The effectiveness of an PPC ad campaign can be measured by the results it has achieved. An advertiser should always measure his ad campaign so that he can take necessary steps on that basis. When ad campaign results in increase or sale of product or service it is called as quality management.

An advertiser should always decide the goal for a particular ad campaign. Goal can be achieved if someone buys your product, if someone subscribes to your newsletter, or if someone just by share personal data. Setting a goal  followed by a well crafted ad campaign and analyzing result completes advertising campaign.

An ad campaign can be measured in terms of ROI, which is called return on investment. ROI is the measure of budget spent on a campaign, versus the income generated through an ad campaign. The other term used to measure ad campaign is CPA. CPA is called cost per action or cost per acquisition. It’s the amount spent to convert a visitor to customer. CTR stand for click through rate or click through ratio, it’s the percentage of ad visible and an ad clicked. All these data can be utilized to measure an ad campaign and necessary steps can be taken to improve it.

All major ppc ad networks provide a detail chart of above data, you should develop the habit of reading and understanding the data.

Quick Tip: If  your ad campaign  CTR is quite high and conversion is very low chances are there is a click fraud issue. You should report the ad company for that.