Now that you’ve created your first ad, you’re not quite finished with your ad group. Google AdWords gives you the capability to test out multiple versions of your ad and see which version performs the best. Slight changes to the wording of you ad can make a big difference, so do not hesitate to try several different versions.
Here’s a sample ad group report and some things to look for:
Click Through Rate (CTR): The higher the CTR, the more popular the ad is with searchers. A lower CTR might indicate that searchers are ignoring the ad.
Average Cost Per Click (CPC): The content of an ad can affect your average cost per click. The more relevant the ad content is to your keyword, the lower your cost per click becomes.
Average Position: A more relevant ad can also improve your position in the paid search rankings.
Conversion (Conv.): This indicates how many AdWords visitors took your desired action (i.e. bought your product, entered a quote request, filled out your contact request form, etc).
Cost/Conversion: This is likely the most important column for any business using AdWords. Very simply, it tells you how much you spent to acquire a conversion from your AdWords account. If, for example, an average quote off of your website turns into a $50 order for your company, and you only spend an average $15 to acquire the quote, you’ve likely found an ad variation that can be successful for your business.
So, how can you use these numbers to improve your campaign performance? Ideally, you’ll want to arrive at the ad that gives you the best mix of low cost per click, good positioning and most importantly, a low cost per conversion. Test out various combinations until you arrive at just the right mix of content for your ad.
Check back for the next installment in which we’ll be discussing keyword bidding strategy.