Nuance is the key to a successful search engine marketing campaign. If you set an aggregate KPI across the board and then scrub any effort that doesn’t hit that target, you’re setting up yourself for failure with unrealistic expectations. It’s better to take a segmented approach to SEM KPIs for sustained success.
The Need for Segmented SEM KPIs
Consider these different elements that can impact cost per click (CPC):
- Is the keyword branded or non-branded?
- Are the targets first-time purchasers or repeat customers?
Branded Keywords Targeting Repeat vs New Customers
You’ll want to spend as little as possible on CPC for branded keywords targeting repeat customers because they have a high probability of purchasing. So, you want to judge success here by keeping CPC low.
Whereas a branded keyword targeting a new customer is a bit pricier but has a good chance of a conversion. It’s also important to remember that repeat customers are depreciating assets, so while it’s low-hanging fruit, you also want new streams coming in. Here your KPI should be the amount of traffic your ad generates.
Non-Branded Keywords Targeting Repeat vs New Customers
Non-branded keywords targeting repeat customers are low value because they’re not brand loyal. They came back to your product for a reason other than your brand, so further repeat purchases are unlikely. Here your KPI should be cheap cost per action.
Whereas you want as many non-brand first-time customers as possible. This will be an expensive marketplace, but you’ll be paying for great visibility. Your KPI here is high impression share.
Taking this a step further, if you offer several different products or services, you have to take into consideration how competition varies across your offerings. If one offering is highly competitive and heavily researched, then maybe your KPI is to get a better click-through rate.
These are just a few examples of how KPIs can vary across different SEM elements. As you can see, there is a great need to be strategic in segregating your SEM KPIs. You really need to dig into the data and figure out the right approach. Otherwise, you’re just comparing apples and oranges and tossing them out because they don’t taste like peaches.
Get a Game Plan for Growth
As a growth marketing agency, DigiForce understands the value of search engine marketing. Our data-driven, customer-centric approach will provide the necessary context to establish your unique SEM KPIs. We know how to put the right ads in front of the right buyer persona to reach the leads you want, maximizing ROAS.
To learn more call 1-866-770-9569 or visit our website today.