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Revenue Per Click: Tracking a Key Performance Metric

In profit-driven marketing, data is key. After all, that’s why we manage accounts to profit in the first place – because it’s the only metric that accounts for both efficiency and sales volume.

On a more granular level, creating profit in marketing campaigns involves tracking and understanding a variety of metrics. There are the basics, of course, like sales, conversion rate, revenue, and cost-of-goods. But there are a handful of other metrics that offer a wealth of insight into the profitability of campaigns and possible improvements. That includes the subject of this whitepaper – revenue per click.

This metric is pretty self-explanatory: it’s the amount of revenue generated by the average click. Trends in this metric offer a lot of insight into campaign performance. If more revenue is created per click, you may be able to justify an increase in spend (assuming cost doesn’t get out of hand!) On the other hand, a reduction in revenue per click often means spend needs to be reallocated to more productive campaigns or ad groups. With the right analysis, you can use RPC data to discover the CPC adjustments needed to grow revenue and profit in your campaigns.

If you can accurately track and interpret this metric and others, and use that data to implement strategies that will improve campaign performance, you will grow revenue, and increase profit. Read on to see how!

You'll Learn How to...

Accurately calculate revenue per click; 

Interpret RPC with the context of other performance metrics;

Understand trends in campaign data, and what that means for your advertising strategy; and

Calculate the adjustment in CPC needed to make a campaign profitable using current metric data.

Revenue Per Click Whitepaper

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Revenue Per Click:
Tracking a Key Performance Metric

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Author

Christina is the Marketing Manager at Omnitail. She spent several years doing content, PPC, and email marketing for retail and tech companies before starting as an SEM Analyst at Omnitail. Christina now manages Omnitail's various marketing initiatives and enjoys reading and writing about trends in digital marketing.