Understanding Search Engine Marketing Campaign Metrics to Fast Track SEM Campaign Results and Accelerate Website Traffic Growth
Understanding Search Engine Marketing Campaign Metrics to Fast Track SEM Campaign Results and Accelerate Website Traffic Growth
- September 14, 2022
- Posted by: StatusFocus
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Table of Contents
Every keyword in Google Ads is assigned a recommended value of CPC (Cost-Per-Click) to rank on the first page of search results. Depending on the industry, CPC can get very expensive. In some instances, first-page CPC can cost well over $20 in a single click, which quickly exhausts the marketing budget.
Search Engine Marketing Intent-Based SEM Keyword Research
Less costly, more search intent-based keywords are just as effective in search engine marketing campaigns. Receiving clicks is great, but converting visitors into revenue is the ultimate goal of search engine marketing. If you choose the right targeted keywords with high conversion, you can discover lucrative niche markets that work with your marketing budget.
SEM Keyword Research Tools Improve Search Engine Marketing Results
SEM keyword research tools help to identify the top keywords with the lowest cost per acquisition and highest conversion rate.
Example of How SEM Keyword Research Tools Improve Search Engine Marketing Campaigns
For example, discovering long-tail keywords (extended phrases that typically yield lower search volume but provide a more precise intent behind the searched terms) tends to cost much less in Cost-Per-Click rates and lowers the cost per acquisition. At the same time, visitors who use long-tail keywords to search online tend to be more specific about what they are looking for and are more likely to become ready-to-buy customers.

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Critical Metrics of Search Engine Marketing Campaigns
To determine the success of a search engine marketing campaigns, it is crucial to understand the following three SEM campaign calculations.

Calculation #1: SEM Click Through Rate
The SEM CTR or Click-Through-Rate metric determines whether an ad can generate a good visitor engagement. The higher the CTR, the better the ad performance will be.
How to Calculate SEM Click Through Rate
Click-Through-Rate is calculated by the number of clicks divided by the number of impressions. Multiply the value by 100, and you will get a click-through rate percentage. A good click-through rate for a search engine marketing ad is typically around 1%. However, the CTR may increase or decrease depending on the industry and the ad messaging.

Calculation #2: SEM Conversion Rate
SEM conversion rate is the metric you need to monitor closely, because it determines the search engine marketing campaign’s ROI (Return-On-Investment). Conversion in an SEM campaign is the number of leads or sales gained through clicks of the SEM ad.
How to Calculate SEM Conversion Rate
The SEM conversion rate is calculated by the number of conversions divided by the number of clicks. Multiply this value by 100, and you will get a conversion rate percentage. Depending on your business, the average conversion rate varies by industry.

Calculation #3: SEM Cost Per Acquisition
SEM cost per acquisition determines the cost per conversion for a search engine marketing campaign. It tells you if the marketing dollar spent on an ad campaign is worth the price base on the volume and quality of converted leads.
How to Calculate SEM Cost Per Acquisition
Cost per acquisition is calculated by the total ad campaign cost divided by the total number of leads converted. The value is a dollar amount representing how much an ad campaign costs to make the conversion happen.

Top 3 Benefits of Running Search Engine Marketing Campaigns
Search engine marketing campaigns can achieve fast-tracked results with a defined budget and proper execution. Here are what you can expect.

#1. SEM Marketing Delivers Targeted Paid Search Traffic
Unlike SEO marketing, which takes some time to see results, SEM delivers targeted traffic by displaying ads in top positions of search result pages within Google or Bing. Including high search volume keywords in SEM ad messaging increases search visibility and improves conversion opportunities.
#2. Control Advertising Cost with SEM Marketing Ad Campaigns
You decide how much you want to pay for each keyword click in an SEM ad campaign, so the cost is transparent. However, it does not mean advertising campaigns won’t get expensive. SEM campaign cost management is more than just budget control. Use SEM keyword research tools to identify lucrative long-tail keywords that can improve and accelerate the campaign to convert more traffic into customers.
Example of an SEM Ad Campaign Opportunity Cost
Let’s use the SEM Pay-Per-Click campaign as an example. If you pay $0.50 per click, with 10,000 clicks, you will end up with a $5,000 ad spend. On the other hand, if 3% of those clicks converts into a sale with a $50 profit, then you are looking at a $15,000 earning. With a 200% ROI ratio, it is a good start to a feasible marketing campaign budget plan.
#3. SEM Focuses on Targeted Marketing Campaigns
Unlike traditional marketing, where you target as many people as possible and hope that some of them will become customers, search engine marketing is a much more defined digital marketing strategy. SEM targets prospects who have already shown preliminary interest in what you have to offer. Search engine marketing allows you to hone in on a niche target audience that fits your demographic criteria, making the ad campaign more effective.
Example of a Targeted SEM Campaign
For example, use ad scheduling and geolocation settings to customize target audience reach in an SEM campaign. Then put it to the test and create a campaign that makes conversion happen. Learn how SEM ad scheduling and SEM geolocation customization reduce ad spending and hyper-target visitors with the highest opportunity to convert to customers based on data.
Focus on SEM Conversion Rate Improvements
A feasible plan and the right strategies set the foundation for a winning SEM campaign. The best advice for a successful search engine marketing ad campaign is to focus your effort on the conversion rate and don’t become fixated on the clicks. Make sure you are comfortable with the marketing budget, and continue to refine the SEM campaign until you identify the highest converting ad campaign strategy.
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