1%. How to judge yours against the…
- Should a small business start with SEO or PPC?: PPC first if you need customers this month; start SEO now if you can wait 3 to 6 months. Most small businesses end up doing both. A plan…
- How do you calculate ROAS, and what is a good ROAS?: ROAS is ad revenue divided by ad spend. A good ROAS is any figure above your break-even ROAS, which is 1 divided by your gross margin…