Paid Search (PPC)

There are many ways in which you can justify whether your Adwords account has been successful however the information you use all depends on what the aim is for the account. These metrics are in no particular order of importance however they all provide different perspectives and provide different justifications for the success of your account or individual campaigns. All of the information listed can be viewed specifically using the customise columns area except the reach and frequency report.

Conversions and Conversion Rate

If you are not tracking conversions in Adwords I strongly recommend that you start. If you are, then good it allows you to instantly see the value of the Adwords account to your business. The higher the conversions the better but it is important to track your conversion rates as they will identify which ads, ad groups and keywords provide the greatest return on your clicks.

Click Through Rate

Click Through Rate (CTR) gives a great indicator to the relevance of your ads to the audience you are targeting.  A high click through rate is no doubt a good thing as it means you are being very targeted with your advertising. Increasing your click through rate also provides you with the benefit of increasing your quality score, lowering your cost per click.

Cost Per Click

The cost per click across your campaign when lower is obviously providing better value to you and your business. However I would recommend not using this independently of other performance indicators listed, having a low cost per click may take away from your conversions and therefore return on investment. Where the cost per click is a good indicator of performance is if you are using campaign just to drive a large volume of traffic to your site or where you are not tracking conversions.

Search Lost is (Rank) and Search Lost is (Budget)

An often overlooked statistic is the search lost is rank and search lost is budget features that can be found under the “competitive metrics” area of customise columns. The search lost is information allows you to view how many times your ads are not showing when a search term that triggers your ad is shown. This allows you to identify where the missed opportunities are for your account and how you can make better use of the available resources. If you have a high percentage score for Search Lost is (Rank) it suggests that you are not targeting your campaigns well or bidding high enough to have a high enough ad rank to appear in the 1st page of ad results. Alternatively if you have a high percentage of Search Lost is (Budget) I would recommend either increasing your budget (not always possible I know) or alternatively lower your bids to try and spread your spend out on cheaper clicks or appear lower on the page.

Quality Score

I wouldn’t get too caught up in chasing an increase in quality score but it does give an indication as to how “good” the Adwords account is running. A high quality score is good and helps to indicate your account is doing well but it should not be used as a firm factor in justifying the performance of the account but it can be used to back up your other performance indicators on the account.

Reach and Frequency Report

The reach and frequency report can be very helpful in determining the performance of a display campaign in terms of gaining visibility to your ads. The reach and frequency report unlike others can be accessed under the dimensions tab and selecting “view: Reach and frequency – Month”

How to measure Adwords success

This will show you the amount of users that have seen your ads and the number of times that they have seen it. It also shows how the CTR increases and decreases with the number of ad views which can help in your decision making if you choose to limit the number of times your ad is viewed.

All of the above performance indicators are useful on pretty much any account however it is important to use them together to make decisions about the success of your account how the campaigns can be improved.

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