Passed on 22 May, 2025
5. Measuring success in SEM campaigns
In SEM, knowing what works goes beyond clicks; it’s about understanding which actions add value to a business. This lesson will guide you through essential strategies for tracking and optimising SEM campaigns, helping you get the most out of every ad.
✅ Learning objectivesBy the end of this lesson, you’ll be able to:Identify key actions to track as conversions.Calculate and assess the value of ad clicks.Use analytics to optimise keywords and bids.
Learning objectives
By the end of this lesson, you’ll be able to:
Identify key actions to track as conversions.
Calculate and assess the value of ad clicks.
Use analytics to optimise keywords and bids.
Conversions
One of the best parts of SEM is tracking the value of your campaigns through conversions—the key actions you want visitors to take.
What counts as a conversion?
Say you’re a wildlife photographer who sells prints online and takes bookings for exhibitions. What kinds of actions might count as ‘conversions’ on your website?
Placing an order for a print.
Submitting an enquiry through a contact form.
Downloading your portfolio as a PDF.
Clicking a link to receive your rates via email.
How to track conversions
Tracking conversions is easier than ever with tools provided by search engines like Google and Bing. Here’s how it works.
Universal code
Most websites use a universal tracking code, often installed in a tag manager or the site’s header, to track user activity across the site. Specific actions or events, like completing a purchase, can then trigger the code to log a conversion.
Completed orders
When a customer completes an order, they’re directed to an order confirmation page. Use the universal tracking code and set it to trigger a conversion event when this page is loaded, helping you measure how effective your ads are in driving sales.
Online enquiries
Set up your tracking code to trigger when a customer completes an online enquiry. For instance, configure it to activate on the “Thank You” page users see after submitting their form, so you can track leads generated by your ads.
✅ ActivityNow you’ve learned about tracking conversions, think about actions you’d want to track for a brand or website. If you don’t have a brand, reflect on a recent experience as a customer—what actions did you take that showed a successful visit?Check the items off as you go.List 2-3 actions you want visitors to take.Note why each action benefits your goals.Decide where you’d place the code to track these actions on your site.
Activity
Now you’ve learned about tracking conversions, think about actions you’d want to track for a brand or website. If you don’t have a brand, reflect on a recent experience as a customer—what actions did you take that showed a successful visit?
List 2-3 actions you want visitors to take.
Note why each action benefits your goals.
Decide where you’d place the code to track these actions on your site.
Download PDF
Download PDF
Measuring the value of ads
Knowing the value of a click is essential for judging the success of your ads and keywords.
The magic measuring formula
Here’s how to measure the value of an ad click.
1. Calculate your conversion rate
This is the percentage of people who click on your ad and take the desired action (e.g., make a purchase, fill out a form). For example, if 100 people click your ad and 5 make a purchase, your conversion rate is 5%.
This is the percentage of people who click on your ad and take the desired action (e.g., make a purchase, fill out a form). For example, if 100 people click your ad and 5 make a purchase, your conversion rate is 5%.
Check your knowledge
We’ve covered a lot of topics in this lesson. It's time for you to check and reflect on what you've learned about measuring success in search engine marketing campaigns.You must complete the knowledge check to move to the next lesson.
You must complete the knowledge check to move to the next lesson.
You must complete the knowledge check to move to the next lesson.
Question 1 of 1
You’re a photographer selling prints of your photos online. You run an ad to help sell more of your wildlife photography. If each photo sold is worth £40 and your ad’s conversion rate is 15%, what is the average value of an ad click?
A. £2
B. £4
C. £6
D. £8
Submit
Submit
Yes.To work out the average value of a click, multiply the conversion rate by the value of a conversion. In this example, the conversion rate is 15% (or 0.15) and each sale is worth £40. So the average value of a click is £6 (40 x 0.15).
Using analytics in SEM campaigns
With built-in analytics tools in SEM platforms, you can track what you spent and where, helping you understand which campaigns or keywords delivered the best results. Many platforms also offer AI-powered insights and reporting features to simplify data analysis and make it easier to optimise your campaigns.
Data-driven decision making
Whether you’re analysing your keywords, your ads, or how you’re bidding in your campaigns, tools like Google Analytics are essential to get the most out of your SEM investments.
Track keyword conversions
With analytics tools, you can check keywords for each campaign and instantly see which are most effective. In your ‘Wilderness Adventure’ campaign, ‘wildlife photography prints’ has a 5% view rate, but ‘Wild landscape prints’ drops to 1%, showing room to optimise.
Optimise your ads
Review your landing pages by testing new ones or optimising existing destinations to better align with your ads. Track results to see if these changes improve conversion rates. Compare your ads side by side to gain insights into what works best for your business.
Adjust your bids
Analytics tools help you optimise bids for better returns. If ‘wildlife photography prints’ drives traffic but low conversions, it might signal the wrong audience. Review your creatives and targeting, and try bidding less to test if a lower position improves value.
Lesson complete
Great job!Remember, effective SEM means tracking conversions, understanding what each click is worth, and adjusting bids to optimise results.Up next, we’ll be introducing display ads. Let’s keep the momentum going!
Remember, effective SEM means tracking conversions, understanding what each click is worth, and adjusting bids to optimise results.Up next, we’ll be introducing display ads. Let’s keep the momentum going!
Up next, we’ll be introducing display ads. Let’s keep the momentum going!
Up next, we’ll be introducing display ads. Let’s keep the momentum going!