Measure the effectiveness of Adwords campaigns: indicators to follow 2020 -

How to assess the effectiveness and profitability of your Adwords campaigns? Here are 10 performance indicators to measure to calculate the ROI of your campaigns and make the right decisions for your business.

SEA profitabilityThe evolution of digital making webmarketing actions more accessible, it is the whole strategy of your business that goes digital. Paradoxically, measuring the effectiveness of your e-marketing campaigns is becoming more and more complex: choice of advertising platform, choice of measurement solution and above all, choice of performance indicators.

However, whatever the actions carried out, as soon as you invest in a project, it is imperative that you can measure its return on investment (ROI). Why would it be otherwise with your Google Adwords campaigns (renamed Google Ads)?

If the Adwords ads are part of your strategy, here are some essential indicators to help you measure the effectiveness of your approach.

What is a performance indicator: reminder

Performance indicators, also called KPIs (Key Performance Indicators) are both a measure of corporate health, a tool for monitoring performance of actions and a tool for decision-making.

Stars of dashboards, they allow, among other things, to measure the achievement of a fixed strategic objective, their profitability and give leaders key data so that he can make the best decisions.

Measuring the effectiveness of Adwords campaigns will therefore involve defining upstream key indicators.

The Kpi to follow to measure your Adwords efficiency

The number of indicators offered by the Adwords interface is impressive and this can seem a little barbaric for novices. Here is why we therefore offer you a selection of essential KPIs. Each of these KPIs makes it possible to follow different objectives (traffic, sale, reputation, lead, etc.)

CTR or click rate

Parameter relatively easy to understand, the CTR is to be followed closely.

Corresponding to the ratio of the number of clicks on the ad by the number of impressions of the ad, it tells you about the attractiveness of your ads or the quality of targeting.

This rate should ideally never be below 2%.

How to positively influence this indicator?

The Quality Score

Once your ads are online, Google will measure their quality level and give them a score based on three elements:

  • The relevance of the ad in relation to the user’s research
  • The expected click rate
  • The usability of the landing page, which depends on its relevance to the ad (in terms of semantic field) and the technical quality of the page

This score (between 0 and 10) influences the positioning since at equivalent auctions, the highest rated ads and therefore the CTR (as seen above).

How to positively influence this indicator?

  • By choosing relevant keywords
  • By improving the targeting of your ads
  • By increasing your bids
  • By choosing a landing page consistent with your ad
  • By ensuring that this page is technically at the top (low loading time, optimized mobile display, etc.)

The middle position

This indicator shows you where your ad is located on average. Of course, you will seek to be in first position. The higher you are, the better your CTR will be.

How to positively influence this indicator?

  • By increasing your bids
  • By improving the quality score

Clicks

Without clicking, no visit will be made and therefore, no conversion. Therefore, the amount of clicks is the most effective indicator for estimating the traffic that your campaign keywords generate.

How to positively influence this indicator?

  • By improving the CTR
  • By offering attractive ads
  • By adding ad extensions

CPC or cost per click

Conditioned by the max CPC that you defined in your campaigns, this indicator indicates the average price of the click and allows you to make decisions such as the conservation of certain unprofitable keywords. It therefore directly impacts the profitability of your campaigns.

The impressions

This indicator indicates the number of times your ad has been displayed in the results and therefore seen by your potential visitors. Tracking it is interesting since you might have good results on other metrics like CTR or CPC but have too few impressions. This can then indicate that you are using requests that are too little searched for, even with hyper attractive ads. .

How to positively influence this indicator?

By passing the queries in broad expression (which in the process can make you lose in quality of targeting therefore clicks)
By adding ad groups with new exact keywords

The conversion rate

The conversion rate corresponds to the number of conversions carried out (complete a contact form, make a purchase, place a call, etc.) divided by the number of clicks.

The conversion rate of your sponsored links is essential to identify which keywords and which advertisements are the most effective. But beware, the conversion is usually done directly on your site, the improvement of this rate will also go through an optimization of the site.

Call monitoring

You have a very local activity (catering, hairdresser …) it is an indicator that you cannot miss: monitoring of calls. Indeed, with AdWords, you can track these calls using a forwarding number provided by Google.

Cost per conversion

This indicator is very interesting since it determines the budget spent to obtain a conversion. This gives you a global view of the effectiveness of your Adwords campaigns.

How to positively influence this indicator?

Return on investment or ROI

If there is one indicator that cannot be overlooked, it is the ROI since it is ultimately this which will compare an Adwords campaign with your business objectives.

This ratio between the margin and the cost spent to achieve this margin is calculated as follows:

ROI = ((Margin – Advertising cost) / Advertising cost) x 100

How to positively influence this indicator?

By improving all the others;)

Conclusion on measuring the effectiveness of your ads

The indicators that have been presented to you here are just one of the many measures that you can find on the Google Ads platform. You can therefore adapt them to your needs.

You wish set up Adwords campaigns effective and profitable? Carry out your feasibility study.