Set goals for Cost Per Conversion. This should always be the primary measure of success.

• When your total cost per conversion is lower than your break even point, the campaign is profitable.
• You goal should be to have the lowest cost per conversion with the most conversions. These two sub-goals are opposed to one another because the more you pay per click, the more traffic you will be able to drive. It is important to determine the optimum compromise between low cost conversions and more traffic. But any time your cost per conversion goes above your break even point, the campaign will no longer be profitable.

Secondary goals can include:

• Traffic (total clicks). Issue: Traffic without conversion is wasted money.
• Click-through rate (CTR). Issue: Clicks without conversion is wasted money.
• Conversion rate. Issue: Good conversion may still lose money if the cost per click is too high.
• Average cost per click (CPC). Issue: Low cost per click is still not valuable if the clicks don’t convert. The secondary goals represent valuable data points, but all of them can show good numbers and still be part of a failing campaign. Always use these other measures in the light of your average cost per conversion.