Google Adwords Measurements & Strategy
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Definition of Google Adwords
Google AdWords is one of the services advertisers use for online promotion of their content, brand, website, etc through certain defined keywords to achieve traffic or leads. It is a form of brief advertising copy with keywords that are displayed on Google web pages and partner websites (called publishers) after matching their content with the keywords.
How Paid Search works
There are three main elements of a paid search campaign: Keywords, ads, and landing pages.
You start out by giving Google a list of keywords, which tells Google to display your ads on the results page when people search for those keywords. You then design your ads to be shown for these keywords, and your goal is to make them both relevant enough to the search query and attractive enough to get the searchers to click on them.
Then, when viewers click on your ads, the ads direct them to your landing pages. The goal of your landing pages is to get the visitor to convert in some way – by buying your product, downloading an offer, etc So paid search really comes down to managing, matching, and optimizing these three things.
Google Adwords Strategy
Keyword Match Types
- Broad match is one of the four keyword matching options that help control how closely the keyword needs to match a person’s search term in order for your ad to appear. You can choose one or more matching options for a keyword, and broad match will be used by default if you don’t specify a particular matching option.
- Create ads with the same keywords your customers search on: You can view the search terms your customers were using when they clicked your ad. Then add the words you find to your keyword list, and use exact word in your new ads to reach customers who are more likely to be interested in your product or service. Increase your click through rate (CTR): Phrase match.
- Close variants of exact match keywords help you connect with people who are looking for your business despite slight variations in the way they search and reduces the need to build out exhaustive keyword lists to reach these customers.
Setting Your Budget
When you pay Google for your PPC campaign, you don’t whip out your credit card every time someone clicks on your ad. Instead, you set a daily budget on the campaign level. So for each campaign, you can dictate how much money Google can spend on those ad placements per day.
The daily budget cap is certainly a reassuring feature, especially for those who are just starting out with paid search. You can set a low budget when you get started, slowly begin measuring success and lead quality, and try your hand at optimizing your campaign before you really invest a lot of money in it.
Measuring Your Success
Defining the Four Basic Metrics
1. Click through Rate (CTR)
It is the percentage of impressions that turn into clicks. The more this percentage goes up, the more efficient your campaign is.
CTR = Clicks/Impressions
2. Conversion Rate
It is the percentage of clicks that turn into conversions. This is also a metric that denotes increasing efficiency as it goes up.
Conversion Rate = Conversions/Clicks
3. Cost per Click (CPC)
It is the amount of money you’re spending on each click. You can find the average CPC by dividing the total spend by the total number of clicks.
Cost Per Click = Spend/Clicks
4. Cost per Acquisition (CPA)
It is the amount of money you’re spending on each conversion. You can find the average CPA by dividing the total spend by the total number of conversions.
Cost Per Acquisition = Spend/Conversions