Google Adwords Reporting Continued
Mike: Not only that, but you might as well have the stress medicine beside you when you realize how much money that these people could be costing you without these negative keywords.
Jordan: Exactly. And, not only are they costing you money, but they’re also affecting your campaign negatively, and that’s why that negative keyword conversation that we had in the previous podcast was so important, because it’s going to not only save you money – which is obviously the most important part – but it’s going to make sure that your click through rate is accurate, and that it’s not being skewed in any way by faulty data. You want to make sure that that’s not happening. Okay, now on that same page, we’re still looking at that same one, the first page that pops up when you open up your account. Now, the next column is going to be average CPC. Obviously, if you read about AdWords, you’ll know that this is the average cost per click, so it takes the number of your clicks, and it takes the total cost of your clicks for that campaign, and then it will divide them and get the average cost per click. So, however much money you spent, divide it by the number of clicks you have, and that will give your average CPC. Now, it’s important to make sure that you watch that. So here’s something that I usually do: You’ll see that there’s a blue graph, and it has dots on it, indicating each day. So, we will look at that.
You’ll see that, right above that graph, you have clicks, and then you have “versus,” and it usually says “none.” You want to click on “none,” and you’ll notice that there’s a dropdown menu. This allows you to run a side-by-side comparison of a few statistics. Let’s say you have a number of clicks, and you want to see that what your CTR rate has been over the last couple of days is in line with those clicks. So, let’s say that I’m looking at something, and I see that my graph is going up and down; it’s doing the limbo.
We don’t know what’s going on, so we go ahead and look at the CTR, and then we can see that, on one day, we had a higher click through rate, but that’s not going to tell the whole story, right? Usually, you have to go through different scenarios, maybe the click through rate versus clicks. How many clicks am I getting relative to my click through rate? Is my click through rate really high? Am I getting more clicks? Or, am I getting more clicks and my click through rate is a little bit lower? Keep those things in mind.
Number of Impressions
The other thing that I always look at is the number of impressions. Say that our clicks are dipping up and down, and we’re not sure why; the CTR is not really telling us why it’s at 1%, so we go ahead and look at impressions, and we can see that, on certain days of the week, we’re getting more impressions, which means that there are more searches being done on one day versus another day, which is going to be common, right? Not every day are you going to have a hundred people searching for that product or service; it may differ. There are going to be fluctuations. You have to keep that in mind.
So, with that said, the other thing that I always look at is the number of clicks I’m getting (and I believe that’s one of the most important things) versus the average CPC across those clicks. We can measure when you’re getting less clicks, how much you are spending, etc. Am I spending more when I’m only getting 10 clicks? And what am I spending when I’m getting 14? We want to look at that stuff, so we can make sure that we’re staying in line with not only our ROI. If we know that we need to be below a certain threshold – say $10 -but we also know that our average CPC, when we’re getting 14 clicks, is $10.59, or we know that we’re short of our range, and we need to reevaluate what we’re doing, maybe fix the structuring or the placement of our ads.
So there’s a lot of stuff that you can look at. You can do this thing all day. And in the very last few columns are going to be average position, which will show the average position of your ads and ads they have shown during that time frame that you have highlighted in the right corner, and then you have the total cost. So, it will show the total cost for the campaign, given the time frame that is used to update in the top. That’s kind of a mouthful, but that’s how the first page will kind of work. You can play around with everything on here.
It’s pretty user friendly, and it usually warns you if you click on something that you can change or thart you’re not aware you’re changing, it will pop up and say, “You’re about to change something. Make sure that you want to change this before you do.” The last thing you want to do is accidentally change your budget from $30 a day to $300 a day. We don’t need to have that accident, because there goes $10 per day worth of budget. So, we have to reallocate our money a little bit each day.It is very important to always remember what you’re doing, and always read the prompts; don’t ever just click through anything just because you want to get through done with this really fast, because sometimes those quick clicks can cost you money. Just be aware of that.
Mike: So, on the average position that we talked about, are there any best columns you’ll hear and read?
Jordan: Yeah. So typically, people will want to be in the top three. Now, you don’t always have to be in the top three, obviously. There are typically eleven spots for each page that you’re doing the search for. So, let’s say I’m doing a search for a local dentist in LA. I pop it up, and I have a couple of results. I see that my ad is in the eighth position, which is a little bit toward the button on the right side. Now, that’s not bad if your performance indicators like your click through rate in your other position. It’s not bad if you’re seeing that those things are showing positive signs.
We have a 2% click through rate, and we’re showing up in the eighth position. Well, maybe this is the place you want to be. And if we’re showing up in the first position, and we’re getting a ton of clicks, or our click through rate high, that’s great, but in that situation, there is always something you want to look out for. How effective are the clicks that are getting in positions one, two, and three, and if I’m at the top of the clicks that I’m getting, are they relevant? Am I getting a lot of miscellaneous clicks for people, or just clicking on the first thing they have seen, and then they kind of read about it, and go on to the next page? This is all going to be about analyzing the data that’s given to you and kind of making inferences based off that. Even if you’re in the top one, two, and three, that doesn’t mean you’re going to be doing the best, or be number one. That just means that you’re showing in those positions, and then it’s up to you to determine if that’s good or bad, based on the stats that you’re given.
Typically, I’ll have clients that all want to be one, two, and three, because they know that people are looking at positions one, two and three, and very seldom do people always look through their right. They don’t really look to the right of the page that often. All I’m saying is that I’m not saying it doesn’t happen, but usually with one, two, and three, you’re going to get some pretty good interaction, and you have a higher chance of getting that 1% click through rate. Just keep in mind that you’re going to watch those things like your CPR, the number of impressions that you’re getting versus the number of clicks, and then you want to make sure you’re watching that average CPC; is it dipping? Is it dropping? What’s going on? And then, obviously, the average position – am I getting my optimal amount of clicks at position one, or am I getting it at position four. We have to figure out where that is, so that we can ensure that we’re maximizing our revenue, and obviously our ROI, most importantly.