Pay per click marketing is an important part of your online marketing strategy, but how do you know if what you are doing is getting any results? Learning how to measure the effectiveness of PPC campaign is a relatively simple process, but it does require some basic knowledge about how SEO and PPC work, and access to web analytics tools. Here are some simple ways to measure the effectiveness of PPC campaigns:

1. Integrate PPC with your web analytics tool. Avinash Kaushik, author of the book "Web Analytics: An Hour a Day" recommends using several web analytics tools and integrating your PPC data into it to measure the effectiveness of your campaign. Kaushik points out that it is important to get access to the backend of your analytics tools so you know exactly what is happening behind the scenes (rather than hiring an SEM agency to do this for you).

2. Determine the Key Performance Indicators (KPI). The next question you need to address is what generates a 'sale' for you? Is it the click to a sales page (a lead capture)? Is it the payment and transaction itself? Defining what's the KPI for a particular campaign will help you limit your target and monitor user behavior that's getting the conversions you want.

3. Monitor your unique visitors. Unique visitor counts will vary substantially by each and every campaign, and you'll have to know exactly how much it'll cost you to get all these visitors, even if they did not finish a purchase or submit their information. The main reason why it's important is simply because you need to know if the campaign really works. If people are just clicking through to your site but not converting, you may be targeting the incorrect keywords.

4. Do a split test. Split testing is actually a typical technique used by internet marketers that want to determine which keywords or keyphrases perform better for conversions in their given market. Split testing means operating similar ad across all 3 ad service providers at the same time. This allows you to monitor clicks and find out where the majority of your target audience is clicking and how they are finding you. Once you already have this particular data, you can focus your marketing work exclusively on the network with the most return.

5. Decide on your cost per acquisition. Once you know the number of visitors coming to your site, and how many people are converting, you can get an accurate assessment of the CPA for the campaign. This is the exact amount of money it takes to get a sale. After that, you'll be able to calculate the average selling price as well as take a close look at your return on investment (ROI).

Measuring the effectiveness of your pay per click marketing campaign may take some time, and you'll need to tweak it as you go along. Even so, it's a procedure that every smart marketer must go through to optimize their advertisements and get the most conversions from each and every campaign.