When we advertise our site, we can feel overwhelmed with the information offered by Google AdWords and its relation with Analytics. We might feel confused and believe it won’t help us. This article will provide some useful information on how to effectively use Google Analytics in order to generate automatic AdWords rules that will improve our results.
Metrics to be considered
In this inicial report we can see two different types of colums. The one we need to optimize (essential data) and the ones that are only important in relation to the essential data (Accessory data)
Why is it that we classify information like this? Because in the sites which business models are ran exclusively by E-commerce, the amount of time spent in the site or the pageviews are not as important as the profits made in the account.
If we clic on Clicks, we can see a whole set of different values. It is important to know the ROI (return of investment) value. This value can tell us how much we make out of every dollar or euro invested. If our cost is $2 and we get a ROI value of 50%, it means that we are making a total earning of 3 dollars(recovering our initial investment and earning 50% more) Important: the ROI value measures as profit not only the income by e-commerce but also the obtainment of objectives that we set on a value higher than 0.
If our ROI is positive, it means that we effectively have a profitable campaign and we are winning money with AdWords. On the contrary, if it’s negative, we are loosing money. In both cases, the ROI can be optimized to maximize results.
Using the advanced search tool from Analytics, we can filter the user segments that we want to analyse in a matter of seconds.
In this sense, we can test which accessory metrics are relevant when achieving conversions, through the creation of hypothesis and its further assessment.
For example, if a group of Ads has a really high bounce rate, then it stops being convenient to invest through AdWords. In small account logic, with time, the best thing to do would be to check each group of ads and each key word in order to keep optimization running and generating profits. But if we do not have the time to optimize there is an option provided by Google that can either stop or reduce the allocated CPC of any ad group that is performing negatively. This may provide a short term solution to improve the account performance.
Sigamos con el supuesto de que una tasa alta de rebote le genera pérdidas a la cuenta. ¿Cómo podemos comprobarlo y qué significa que la tasa de rebote sea “alta”?
We can click in Advanced next to the search box we can select the bounce percentage filter and the value that we want to test.
When we select Apply, the statistics will automatically be updated.
In this case, we can see that at a bounce rate higher than 70%, the ad groups become unprofitable. If there not a satisfactory result, we can try different values or variables (time spent in the site, etc) until we find a variable that will clearly show a low conversion rate.
Because of the bounce rate being higher that 70, we can go to the AdWords platform and create an automatic norm.
The amount of clicks being over 200 is subjective and it depends on how many clicks we consider necessary for the sample to be statistically valid.
After we press Save its done, automatically every day at 15hs the Adwords system will check all the campaigns and stop all the ad groups that obtained over 200 clicks and have a bounce rate higher than 70.
The automatic norms can be applied to a variety of processes. This brief tutorial encourages using your imagination, everyone can think new and better ways of optimizing our results. This way, it can work as a collective effort.