Natural traffic can only take you so far.
We’d all want to wake up and discover that we’re the top result on Google for a highly competitive term, but alas, this is not how it works.
SEO is not a quick cure, therefore as we continue to increase our long-term searchability, it may become necessary to spend in paid advertising. What better location for advertising than the search engine itself?
Google Ads Campaign is the biggest online advertising platform and influences how we all conduct product and service searches. Instead of merely seeing Google as a search engine, we may begin to view it as a marketing hotspot for our company.
Depending on your present budget for sales and marketing, budgeting funds for paid advertising may seem onerous. However, you may approach paid advertising with more confidence if you have a clear grasp of the metrics you’ll be analyzing and the best outcomes.
The significance of advertising metrics and ROI tracking
Setting up your first Google Ads Campaign, PPC ad is a terrific initial step, but if you don’t monitor its effectiveness, it will be useless.
As you enter the world of paid advertising for the first time, understanding which advertising metrics you must monitor will inspire you to gradually raise your conversions. And the greater the rise in conversions, the greater the money generated.
You have access to hundreds of advertising indicators, but not all of them are created equal, so some will be more important to your success than others. The value of each indicator is determined by your desired ROI, or return on investment.
ROI is a word that you have undoubtedly heard before. It is heard in boardrooms throughout the globe, but what does it mean? And what does this signify for online-focused small businesses?
The most fundamental definition of ROI is the amount of profit generated by an investment. This calculation divides your net profit (total revenue minus costs) by your paid advertising expense. This figure is then multiplied by 100 to get the ROI %.
Google Ads Campaign to Increase Return on Investment
Every company owner wants to maximize their return on investment over time, which is why many of them resort to paid marketing solutions such as PPC advertising to boost their ROI. This is just excellent business.
By focusing on return on investment, you will be able to spend your advertising resources intelligently. Before investing in PPC advertisements, you’ll need to determine which paid advertising KPIs are most crucial for your organization.
Include these six advertising KPIs in your Google Ads report
As you begin to develop your first Google Ads campaign, a few data will appear on the right-hand side of your dashboard.
If this is your first time using Google Ads Campaign, all of the data and graphs may seem overwhelming. You do not need an MBA to comprehend what the analytics are attempting to convey. Understanding the terminology Google Ads employs on their platform might make paid advertising simpler to comprehend.
Here is all about Google Ads Campaign;
1. PRICE PER LEAD
Often referred to as “cost per conversion,” this is an essential Google Ads indicator to track while operating a paid advertising campaign. Your cost per lead will often indicate the profitability of your sponsored advertisement. The lesser your cost per lead may be, the better!
You may be wondering what a reasonable cost per lead is. I’m here to provide you with the dreaded “it depends” response.
In competitive businesses such as homeowner’s insurance and personal injury law, your cost per lead will be far greater than if you sold bullet journal supplies or interior design classes. This is due to the fact that keyword competition levels vary, which directly impacts the cost of each click.
If you want to reduce your cost per lead (and who wouldn’t? ), you may consider the following:
Modify the wording of your advertisement’s headline
Change the wording (or even color!) of your call-to-action button
Add an eye-catching image that complements your writing.
A/B testing landing page variants to see which works better
Consider tweaking your ad for a term with a lesser cost.
Examine the performance of your ad on each device.
2. PER-ACQUISITION COST
Too many marketers just consider the cost per lead, when they should also consider the cost per acquisition. This refers to the expense of converting a lead into a paying client. Customers are more valuable than leads, hence this is one of the most significant KPIs.
If you’ve ever seen an episode of Shark Tank, you’ve likely heard the “Shark” investors inquire about the company’s purchase price. The majority of the time, entrepreneurs who do not know the figure depart the pitch room without an offer.
Before anybody will invest in your firm, or before you can spend effectively in paid advertising, your cost per acquisition must generate a profit. Therefore, if your product costs $15 to produce, a cost per acquisition of $20 is not optimal.
Typically, the cost per acquisition is computed by dividing the total amount spent on paid advertising by the number of clients obtained. Google Ads Campaign does this computation inside the platform, allowing you to avoid completing the arithmetic yourself. (Creators such as me just exhaled a sigh of relaxation!)
3. RETURN ON AD SPEND
To guarantee you’re getting the most bang for your buck with your PPC advertisements, you should monitor your return on ad spend (ROAS). This often shortened metric measures how much income your advertisements produce.
Remember that your return on advertising expenditure evaluates your income, not your profit. It takes into consideration just the amount you’ve spent on paid advertising, not the whole cost of making and delivering your goods (which is included in your ROI).
You may calculate your ROAS by dividing your total income by your total ad expenditure for that product or service, then multiplying the result by 100 to get a percentage. ROAS is an excellent starting point, but you should also compute ROI (which we talked about in detail above). This will provide a more complete view of how your advertisements are doing.
4. LEAD-TO-CLOSING RATE
Your lead-to-close ratio is calculated by dividing the number of leads generated by your paid advertising by the number of real clients you acquire. This statistic will mostly indicate the effectiveness of your sales strategies, but it may also indicate if your advertising is producing high-quality leads.
5. AVERAGE ORDER VALUE
This advertising statistic is simpler than the other metrics we have created so far. The average order value is the average amount a consumer spends on orders generated by your sponsored advertising.
The greater the average order value, the greater the income generated. Just make sure you have sufficient ecommerce inventory!
5 Types of Google Ad Campaigns & Best Practices for Maximum Results: Complete Guide
6. BRAND SEARCH LIFT
While most organizations utilize paid advertising to raise sales in the short-term as opposed to long-term SEO strategies, your sponsored advertisements may do more than just generate leads today. Through increased brand recognition, they may also have a favorable influence on how customers search for your goods and services.
Keep in mind that paid advertising is not the sole component in boosting your brand’s search rankings, but it may be vital when employed effectively within the appropriate sector or niche.
7. WHAT’S REQUIRED TO RUN A GOOGLE ADWORDS CAMPAIGN
Now that you are familiar with some of the terminology, you should go into Google Ads and start your first campaign. Once you’ve learned how to establish a Google Ads campaign, you may return to this topic to study AdWords reporting.
Google Ads Campaign reports provide a vast array of capabilities and features, but which are most relevant to you? We will provide a quick overview of the essential information.
8. ECOMMERCE MONITORING
If you own an e-commerce firm, this measure will play a crucial role in your Ads report. The ecommerce monitoring function of Google Ads enables you to monitor all conversions from sponsored adverts.
To get started, all you need to do is copy and paste a piece of code supplied by Google Ads Campaign and insert it into your landing page. Here is further information from Google on how to set up ecommerce tracking.
9. GOAL CONVERSION METRICS REQUIRED FOR GOOGLE ADWORDS CAMPAIGN
- Goal achievement metrics
We’ve discussed the necessity of measuring conversions, but what sort of conversion should your sponsored ad be optimized for?
Conversions include subscribing to an email list, visiting a landing page, and purchasing a product or service.
If your immediate objective is to increase income from product sales in order to reduce inventory, you will need to convert visitors into purchasers.
If you’d want to get the user’s email address so that you may promote items to them over the long run (which we advocate), you should prioritize converting visitors into email subscribers.
You may choose a conversion measure that aligns with your paid acquisition approach based on the objective of your Google Ads campaign. Keeping this in mind, monitor the performance of your sponsored advertisement on the Google Ads platform.
- Historical data
One of the perks of adopting Google Ads is the ability to keep past data from your paid advertising campaigns for months or even years. When you have access to historical data, it is simpler to see patterns in how people search and engage with your adverts.
Instead of terminating your Google Ads campaign after you’ve switched your emphasis to another paid ad objective, you may maintain a history of your paid ad’s success over time using the platform. In the event that history repeats itself, you will be prepared and equipped with the information necessary to enhance conversions in the future.
- Cost data
What if you want to measure conversions from campaigns other than Google Ads Campaign? Importing your cost data onto their platform will allow you to continue. This may include information from social media advertising, email marketing initiatives, and advertisements from search engines other than Google. Before launching your next paid advertising campaign, you may find further information on how to import this cost data.