5 Key Metrics to Measure Success of Google Adwords

SEM

5 Key Metrics to Measure Performance of Google Adwords Campaigns

16 Jun , 2015  

Are you managing the Google Adwords Campaign? If yes, do you keep track of more than hundreds of metrics that are available for tracking and analysis of the campaign?

It is difficult at times, but when you understand clearly the working of Adwords and its influential metrics and every nook and corner, its pretty manageable. Analysis and keeping track of changes should be the daily task and un-ignorable part of your managing.

 

 

When analysis is unavoidable, keeping track of hundreds of metrics is very confusing and overwhelming at times. It’s always smart way to cut down the list and monitor the sorted ones daily. So to do that, you need to look at these important key metrics to measure your success on  Adwords campaign.

 

Quality Score (QS)

Quality Score is the way Google measures the quality of your ads, in order to provide the best to their customers. QS not only benefits the users to see relevant ads as per their queries but also the advertisers by encouraging them by providing lower CPC and Higher Positions for the ads.

It is the simple estimation of quality of the Ad, depending on which Google decides its position in the sponsored space of search results and also how much you will pay for each click. In simple words, higher quality ads leads to lower prices and higher ad positions.

Quality Score is given from 1-10 for a keyword, where 1 being the lower and 10 being the higher.

Factors affecting the Quality Score:

  • Keyword Relevancy
  • Click – Through Rate
  • Landing Page Quality
  • CTR of Display URLs

Higher Quality Scores Benefits:

  • Traffic
  • Ad positions
  • Site links
  • Product extensions

Read More : What Is Quality Score & Why Is It Important?

 

Click – Through Rate

Many PPC experts say that CTR is the most important metric to determine the performance and success level of their campaigns. CTR is prominent for various reasons, and most importantly it is the primary factor for determining Quality Score, therefore monitoring CTR daily is quite crucial. CTR also conveys the relevancy of your ads as per search queries of the users.

 

CTR = ( No. of Clicks / No. of Impressions ) * 100

 

Having high CTR leads to high QS, that results in lower CPC and good ad positions. Whereas, Lower CTR conveys that keywords or ads or both are not performing well, and in these cases you have start from scratch and rearrange campaign, list your keywords and be creative with ads.

In order to improve the CTR : try to create creative ad variations, add valuable sitelinks, re-think on the grouping of adgroup & keywords (always target to match the search queries closely to the ads).

 

Cost Per Conversion

Adwords is all about getting a new customer or new registration, and Cost Per Conversion is the cost you need to spend to achieve that action. It is calculated as:
 

Cost Per Conversion = Total Spent / No. of Conversions

 
For any marketing campaign, it is key metric to calculate the difference between your spendings and your profits ( that counts as your Investments & ROI, indeed! ).

If Cost per Conversion is more, that means you paying more to attain one single conversion (or one single consumer), if the consumer is worth it then it’s completely fine, otherwise you are not attaining your return on investment. In these cases, think over again on landing pages and ad copies; optimize the campaign to decrease your Cost per Conversion and gain more consumers.
 

Conversion Rate

Every Adwords campaign has a different goal, one may be product purchases or signing up on your website or sometimes simply filling in the form. Conversion Rate measures your success rate in reaching your goal through Adwords. It is calculated when a user searches a query, clicks on your Ad, lands on your landing page and completes the desired action. So obviously, its quite important to monitor.

Increase in Conversion Rate, reduces the Cost Per Conversion; which enables you to bid higher and reach wider audience. In simple sense, Higher Conversion Rate indicates that you gain back what you have invested on Clicks in the form of profits, at the end of the day purpose of every campaign is to gain profits and meet up the goals, right?

 

Cost Per Click

CPC is the variable metric, the payable cost for one single click. According the positions and bidding, CPC might increase or decrease, showing the campaign to be in active state. Monitoring this metric daily gives you closer insights of your campaign performance.

Variations in CPC may indicate the following: Variation in CTR, Changing Competition Level, Landing Page quality, Ad relevancy and performance. Have a closer look at the CPC and manage the bid accordingly.

 

Have a closer look & monitor these metrics and manage your campaigns accordingly to gain success in Google Adwords. Share your views and tell us what metrics matter you the most to measure the performance.

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Hi Guys, welcome to my blog. I'm Sowmya, started this blog to project my passion towards digital marketing. This blog talks about digital marketing and helps online marketers create successful campaigns. Follow me and get in touch, so that we can learn and as well as grow together.



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