PPC Management: Understanding PPC/Adwords Reports
Ever have trouble reading your campaign report? Maybe you don’t know what some of Google’s campaign measurements mean or simply cannot tell if the numbers your campaign yielded are any good. Fortunately, this post is geared towards clearing up any confusion you may have with Google Adwords PPC Reports/campaigns.
Below are a few basic terms you must first understand in order to gauge your ppc campaign’s effectiveness. Let’s take a look.
This is how many times your ads are shown.
Impressions indicate how often your ad has appeared on a search results page or website on the Google Network.
Why it matters: Understand how often you’re communicating your message. You can gauge your ad’s potential to drive more traffic to your site by comparing the number of impressions it receives to its clickthrough rate.
This is how much you spend throughout your campaign.
“Cost” is the sum of your cost-per-click (CPC) and cost-per-thousand impressions (CPM) costs during this period.
What’s not included: Other costs such as cost-per-call aren’t included. For a sum of all costs, use the Total Cost column.
Controlling costs: Set an average daily budget you’re comfortable with at the campaign level, then bid at the keyword and ad group level to guide how your budget is spent.
Average CPM (Cost Per Thousand):
The amount spent per thousand ads that are printed on the Google Display Network.
The average amount that you’ve been charged for 1,000 impressions.
Click Through Rate (CTR):
This is the amount of times your ad gets clicked compared to how many impressions it receives. A solid CTR for Search Network ads is around 1.00% while a solid CTR for Display Network ads is a around 0.15%-0.20%.
Clickthrough rate (CTR) is the number of clicks your ad receives divided by the number of times your ad is shown.
What it is: CTR represents how often people click your ad after it’s shown to them. For example, if you receive five clicks and 1000 impressions, then your CTR is 0.5%.
A click is when a user interacts with your ad by clicking on it, typically showing an intention to learn more about what you offer.
Why it matters: Clicks can help you understand how well your ad appeals to people who see it. If you know how many people are clicking your ads relative to how many people are seeing them (impressions), you can gauge the success of your ads.
Clicks are accredited by the Media Rating Council
Average Cost Per Click (CPC):
How much you are paying on average every time your ad is clicked.
Average cost-per-click (CPC) is the average amount that you’ve been charged for a click on your ad.
What it is: This amount is the total cost of all clicks divided by the total number of clicks received.
What it isn’t: Average CPC isn’t the same thing as maximum CPC — that’s the most you’re willing to pay for a click on your ad. You won’t be charged more for a single click than the maximum CPC that you set.
Example: If your ad receives two clicks, one costing $0.20 and one costing $0.40, your average CPC for those clicks is $0.30.
Total conversion value is the sum of all conversion values for all conversions.
Why it matters: This metric is useful only if you entered your revenue or profit value into the conversion tracking tag.
When someone clicks on your ad and follows through with a purchase or filling out contact information.
Conversions (1-per-click) count one conversion for every click that results in a conversion within 30 days of the click.
Why it matters: Conversions (1-per-click) will count at most one conversion per ad click. So, even if more than one conversion follows a click, only the first one will be counted.
When to use it: This metric can help you approximate how many customers you’re acquiring.
How often a click of your ad results in a conversion.
Conversion rate (1-per-click) is the number of Conversions (1-per-click) divided by your total clicks.
What it means: It shows how often a click on your ad resulted in a conversion.
Note: Conversions (1-per-click) is different from conversions (many-per-click), which counts all the conversions that occur within 30 days of an ad click.
Why it matters: This metric helps you compare the number of conversions to the number of clicks your ad received.
How much you pay to eventually get a conversion.
Cost/Conversion (1-per-click) is your cost divided by your total Conversions (1-per-click) for a given period of time.
What it is: Cost includes cost-per-click (CPC) and cost-per-impressions (CPM). Conversions (1-per-click) count one conversion for every click that results in a conversion within 30 days of the click.
How to use it: This ratio can help you understand your return on investment.
Return on Ad Spend (ROAS):
The amount of money your ads end up generating.
RPC (Average Revenue):
Just like it says, this is your average revenue.