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  1. Measuring Returns on Ad Spent

Similar to return on investment, you can measure your return on ad spend (ROAS) to see how much revenue you’re generating for each dollar spent on your ppc campaigns. Measuring your return on ad spend can give you insight into how your ppc campaigns are performing and optimize them based on your revenue.

Calculate your ROAS – If you’re interested in calculating your ROAS, you’ll need to know the amount of revenue generated by your ppc campaigns and your advertising costs. Here’s the formula: ROAS % = Revenue from campaigns / advertising costs x 100

If you use conversion tracking and have set up conversion values, consider using the target return on ad spend (ROAS) flexible bidding strategy we previously mentioned. This bidding strategy can help you to maximize your conversion value, while trying to achieve an average return on ad spend equal to your target (which you’ll know if you measure and monitor your ROAS).

  1. Measuring Brand Awareness

If your main goal is to raise awareness and visibility of your product, service, or cause, you’ll first choose whether you want to increase traffic to your website or encourage customers to interact with your brand. Once you establish the goals of your branding campaign, you can then measure success by monitoring ad impressions, conversions, and other statistics.Here are some important adwords metrics that can show you whether your campaign is successful:

  1. Ad Impressions:

Ad impressions are the number of times your ad was displayed to a searcher audience based on matches between your campaign keywords and terms used within search queries. As a very broad statement, your ads need to be displayed in order to see any sort of performance in your account. If your ad isn’t showing, you’re not even giving searchers a chance to click anything and definitely not leading them down the road to conversions. The bottom line here is that you first need ad impressions if you’re expecting to perform well in other areas.

Ad impressions are important to track in any campaign, no matter what your goals are. But they can be especially important in branding campaigns, because they represent how many customers actually laid eyes on your ad. You might not care whether they ended up buying anything from your site, but you do want them to remember that catchy new slogan you paid big bucks to develop and share with the world. One way to really prioritize ad impressions is to create a cost-per-thousand ad impressions campaign (rather than a cost-per-click campaign). That way you’ll pay based on the number of ad impressions your ads received, rather than clicks they’ve gotten.

  1. Customer Engagement:

If you’re focused on branding, you can use clickthrough rate (CTR) to measure customer engagement for Search Network ads. On the Display Network, though, user behavior is different, and CTR isn’t as helpful. That’s because customers on sites are browsing through information, not searching with keywords. The competition is high for a busy Display Network page when compared to search. It’s important to achieve a good CTR on Search Network (5% or higher) than on the Display Network. You may want to consider other measurements like conversions for Display Network ads.

Conversions can help you see whether your ads are driving branding-related visitor behavior you think is valuable, such as sign-ups or page views. After all, aren’t you curious how many people join your mailing list after watching that expensive video ad your company just created?

  1. Reach and Frequency:

Reach is the number of visitors exposed to an ad. Increased reach means that an ad is exposed to more potential customers, which may lead to increased awareness. Frequency is the average number of times a visitor was exposed to an ad over a period of time.

You can view reach and frequency data by adding the “Unique cookies” and “Avg. impr. freq. per cookie” columns to your statistics table. Do select a specific time period in the drop down menu above those columns. These columns are available on the statistics table for “All campaigns.”

Here are the adwords metrics that can be included for your Google AdWords campaigns. These metrics will give you a thorough understanding of your ads, keywords and audience. But all these metrics might not always fit with every account. There are always exceptions and anomalies that will throw you off a bit. The most important thing to focus on is good performance based on your business goals. Even if you find that something weird is working really well in your account, don’t completely discredit that weirdness. Take advantage of any good performance. Try to dig deeper as to why something specific is working well for you.

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