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PPC – 8 Misleading Metrics

Internet Marketing has long since shifted to smarter and more analytical strategies. And this efficient and data-based marketing all depends on the metrics (like traffic and conversions) gathered by your analytics platform. However, not all metrics are equal and some have actually been misunderstood or overvalued.

Presented here are 8 of the most misleading metrics in PPC.

  1. Time on Site – This metric used to be valuable way back in the 90’s when websites used to send all their traffic to their homepage. The time a user spends on the site would then be important for marketing reasons. However, with sitelinks offering bridges to specific parts of the website, this metric has become unreliable.Some analytics softwares also have problems for accurately recording this metric. An analytics software usually tracks the actions of the user up to his last action and is unable to record how long the user stays on the site after his last action. This produces skewed and unreliable results.
  2. Click-Through Rate (CTR) – CTR is another metric that is not so reliable. CTR values can be skewed by SEM managers thru increasing your bids and using sitelinks or other extensions.If a keyword has a high CTR but low conversion rates, you are mostly just wasting money. Even if a keyword has a low CTR but it still converts below your target CPA, then this keyword is still making a profit for your company. Although the ultimate goal would be to have high CTR and conversions, don’t let CTR alone determine your actions.
  3. Quality Score – With regards to PPC quality score usually has little influence. There are still some keywords that may give you a low quality score but still give you significant profits. Bidding on your competitor’s brand name, for example, is also one PPC tactic that entails bidding on a low quality score keyword that is your competitor’s brand name.If you still profit from these keywords, don’t let a low quality score stop you.
  4. Impression Share – It can be inaccurate because your optimisations efforts into an account are not part of the calculations for impression share. A SEM manager’s job is to increase or decrease bids on keywords based on its performance and not on impression share.Just don’t use keywords or groups of keywords if they are not gaining you any money.
  5. First Page Bids – First page bids aren’t the absolute value for your bids to get to the top 3 slots. Sometimes you can even get to the first page even if you bid less than the first page bid thereby saving you your money.Do some manual bidding and testing for you to be able to arrive at the right amount.
  6. Average CPC – Considering only your average CPC will make you overestimate or underestimate the amount you are paying per click. Average CPC can be misleading because it is heavily affected by your competition. Throughout the day, you may bottom out at $10 but also peak at $200.Don’t put too heavy a consideration to your average CPC so that you don’t misjudge how much you are paying for your keywords.
  7. Average Position – The argument for average position as misleading is the same as the Average CPC’s. It is also heavily reliant on your competition and may lead you to misjudge your actual positions.You must also take into account the number of competitors that are also bidding on your keyword set. Also with how many ads are showing in the top of search results, there are many other metrics that you need to consider.
  8. Conversion rate – Well, before you react, no, I’m not saying that this metric isn’t important. I’m just saying that you may be misled by this metric. In actuality, this metric is really important as this is the data that runs most of the data-based search marketing. However, depending on your case, it may lead you to make incorrect assumptions.For example, you have a product which you sell in 2 sizes: small and large. And for the purposes of this example, let’s say that these two have different prices and the large product nets a higher profit for you. You may have a conversion rate that is high but upon closer inspection, those conversions may only be for the small product.

Depending on your case, carefully consider every factor before making an important decision.

Filed Under: PPC

“I have worked with Aidah for the past 4 years. She has been key to our digital marketing success. Her expertise was tremendously useful especially in attracting our target customers from various countries from the US and Europe. Our consultations with her are always productive as she deeply understands our busines model. She recognizes clearly what will attract our potential clients to take action and points us in the right direction always. I do not hesitate recommending her consultation services to any of our own clients or partners.”

Angela Ng
Marketing Director, Paul Hype Page & Co

“One of the strategies I employ to gain more clients is running Google AdWords campaigns. I have been doing this happily for many years but I wasn’t sure whether I was maximising my ROI based on the ad spend. When I shared my AdWords campaign with Aidah, she immediately managed to point out some mistakes that were costing me some dollars. While it seemed small, but when the mistake is accrued over many days, multiplied by many months – it was becoming an expensive mistake! And that was when I realised how true this adage was – “you don’t know what you don’t know”. I highly recommend working with Aidah if you need expert advice on your digital marketing campaigns. An hour or two with her might save you a few thousand dollars.”

Ridjal Noor
Managing Director, Pullupstand.com Pte Ltd

Her unconventional marketing strategies coupled with some insights on human psychology has helped to push up the number of leads generated. Her efforts has helped generate more than 600 leads over the last 12 months which certainly helped to boost my production and sales closing. In a property market with so many cooling measures, her marketing execution is first-class.

Gary Seah
2016 Propnex Top Producer - 30th Position

Aidah's deep knowledge on Google AdWords has certainly helped to drive quality traffic to our UON Singapore's website. Her ability to scale up campaigns fast and provide insightful analytical feedback is first-rate. The results are evident in the first three month of the campaign and I will definitely engage her for future campaigns! She makes a great partner for any online marketing campaign.

Shaikha Nazmin Mattar
Assistant Manager, Marketing and Business Development (UON Singapore) at University of Newcastle (UON), Australia

Both of us regularly consult with her - she has helped us tremendously to reframe and strategize our marketing approach.

Gaynor Lim
2016 Propnex Top Producer - 6th Position

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