Know how you’re going to measure success with AdWords.

I’m sure there will be other posts in this vein, but today I want to talk about how you’re going to know if your AdWords is working well or not.

I’ve just come from a meeting with an advertiser that’s spent $150k on AdWords in the past year.

Their account is being run by a national, well-known outfit that you would have heard of.

So imagine my surprise/disgust when the marketing manager showed me a report of “what’s good & what’s bad” that the existing (soon to be ex) agency had sent!

They listed the top 10 keywords (using nothing more sophisticated than an Analytics screengrab) sorted by visits

That apparently is “what’s working”

Despite #6 on the list not generating a dollar in revenue

The “what’s not working” report was even worse!

It just listed all keywords by bounce rate, starting at 100% – but with no filtering

So all but 1 keyword on that list had 1 or 2 visits in total.

Clearly not enough data to make a decision if this is indeed a ‘bad’ keyword.

There are so many problems here!

1. Keywords were discussed instead of search queries. Depending on how the account is setup (in this case all broad match) that might make a huge difference

2. Lots of visits doesn’t equal ‘good’. Making profitable sales = good!

Profit & ROI on ad spend are the measures that ought to be used to determine if a keyword/search term stays or goes

3. Some of those 1 visit keywords might have great potential, but the account might be setup in such a way they don’t get a chance to shine

(eg low budgets, bad campaign structures, incorrect negative keywords, low bids etc)

All you can tell from that report is they didn’t have many visits last month!

4. The metrics you need to see are missing!

No mention of Impression Share, Revenue, RPC or ROI

C’mon, it’s not 2006 any more – yes this sort of idiotic agency crap makes my blood boil!

So.

Make sure you know what success looks like (hint, sales & revenue are a good start! Not visits or bounce rate)

Make sure your agency gives those to you at least monthly

Make sure the insights they provide are actionable (what do you need to go do as a result of knowing this thing?)

And make sure your advertising is making you money

This particular client (to be) has spent $150k & only made about $60k in sales (& that’s total rev, not profit!)

Clearly AdWords done this way isn’t working for them.

It might be that AdWords can’t work – but I doubt it.

It just needs a more granular setup, a better keyword list, better ad testing (some would be good) & a focus on ROI.

If you’d like your account or reports audited for stupidity please let us know!

We’ll tell you if someone is attempting to pull the wool over your eyes

And if your account is making you money or not.

If you’re spending more than $5k a month, we’ll do those audits for free – in less than 1 week.

Just let us know & call 1300 93 27 28