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How to Measure Display Campaign Performance in Google Analytics

When it comes to online marketing, measuring the performance of an ad on the Display Network is similar to measuring the performance of any other traffic source, such as Search Network ads. But what needs to be considered when viewing these metrics is that display ads are often better for branding rather than a direct conversion. When you analyze your data, it is important to keep this in mind when deciding whether your display ads are worth the investment.

In general, ads on the Display Network have a slightly higher bounce rate and fewer pages per visit than other traffic sources. Users who respond to a display ad often were not looking for your product or service at the time so their response is more passive than a visitor who is actively searching for something. As a result, your visitors are somewhat interested in what you have to offer but they are not actively seeking it.  As a side note with these ads, you want to write compelling headlines, but not click-bait headlines. With a click-bait headline, visitors click only out of curiosity, not necessarily a genuine interest in what you have to offer so it is probably not worth paying for those clicks.

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With the bounce rate, you may see a bounce rate for your display campaigns of 80% whereas the bounce rate for your other sources of traffic is only 50%.  Rather than focusing on that single number of 80% for display ads, drill into this and look at the specific placements, ad copy, and and targeting methods.  Google Analytics provides this granular data about behavior by each of these dimensions.  As you drill into your data, you might find there are several placements that are responsible for the highest bounce rate which you can then exclude in your Google AdWords campaign.

Also, as you review your Google Analytics data, give a little more credit to your engagement metrics, such as pages per session, for people who come from display ads. When people arrive on your site they’re passively searching somewhere else and they spend time surfing your site, it’s a good indicator of the effectiveness of your ads on the Display Network.

The value of this initial introduction, or branding, is seen when someone does make a purchasing decision. Because they saw your ad earlier, they remember what it is that you offer and are willing to visit your site again when it comes time to make a purchase. They may bookmark your site when they reach it through a display ad to revisit at a later date when it is time to buy. Or it could be they may not even remember you when they are ready to buy, but in doing an internet search at a later date, your brand does comes back to mind when they see your results again. Keep these factors in mind when you review the performance of your display ad campaigns.

Of course, everyone who runs paid ads for a site wants to see conversions in AdWords or goal completions in Google Analytics. It makes sense. When you are using cold hard cash in your marketing, you want to see results. But when you look at completed goals with display ads, look beyond just the straight conversion metrics. Make sure you set engagement related goals which include pages per session, mentioned above, or time on site. This is also when it makes sense to have a goal value set for valuable behavior that is not revenue-generating.

Remember that your metrics for display campaigns are going to be different than your metrics on your search campaigns with fewer clear-cut conversions. This is a campaign type that is still worth using because it can attract people who have an interest in what you offer and it could get you to the top of their mind when it is time for them to make a decision about their purchase. So go ahead and try the Display Network but keep these differences in mind when reviewing your results in Google Analytics.

What to Monitor with your AdWords Budget – Part I

“AdWords is a money pit”. I hear that a lot from people who are cynical about their experience with AdWords. They spend a lot of money yet do not see any sales as a result.  And I agree that it can be a money pit when it’s not monitored closely. Advertisers who set up an account, then barely look at it will find themselves maxing out their budget very quickly with little to show for those dollars spent.  But when your Adwords Budget is monitored and optimized, AdWords has the potential for great results for advertisers – both for online and brick and mortar store. The major concepts to learn and manage so AdWords does not become a money pit is the daily budget, bid strategy, keyword costs, and conversions.

Campaign Budget

The highest level is your campaign budget. A simple account for a small company may have only one campaign because they do not need to account for variation in geographic locations or language. Others may have a separate campaign for each country or each product or service. Note that you are setting a budget by campaign. If your total spend for the month is $5,000 and you have five campaigns, you might set each campaign at $1,000. If it was one campaign, then you set the one budget of $5,000 for that single campaign.  Start here when determining your maximum spend for the month.

Ad Group Budget

Next you can set a budget for each ad group within a campaign. In the below example for a florist, they bid slightly higher on their “Brand Name & City Name” ad group because it produces the most revenue. Less money is spent on RLSA (remarketing lists for search ads) because the return is lower. If you are just getting started, there is no need to make edits yet at the ad group level. You may want to first collect data on how your ads perform in each group.

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Keyword Bids

You can also manage bids for keywords.  Below you see a slighter higher bid for the keyword phrase marketing conference compared to a business conference so this advertiser is bidding based on the return each of these words provides. The expectation is that searches on the phrase marketing conference will result in more ticket sales than business conference.  If you are just getting started with AdWords, bidding at the keyword level may be more granular than you need initially.  Unless you are confident that some keywords will produce a higher ROI than other keywords, allow some time for your account to collect data, then come back and adjust bids at a later date depending on how the words perform.

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Tracking Performance

Now that you have the basics of budgeting down, it’s time to track performance on your ads. While getting a click on an ad is generally a good thing, you do not know how good of a thing it is unless you measure what happens after the click. Previous articles on this blog talk about the importance of tracking conversions and how to set it up.

In Part II, we’ll review bid strategies which are a more advanced option for bidding.

How to Create Your First Video Campaign for AdWords

More people are on YouTube than any cable segment in the United States, which means there is a huge audience there that will only continue to grow. And when you create your campaign, remember that mobile is just as important with video as it is for other AdWords ads since more than half of video views are on a mobile device.

Video presents such as a unique way to connect with the right people. Since they can like, share, and subscribe to your videos – rather than simply click – it’s a much different experience than user behavior on a typical Google.com search. With keywords, demographics, and topics, you can connect with the right customers at the right time.

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Getting Started with Attribution Models in AdWords

With Attribution Models in AdWords, you decide how to assign credit to keywords, ad groups, and campaigns that influenced a conversion. For this to be meaningful, you need to first start recording conversions in AdWords.  If you are unsure if conversions are recording, go to Tools > Conversions from your AdWords account. If you do not see any, you can set up conversion tracking in Google AdWords or import goals from your Google Analytics account.

If you do see conversions recording, you can then choose “Attribution” in Conversions (or by going back to the Tools menu in AdWords).  Once you are in that sub menu, you will see options for Conversions, Cross-Device Activity, Paths, Click Analysis, and Attribution Modeling.

Attribution Overview

The overview shows the average period of time it took for people to convert. In the example below, you can see that it was within a day, so a strong-call-to-action for an immediate purchase works well for this account.

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Conversions

An Assisted Conversion demonstrates the impacts of your AdWords account in cases where someone did not purchase immediately.  Clicks and impressions may have influenced someone’s decision to convert at another time. The table below shows metrics for impression-assisted conversions and click conversions.

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To use a specific example, let’s imagine a customer clicked on two ads for the keyword “clothing” before clicking on an ad for the keyword “shirts” and making a purchase. In this situation, it would count as two assisted clicks which is the number of times the keyword “clothing” appeared in the conversion path and one assisted conversion.

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Cross-Device Activity

The Cross-Device Activity shows how customers use their devices before converting. In the example below, this account has primarily same day purchases, so it is not a surprise that no cross-device activity is available.

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This next screen (from a different account) shows last click and click-assisted conversions for each device used in the searcher’s journey. Even in this account, most of the conversions happened on a single device.

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Paths

“Paths” looks very familiar to Google Analytics users because it shows the route people took before converting.  With the campaign, ad group, or keywords, you can see the path a user took on the way to a conversion. Below is a very small sample size but shows some things you may see in your account.

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Although the details  are blurred out, you can see that some searchers clicked on the same campaign more than once on line 2 and 3. On line 1 and 4, the searcher had the same last-click campaign before conversion. With this account, it’s possible that words or groups in the earlier campaigns could be paused if the trend leans towards a specific one that influences conversions. More data should be collected, however, before account changes are made.

With next report, Path Length, you can see that it only took one click for most visitors to convert.

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Click Analysis

With the Click Analysis reports, you can see which keywords introduced people to your site (first clicked) and which ones sealed the deal – meaning led to a conversion (last clicked). This is available for campaign, ad group, keyword, and match type.

The match type report is especially helpful in demonstrating the importance of targeted keywords. Although a broad match will bring in a lot of keywords, in the screen below, you can see it was the phrase match that led to more conversions.

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Attribution Model

Next select “Attribution Modeling” to compare two different models next to each other. Your options are first click, last click, linear, position based, and time decay.

Attribution is not an easy concept in Google AdWords, but is important in understanding what your ad dollars are really doing for you.  Using the above as a reference, walk through each of these steps in your account to see details about your ad performance. And remember, it all starts with conversions. If you do not have any in your AdWords account, set that up first by following the links referenced at the beginning, so you’ll have meaningful Attribution data to work from in your reporting.

Options for Device Bidding in AdWords

When Enhanced Campaigns were rolled out by Google several years ago, advertisers had less control in AdWords since they could not separate bids for mobile, tablet, and desktop. Although the intention was to make campaign creation and maintenance easier in Google AdWords, it was frustrating for advertisers who had a very different strategy for mobile versus desktop.  In the three years since Enhanced Campaigns were introduced, mobile clicks have increased significantly and some advertisers want to take advantage of that.  Fortunately, with the recent updates in Google AdWords, the ability to set bid adjustments by device is available again (to the joy of many advertisers).

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However, even though this feature is available, Google’s recommendation is to not separate campaigns by device. This means advertisers need to consider what these changes mean before implementing them in an account. Going the route of separate campaigns for each device also means managing multiple campaigns with the same messaging. This increases the amount of work required to maintain an AdWords account.  If a separate campaign is created for each device, it requires additional time to monitor keywords, ads, ad extensions, negative keywords and more work when testing ads.

Many of the things that appeal to advertisers about device specific bid adjustments are actually available by utilizing existing features in AdWords.  Instead of a separate campaign for each device in Google AdWords, bid adjustments can instead be used with tightly themed ad groups, which results in a much more manageable account. And bid modifiers now provide more options with a range of -100% to +900% for the bid amount. (With Enhanced Campaigns, the max bid adjustment was 300%). Even if ads do not perform as well on mobile devices as they do on desktops, mobile ads should not be completely removed. Instead, an adjustment can be used to decrease the amount of budget put into them.

And with AdWords Smart Bidding (previous known as automated bidding), a number of signals are considered utilizing machine learning with the optimal bid being set for each auction based on those signals. For example, a signal may differentiate behavior based on someone in New York searching during the lunch hour on his or her phone compared to someone in Los Angeles searching after 6:00pm from a desktop. As a result, device is a bidding signal in the AdWords auction. This may be enough for many advertisers who do not know how to best approach bidding for different devices. Google’s Smart Bidding does override manual bids, so there should be at least 50 conversions over the past month for meaningful results.

If you’re not sure what to do with this update on device bidding, you can do nothing! Or if you’re not clear on what makes sense for your business and like the idea of setting device bids separately for campaigns, start testing. With drafts and experiments, you can test these device level campaigns side by side with campaigns that are that are already running with bid adjustments to determine the best bid methodology.

The simplest route may be to start by segmenting performance by device in your AdWords account. The data there is based on your actual data and is probably the best route for determining how you want to address device bidding. (You can view device performance in an AdWords campaign from Settings tab > Devices.)

One final feature that can help make that decision is the cross-device attribution report. This enables you to examine the full value of a click by seeing conversions beyond the one initial conversion listed in standard AdWords reporting.  You can see how much activity happens in your account, how devices assist each other in a conversion, and the top paths for users utilizing more than one device in their search. Reported conversions and full value conversions should both be considered before deciding what to adjust in your account.

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Like many features in Google AdWords, the fact that something exists does not automatically mean you should implement. Spend time reviewing these account options, your data, and your overall business model before making changes to your account.

How to Manage Your Google AdWords Account

Whether you are getting started with Google AdWords or are ready to bring your account management in-house instead of outsourcing it, follow these best practices to ensure that you are getting the most for your AdWords dollars. 

Create a negative keyword list 

Negative keywords are words you do not want to pay for with  AdWords. For example, if you offer a resume class for $200 with no free options, you do not want your ad to show up for a search on “free resume class”.  With that example, your negative word is free. Creating a solid negative keyword list at the very beginning of your campaigns will save you money spent on irrelevant clicks

Continue checking for negative keywords 

Even if you start out with a solid negative keyword list, you may still find negative words in your account that you did not think about when you set the account up.  Staying with the example above, let’s assume your classes are only offered in person.  Over time, you may discover a search for “online resume class” that triggered your ad. You would know to add online to your negative keyword list in order to prevent that from happening in the future. To check for negative keywords once your account is running, use the Search Terms report. (more…)

How to Get Started with Expanded Text Ads

Google’s announcement about Expanded Text Ads was a huge day for marketers. Their new format provides an opportunity for better messaging on the AdWords platform.  There are now two headlines rather than one, with a character count increase from 25 to 30 characters. The ad description is 80 characters which provides more space for an offer, and the URL can be customized, allowing up to 15 characters. This Expanded Text Ad announcement is one of those changes that advertisers must pay attention to since standard text ads cannot be created or edited after October 26th. For now though, you will see both expanded and standard text ads on Google.  However, since Expanded Text Ads will likely perform better than the standard text ads, do not wait until October to make this change. Here are some considerations for making the most of this new format. (more…)

Analytics and AdWords – Not Always Perfect Together

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If you are advertising on Google AdWords, connecting it to Google Analytics is a must so you can view what happens after someone clicks on your paid ad. Getting to your site is nice, but seeing an action that may result in revenue is more important.

What can be a bit confusing initially when using the products is seeing different data in Analytics compared to AdWords for the same day. If searchers clicked on your ad 100 times on Monday, you would expect to see 100 visits to your site from AdWords on that date in Google Analytics, but that is not always the case. Most of the time, those numbers will vary. Although a small difference may not seem that important, you still want to know what your marketing budget is doing for you so you allocate it to the right channels and/or make necessary adjustments to your landing page.  Let’s take a closer look on how those two products work together so you understand what these different metrics really mean.

First ensure you understand how metrics are defined in Google Analytics. A click in Google AdWords is when someone clicks on an ad. This action is recorded immediately and invalid clicks are removed.  Google Analytics has all the activity that happens after this ad click.

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Performance (Active View) Metrics in AdWords

google-adwords-featuredIn the available columns option on the Ads tabs in Google AdWords, you will see Performance metrics and Performance (Active View) metrics. The Performance metrics were discussed in an earlier post and refer to the numbers every advertiser reviews, such as clicks, impression, cost, and click-through-rate.  Performance (Active View) metrics are available for YouTube ads as well as select ads on some Display Network websites. With Active View, advertisers can see if an ad is viewable by potential customers, which is measured when 50% of your ad can be seen on a user’s screen for a second or more.

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Measuring YouTube Ad Performance in AdWords

Over a billion users are on YouTube, which accounts for one-third of people online. This is a potential goldmine for savvy marketers. With AdWords, you can promote your YouTube videos with paid placements to increase the chance of people learning about your brand. 

In Google AdWords, there are a set of metrics specifically for earned actions on YouTube: views, subscribers, playlist additions, likes, and shares. “Earned actions happen when a viewer watches a TrueView video ad and then takes a related action on YouTube.” In other words, you pay for that first click on your ad, but not additional actions which are “earned” as a result of people engaging with your video initially from an ad.

Here are brief definitions of the different earned actions available in AdWords:

  • Earned view: A viewer watched another video on your channel within a week.
  • Earned subscribers: A viewer subscribed to your channel within a week.
  • Earned shares: A viewer shares a video from your channel within a week.
  • Earned likes: A viewer “likes” a video after watching your paid placement.

This alone gives you a wealth of data about how interested people are in what you offer, but don’t forget about Google Analytics. As long as your Google products are connected, you will see Video Campaigns under Acquisition > AdWords in Google Analytics.

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