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AdWords Analysis: Key Metrics to Measure

home / Advanced PPC / AdWords Analysis: Key Metrics to Measure

AdWords Analysis: Key Metrics to Measure

A common mistake that many AdWords advertisers make is not devoting enough time to analysing their campaigns and measuring their performance. Researching keywords, setting up text ads, and driving targeted clicks to landing pages is already more than what most business owners do. But further growth opportunities can be found by establishing benchmarks for key metrics and taking action when results do not add up.

Here we look at the key metrics to monitor and provide example scenarios of how you can troubleshoot your campaign.

Key Metrics For AdWords Analysis

Quality Score (QS): Advertisers who bid the highest price are not necessarily guaranteed the top position. The higher your Quality Score, the higher you rank and the less you pay overall for each click. Factors that affect Quality Score include keyword relevance, click through rates, and landing page quality.

Click through rates (CTR): Click through rate refers to the percentage of users who see your ad and those that click through to your landing page. This is perhaps one of the most important metrics as it affects Quality Score and even how much you pay.

Cost per conversion: AdWords is ultimately about driving clicks to your pages and increasing sales. Cost per conversion is calculated as the total amount spent and the number of conversions. The higher the number this is the more you pay to attain a single conversion.

Conversion rate: Every campaign has a different go weather to increase sales or sign ups on your website. Understanding conversion rate is the key to measuring the success of your campaign and how well your ads are performing.

Cost per click: This is another variable that changes on a daily basis depending on how competitive the keywords you bid on are. Monitoring this metric lets you more effectively manage your bids and even reduce your average cost per conversion.

There are numerous other metrics that you can measure but these are the most essential. Measuring these metrics provides a visual representation of how your campaigns are performing and can even identify areas that need improvement.

Here are some example scenarios:

Low click through rates: Low click through rates are an indication that your ads are simply not compelling enough. In this case, consider running A/B tests on your text ads and measure changes (e.g. headlines, description text, etc.) to improve click through rates.

Low Quality Scores: If your Quality Score is on the lower scale, this is a strong indication that your campaigns are not relevant enough. Take steps to improve your Quality Score by refining your keyword groups, making changes to the text ads, and making your landing pages more relevant.

Low conversion rates: If your campaigns are barely converting traffic, you need to understand the reason why. Digging into your reports can reveal valuable insight that you can take action on to improve conversions.

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Even if your campaigns are already generating excellent results for your business, chances are there are numerous areas that can be greatly improved. This is why you need to establish benchmarks and measure these key metrics on a daily basis. But most importantly you need to take immediate steps if any of the numbers dip below acceptable figures.

Taking these efforts will give your PPC campaigns a major boost.

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