When it comes to managing a Google Ads account, we have a wide variety of KPIs that provide us with information about our account.
The problem is that there are so many of them that sometimes it's difficult to prioritize and focus on the ones that really matter, not to waste time on less meaningful metrics.
If we had to choose just a few KPIs to optimize your Google Ads account, they would be:
1. Impression Share:
This refers to the impressions you receive compared to the searches in which you are eligible. In an optimized account and in the main keywords of your account, it shouldn't drop below 30%. Impression Share is better if the keyword is not too generic and its match type is not broad. Therefore, we advise you not to go crazy trying to improve this metric for a generic broad keyword but instead try to expand it by finding more long-tail keywords or using phrase or exact match types. The Impression Share for branding keywords is usually better, so don't obsess over improving it in ad groups where you bid for competitive keywords, as you'll end up wasting a lot of budget. In conclusion, trying to improve Impression Share is very important, but it depends on each element and not just on how much you bid, but also on the quality of the account structure and elements like the ads.
2. Cost Per Click (CPC):
This is a metric that you should have very well under control, especially in an account with many automations, where CPC tends to increase uncontrollably due to Google's "smart algorithm." To reduce it, we recommend having a very well-structured and optimized account, as well as having high-quality ads and a good experience on the landing page. The average CPC depends a lot on the industry and market you are bidding in. Some accounts have average brand CPCs of 1 cent, while others have CPCs of €4. One key is to ensure that brand searches enter through brand keywords and not through generic ones, where you will end up paying a much higher price. Dolnai offers the possibility to analyze each search query so you can take actions like creating new brand ad groups or adding negatives to redirect these searches.
ROAS (or Return on Ad Spend) measures the return that you obtain from every $ you spend. I.e., if your ROAS is 1 it means that you are getting 1$ out of every 1$ you spend on ads.
4. Cost/Conv. (CPA):
Cost per Conversion (or Cost per Acquisition) measures how much a conversion is costing you. This is an important metric every advertiser should know because it's telling you how much it cost you to acquire a new customer.
If these last two metrics are good, it might be interesting to increase the budget and CPC to get more conversions and therefore more profits, especially if the Impression Share of the element can be improved. Learn how to quickly detect it.
In addition to these KPIs at the general account level, there are others that determine the quality of your ads and, therefore, how much traffic you will attract with your Ads. Because the job doesn't end with optimizing keywords and audiences. Without a good ad that captures the user's attention, the work is in vain.
5. CTR (Click-Through Rate):
This is the result of the division of clicks by impressions. Having a good CTR means that the ad is highly relevant to the user's search intent. It is vital that you take care of your ad-copy so that the user is attracted to its content. Adapt them to the search query the user has made and the audience you are targeting. Also, ensure that the landing page experience is good, avoiding redirects and other loading issues.
6. Ad Strength:
This is a metric that Google assigns to each ad, categorizing them as either Poor, Average, Good, or Excellent in terms of quality. The goal is to strive for all ads to attain an Excellent rating by applying best practices. However, it's essential to understand that this metric is primarily an internal metric used by Google, so your focus shouldn't solely be on optimizing it.
In general, Excellent-rated ads tend to achieve more conversions with a lower budget. Still, the actual performance may vary depending on the campaign, ad group, and the overall account structure. Therefore, instead of sticking on the quality label, concentrate on implementing recommended improvements and regularly monitor your ad performance. Update underperforming ad copies with better alternatives as needed.
Headline Diversity is a metric that we frequently use at Dolnai to optimize ads and that most advertisers don't pay much attention to.
This metric measures the percentage of unique text within the ads. A higher Diversity indicates that each ad's text is more suitable because it means they have been specifically created for the respective ad group. It also implies that generic and uncustomized messages are not being used across all ads for all audiences and products or services.
To improve your ads, it's essential to analyze various points for enhancement and adhere to Google's recommended best practices, such as incorporating the keyword multiple times in the text, including calls to action, completing all 15 ad titles and 4 descriptions, and replacing creatives that aren't performing well in each ad. Dolnai presents these recommendations for each case, making it easy for you to get started.
Cristina Jiménez Gómez
October 24, 2023
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