Pay per click ads like that of Google Adwords is an vital part of your online marketing strategy, but how do you know if what you are doing is getting any results? It is possible to gauge how successful your Pay per click marketing tactic is with the use of a simple process that requires only access to web analytic tools and a basic understanding on how SEO and Pay per click works. Here are some simple ways to measure the effectiveness of Pay per click campaigns like Google Adwords:

1. Integrate Pay per click with your web analytics tool. “Web Analytics: An Hour A Day” author, Avinash Kaushick, expertly stated that measuring the effectiveness of a Pay per click campaign can be done with the use of several web analytic tools along with the integration of Pay per click data into it. Kaushik emphasized the need to get a deep look into what is really happening at the backend of the web analytics tools used, and that doing this will save you from the expense of hiring an SEM agency to do the service.

2. Define your key performance indicators. Take the time to analyze what exactly generates income? Is it the click to a sales page or a lead capture? Is it the payment and transaction itself? Defining what is the performance indicator for your particular campaign will help you narrow down your focus and track user behavior that is getting the conversions you need.

3. To track unique site visitors. Unique visitor counts will vary significantly by campaign, and you will need to know exactly how much it cost to attract these visitors, even if they didn't complete a purchase or submit their information. The reason why this is important is because you need to know if the campaign is working. If people are only clicking through to the site but not converting, you may be targeting the wrong keywords.

4. Do split testing. This test is usually done by internet savvy marketers to aid them in figuring out what are the keywords or keyphrases that work the best for conversions from their prospective market. Split testing means running the same ad across all three ad service providers at the same time. The data results that you can gather from a split test are click tracking, where most of the clicks are coming from, and how your target market finds your site. With this data in hand, it will possible to assess the performance of each service provider, and work exclusively with the one that gives you the best results.

5. To find out the cost per acquisition. Once you know how many people are coming to your website and how many people are converting, you will be able to generate an accurate assessment of the cost per acquisition for your Pay per click campaign. You will be able to get exactly how much is spent to generate a sale. After that, you will be able to calculate the average selling price and take a close look at your ROI.

Measuring the effectiveness of your Pay per click marketing strategy can take time and you will need to tweak it as you go along. Still, it's a process that every savvy marketer needs to go through in order to optimize their ads and get the highest conversions from each and every campaign. Keep in mind that these are only the very simplest and most basic techniques. If you want to capture more of your target market, there are some more ways by using other marketing strategies from Google Advertising.