7 Important KPIs for Your Auto Dealer PPC Campaign

27 November 2017


To check the success of your auto dealer marketing, it is necessary to track a few Key Performance Indicators (KPIs). Especially, in pay-per-click (PPC) campaigns, you need to understand and analyze relevant KPIs, depending on the type of campaign you are running.

The Return on Investment (ROI) for the dollars spent on a particular campaign can be measured using these KPIs.

Here are some important KPIs for your car dealership’s PPC campaigns.

Key Performance Indicator 1: Keep an eye on Click-through Rates (CTR)

The Click-through Rate indicates the number of viewers who clicked on your ad. This will help you gauge the effectiveness of your ads.

There is no standard CTR percentage across industries. However, an average CTR of 2.14 percent for the auto industry seems to be the standard among U.S. dealerships.

If your CTR is below this benchmark, then rework your campaign.

Key Performance Indicator 2: Watch Your Quality Score

The Quality Score is a metric by Google which tells the relevancy of your PPC ads. It factors in KPIs like your CTR and the user-friendliness of your campaign landing page, to arrive at a score.

Measuring your quality score is difficult, but a good quality score minimizes the cost of your PPC ads.

Key Performance Indicator 3: Don’t Forget Cost per Click (CPC)

Cost per click (CPC) tells how much each click on your ad costs you. It is measured by dividing the total cost of the ad by the number of times the ad was clicked.

This KPI will assist you to take a decision on the cost-effectiveness of your campaign.

Key Performance Indicator 4: Check the Cost per Acquisition (CPA)

Cost per acquisition (CPA) is the cost to acquire every new customer. It is measured by dividing the total cost of conversions by the actual number of conversions.

The CPA and ROI are inversely proportional. If the CPA goes up then your ROI will come down.

Key Performance Indicator 5: Conversion Rate is Important (CVR)

Conversion rate (CVR) lets you understand the percentage of leads which convert into actual customers. It is measured by dividing the number of conversions by the total number of clicks.

An increase in CVR will increase your ROI as well.

Key Performance Indicator 6: What’s Your Impression Share?

Even if visitors see your ad once, it is counted as an impression, regardless of them clicking on the ad or not. Impression share is calculated by dividing the total impressions gained by your campaign by the total number of impressions the ad is eligible.

This is an indirect measurement of your competitors. If your impression share is more, then the competitors’ ads are not displayed as often.

Key Performance Indicator 7: Know Your Average Position

Your Average Position lets you know where your ad is positioned, based on both paid and organic search results.

If the average position is around 3 then your ad will show up at the top, but if it happens to be around 7 or 8 then your ad will show up at the bottom of the ad list. Traffic will be definitely less if your ad is at lower positions when compared to the top position ads.

For more information on KPIs for your car dealership PPC campaigns, Contact Us.


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