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How do you know the effectiveness of your PPC ads?

The traditional method is to create a separate landing page that has no other incoming link for each ad . Then you can just use your stats to check the traffic to that page. (Make sure you have a link out to your home page, however.)

Another method is to play with the URL of the page you’re targeting. If you do this, you don’t need a separate landing page for every keyword if you’re marketing the same product or service. (A separate landing page to entice immediate visitor action on the product or service, however, is still essential. You can just use the page this way for both Google and Yahoo and for an infinite number of key phrases.)

You can accomplish this by adding a “?” (no quotes) after your landing page URL; for instance, www.buythisnow.com/specialoffer becames www.buythisnow.com/specialoffer/?src=google (to track just the source) or www.buythisnow.com/specialoffer/?src=google&kw=widget (to track both source and keyword).

Everything after “?” is ignored when the URL is accessed, but the page’s full URL will show up on your stats.