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Key Performance Indicators

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Digital Marketing - Study Notes:

Path of enquiry

For key performance indicators, we need what’s called a reporting framework, which is our path of enquiry. The one we’ve chosen here is:

  • Identification
  • Insights
  • Optimization

It’s basically around three questions:


The first question is the identification of those high value conversions, where they are. This relates to what location, what device, and what channel. Where are the conversions happening, or where are the conversions not happening, and we’re spending whatever it may be?  But we’ll take it from a positive perspective. Where are the conversions happening?


Once we’ve understood where the conversions are happening and what these valuable segments look like, we need to identify some insights. So we then ask why these people are there. We can understand why people are on a certain channel, or why people are using a device or a particular search engine.

Obviously for location, it’s more than likely because they live there. However, we do find with things like business travelers that they frequently log on in airports so that’s why they’re there and that’s an insight. It’s because they’re business travelers and they’re on business. So with that type of insight we’re able to understand how we can optimize.


When we have identified our segments, and understood why about those segments, we’re then able to move into investigating how can we optimize. What are the things we can do to make the journey more efficient, easier for them, and more profitable for us?

Google Ads Search Goals

We need to understand what the key performance indicator is that we’re trying to track? Is it a sale? Is it a lead? Or is it traffic?

Key performance indicators really should reflect your business goals and how they can be achieved online. And if you use a metric value makes it’s quite straightforward to understand what success looks like. We can then benchmark our campaign against predefined KPIs to measure the success of them. So are we ahead of KPI or are we below KPI?

KPIs are used to measure the success of your search campaign. They generally would revolve around sales leads or traffic metrics because they’re the kind of actions that we want to value when we’re assessing the performance of a search campaign. So these can be automatically optimized using Google Ads. So forward thinking and planning your campaign for what KPI you’re driving is essential to your reporting structure.

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Cathal Melinn

Cathal Melinn is a digital strategist, lecturer, and trainer. He has over 15 years’ experience in eCommerce, social media, affiliate marketing, data analytics, and all things digital. He worked at Yahoo! Search in 2005 as a Senior Search Strategist for the UK Financial Services vertical. He moved to the world of agency in 2010 as Head of Search and Online Media. Cathal’s previous clients include Apple, Vodafone, Expedia, Virgin, Universal Music Group, Amazon, Compare the Market, and HSBC.

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