Key performance indicators in AdWords and the effectiveness of the campaign

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Do you use SEM - search engine marketing - and are currently running a sponsored links campaign for your websites? If so, you should keep an eye on whether your marketing activities bring you certain profits. To this end, the AdWords KPIs will be useful, which will make it the easiest way to assess the effectiveness of your campaign. Thanks to them, you can easily determine whether the actions taken by you achieve the previously set goal!

Key Performance Indicators in AdWords - Introduction

SEM (Search Engine Marketing) is search engine based marketing. Currently, it is one of the most popular forms of internet marketing, eagerly used by numerous website owners. SEM consists of two basic types of activities: SEO and PPC. SEO (Search Engine Optimization) - optimization of websites for search engines - is all activities that aim to obtain the highest possible position by the website in organic search results. PPC - Pay Per Click - is known in Polish as a sponsored links campaign. It is a form of advertising on SERPs, i.e. pages with search results. The leading PPC advertising system on the Internet is Google AdWords.

When analyzing the SEM measurement methods, we will focus in this text primarily on activities related to sponsored link campaigns using AdWords. You will learn how to measure the effectiveness of your advertising activities in search engines and what to pay attention to in particular during this type of analysis.

KPIs - First: the goal

In order to effectively analyze an advertising campaign in AdWords, it is necessary to set goals at the very beginning to be achieved by marketing activities. Depending on the industry, the goals may vary - sometimes it will be increasing sales, sometimes increasing the number of sales leads, website traffic, etc. It is also worth determining what level of growth you are interested in. Then, following the setting of the goal, you should set the key performance indicators in AdWords (KPI - Key Performance Indicators).

What is this? Suppose you have set an increase in sales as the operational goal of your company. However, you want to measure whether sales are actually increasing. Here are the KPIs that will help you determine it - for increasing sales, a key performance indicator can be, for example, the conversion rate to a cart on your website or simply an increased turnover. Once you have determined the KPIs that are relevant to your goal, then you can proceed to analyze your sponsored links campaign.

AdWords KPIs - Track your campaign

You can analyze sponsored links campaigns from both Google AdWords and Google Analytics. If you choose to observe the effects of your campaign in Analytics, you must remember to link your AdWords and GA accounts. The analysis performed with the use of GA allows for taking into account a greater number of parameters, including such as the time spent on the site or the number of pages viewed by users during the session.

The indicator defined in AdWords as a quality score is an important factor in any activities aimed at optimizing a SEM campaign. It appears when you hover the cursor over the selected keyword used in your campaign - the quality score is shown in a small window. Thanks to it, you get information about the expected click-through rate of a given ad, the relevance of the ad and the experience of the landing page. Each of the parameters is assessed on a three-point scale: below average, average and above average. For the effectiveness of the campaign, regardless of its goals, it is worth ensuring that all parameters are above average. Overall, the quality score is presented as a rating on a scale of 1-10.

Key Performance Indicators - Keyword Effectiveness

One of the basic factors that determine the effectiveness of a campaign in relation to its goals are keywords. The easiest way to check the effectiveness of keywords is which of them generate the most conversions and whether the cost of a single conversion is within profitability limits (whether the conversion cost is profitable in relation to the profit the conversion brings). In addition to the number of conversions and costs, a very important parameter in keyword analysis is the conversion rate (CR) - it is the percentage ratio of conversions expressed to visits to the website through a specific ad / keyword. Thanks to this, you will find which keywords are effective and bring the intended results, and which will need to be optimized or changed. It's a good idea to increase click bids for keywords that generate the right (satisfactory) number of conversions.

You should also look at data such as the amount of time the user spends on the page when he or she entered it through an ad with the selected keyword. It is also important how many pages he visited on the website during such a session. Perhaps this will be an important determinant of keyword performance, especially if your landing page is high. It may then turn out that the keywords do not adequately describe the content of the page or are simply not very relevant to its subject.

KPIs - Landing page quality

For the effectiveness of advertising activities, the landing page plays a significant role. The job of an ad in a search engine is to grab the user's attention and encourage them to click, and on the landing page - to convert. If the keywords have been chosen well, the problem of too low conversions may be on the landing page. This is what is known as a landing page experience as a result of quality. The user who found the landing page after clicking the ad must be led to conversion without any problems. Evaluate your landing page in terms of transparency, ease of navigation, ease of leading the user to conversion, but also in terms of thematic matching to the ad text and loading speed. It is best to measure it using statistics available in Google Analytics, such as the time spent on the website or the bounce rate. Useful in verifying the effectiveness of a landing page is also performing A / B tests, which allow you to check which elements of the page have a positive effect on the increase in the conversion rate.

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Content and content of advertising on the SERP

While the purpose of the landing page is to generate conversions, an ad placed on the search results page generates both conversions and clicks. Conversions generated by the ad itself are, for example, phone calls made to a business. They are possible thanks to the placement of extensions in the text ad - it may be, for example, the company's address, its telephone (with the possibility of click-to-call in the case of mobile devices), detailed items from the offer. It's worth measuring your ad in terms of click-through rate - CTR. It is the percentage ratio of clicks on the ad to the number of its impressions, as well as the indicator that will allow you to assess whether the ad text requires optimization or whether it can be left in its existing form. You should, with some caution, rely on the Google AdWords mechanism, which proposes making the frequency of display dependent on their click-through rate. Ads with high CTRs do not always bring a satisfactorily high conversion rate. Remember to match the content of your ad to what the user will find on the landing page. The relevance of your ad, both to your content and to user searches, is also a factor in determining your Quality Score.

We have presented the most important elements that you must take into account when analyzing the effectiveness of your ad on Google AdWords. We do not give specific values ​​for specific parameters - different results will be satisfactory for different companies and industries they represent. Above all, it is important that the campaign is effectively achieving the purpose for which it was created. You should take care of a high quality score, as it will give you many benefits, including your ad will rank higher in the sponsored links section of the SERPs, the CPC, i.e. the cost per ad click and the costs associated with placing your ad on specific search results pages, will drop, as well as the ability to add extensions to your text ads.