Importance Of Google Adwords

Google is the largest search engine on the Internet, and to use the Internet as a profit-making source, one needs to use Google. The more smartly you use it, the more benefits you will reap. Google AdWords makes your marketing task a whole lot easier by bringing huge per click traffic through the use of proper keywords. When these keywords convert to business and sales, the traffic driven from Google AdWords is converted to profit. Many factors contribute to Google AdWords’ success as a method for Web sites to earn profit. Keywords are search terms or strings of search terms that when put in the search box show results relevant to that search. For example, a person searching for “CAT exam” will get, say, 1000 search results in the search engine, and the user can click on any of the items to view the results and details. However, the top search results that come through Google AdWords have greater chances of visits. On the other hand, Google ads appearing in relevant Web sites, such as “e-learning materials” showing in one corner of an educational Web site, have a greater chance of getting visitors through them. Both these situations come along with the Google AdWords Campaign. Thus, this campaign is of great importance in bringing relevant clicks and visits to one’s site.

Google AdWords’ location targeting enhances the importance of the campaign all the more. Location targeting is one of the most important and useful components of implementing a successful PPC campaign. This determines in which location a particular ad campaign will be shown and thus one can customize ad displays per location. It also disables locations where the ads need not be displayed. These features that come along with the Google AdWords campaign highlight its importance for e-business.

1. Small Initial Investment

This is the major reason why Google AdWords is so popular. Google AdWords comes with a small initial investment. You need to pay only a small amount to create an AdWords account; thereafter you can bid on the best keywords. After creating the Google AdWords account and releasing the content, the payment is billed after every click. Therefore, with each click, a certain amount is billed and if no click happens, no amount is billed. In such a case, Google AdWords comes with assured clicks, and payment is billed only against clicks. Thus, there is no loss if keywords generated are perfect, and effective related measures (discussed later in the article) are taken.

2. Defining Budget

This is another important reason why Google AdWords is used. You can set your own budget with Google AdWords and monitor your budget, thereby reducing any overspending. After the account is created, the bid for any keyword is independent of choice. Therefore, any keyword that performs well can be bid high for better results. And a keyword that does not perform well and does not bring any profit to the site can be removed from the campaign. Also, keywords that bring more clicks but less conversion can be removed or bid with a reduced amount. You can also control your budget during a crisis. At times, when a site is down, a bid can be reduced in order to control the defined budget. Thus, defining the budget becomes another essential reason behind the use of Google AdWords.

3. High ROI

Google AdWords comes with a Return of Investment (ROI). This means you need to pay Google per click, which suggests your investment is returned against assured business. Google AdWords increase click through rates and visits; therefore, there is a greater chance of business. Now, by following some other rules such as generating the best converting keywords, effective bidding, a fast loading site, and so on, these clicks can be converted into profitable business. Therefore, Google AdWords ROI makes people pay only for business and profit, so evident loss can be controlled.

4. Target Traffic

This is another important and very useful aspect of Google AdWords that serves as a major reason behind the use of the Google AdWords campaign. By using this, you can bring targeted traffic directly to a Web site. As ads are displayed along with a defined title and description, a serious audience will end up clicking these links and taking a further call to action. Thus, Google AdWords serves as an effective way of bringing traffic to your online business. This target traffic can be defined as per location and places as well. There are options through which you can specify a definite keyword for a specific location. This increases the rate of visits and conversion, which improves the business of a site tremendously.

Importance Of Google Adwords

5. Test Marketing Campaigns

These campaigns are another major reason why you can still use Google AdWords. Test Marketing Campaigns means using different types of ads for different keywords. If a certain ad campaign fails, you can use a different campaign with a different title line and description. For example, the first marketing campaign can be tested with an exact match, then a phrase match of the keyword, and so on. Such flexibility in a marketing campaign makes Google AdWords more usable. You can test marketing campaigns many times without paying anything extra. Thus, you get many chances to experiment with the right title line and description for display ads. The same goes for having keywords included. While good performing keywords can be bid high, low performing keywords can be bid lower or removed from the marketing campaign. Thus, you get enough tests to experiment with marketing campaigns, which serves as a major plus point for using Google AdWords.

6. Instant traffic

This is one of the most important reasons why you can still use Google AdWords. Google AdWords bring instant gratification or traffic to one’s Web site. On-page optimization and off-page optimization is very important for bringing traffic to one’s online Web site. However, all measures such as link building, on-page optimization, and so on do not come with assured traffic brought by Google AdWords. Google AdWords showcases relevant ads in relevant sites and also at the top of search pages, which increases the chances of clicks and visits, which later convert to business. Google AdWords brings instant traffic to a site, which would otherwise take a much longer time and require greater investment. Thus, as it comes with instant gratification against a certain investment, it becomes an effective way of bringing immediate traffic to a Web site, which translates into a profitable and successful business.

7. Tracking success

By using Google AdWords, you can track your success and take effective measures when required. You can use Get Clicky or Google Analytics to track the reports of the Google AdWords campaign against keywords. This allows you to decide on their future steps with regard to a certain keyword or marketing campaign. Suppose a keyword or a campaign is performing well; you can track its report and place it prominently with a high bid in future to increase traffic towards a profit-making business. On the other hand, a keyword or a campaign that fails to bring expected traffic can be removed for future usage. Thus, you can track success and failure in real time and decide on calls to action for future marketing.

8. Targeting ads locally

Google AdWords offers location targeting for display ads. You can specify definite display ads for certain locations, which will enable those particular ads to display exclusively to a particular location. This enhances the effective use of Google AdWords as it allows you to reach browsers at local, national, and international level. You can also customize ads in the local language to make them more useful and prominent for a particular location. For example, ads that will be displayed in France can be customized in French, which will have a direct impact on a French audience. By customizing your ads, you can focus on a targeted geographical audience with focused goals, which will give you a greater chance of getting instant traffic and business. Also, customizing ads per the seasons relevant to locations makes them more effective.

9. Suggested high volume keywords

Google AdWords does not just display ads, but also suggests high-volume keywords for an ad campaign that will convert to purchases and a profitable business. High-volume keywords are those that are searched the most, so including them prominently in the ads, title lines, and in the description improve the click rates for the ads. High- volume keywords can be included keeping in mind the competition. Also, as phrase matches for keywords work better, such search terms can be included for the ads and the campaign to be more relevant. This is another major reason why you can use Google AdWords.

10. Improves hands-on experience

By using the Google AdWords campaign, Web sites get instant traffic or gratification and therefore soon become effective direct marketers. Users perceive these sites as popular, and therefore are likely to click on the site for another purchase decision without giving it a second thought. Also, marketing through the PPC ad platform levels the playing fields for people and their competition. It gradually increases the value of the site and takes the business to a level of brand. Thus, the feature of improved hands-on experience makes Google AdWords more relevant for users aiming to generate profit from their Web sites.

These are the top 10 reasons why you can still use Google AdWords to bring effective traffic and business to your site. All these features accompanying Google AdWords make this campaign more effective and useful and thus increase its use among those who maintain Web sites to bring instant and targeted traffic to their Web sites. These features also specify that Google AdWords, if managed efficiently, can be used as a perfect tool for increasing Web site traffic and running a profitable e-business.

After going through the abovementioned 10 reasons why you can still use Google AdWords, let’s focus on ways to make a successful Google AdWords campaign for Web sites. Just investing money in Google AdWords by putting high search volume keywords in display ads will not convert it to a successful campaign. Other factors need to be implemented. This section will discuss ways through which you can make a successful Google AdWords campaign.

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Digital Marketing Vs Online Marketing

Online and digital marketing are terms that are often confused and misused. I work in the industry yet have found myself wondering should I write online or digital?

It may sound trivial, but knowing the difference can help you shape your overall marketing strategy.

It can also help you analyze your current strategy by categorizing in which type of marketing your efforts fall. Are you making sustainable long-term efforts that will yield results consistently or are you simply playing by ear with each of your outreach efforts?

The Umbrella Term: Digital Marketing

Digital marketing refers to using digital channels, devices, and platforms (regardless of whether they are online or not) to build or promote your marketing message.

In other words, with digital marketing you don’t limit yourself to using the internet, and in this way digital marketing can serve as an ‘umbrella’ term because it encompasses many marketing techniques.

However, there are distinct differences between these two terms that have implications for any marketing plan. Digital marketing is an umbrella term that covers all types of marketing that involve electronic media.

Digital marketing has grown and changed to include a multitude of channels, which according to SAS include:

•             Phone Apps

•             Podcasts & Radio

•             Electronic Billboards

•             TV

•             Online Marketing

One of the biggest advantages of digital marketing is the vast amount of data available to you regarding what is working and what is not; typically with most forms of digital marketing, a company can see exactly which pieces of their marketing plan are attracting attention and converting those viewers into consumers. Using this data, you can fine-tune your marketing plans to respond quickly to the ever-changing needs of consumers.

Online marketing is the one subset of the digital marketing realm as a whole and includes:

•             Websites

•             Social Media

•             Mobile Marketing

•             Content Marketing

This particular subset of digital marketing is growing at an unprecedented rate. Change in the online marketing world happens quickly, and savvy marketers must stay on top of the latest trends and changes to continue to attract new customers and retain current customers.

While online marketing has indeed become a central focus, it’s vital for you to develop a marketing plan that includes more than just online marketing. You must reach customers across a wide array of platforms since it frequently requires more than one interaction with a business or product for a person to become a customer. A comprehensive marketing plan will reach customers both online and offline, utilizing both digital marketing and one of its subsets, online marketing.

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The Basics Of Online Reputation Management

If you consider SEO as the backbone of a strong website, Online Reputation Management too is nothing less. One needs to ensure a positive brand value and a reliable reputation not just amongst the buyers, but with business associates as well. Considering the benefits, ORM has now become an inevitable part of SEO.

ORM trends and statistics reveal how effective it can be for your business reputation.

• 90 percent customers reveal that positive reviews are often a decisive factor for purchase.

• 65 percent internet users rely on online search as the most trusted information bank about companies, people etc.

• 85 percent buyers use the internet to research before buying anything.

• 79 percent consumers depend on both personal recommendation as well as online reviews.

• 58 percent of the Fortune 500 executives opine that ORM should be a core part of every company’s marketing strategy and branding objective.

• 84 percent marketers believe that developing trust would be the key focus area of future marketing trends and campaigns.

People often draw a comparison between SEO and ORM. ORM includes some aspects of SEO, but unlike SEO, the aim for ORM is not to increase visibility. ORM is often required to tackle the aspects bringing negativity and bad publicity to the brand. To counter this, various strategies of ORM are implemented. Moreover, ORM is a long term activity that works to improve the overall online image of your brand/company in a sustained manner.

Let’s discuss in detail about online reputation management and how it can help in improving your SEO efforts.

What is Online Reputation Management?

Online Reputation Management is the process of improving or restoring your brand image online. This includes eliminating negative results about your company/brand when people search you over the Internet.

ORM strategies are targeted at creating an impactful and positive brand reputation; a reputation so strong that negative publicity or bad listings cannot easily ruin the brand value. This also helps to keep the exposure levels of negative publicity as low as possible.

How Does ORM Work?

ORM works by placing positive results that boost the brand image on the top of search engine results. These results can be leveraged for a consistent and good brand reputation. ORM strategy is designed with the proper understanding of search engines and algorithms. Making a fool proof ORM strategy is a tedious process. Results can be achieved the way you want if you follow the aspects discussed below:

• Identify the Aspects Damaging Your Image: Several websites and social media accounts might intentionally or unintentionally ruin your reputation. You need to identify all these aspects and work out measures to keep your website away from such issues with the use of correct key search phrases.

• Use the Right Tools: Using some of the best ORM tools can help to keep business reputation positive. Some of the best ORM tools include Radian6, Reputation Defender, Sentiment Metrics, Visible, Attention etc. Choose the one that suits your purpose the most.

• Right SEO: Pay special attention to aspects like content marketing, press releases, etc. to have search engine results that depict a positive brand image. Ensure that you have a team of experts that can do everything you need to keep your brand value maintained. Ward off negative feedback, complaints and bad publicity with well-planned SEO and ORM activities.

ORM aims at building a positive online reputation in such a way that all the reputation problems get tackled effectively. Online reputation management is a way to appreciate your online presence. It is only possible to understand the importance of ORM when you know how badly negative publicity can affect your business.

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Facebook Vs Twitter - Which Is Best

Facebook and Twitter are the senior class of social networks, outranking freshman and sophomore sites like Instagram and Google+. We’ve seen a good deal of other social media sites come and go over the past decade, but Facebook and Twitter have both stood the test of time. The secret? Their ability to pivot, adapt constantly and push social networking forward by catering to both consumers and marketers.

Facebook Statistics

•             968 million daily active users

•             844 million mobile daily active users

•             1.49 billion monthly active users

•             1.31 billion mobile monthly active users

•             83% of users outside of the US and Canada

Data provided by Facebook.com

Twitter Statistics

•             316 million monthly users

•             80% of active users on mobile

•             77% of users outside the U.S.

•             500 million tweets sent per day

Data provided by Twitter.com

Facebook Is Reactive; Twitter Is Proactive

Facebook’s most common use is to keep people informed of what’s happening. It’s become a scrapbooking site, where people archive important moments in their lives. Twitter focuses on speeding things up, often becoming a source in and of itself.

How Twitter is Beneficial for Business Marketing?

Twitter is a brilliant platform that helps to market your product or services to many people with a small tweet. If you hire an SMO expert for Twitter marketing to handle your social media accounts, then only you have to pay. Otherwise, the best part about this platform is that it is absolutely free.

How Facebook is Beneficial for Business Marketing?

Facebook, supposedly the most popular social media platform, can be truly effective for business marketing if the posts add value to the community. Atleast 70% of posts should cater to business tips, recent events, local news, or survey questions.

It is essential as Facebook can help to enhance your company’s exposure to manifold. Keep on sharing fun elements and important updates with current and potential followers.

Research shows posts done between the time frame of 1 – 4 p.m. get the maximum clicks and shares.

Unique Features of Facebook helpful for Business Marketing

In recent times, Facebook has many unique features that are rarely available in other social media platforms. Some of those are:

•             Facebook Cards

•             Real-time Facebook Comment

•             Spherical Video

•             Pages to Watch

•             Facebook’s new Share Sheet

•             Liberal ad exchange

•             Invite Email Contacts

•             Detailed Analytics

•             Apps Analytics

•             Facebook Messenger for Business

•             Parse

It is hard to distinguish or exclude any feature from this list as most of them play significant roles in business marketing.

Facebook Cards – It is a unique marketing tool designed by Facebook with partnership with Moo.com, a printing service, to print them on 16 pt stock paper. It looks similar to profile and includes cover photos, profile pictures, and contact details. If you order now, Moo is offering 50 cards for free on first order.

Pages to Watch – This feature is basically to watch and keep a track of the competitors’ pages. Currently, it is allowing to monitor 5 competitors’ pages and to see the number of new likes on a weekly basis.

Invite Email Contacts – In the ‘Admin’ panel under the ‘Build Audience’ tab, Facebook has the option to invite email contacts to like the business page. This can be done by many email providers as well as through Mail Chimp, Constant Contact, iCloud, etc. But, there is a limit of invited contacts up to 5,000.

Liberal ad exchange – It helps Facebook and app developers to earn profit by displaying ads on mobiles.

Apps Analytics - This is a very unique tool that helps app developers to understand the way people are using their app.

Facebook Messenger for Business – This new feature has been added on messenger. Here, consumers can ask questions about anything while shopping or send notification to the seller in case the product is defective.

Detailed Analytics – Under ‘Posts’ tab, Facebook gives the option to get the detailed analytics of audience, posts, engagement, etc. This helps the brand to evaluate its success rate and bring necessary changes to the posts.

Unique Features of Twitter helpful for Business Marketing

Twitter is never lagged behind. They have also come up with some unique features to help the business in the long run. Those are:

‘Go Live’ Button for Periscope

Twitter acquired Periscope, which allows to see a “go live” button while composing tweets. This button enables users to broadcast directly through Twitter. It helps to expand the content types marketers. User can use live streaming to compile and publish long-form thoughts and responses.

Native GIF Search

You can share your thoughts with the help of GIFs. In 2015, people shared more than 100 million GIFs on Twitter.

Uncropped Image

Twitter has come up with uncropped photo update and a new view for multi-photo displays. This makes Twitter more visually appealing and an engaging platform.

Anti-harassment Features

Twitter has taken some serious steps to respond to harassment and threats on the network with a series of features and services so that people feel safe to use the platform. Those are:

•             Clear definition of abusive behaviour in the Twitter’s terms of service

•             Bold functionality for blocking, muting, and reporting abuse

•             Launched Twitter Safety Center and the Trust and Safety Council

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Google AdWords Detailed Process – Part 3

IV. 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).

V. 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:

A. 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.

B. 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?

C. 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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Google AdWords Detailed Process – Part 2

II. Measuring Conversions

To measure your results, you’ll need to make sure that you’re measuring conversions. Once you set up conversion tracking, here are some of the important statistics that can help you measure whether your campaign is successful:

A. Conversions:

The total number of all conversions made within your chosen conversion window after an Google Adwords click. It is the metric most advertisers use and is one of the important ways to track the success of your ads. It gives you the full picture of how many conversions Google AdWords drives for your business. You can also customize this according to your business goals. You can choose to count “every” or “one” conversion following an ad click for each conversion action. This allows you to count conversions based on how they bring value to your business. Or, you can choose to exclude some of your conversion actions from any automated bid strategies you might have set up.

B. Converted Clicks:

The tally of every Google AdWords click that resulted in one or more conversions within your chosen conversion window. A conversion happens when someone clicks your ad and then takes an action that you’ve defined as valuable to your business, such as an online purchase or a call to your business from a mobile phone. Conversions help you understand how much value your online ads bring to your business. In reporting terms, the change means the Conversions (One-Per-Click) will be replaced with “Converted Clicks,” and Conversions (Many-Per-Click) will be replaced by “Conversions.”Advertisers can think of the newly named columns this way:

Converted Clicks = Unique Customers.

This is “the number of clicks that convert within your chosen conversion window (typically 30 days)”. So, if a customer makes two separate purchases after clicking on an ad, they will register as one Converted Click.

C. Conversion Rate:

Conversion Rate is probably the most significant metric for your business because everything else is just numbered unless you can convert ad-clicks into revenue. It is very similar to CTR. Instead of ad impressions and clicks, it focuses on how many clicks lead to conversions. CR is used to evaluate the utility of incoming PPC traffic. How many of these users that click the add will go on to complete a purchase? This avoids the pitfall of CTR in that you ultimately measure which ad brings in the highest percentage of qualified traffic. The more you turn clicks into leads, and leads into satisfied customers, the higher your conversion rate will be.

It is a great marketing performance metric for really drilling down to how your terms and ads are performing for you. You may have a great CTR, but if you aren’t converting any of those clicks, the conversion rate will help tell you that and you’ll know it’s time to optimize. Conversion rate also lets you look at the rate trend (vs. just absolute conversion number trend) which can help you compare to conversion rates from other advertising avenues – comparing to other Adwords metrics is vital in understanding how well your ppc campaigns are performing outside of just your Google Adwords silo.

D. Total Conversion Value:

Total conversion value is the sum of all conversion values for all conversions. Make sure you are assigning a value to your conversions so you know the exact return you are seeing. This value should be assigned directly in your conversion tracking code. Though you can see conversion value through your analytics, it will be preferable to view cost and conversion value, and ultimately return on ad spend, directly within one place, the Google AdWords interface. To see the above statistics and other conversion data, you can add conversion-related columns to any of the statistics tables in your account.

III. Measuring Return On Investment (ROI)

Whether you’re using Google AdWords to increase conversions such as sales, leads, downloads, you’ll want to measure your return on investment (ROI).

A. ROI:

The ratio of your net profit to your costs. Why calculate your ROI?

You’ll learn how much money you’ve made by advertising with Google AdWords and can use that information to help you decide how to spend your budget. For example, if a certain campaign is generating a higher ROI compared to others, you can apply more of your budget to the successful campaign and less on the ones that aren’t performing as well.

Calculate your ROI

The exact method you use to calculate your ROI depends on your goals, but here’s one way to define it:

ROI = (Revenue – Cost of goods sold) / Cost of goods sold

B. Conversions:

Once you’ve started to measure conversions, customer actions that you believe are valuable, you can evaluate your ROI. You can use conversion tracking or Google Analytics to determine the profitability of a keyword or ad, and track conversion rates and cost-per-conversion. Keep in mind that the value of each conversion should be greater than the amount you spend to get that conversion.

C. Sales:

If your business is web-based sales, you’ll need the revenue made from Google AdWords advertising (this is the conversion value that you set), costs related to your products sold, and your Google AdWords costs. You’ll want to calculate your net profit by subtracting your overall costs from your Google AdWords revenue for a given time period. Then divide your net profit by your overall costs to get your ROI for that time period. Here’s the formula:

Ratio to profit of overall costs = Revenue (measured by conversions) – overall costs/overall costs

D. Page Views, Leads, and more:

If you’re interested in calculating the ROI for a page view, lead, or other goal, you’ll use a different formula. First, you’ll want to estimate the value of the action that you’d like to measure. To calculate your ROI, you’ll subtract your overall costs from your overall revenue. Then divide your net profit by your overall advertising costs. Here’s the formula:

Advertising ROI % = (Total revenue – Total cost)/Advertising costs x 100

E. Cost

Are You aware of Where Your Money is Going?

Once your account is up and running (i.e. ads are showing and searchers are clicking), you’ll want to look at how well your account is performing based on the most important metric: MONEY.

A huge aspect of interpreting your Google AdWords data is determining whether or not you are taking advantage of your advertising dollars and not wasting money. You can’t expect high profits if you have high costs, so you’ll want to make sure you’re reducing the wastage throughout your account.

F. Cost Per Click (CPC) and Cost Per Acquisition (CPA):

Cost per click is the amount you pay for each click. This is important because it ultimately determines the financial success of your ppc campaigns. While cost per acquisition focuses more on how much your business pays in order to attain a conversion. Looking at both Adwords metrics will help you answer the questions as to whether or not you are making money in your account. Generally, your CPA will be higher than your CPC because not everyone who clicks your ad will go on to complete your desired action (or in other words, convert).

It’s always a good feeling knowing that people are interested in your ads and are showing that interest by clicking, but if each click is costing you more than you would pay for a fancy dinner, it’s probably not going to feel too great at the end of the day. Your return on investment (ROI) will be determined by how much you are paying for clicks, and by what kind of quality you are getting for that investment. It’s important to monitor your CPC so that you can determine if you are under- or overpaying for clicks. And it’s equally important to monitor CPA because it determines whether or not your conversions are being driven at a cost that is profitable.

CPC, of course, varies depending on the competitiveness of the industry among other things, but you still need to take into consideration whether or not you can still make money after you pay for the cost of your clicks. That’s where CPA comes into play; if you’re paying more for that potential customer than you can make off of them, then essentially you are paying for that person to be your customer. Lowering CPC can require some strategy as you want to maintain value while lowering the price you’re paying for each click.

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