Kontra

In order to know if your campaign is doing poor, okay, good or excellent you need to know which metrics you should look at and how you should do that. So, just like we did with Facebook, we are giving you most important Google Adwords metrics you should take into consideration.

You already know that Adwords has different campaign type options, and because of that, some metrics are more important to some campaigns. But let’s get to it.

CTR (click-through-rate) 

click through rate

Probably the most important one for a lot of advertisers. CTR is the ratio of users who click on your ad to the number of users who’ve seen it. CTR is applicable to everything: ads, keywords, targeting options, ad schedule, whatever… If one of those is getting a lot of impressions, low CTR usually means that those impressions are being wasted. What is considered low? Well, depends on the competition in your market. But for Search Adwords, I would say that everything below 10% is not worth spending money on. Of course, that doesn’t apply to all industries. For example, if you’re trying to reach tourists from countries far away to come to your hotel, you’re dealing with some tough competition. In that situation (and some others), 7.5% CTR is acceptable, even though with some creativity and compelling ads, that can go up. 😉
For AdWords Display, however, the average is from 0.1% to 0.3%. I always say that we should all strive for at least 0.5% and that everything below 0.2% is not considered successful. But hey, that’s just me. All I’m saying is that, just like it is with Search, we can do better with Display if we want to. Whether it be your targeting options or even the creativity of banners itself.

View rate

youtube

When creating Youtube Video campaigns, you want and expect people to watch your video and not click on ‘Skip Ad’. View rate is the ratio of users who stay with your ad to the total number of users. This also depends on the industry and people you’re targeting. There are a lot of statistics across the internet, check them out, and when you see the average you should be looking at, be bold and say ‘I want at least 20% higher than that’.

Avg. CPC (average cost-per-click)

adwords cost

The client’s favorite. How much they are paying for a single click. This could tell you a lot about your bidding. If you bid above the Avg. CPC you pay, consider lowering your bid. But, if you’re not getting as many clicks and impressions as you’d like, raise the bids. Also, when talking about Youtube/Video campaigns, take Avg. CPV (cost-per-view) into consideration. It’s cheaper, and it’s easier to reach users with video ads, so consider playing as low as you can.

Quality Score

quality score

How ‘good’ you are to your customers. Let’s put it that way. Google rates you and your advertising based on how reliable you are to your potential customers. If a customer clicks on your ad looking for something, he or she better get it. Because, if they don’t, Google will rate your ad or keyword as poor, and you’ll pay more for those clicks.
On the other hand, if you’re Quality score is above average (above 5/10), you’ll pay less. If you’re a perfect 10, you’ll pay 50% less. Well, that’s something worth working on, right?

Average Position

average position

Where are you in Search results? The higher, the better, but also more expensive. See which average works best for you when talking about your marketing budget limits. But first, work really hard in order to make your ads compelling and get your Quality score up. That’ll do you good for this metric.

Conversions, Cost per conversion

conversions

And finally, how much are your ads being helpful with people converting on your website, doing something valuable to your business. Clicks always tell just one part of the story. What if people are clicking and not converting? Think about it. Can something be done on your landing page? Is there are a problem? Is it slow? Work on it.

 

We advertisers look at more metrics than these, of course, but take these as the most important ones. Which metrics do you look at? Tell me.



Author

Antonio Krizmanic

Traffic manager at Kontra. Crazy Liverpool F.C. fan. Love to eat, cook, drink, watch movies and listen to music. Pretty basic.


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