Day 5 - AdWords Fundamentals

FUNDAMENTALS OF
ADWORDS

by Tuhin Ghosh

MBA (XLRI), Guest Faculty (IIM-L), Digital Marketing
Strategist and Consultant





























FUNDAMENTALS OF ADWORDS

RECAP

FUNDAMENTALS OF ADWORDS > RECAP

o Quality, Rank and Relevance of Ads
o Bidding and budget
o Targeting Setting
o Extensions and their usage
o Ad policies and approvals

Let us discuss on the last assignment: how successful you
have been in setting up the campaign and challenges faced.

FUNDAMENTALS OF ADWORDS

OBJECTIVES

Fundamentals of AdWords

FUNDAMENTALS OF ADWORDS > OBJECTIVES

At the end of this module, you will be able to:

o Understand the different reports and how to analyse them
o Understand the different metrics that you help you relate to the

campaign performance

o Use Conversion Tracking to see how and where your audience

is converting

o Understand different campaign optimisation techniques

FUNDAMENTALS OF ADWORDS

REPORTS AND ANALYSIS

Measure to Improve

FUNDAMENTALS OF ADWORDS > INTRODUCTION TO REPORTS

Specifying a date range that you want to view data for
Choosing columns relevant to you, such as cost per conversion,

clicks, etc.

Using filters to see a specified portion of your statistics table
Using graphs to compare different aspects of your performance,

such as clicks vs conversions

FUNDAMENTALS OF ADWORDS > VIDEO
Measure your success

FUNDAMENTALS OF ADWORDS > INTRODUCTION TO REPORTS

FUNDAMENTALS OF ADWORDS > SEGMENTS AND DIMENSION

Click Type: will show where have clicked

Example: headline, site link etc.

Device: Computer, mobile, tablet
Top Vs Others: Display performance in top and other

positions

Time: Day, week, day of the week, time of the day etc.

FUNDAMENTALS OF ADWORDS > SEGMENTS AND DIMENSION

Search Partner: Network type
View Type: Only for type of view in YouTube
Experiments: Show the experiment performance
Keywords: To compare performance of different keywords in one Ad
Search Term Match: Compare between different match types

FUNDAMENTALS OF ADWORDS > SEARCH TERM REPORT

Shows search queries by your visitors
Keyword Column: If you find some keyword

which is performing well and not on your list:
add them

Match Type Column: You may find some

‘phrase match’ type from here which can be
part of your list You can select the right
match type from here

Negative Keyword: You can find some

keyword which you want to exclude and
improve conversions

Search term match may not be the same as the
match type that triggered the Ad

FUNDAMENTALS OF ADWORDS > TOP MOVER REPORT

Shows you which campaigns and Ad

groups have gone through the biggest
changes (increases or decreases) in clicks,
costs, conversions, and converted clicks

Allows you to keep tab on drastic changes
Wherever applicable they can show

‘possible cause’ which can be due to:

Changes by competition
Outside element: Brand perception,

seasonality etc.

Internal changes: Bid, budget etc.

FUNDAMENTALS OF ADWORDS > PAID AND ORGANIC REPORT

For this you need to link your ‘Search Console’ account
Identify the search queries that triggered organic results
Identify search queries with low organic search presence,

to be strengthened by adding paid search keywords

Identify your organic results and make sure your paid

results are visibly distinguished (such as by using
extensions, and using a different message)

Gain a holistic view of your account, as you can view

your impact on both organic and paid search

FUNDAMENTALS OF ADWORDS > AUCTION INSIGHT

Helps in comparing performance with other competitors
Available for search and shopping
Average Position: (search only) - rank of the Ads
Impression Share: Proportion of impressions which you

and other competitors have received

Overlap Rate: When both you and competitor were

shown together it calculates the overlap %

FUNDAMENTALS OF ADWORDS > AUCTION INSIGHT

Position Above Rate and Top

of Page Rate (only for
search): show how much % of
times competition is show
above you and when you both
shown on the top results

Outranking Share: how much

you have outranked other
participants

FUNDAMENTALS OF ADWORDS

METRICS

Align to Your Goals

FUNDAMENTALS OF ADWORDS > WHAT DO YOU MEASURE

FUNDAMENTALS OF ADWORDS > TOP OF THE FUNNEL METRICS

Impression Share: Total number of impressions you

received, divided by the total number of impression you
were eligible to receive

Clicks: Number of people that clicked on your Ad
Click Through Rate (CTR): Clicks by impressions

(clicks÷impressions)

FUNDAMENTALS OF ADWORDS > CONVERSION METRICS

Conversions: This metric shows your total number of

conversions.

Converted Clicks: This is a tally of all the clicks that

resulted in a conversion.

Conversion Rate (CVR): Percentage of clicks that

resulted in conversions (conversions÷clicks)

Cost-Per-Conversion: Average amount that a

conversion is costing you (total conversions÷total cost).
Also referred to as CPA (Cost Per Acquisition)

Value-Per-Conversion: Expected profit or value the you

gain from each conversion.

FUNDAMENTALS OF ADWORDS > RETURN ON INVESTMENT (ROI)

ROI is the ratio of your profits to your costs

ROI = (Revenue - Cost of goods sold)
Cost of goods sold

It's a good idea to measure your return on investment

(ROI) when you leverage AdWords to increase
conversions such as sales, leads, and downloads,

In that way you will ensure that the money spending on

AdWords advertising contributes towards profits

FUNDAMENTALS OF ADWORDS > RETURN ON AD SPEND (ROAS)

ROAS % = Revenue from campaigns
Advertising costs x 100

Allows you to keep track of profitability of campaigns
This does not take into account the other costs

associated with selling

FUNDAMENTALS OF ADWORDS > THREE STAGES OF GROWTH

Stage 1: Testing
Understand which CPC bid, keyword, and Ad combinations are working well through
performance data.

Stage 2: Growth
 Keeping your CPC bids, Ad text keywords constant you can increase your

campaign budget.
 Even then if parts of your campaign are no longer profitable then adjust CPC

bids, keywords, or Ads to regain profitability

Stage 3: Maturity
This a stage when you see that you have successfully scaled up to the available
traffic in a profitable manner even though you don’t reach your daily budget.

FUNDAMENTALS OF ADWORDS > GROWTH IN PRACTISE

As an advertiser, you can grow more profit by:

 Identifying smaller parts of a campaign that are
profitable and giving them a separate budget

 Creating another campaign for the profitable d
groups, you can set a separate AdWords campaign
budget and start to focus on growth

 Continuing to move profitable Ad groups from the
original campaign into the growth campaign until
you have completed profitability testing

FUNDAMENTALS OF ADWORDS

CONVERSION TRACKING

Leveraging the Tool

FUNDAMENTALS OF ADWORDS > ABOUT CONVERSION TRACKING

Tool to what the customer did after they clicked on your Form or Thank you or
checkout
Ad -- whether they started a free trial, filled out a form, or complete Conversion
purchased your product. Attribution

It helps in
Connects Ads and keywords to business goals
Boost ROI

FUNDAMENTALS OF ADWORDS > USING CONVERSION TO MEASURE ROI

To identify your ROI, you need to measure conversions.
Conversion Tracking tool helps you track how many clicks

lead to conversions.

Use this tool to track conversion rates and cost-per-

conversions and determine the profitability of a keyword or Ad.

Once you have started to measure conversions, you can

begin to evaluate your ROI

“The value of each conversion should be greater than the

amount you spent to get the conversion”

FUNDAMENTALS OF ADWORDS > HOW CONVERSION TRACKING WORK

Add a little snippet of HTML Code - Tag
Tag place in “Thank You” page
When customer clicks a temporary cookie is

placed on his browser

Records the conversion when he reaches the

Thank You page

Source: pbafullreplay.blogspot.com

FUNDAMENTALS OF ADWORDS > MOBILE CONVERSION TRACKING

App Installs: How well your Ads are resulting in App

downloads

Google Play Apps: Downloads from the Play Store

are automatically tracked, without the need for code
to be added to your App

First Opens: For non Google Play Apps, you can

track an App download when it has been opened by
the user for the first time.

In-app actions: Also to measure valuable in App actions,

like purchases.

FUNDAMENTALS OF ADWORDS > CALL CONVERSION TRACKING

Calls from Ads: Tracks calls that are made directly from

your Ads that have a call extension, or call only Ads

Calls to a phone number on your website: This tracks

calls that are made when a customer clicks on your Ad,
and then calls a forwarding number displayed on your
website. Calls made this way can be tracked in many
ways, such as call length, start and end time, and caller
area code

Calls from a number on your mobile website: Tracks

calls that have been made when a customer clicks your
Ad on mobile, and then clicks a call link on your mobile
website. But cannot track call details

FUNDAMENTALS OF ADWORDS > ATTRIBUTION REPORT AND CONVERSION DATA

Shows series of action customer has taken before

conversion

Helps in fine tuning ‘the paths’
Top path: tracks most common path and gives

Clicks
Impressions
Transitions
Click Assisted: all clicks except the final one
Impression Assisted: impressions before the last click

FUNDAMENTALS OF ADWORDS

CAMPAIGN OPTIMISATION

A Method to Madness

FUNDAMENTALS OF ADWORDS > OPPORTUNITIES FOR OPTIMISATION

KEYWORD IDEAS BID IDEAS BUDGET IDEAS

Opportunities tab can give keyword Keyword bid ideas and Ad group bid When a campaign is repeatedly meeting its
ideas that can help extend your ideas are types of bid ideas. Bid simulator daily budget AdWords account shows
advertising reach by targeting is used to estimate the cost, clicks, and budget ideas. These ideas are only
additional customers. impressions that the keyword or Ad group available for campaigns limited by budget,
could have received. so they may not always be seen in the
Opportunities tab

CALL EXTENSION IDEAS EVALUATING IDEAS AS SITE LINKS IDEAS
EXPERIMENTS
Ads that could benefit by showing Ads that are eligible to show site links may
phone numbers in the Ad may be Use the 'Experiments' table to monitor the be provided as another optimization idea in
provided as another optimization idea performance of one or more experiments the Opportunities tab.
in the Opportunities tab. that you run on the keyword or bid ideas
in the Opportunities tab.

FUNDAMENTALS OF ADWORDS > OPTIMISING ON KEYWORDS

FUNDAMENTALS OF ADWORDS > IMPROVING AT CAMPAIGN LEVEL

CLICKS IMPRESSIONS CTR AD POSITION

Get more clicks by adding Add relevant keywords so Focus on improving the Consider increasing the
keywords, improving your Ad that your Ad can show for a quality of your Ad text, relevance of your
text to make it more wider range of searches ensuring the relevance of keywords and Ads since a
compelling, increasing your your keywords, and better Quality Score can
bids organizing your campaign help improve your Ad
position

FUNDAMENTALS OF ADWORDS > AD TEXT OPTIMISATION