Whether you are managing your own AdWords account, or have entrusted its success to someone else, the odds are that as a business owner you have about a THOUSAND things to do at any time. Somewhere buried in that list is generally the question ‘how is AdWords doing?’
From a lot of experience talking to clients the honest answer is quite often they’d say, ‘I don’t really know!’
IT’S NOT ALL THAT COMPLICATED
Once explained to them though, they start to understand that measuring AdWords performance is really straightforward as I’ll cover below. (Note – we are not going to cover Assisted Conversions and Conversion Attribution in this post which build a more complex picture of how clients find and interact with your site, and the influence PPC has – let’s leave that for another day).
To measure performance, you need to do some set up work in Google Analytics. You’ll need Google Analytics for everything here, so make sure it is setup and the tracking code is installed. If it isn’t then ask your web developer to set it up for you.
Once it is installed then make sure that you are using the same email address to login to both AdWords and Analytics. Login, go to admin and then confirm AdWords is linked.
WHAT IS THE PURPOSE OF YOUR WEBSITE?
What type of website does your business have - is it lead generation or Ecommerce?
1, LEAD GENERATION
Does your website generate leads? I.E. it isn’t an online shop, it’s a site which people find and then hopefully make contact by sending a message or calling you. Then it’s a lead generation tool and measuring ENQUIRIES is key, Here’s how do you do it.
Most commonly enquiries either come through a contact form or a telephone call. Both can be measured and SHOULD be measured.
a, CONTACT FORMS
To measure contact forms you need to have the form set up as a GOAL in Google Analytics. There are two ways to do this –
If your contact form completion is on a separate URL e.g. www.mywebsite.co.uk/thanks then the URL is set as a goal. This is easy and you can do it yourself in the admin section.
If you DON’T have a separate URL then it is a little more complex. In this scenario Google Tag Manager needs installing (HOW many Google products ARE THERE you ask?!) The button that sends the form is then setup to trigger and fire an EVENT. That event is then set as a GOAL in Google Analytics. Generally we’d recommend someone who is proficient in Tag Manager does this.
BACK TO ADWORDS
Now the Contact Form is setup you need to go back to AdWords and import the GOAL. We will go through this in a minute.
b, TELEPHONE CALLS
It’s free to track telephone calls from your website that came from AdWords Ads. I’ll quickly repeat that – IT IS FREE.
HOW THE DEVIL DOES THAT WORK?
Well briefly, you’ll need a developer to install some code onto your website. This replaces your telephone number with a dynamic telephone number. Now, when some visits your site from any channel EXCLUDING AdWords your same telephone number is shown exactly as before. But when someone visits your site by clicking on an AdWords Ad, the telephone number dynamically changes to a unique telephone number. When they call that number, AdWords tracks the source right back to the keyword – clever eh? BTW – did I mention it is FREE?!
SETTING UP THE GOALS IN ADWORDS
To set up the on-site call tracking go to Tools > Conversions > + Conversions > Choose Phone Calls
Calls To A Telephone Number On Your Website.
This will both setup the goal and generate the code your developer needs to add to the website.
WHAT ABOUT THOSE CONTACT FORMS?
Go to Tools > Conversions again.
On the left hand side find Google Analytics and import your Contact Form GOAL.
WHAT ABOUT MEASURING PERFORMANCE THOUGH?
Now you’ve setup the call and contact form conversions go and make a cup of tea. Come back some time later once a conversion has happened.
Login to AdWords, go to Campaigns and reorder your columns as below –
Now with your data populated you can see how much you’ve spent (cost), how many enquires (conversions) it has generated AND the cost of each enquiry (cost / conv).
THAT IS PRETTY MUCH ALL YOU NEED TO KNOW.
Can customers order and pay for items on your website? Then it’s an e-commerce site and measuring TRANSACTIONS is key. Here’s how do you do it.
E-Commerce is similar to lead generation except instead of enquiries we are tracking orders and their values. To do this again you need Google Analytics setting up and linking as above. After that you need the E-Commerce module setting up. This tracks orders including product and order value. Generally you will need a web developer to do this.
GET THOSE TRANSACTIONS
Once that is done go back to AdWords > Tools > Google Analytics and this time import Transactions.
Now go to Campaigns and modify the columns as below.
This time you will now be able to see how much you’ve spent (cost), how many sales (conversions) it has generated and the cost of each sale (cost / conv). Addditionally you can see the total value of those sales (All conv. value).
Divide your All conv value by the cost and you will calculate your return on Ad spend.
For example –
Cost / conv £27.50
Total Value £2500
Return on Ad Spend = £2500 / £550 *100 = 454%
THAT IS PRETTY MUCH ALL YOU NEED TO KNOW.