The advantage that the online environment offers to the offline environment is that for any amount invested, you will be able to have data on how each leu has been spent. More than that, you will also have information about the user, about his behavior or his actions.
Google Ads is one of the most complex promotional platforms because it provides you with all the types of targeting you need to generate sales, or more than you have a lot of metrics to give you a complete insight into how campaigns are performing.
The most important metrics are
When a person clicks on your ad, Google Ads will count that action and charge you for it.
An impression is counted every time your ad is served. Impressions help you understand how often your ad is being seen.
– Click Throught Rate
Clickthrough rate (CTR) measures how often people click on your ad after it’s shown to them, which can help you understand the effectiveness of your ad.
CTR is calculated by dividing the number of clicks your ad receives by the number of times your ad is shown. If you have 5 clicks and 1000 impressions then your CTR is 0.5%.
This metrics is extremely important because with it you can understand how relevant are the ads for the users.
If you hold an average position between 1-3, the CTR should be at least 10%, for positions higher than 3 you will have a very low CTR, which will also be reflected in costs. Make economics with a small CPC, but your visibility is not satisfactory. A small CTR will negatively affect the Quality Score.
– Average position
Average position helps describe how your Ad Rank compares with other ads.
– Average CPC (Cost per click)
When making a campaign, you need to enter a maximum CPC. The system will bid on the amount entered and will charge you when a user clicks. This metrics shows the average amount you paid for a click.
The cost is the amount of money you will pay for your clicks.
For an ecommerce, a conversion is placing an order in the online store, but for a service provider a conversion is a form filling, making a booking, subscribing to the newsletter, getting leads, making a call, accessing a page and so on.
– Cost / conversions
As the indicator name says, it will show how much you spent on average on your campaigns to get a conversion. Let’s say the ads have generated $ 1,000 costs, and you’ve earned 60 conversions worth $ 30,000. The cost per conversion is $ 16.66.
– Conversion rate
Conversion rate (“Conv. Rate”) shows how often, on average, an ad interaction leads to a conversion. It’s “Conversions” divided by the interactions with your ad.
Ad interactions include clicks for text ads and views for video ads. This metric only includes interactions that could lead to conversions.
– Conversion value
Conversion value is the amount you received from orders placed by users who entered the site and purchased through the ads. For online stores, this indicator will have a monetary value provided by Analytics.
The Analytics account must be properly linked to the site so that the data is properly recorded.
For service providers, each conversion will have a value of 1 or you can set an estimate for each conversion separately.
– Quality score
Quality Score is an extremely important metric that accompanies each keyword. The more a keyword has a better quality score, the better it will perform better and obviously it will cost you less.
You have to understand from the very beginning that a user is relevant. Google penalizes and charges you extra each time you promote keywords that are unrelated to your business or are not relevant.
The most important quality scores metrics are
– “Expected CTR” measures how likely it is that your ad will be clicked when shown. This score is based on the past clickthrough performance of your ads. We exclude the effects of ad position and other factors that affect the visibility of your ad, such as extensions.
– “Landing page experience” estimates how relevant and useful your landing page is for people who click on your ad. It takes into account factors such as how well your landing page matches the person’s search term, and how easy it is for people to navigate your page.
– “Ad relevance” measures how closely your keyword matches the message in your ads. And below average score may mean that your ads are too general or specific to answer the user’s query, or that this keyword is not relevant to your business.
Qulity score of a keyword is between 1-10 and a best quality score will bring you a lower cost per click, a top position, a greater number of conversions, and a more accurate CTR. All of this is relevant.
Best tips for optimize Google Ads
Create ads containing keywords entered in your campaign or ad group.
In ad groups, just enter keywords that are from the same family of words (women’s dresses, women’s dresses, cheap women’s dresses).
Send users to pages that are relevant to the ad you are promoting. If you promote women’s dresses, do not set as a landing page a women’s t-shirt page.
Also keep track of CTR. A higher position of 3 will influence your CTR and by default you will also score the quality score.
Keep track of the ads, the way they perform, the keywords you set, the landing pages, the keywords and ads, as well as the searches on which the Search Terms appear because some searches may be irrelevant to you.
– Search lost impression share (rank)
“Search lost impression share (rank)” estimates how often your ad did not show on the Search Network due to poor Ad Rank.
– Search lost top impression share (rank)
Search lost impression share (rank) estimates how often your ad did not show anywhere above organic search results due to poor Ad Rank.
– Search lost absolute top impression share (rank)
Search lost absolute top impression share (Rank) estimates how often your ad was not the very first ad above organic search results due to poor Ad Rank.
– Search lost impression share (budget)
“Search lost impression share (budget)” estimates how often your ad did not show on the Search Network due to low budget.
– Search lost top impression share (Bugdet)
Search lost impression share (Budget) estimates how often your ad did not show anywhere above organic search results due to low budget.
“Bounce rate” is the percentage of single-page visits or visits in which the person left your site from the entrance landing page. This metric is imported from your Google Analytics accounts and is calculated based on visits that originated from Google Ads clicks.
Pagges / session
“Pages / session” is the average number of pages viewed per session per site. You can use this metric to measure visitor quality. This metric is imported from your Google Analytics accounts and is calculated based only on sessions that originated from Google Ads clicks.
Average session duration
“Average session duration” is the total duration of all sessions divided by the number of sessions. You can use this metric to measure visitor quality. This metric is imported from your Google Analytics accounts and is calculated based only on sessions that originated from Google Ads clicks.
Besides the listed indicators, Google Ads will allow other metrics to be included for a much more advanced analysis and forecast, but nevertheless we recommend that you include the above.
With the main highlights you’ll know how many times an ad is shown, how many clicks it receives, clickthrough rate (CTR), average cost (Avg CPC), average position, cost, conversion, cost / conversion, conversion, and bounce rate, page / sessions, average session duration.
Important information you will know about the position you occupy on the market and if the current budget allows you to get the position you want in the fight with your competitors.