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 campaigns 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. PPC has to be integrated with web analytics tool. The author of "Web Analytics: An Hour a Day", Avinash Kaushik, adviced the use of many web analytic tools and to incorporate the PPC data into it so that its effectiveness can be measured. Kaushik specified that access to the backed of web analytics tools is vital to know what is happening behind the scenes (instead of hiring an SEM service for this task).

2. Define your key performance indicators. The next question you need to answer is what exactly 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 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. Monitor your unique visitors. Even if the unique visitor does not generate any income or leave any follow up details, you need to know how much it cost you for them to visit your page. This data is relevant as it reflects on the effectiveness of the PPC campaign. When people just visit the site and leave immediately, it is possible that you are using the wrong keywords.

4. Do split testing. Split testing is a common technique used by online marketers that want to determine which keywords or keyphrases work best for conversions in their given market. Split testing means running the same ad across all three ad service providers at the same time. This will allow you to track clicks and find out where the majority of your target market is clicking and how they are finding you. Once you have this data, you can focus your advertising efforts exclusively on the network with the highest return.

5. Know the cost of each acquisition. When you know how many visitors your website has and how many of them actually generate you income, you can accurately compute the individual acquisition cost of your campaign. This will tell you exactly how much you have spent to get a sale. Then, you can calculate the average selling price and study your ROI.

Figuring out the efficiency of your Pay per click online tool may be time consuming and it is necessary to make some changes as you continue your campaign. But, it is a procedure that most internet savvy marketers do to be able to optimize their ads and achieve the highest conversions from individual Pay Per Click campaigns.

Google Advertising is an important resource that most websites can use to attract more sales. Creating quality Google Ads is one of the most important skills to have when using Ad Words - and there are several quality training resources available online.