Jun 11
Once your AdWords campaigns are up and running it is very important to keep regular track of the data supplied on how the ads are performing. Analyzing these statistics will enable you to optimize your campaigns and boost performance.
The following indicators allow you to analyze the performance of campaigns, ad groups and keywords.
Clicks: Number of clicks on the ad leading users to the website
Impressions: How often the ad is shown on a search results page
Click-through rate (CTR): Number of clicks the ad receives divided by the number of times the ad is shown (impressions). The CTR depends on the ad’s position, as well as the overall effectiveness of the ad. The more relevant the ad is to a user’s search, the higher the ad’s CTR will be.
Average cost-per-click (CPC): Total cost of clicks divided by total number of clicks. This indicates the average amount that’s been charged for a click on the ad. The average CPC cannot exceed the Max CPC
Max CPC: The maximum amount you are willing to pay for a click on the ad
Cost: Total of all actual CPCs
Average Position: Average rank achieved by your ad on the Google search results pages. For example, a position of 2.3 means that on average the ad is displayed either in the second or third position.
Top tip: Consider the time period over which you analyze campaign statistics. Always choose a period that is long enough to be representative of the activity you want to measure.
A conversion is an action that takes place on your website which you consider to be valuable. It could be the completion of a form, the downloading of a file, or a sale in the case of an ecommerce site.
To find out which campaign and keywords resulted in a conversion on your website you need to set up Conversion Tracking. You can set up several instances of Conversion Tracking to track several types of action on your website.
Once Conversion Tracking has been set up, new statistical indicators will be available in the AdWords account. They add a profitability dimension to reporting and allow you to optimize campaigns even further.
Conversion: The number of conversions achieved on your client’s website following a click on the ad.
Conversion rate: Number of conversions divided by the number of clicks on the ad.
Cost per conversion: Number of conversions achieved divided by the cost of the campaign. This one tells you how much it costs to achieve a conversion with this campaign.