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Old 04-03-2006   #1
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PPC Agency Key Performance Indicators

Also I am trying to set up a new contract with our PPC agency and need to add a section in the contract about the percentage success rate of clicks on adverts to landing on the actual webpage.

What is the industry term for this?

Also has anyone got any other ideas on what I should including such as click fraud or Click through rates etc.
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Old 04-03-2006   #2
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Quote:
Originally Posted by Funky
Also I am trying to set up a new contract with our PPC agency and need to add a section in the contract about the percentage success rate of clicks on adverts to landing on the actual webpage.

What is the industry term for this?

Also has anyone got any other ideas on what I should including such as click fraud or Click through rates etc.
I think you are going at it the wrong way... and one if I was in charge of your account I would not allow to be considered a measureable.

You want to have a guarantee that the click reaches the website.... as your marketer they have no control over that... if there are problems with your server etc. .... if there is some type of problem with click fraud etc....

Use CTR for measuring improvement of the ad quality to the searchers as a whole... conversion rates are then dependent on landing pages and how good the site converts as well as the types of searchers that are coming through from your ads... take a step back and consider all the elements - not just the catch phrases you are hearing about.
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Old 04-03-2006   #3
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I think "Aussiewebmaster" has given you a SOLID advice you can't buy from anywhere. If you meet any search marketer giving you guarantees, take your wallet and RUN, not walk. The truth of the whole sum is embedded in the advice you just read.

Once your ad is set up, it's just the beginning; you (or your agency) don't just leave it that way and expect the whole Internet searchers to troop to your website through your ads. You (or they) need to test, monitor and tweak the ads and from the improvement of CTRs to Conversion rates, thereafter you start getting highly targeted traffic and increase in your sales.

Of course, it is possible to give you an assurance of better than average performance, AFTER a comprehensive research of what your industry and competition is like, but no good search marketer can give you cast iron guarantees.

I hope the little advice helps
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Old 04-03-2006   #4
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Yes the contract is based upon CTR, ROI and budget basis.

But we are adding KPI's i.e. advert click to website visit performance. As we see that around 1-2% of our Google clicks actually don't reach the website. These are not accountable but simple indicators that the new company has to adhete to and make sure that Google is accountable for.

I was only after the term so I can add to the contract?
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Old 04-03-2006   #5
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Thanks G7....
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Old 04-03-2006   #6
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Quote:
Originally Posted by Funky
Yes the contract is based upon CTR, ROI and budget basis.

But we are adding KPI's i.e. advert click to website visit performance. As we see that around 1-2% of our Google clicks actually don't reach the website. These are not accountable but simple indicators that the new company has to adhete to and make sure that Google is accountable for.

I was only after the term so I can add to the contract?
Mate there is always a descrepancy between your numbers and Google's and at 1-2% you are not getting any credit for them. Trust me I spend a million a month and they do not give it to us.
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Old 04-03-2006   #7
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I know they won't give me any credit but I have been in times where our click to visit percentage was way under 98% about 90% which was a combination of problems with Google, Atlas and some actual URLS. As we spend a lot of money on Google this could be huge.

I'm not holding the agency to this as part of the contract it's just a simple KPI that states they should be above or around 98% whether it is Googles fault or theirs. I'm not bothered who's fault it is as long as i'm not loosing 1,000s per month.

It helps that I have something written down which they need to adhere to and keeps them on their toes if it did ever go under 98%. Like G7 says they then need test, monitor and tweak

The agency hasn't made any promises other than ROI, CTR and budget which is what we have in the contract.

If there is no industry term for this Click to Visit percentage then I will go somewhere to ask.
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Old 04-03-2006   #8
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Originally Posted by Funky
I know they won't give me any credit but I have been in times where our click to visit percentage was way under 98% about 90% which was a combination of problems with Google, Atlas and some actual URLS. As we spend a lot of money on Google this could be huge.

I'm not holding the agency to this as part of the contract it's just a simple KPI that states they should be above or around 98% whether it is Googles fault or theirs. I'm not bothered who's fault it is as long as i'm not loosing 1,000s per month.

It helps that I have something written down which they need to adhere to and keeps them on their toes if it did ever go under 98%. Like G7 says they then need test, monitor and tweak

The agency hasn't made any promises other than ROI, CTR and budget which is what we have in the contract.

If there is no industry term for this Click to Visit percentage then I will go somewhere to ask.
Click to Visit is good enough as a term but to hold the marketing guy responsible for that is unrealistic and anyone who promises that is going to be a problem.
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Old 04-04-2006   #9
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I don't use AdWords, but I can see what you are looking for in terms of common sense, Funky, and you are looking in the wrong place.

An agent places a clickable ad for you, and somebody clicks on the ad, but for some reason the person doesn't reach the landing page. What's that got to do with the agent? How can the agent have any control over it? If you want it to be taken into account, you should be talking to the ad publisher (Google), and your server people (the server may have occasional outages), but not the agent who can have no control at all over that particular occurance.

Another thought is, how are you judging whether or not a person has reached the landing page? If you are counting requests for the page in your log file, ok, but if you have some sort of counting method on the page, then you should also be looking at your own landing page for answers. I've seen it where a 1x1 graphic was placed at the bottom of quite a large landing page. Requests for the graphic were used to count the number of people who reached the page. But it was placed at the bottom of a quite a large page, and it gave people time to see that the page isn't what they were looking for and Back away. In other words, some click to arrival differences were the fault of the landing page itself. In that particular case, the client's own acceptance figure was a 10% difference - due to the many reasons why clicks to arrivals didn't match.

But if you're only looking for a term to use, how about "click to arrival rate" (CTA rate) - we can coin it here

Last edited by PhilC : 04-04-2006 at 07:24 AM.
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Old 04-04-2006   #10
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PhilC thank you for the term that was all I was after.

I understand that it is not the agency fault but someone has to be accountable and if the agency is my contact between the media owner and Atlas then I want them to keep Google or who ever on their toes. But in my last place we saw in one particular month an estimated 12,500 clicks not reaching the specific pages they were meant to. of a monthly PCC budget of around 38k it we lost around 3375 in budget and a lot of revenue and profit.

This would obviously be shown in the ROI and revenue targets we set in the contract but as a simple indicator a CTA of 98% would be set to make the agency test, monitor and tweak.
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Old 04-04-2006   #11
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Quote:
Originally Posted by Funky
These are not accountable but simple indicators that the new company has to adhete to and make sure that Google is accountable for.
If the agency is not going to be held accountable for them, don't bother putting them in the contract.

And, again, if you're doig this to hold Google "accountable" for click-fraud, it doesn't go in the agency contract.

Gathering the data may be useful, but certainly not something you can hold the agency accountable to.

If a client proposed this to me, I'd simply suggest they find another person to manage the campaign. I understand everyone wants accountability, ROI, etc., but at some point, there's risk, you know? You're paying your money looking to get users to the site.

Nothing wrong with that. And there's nothing wrong with paying the agency for the use of their knowledge and successes tied to realistic goals and measures.

I have (and know others who have) turned down clients because no matter how hard we tried, we could not get on the same page as the client - to me, they were unreasonable. I'm sure they felt otherwise - best we didn't do business, I think...
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Old 04-04-2006   #12
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I haven't read it that way - not where the agent is "accountable" - and thinking about it, what Funky is after doesn't seem unreasonable. If I understand correctly, he's simply wanting the agent to monitor the CTA rate (or be given the CTA rate), so that s/he can take any steps that may be possible to improve it. For instance, if the client is counting requests for a graphic that is placed at the bottom of a large landing page, then the agent could suggest moving the graphic to a better position, or suggest counting the requests for the landing page instead. Or, the agent could possibly take steps to find out if the discrepancies are due to click fraud, and if there is anything that can be done about it.

In other words, it seems to me that the agent is required to take a bigger role - that's all - but not to be finacially accountable for missing the CTA target. That's how I've understood it, anyway.

<added>
I've I've understood it correctly, it's not dissimilar to what some SEOs are doing these days. Instead of just getting top rankings, they are also seeking to improve the site's conversion rate. They've expanded their role.

Last edited by PhilC : 04-04-2006 at 07:49 AM.
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Old 04-04-2006   #13
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PhilC you are a clever man, that is exactley how we want it to be.

I have been for years and years throwing money month after month at PPC we have improved CTR and CPC but then wasted some clicks. It's all goog and well getting better marketing and better converting sites but if the clicks, say 2 - 10%, aren't landing then the increase in CTR has no relevance.

I don't want to hold the agency down and say I want all my click spend that has been lost back. I just want them to have something to say they must keep at a certain level and so improve the conversions of the advertising and the overall site.

My new agency are looking at it from two angles better marketing / PPC and better site conversion. They are the online experts who are looking at our advertising and giving suggestions on deeplinks, booking processes, customer experience, CTA etc

Better CTR + Better CTA + Better site Conversion = Better PPC
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Old 04-04-2006   #14
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Quote:
Originally Posted by PhilC
I haven't read it that way - not where the agent is "accountable" - and thinking about it, what Funky is after doesn't seem unreasonable. If I understand correctly, he's simply wanting the agent to monitor the CTA rate (or be given the CTA rate), so that s/he can take any steps that may be possible to improve it. For instance, if the client is counting requests for a graphic that is placed at the bottom of a large landing page, then the agent could suggest moving the graphic to a better position, or suggest counting the requests for the landing page instead. Or, the agent could possibly take steps to find out if the discrepancies are due to click fraud, and if there is anything that can be done about it.

In other words, it seems to me that the agent is required to take a bigger role - that's all - but not to be finacially accountable for missing the CTA target. That's how I've understood it, anyway.

<added>
I've I've understood it correctly, it's not dissimilar to what some SEOs are doing these days. Instead of just getting top rankings, they are also seeking to improve the site's conversion rate. They've expanded their role.
SEO should always be working on improving conversion.... for that matter it is all about conversion.

Having the agent monitor and contact both the client and the PPC engine when there is a huge loss of arrivals is okay - but think - recent Active X problems.... the growing removal of cookies etc.
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Old 04-04-2006   #15
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Quote:
Originally Posted by Funky
PhilC you are a clever man, that is exactley how we want it to be.

I have been for years and years throwing money month after month at PPC we have improved CTR and CPC but then wasted some clicks. It's all goog and well getting better marketing and better converting sites but if the clicks, say 2 - 10%, aren't landing then the increase in CTR has no relevance.

I don't want to hold the agency down and say I want all my click spend that has been lost back. I just want them to have something to say they must keep at a certain level and so improve the conversions of the advertising and the overall site.

My new agency are looking at it from two angles better marketing / PPC and better site conversion. They are the online experts who are looking at our advertising and giving suggestions on deeplinks, booking processes, customer experience, CTA etc

Better CTR + Better CTA + Better site Conversion = Better PPC
You have a good agency - hopefully they are also tracking overall total traffic to the site - if when you notice this drop it is only in the number of PPC clicks you count and it is not reflected in the overall traffic numbers it is possible the traffic has lost some of the tracking code and thus you are not counting it right - it is being absorbed into organic numbers!!!
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Old 04-04-2006   #16
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Quote:
Originally Posted by AussieWebmaster
SEO should always be working on improving conversion.... for that matter it is all about conversion.
I disagree. Seo is about rankings. Many SEOs add to that with PPC management, ROI, conversion rates, etc. (they call themselves SEMs), but that's additional to seo, and many SEOs just do rankings.
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Old 04-04-2006   #17
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Originally Posted by PhilC
I disagree. Seo is about rankings. Many SEOs add to that with PPC management, ROI, conversion rates, etc. (they call themselves SEMs), but that's additional to seo, and many SEOs just do rankings.
Search Engine Optimization - can be narrowly looked at optimizing for search engine ranking or can be looked at optimizing results for search engine traffic - which would then include conversion numbers.
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Old 04-04-2006   #18
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We could have a good discussion on it, but I don't think that we should sidetrack this thead.
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Old 04-04-2006   #19
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Quote:
Originally Posted by Funky
PhilC you are a clever man, that is exactley how we want it to be.

I have been for years and years throwing money month after month at PPC we have improved CTR and CPC but then wasted some clicks. It's all goog and well getting better marketing and better converting sites but if the clicks, say 2 - 10%, aren't landing then the increase in CTR has no relevance.

I don't want to hold the agency down and say I want all my click spend that has been lost back. I just want them to have something to say they must keep at a certain level and so improve the conversions of the advertising and the overall site.

My new agency are looking at it from two angles better marketing / PPC and better site conversion. They are the online experts who are looking at our advertising and giving suggestions on deeplinks, booking processes, customer experience, CTA etc

Better CTR + Better CTA + Better site Conversion = Better PPC
Well, I don't think if you've been getting anything less than:
"Better CTR + Better CTA + Better site Conversion = Better PPC"
you were getting any good deal in the first place.

Any PPC marketer worth their salt would make sure of these to serve you. Even when I was just an SEO, I was always driven on "Better Site Conversions", I would often check the log files or make sure analytics are installed on the site to monitor traffic throughout the site and see where to tweak, as an SEO.

So you can imagine being an SEM and without "Better CTR + Better CTA + Better site Conversion = Better PPC" is completely unimaginable. If you are using an agency without the effective formula: Better CTR + Better CTA + Better site Conversion = Better PPC, then you need to look for one that would PROMISE that, because that is "promisable", especially with the Google system.

The only grey area is "Better CTA", which is like a beast that can only be tamed but not fully domesticated. It's a like keeping an animal in a zoo, but you can't bring her inside your bedroom. Dealing with click frauds from "strange countries", server outages, human errors, etc can NOT be wiped out, but only kept as low as possible through constant monitoring.

A good agency will tweak and tweak and tweak until you achieve the full result of "Better PPC", which includes making sure your landing pages are as effective as his ability, but you must give him the freedom to run the show.

Then that brings us to the subject of SEOs and SEMs. I strongly believe that if you're not effective with SEO, you will struggle to give your clients the best in PPC Management. In essence, Effective SEO + Power PPC = Master SEM. You can't be a good SEM if your SEO is questionable.

Funky, I wish you well , and hey guys I really like you contributions!
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Old 04-05-2006   #20
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Funky,

I'm going to come in here and agree with you. If your agency has the relationship with Atlas then they're the ones you need to make responsible for Click to Visit rates.

Why?

The trafficking of Atlas redirects is not a pleasant experience (though no different from many of their comeptitors - this is not an anti-Atlas thread, processing thousands of URLs is never pleasant). If you're dealing with thousands of keywords and URLs then its very easy to make mistakes. If you make a mistake in a batch (which could be thousands of keywords) then you could have thousands of Atlas redirects pointing to error pages. If these pages return the 200 header then Google may never notice.

Often PPC specialist agencies will not have a clue as to what a 200 header is either. I prefer agencies who are good at both PPC and SEO.

Situations like this would be clearly the fault of either your agency or Atlas and I would put the blame at the agency's fault since its part of their role to ensure its done right.

We have an agreed 1% discrepancy because it happens. Your example of up to a 10% discrepancy is scary. I can't imagine what damage that does to your ROI calculations, costs or even how the agency optimises the account.

If you do put this in your contract though then you need to be transparent with your web metrics so they can see the discrepancy and attempt to track it down and sort it.
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