The most exciting part of any advertising campaign is finally seeing your efforts translate into determinate results. Your Google Adword’s Statistics table is a customizable chart that exhibits detailed campaign performance data. However, with Google Adwords, there are a myriad of ways to measure success: website traffic, sales, conversions, ROI, quality score, etc, the list goes on. Read on to learn about the various metrics and which are best suited for evaluating your campaign.
Impressions are the most basic of metrics for your campaign. Impressions are simply how often your advertisement appears on a page. Impressions are particularly important for branding. If your campaign is more focused on building brand awareness, then impressions are more pertinent to the success of your campaign.
Increasing online traffic (or the number of clicks) is often the primary motivation behind an AdWords campaign. The clickthrough rate (CTR) is a fantastic means of quantifying customer engagement. The tool measures the number of customers who click your ad as a percentage of the total number who viewed it. This subsequently tells whether your ad is successfully appealing to potential customers.
Return-on-Investment (ROI) is the ratio of your costs to your profits. This measurement is pertinent to all advertisers since it displays the success or failures of your advertising efforts. ROI results can be used to compare two advertising campaigns against each other. The key to increasing ROI is through measuring and improving conversion rates.
Conversion rates provide a measurement of how often a clicked ad results in meaningful action on your site. Conversions are imperative for determining whether your ads are actually encouraging valuable customer behaviour on your site (i.e signing up for your mailing list, taking a survey, buying a product, etc,). Conversion Tracking is a free AdWords tool that allows you to see and categorize what a visitor does after clicking your ad. Conversions are pertinent to campaigns focused on increasing sales or increasing customer site engagement.
The rank of your advertisement on a search page is a combination of the size of your bid and your “quality score.” This score is determined by the quality of the ad, the ad’s performance, and the quality of the landing page. A high score means your keywords, ad, and site are relevant to the searcher. Quality scores are an important aspect of the system because they help ensure the user will be pleased with their search results. Keeping tabs on your quality score is relevant to all advertisers, despite varying campaign goals, because the number affects your search ad ranking. The best way to find great keywords is by utilizing Google’s Keyword Planner.
Reach and Frequency
Reach is the number of visitors exposed to your campaign. Frequency is the average number of times a potential customer is exposed to an ad over a time period. These are important for campaigns focusing on brand awareness.
Measuring campaign success really comes down to the goal and objective you are trying to achieve. But, being accross all campaign metrics is important to see the overall effectiveness of an SEM campaign.