In 2014, 72% of marketers using Google AdWords said they planned to increase their pay per click (PPC) budgets. With increasing budgets, marketers have a greater responsibility to show results and prove that the ROI justifies the budget. This “proving” of your work is most commonly done through reporting.
Often times, though, marketers have a tough time determining what data to include in their PPC reports. You want to share overall statistics, while also providing more in-depth analysis on the information that your boss or client needs to make informed business decisions. How do you provide the right information, without overwhelming the reader with data they may not understand? Here, we take a look at a few key metrics from Google AdWords that you’ll want to include in a report to best support your PPC efforts.
Overview of PPC Campaigns
To kickoff your PPC report, you want to share an overview of performance by breaking down the most important statistics, including not just click and impression data, but also data on conversions such as leads or sales resulting from ads.
These metrics can make a great impact on how you manage your PPC campaign, based on your business’s goals. For example, you may alter your keyword bidding strategies or experiment with different ad copy to reach and influence different audiences.
Looking at the All Campaigns report (view the Campaigns tab in your AdWords account), you can pick out the major metrics you’ll want to highlight for your client, broken down by specific campaigns. Make sure to explain each of these metrics in a way that your client will understand. At a minimum, you’ll likely want to include the following metrics:
- CTR (click through rate)
- Avg. CPC (cost per click)
- Converted clicks (number of unique users who clicked and then converted to a lead or sale)
- Cost/converted click
- Click conversion rate
This combination of metrics will give your client or boss an idea of how many people you’re reaching with ads (Impressions), how likely those people are to take the first step of interest in the company by visiting the site (Clicks), and, finally, how many of that set of individuals take the final step to contact the company, sign up for a trial or make a purchase (Converted Clicks).
In this example, we see the “Search – General” campaign drove the heaviest volume of traffic and conversions. However, we also notice the “Search – Brand” campaign is driving low cost conversions, showing that bidding on brand terms offers a cost-effective way to keep your brand at the top of the search results.
Compare to Preview Date Ranges
Data offers no meaning without context. You’ll want to measure campaigns against historical data as soon as they’ve been running long enough to do so. For instance, without looking at the past example, you would have no idea whether conversion numbers are good or bad for this client’s account.
However, adding a date comparison (use the “Compare” section of the date dropdown) provides you with perspective and, in turns, gives more meaning to the numbers. Here, we can see that total converted clicks increased by 16 (98 vs. 82), while cost/converted click decreased ($29.34 vs. $22.69) in the timeframe shown. With this in mind, we will want to continue to enhance the current campaign as it’s performing better than previous ads.
Since PPC is a vital element of your marketing strategy, it’s important to effectively report on campaign performance. To begin, you want to have an understanding of what your company’s goals and objectives are, and from there determine what reports and metrics will be most valuable.
As with any report, you want to call out any statistics that will help inform business decisions, and tell a story with the data in a way that will make sense to your boss or client.