Evaluate The Profitability Of Your AdWords Campaign
Many companies and businesses have spent their budgets unnecessarily expensive paying their Google AdWords campaigns. Inevitably, they no longer believe in this method to help them sell their products online and make profits. However, Google AdWords is undoubtedly the best current method of promoting online sales.
Before the launch of each campaign, there is a question we must ask each company: How to evaluate the profitability of your AdWords campaign or is it that Google AdWords is profitable? The purpose of an AdWords campaign is to make more sales and be more visible.
Evaluate The Profitability Of Your AdWords Campaign
How to evaluate the profitability of your AdWords campaign?
The goal of our agency is to help you increase your ROI. For this, when we recover or create an AdWords campaign, we perform a variety of tests to determine which position your ad is the most profitable. Is it in first position, second or third? The tests focus on different axes such as ads or keywords. There is a daily monitoring to be performed to analyze and highlight the most relevant ads and keywords. Also in order to have the best ROI.
To audit the profitability of your AdWords campaign, Google will make available various dishes very effective tools. It depends on the goal that you set. If the goal is to increase sales, you can use conversion tracking tool to determine how many clicks generated sales. If your goal is to optimize your ROI, you can also use conversion tracking tool or Google Analytics to see which ads, keywords, and pages of your website are most profitable.
You must also take into account the average basket as over the average basket, the higher the margin is more important there are chances that the campaign is profitable. This is mathematical!
Other targets we set, that of having the quality of a high keyword since the higher the quality level, the higher the click price is low and the better the ad position. Namely that optimizing a level of quality can affect your spending ways:
First, each click a high quality keyword usually costs less.
Secondly, the position of the high quality ads is more advantageous without it costing you too much.
Finally, it can save you your budget and thus be seen longer in the day to get more conversions.
It is also necessary to analyze your competition and set up a remarketing campaign.
For example, a client connects to your site. It selects a product but does not validate his basket. With Google AdWords, you can “remarketer” the customer, ie make him return to your site via E-Pub banners when the user visit other websites.
If you want to increase the quality of your keywords, to have a person that analyzes and optimizes your daily Google AdWords or set up a Google AdWords campaign account, please contact us.
How to budget for an Adwords campaign: the 3 criteria to evaluate
How to budget for a campaign AdwordsVous’re part of the many who are not professionals but the thing autogèrent the budget of their Adwords campaign? And you tend to instead consider visiting – you generated the clicks on your ads – that conversions to measure the effectiveness of your campaign?
If indeed many of us focus only on clicks generated, it is yet time to introduce other criteria, such as your time investment or sales generated, to know how it will be reasonable to spend on your campaign.
Let the whole point about the criteria you should consider when budgeting a Google Adwords campaign.
In reality, there are 3 key concepts to consider:
• What you will pay Google
• Your investment in time
• Sales or conversions generated
What criteria to budget an Adwords campaign
1. What you will pay Google
The starting point is what you will pay to Google. It is therefore the most important point. But how much to pay to provide Google?
If you are like many of our customers, and many small SMEs, and you do not really have a starting point on your advertising investment, here are some tips on how you should invest:
To do so, it is necessary that you know:
– The potential traffic you bring your keywords
– Your average CTR (ratio of the number of clicks on the number of views of your ads)
Know that only 30% of Internet users on a Google results page are moving towards paid ads (Adwords) vs 70% for natural results. So an average CTR in general will be 3%.
– The average CPC (or Cost Per Click means your keywords)
An example will clarify it all;)
With the Planning tool Adwords keywords, you calculate the sum of monthly searches for all your keywords, for example, 10,000 searches or 10,000 potential visitors / month.
But these 10,000 visitors, only 30% will click on an ad Adwords: it remains more than 3,000!
And finally, if your average CPC is 0.50 cents, you’ll pay in the worst case 1500 € to Google for the month. Vu?
NB: For CPC and CTR means, watch them on your Adwords account in the overall scoreboard (Campaign level).
So a rising ESTIMATE of what you will pay to Google and therefore suggested the monthly budget for your campaign. But refine our work! And now caclulons time (and therefore money) invested by you or responsible for your Adwords campaign.
2. Investment in times of your campaign
To actually calculate your ROI, you have to think to cover the time invested in the configuration and the initial structure of your campaign, your ad groups etc. But then every week (for example) you will also dedicate a few hours to analyze the visits that convert, what key words have a very low CTR to edit, write better ads, optimizing your landing page (or landing page) if necessary etc.
For example, if we think your time is worth so much work, do a quick calculation of the time you’ll spend in setting up your campaign the first month, and then to track your campaign.
Because even for a campaign that rolls on its own, it can become quite time consuming!
Similarly, if you do use an agency, calculate the total cost of what your agency will cost you per month.
3) sales or conversions generated
Now calculate the number of sales you have generated your Adwords campaign for the month, or rather the net margin that you will touch these sales. And subtract the amount paid to Google and the amount invested to time by you or your agency, and you will have your Return on Investment!
ROI = Sales generated – (AMOUNT PAID TO GOOGLE + AMOUNT MANAGEMENT TIME)
NB: If your goal (or conversion) is not the sale but eg subscription to a newsletter, estimate the value you give to the registration or other conversion.
And the better your results, the more you invest and your work (or your agency or other professional) will be rewarded!
Be aware that although the first reflex to save on your Adwords campaign is to make oneself a professional thing you will often save money by managing your campaign. Because in general for online advertising systems the Adwords Facebook Ads as they only benefit those who can use them well. There is nothing better than a poorly optimized Adwords campaign to throw your money out the window. Google rewards the expertise!
Note: To start properly optimize your Adwords campaign
>> The 7 key points for optimizing your Adwords campaign 🙂
And you? How do you do to budget your Adwords campaign? Tell us YOUR expericence in the comments below!
PowerTraffick is a full service digital marketing company. We are a top PPC Agency that offers Google Ads (AdWords) help from certified Pay-Per Click (PPC) expert consultants and campaign account managers.