Why the Cost-per-Click Metric Can Be the Wrong Metric to Measure

…and an Argument for Measuring CPA

My co-worker, Jenae, recently sent me this email:

“I can’t tell you how many calls I have with folks who are hung up on cost per click (CPC). It’s the main metric they focus on when they start to dig into their campaigns and what they think they want to use Yield Software to optimize. It takes me a couple of discussions and lots of detailed examples to help them understand that while CPC is a tempting metric, having a low CPC doesn’t necessarily translate into a successful campaign — especially if you want conversions or are more ROI-driven.”

Search engine marketing comprises a number of tactics – online and offline – including pay-per-click (PPC) advertising, organic search, branding, and the various methods used to funnel traffic to your Website landing pages.

Too…

Web Marketing 101 Series: Intro to Return-On-Investment (ROI) Measures for SEM

Simply put, return-on-investment (ROI) refers to what is returned in profit as a result of any given investment.  When applied to web marketing, ROI typically refers to the profits generated as a result of your marketing investment.  Within the larger marketing profession, web marketing has been growing in popularity since its introduction in the late 1990’s because of its very precise measurability.

Unlike outdoor advertising (i.e. billboards) or radio and television ads, where precise correlations to ROI can be elusive, search engine marketing (SEM) enables marketers to track interactions and behavior at every step of engagement.

Though a huge number of web marketing professionals employ display advertising on sites like NYTimes.com or FOXNews.com or Yahoo!, a growing share of marketing dollars are being directed to the search engines and specifically pay-per-click (PPC) campaigns.  By buying the “Sponsored…