SEM: Measuring Up
The most important thing to remember is to find a reputable third-party provider. If you’re putting irrelevant data into your measurement systems, you’ll get irrelevant data back out. This can hinder the results of all tracking in the future.
In-house vs. Outsourcing
There’s no clear line in the sand when choosing between handling your PPC campaign measurement in-house or outsourcing to a third party. However, deciding whether you should use an in-house resource or outsource can be determined by a number of factors. Keeping SEM management in-house might be the right choice if:
•Your company has never used PPC to promote its services. Keeping the knowledge in-house is a good way to learn and grow.
•You’re looking to optimize your costs. Look at the charges and costs associated with using the provider. Most of the time these firms will charge you a percent of the search. It’s hard to save money when you’re tacking on a 15 percent service charge.
•You’re looking to increase the volume. Many PPC advertisers have found that when using a bid optimizer, the volume of the campaign is affected negatively.
And remember, if you initially decide to keep your resources in-house, you always can look for more outside services to boost results in the future.
Determining Your ROI
Whether you outsource to a third-party provider or keep measurement in-house using PPC provider tools, you should still keep an eye on what your online advertising dollars are getting you. One important figure you should know is your ROI.
Here’s a quick example using a basic formula to determine ROI. First, figure out the following numbers: your amount spent, conversions and the average revenue generated by each visitor. After gathering this information, you can use the following formula to determine your ROI: