Measuring the Value of AdWords Management Spend

Measuring the Value of AdWords Management Spend

comment 0 category
Our tips on measuring the value of your Google AdWords Spend

How Effective if your AdWords Management… really?

“Our account has never been running better… My account manager says our Click Through Rate is over 4 percent, we have lowered our Cost Per Click by 30 percent this quarter and we are at the top of the page… It must be doing ok, right?”

I hear people tell me every day how well their accounts are running. I inevitably sit through 15 minutes of improvement stats and read reports from AdWords Management Companies that are best described as grandiose ramblings of self-congratulation on how effective their ‘Management’ has been for their client – the worst part is that the client has no idea what the reports mean and often don’t even know what they are paying for.

For the most part I am happy for them if they are happy, but I always feel concerned because I know that those people have been fed meaningless stats to them for so long that they have forgotten what the end goal is – Making Money.

At this point I think its worth rehashing a key reality: Having an ad at the top of the page doesn’t mean you’re making money.

Personally, I like to think of AdWords Management like an employee and their work. You are paying your money to your AdWords Account to work for you every day, and like an employee, you need to be able to measure its performance to justify continuing their employment.

If you had an inbound sales consultant who was tasked with selling people who called up your business, you would need to be able to measure how many calls they were converting into sales.

This is exactly the same as your AdWords Account. Click Through Rate, Quality Score and volume of traffic hitting your website are important but they are a means to an end – the end being conversion.

Conversion, conversion, conversion!  I cant say it enough!

This year, Google launched a new way to track how effective your PPC advertising is through your AdWords Management. This update allows you to track the types of conversions that are most valuable to your business.

For most businesses engaging in best proctice AdWords Management, this update gave themn the opportunity to work with a goal conversion type or types that best suit their business and (most of importantly) track it in Google AdWords.

Why Should I Care About It?

To be able to run a campaign that is focused on generating conversion, we need to look at how any given client ended up buying from you. When you are in the thick of a transaction with a client, you hardly want to interrupt that process by asking ‘how did you find us’.

Lets say you do ask that and your client says ‘from Google’ or worse ‘on the internet’, how valuable is that information as far as identifying which keywords are most profitable for you or how many conversions are coming through your SEO VS your AdWord Campaign?

The answer is not very. Even If you don’t really have much involvement with your Daily AdWords Management (other than paying the bill), knowing how profitable your account  is crucial in justifying your ongoing investments in Google.

How Does It Work?  

As with anything online, every action leaves some kind of digital footprint – every single online transaction, email sent, form completed, video watched and download completed, we can work backwards and reverse engineer the behaviour that led to that action taking place.

When you set up conversion tracking as part of your Google AdWords Management Strategy, you will be able to see what percentage of your clicks turned into a call, email/form completion, subscription or direct sale. You can also drill down to which ad copy and keywords contributed most to generating these conversions – you can even see how much you spend (on average) before a conversion is generated!

This kind of information doesn’t just help you evaluate the impact of your spend, but it will also help you identify the specific source of your traffic right down the the location and length of a call that comes through your AdWords Account.

Think of your keywords like employees: if you have two sales people who are being payed the same amount money for the work they do. One is doing all the work while the other slacks off – you would probably want to investigate why your hard earned dollars are being wasted on a slacker.

Its no different with your Google AdWords Management. If you can’t measure the value of your advertising spend, then you might as well assume its running at a loss.

Leave a Reply

Your email address will not be published. Required fields are marked *