You have been running your AdWords campaign for a few days now, but how you will know if your campaign is fulfilling your expectations? You can use some of the tools that Google AdWords offers you.
It is important for your business to know the Return on Investment (ROI) in order to know if you are having success. The purpose of advertising your business is to increase sales, but you have to pay for them, even when you don’t get any customer. ROI refers to the percent of profit from your cost, something simple like this:
(Revenue – Cost of the Goods) / Cost of the Goods
Following this example, the Revenue is the final total of your sale, while Cost of the Goods is the total you invested to have a sale. This includes the cost of your product plus advertising.
Supposing that you are at the end of your month and is time to see how you are doing. After reviewing your data, you find a revenue for $1,000, the total cost of your goods was $250 and you spend $100 more in AdWords. Using the ROI formula you can calculate your percent of profit.
(1000 – 350) / 350
= 750 / 350
This means that for every dollar you invested in your business, you get $1.21 back. This could be a low or high profit depending on your business goals. Which of ever your goals are, you always can improve and increase profits.
Look to your AdWords account and see how your ads are performing, you may find that one of your ads is getting more traffic than others, or may one of them has not any traffic. Look at the Impressions Number, this is how many people have seen your ad, then to the number of clicks that you have received.
Choose one of your ads that you want to improve. Review the keyword list for that ad. See how the keywords are performing. Some of them could have a lot of impressions but not clicks; others could not have any impressions or clicks. Look at the quality score, look for keywords with a low score (being 0 low quality and 10 high quality) and change, pause, or delete those words. Add words to your keyword list that are popular at that time. Also, add words that could let you to the wrong people to your negative list. For example, if you only sell Men Shoes, you may want to add “Women Shoes” or “Kids Shoes” to your negative list, so your ad is not showing to people looking for something you don’t sale.
After reviewing your keywords, review your ad. Make sure your keywords, ad header, and landing page are related. If your ad is getting a lot of impressions but not clicks, try to change your ad in a way that caught the user attention. If you have any offer or discount, show it on your ad, it will increase your clicks. Also, make sure your landing page takes the customer directly where your ad is telling them. Is not good if your customer was interested in your discounted shoes and then your ad take him to your t-shirts section.
Take the time to review your ads frequently, how they are doing, how is your business growing. This will help you to gain the most you can from your investment.