9 Proven Ways To Improve Your PPC Campaign Performance via @sejournal, @andreaatzori

Pay-per-click (PPC) advertising remains a cornerstone of effective digital marketing strategies.

Often, when we begin work on a PPC account or campaign, it comes with some history.

Whether it’s because we inherited it or have been asked to conduct an audit, the goal is always the same: to look at it with fresh new eyes, making use of our expertise and hard-earned skills.

We need to make sense of it to fix issues and improve performance.

In my original post dated October 2021, I highlighted seven key areas to optimize in order to improve PPC campaign performance.

But as we move through 2024, the advent of AI tools and intelligence has significantly disrupted the landscape, necessitating continuous refinement and adaptation.

Additionally, the proliferation of privacy regulations has profoundly impacted data collection and insights gathering.

In this updated guide, we now explore nine proven ways to enhance your PPC campaign performance, considering these new dynamics.

By leveraging the latest tools and insights, you can ensure your campaigns are optimized for maximum impact and return on investment.

Nine Key Areas For Improving PPC Campaign Performance

1. Performance By Location

One often overlooked but obvious way to segment the performance by audience is to look at where your existing and prospecting customers are located.

Screenshot from Google Ads, July 2024

You will likely see patterns for different states, regions, and even postal codes.

This seems to be quite obvious if we consider that demographics can be entirely different from place to place.

By segmenting your audience based on geographical data, you can tailor your campaigns to target specific areas more effectively. For instance, higher transaction values in affluent suburbs may justify increased spending to acquire those customers.

Ensure your campaign settings reflect these nuances to optimize performance.

2. Performance By Device

It’s a given. Despite the increasing convergence between experiences on different platforms and devices, user behavior can vary significantly across different devices.

While mobile continues to dominate traffic, desktop often leads in conversions for many industries.

It’s not just a matter of screen size and resolution, but also about context and the reasons why we use a device instead of another.

It’s crucial to regularly review device performance data to better understand your audience and the context in which they operate. This understanding allows you to align your messaging and user experience accordingly.

Furthermore, aligning this data with other marketing channels can enhance the overall effectiveness of your campaigns.

3. Performance By Network (Search Vs. Search Partners Vs. Display)

Targeting the right network can significantly impact your campaign’s success.

We could argue at length about the quality of impressions and clicks from partners’ websites. But most of the time, these generate such a small amount of traffic that in the wider context of an account, the spend can be negligible.

Screenshot from Google Ads, July 2024

And considering that there is no way to target Search Partners alone, whether we keep the Search Partners on or off is a different matter.

However, that cannot be said for the Display Network — you should always split Search and Display campaigns.

While Search Network delivers high-intent traffic, Display Network excels in brand awareness, and while the end of third-party cookies and a cookieless future are upon us mean that personalized and targeted ads will be more limited, we are likely to see a revival of contextual advertising.

But even when highly targeted, display ads are a form of disruption of the user experience, and therefore we must always acknowledge that in our creative and messaging.

Additionally, we should likely use the two networks to target customers and prospects at different stages of their user journey and have different strategies, KPIs, and targets aligned to that.

4. Audience Performance

Often, we see search driving a significant amount of traffic from existing customers who use the engines to quickly “navigate” to a website to access their account.

If appropriate measures are not in place, these navigational clicks can be quite costly when they come from PPC ads.

Add suppression lists to avoid (where possible) incurring any extra costs that won’t drive additional conversions.

Per my previous point, the third-party cookie ban will limit your ability to target specific audience members and personalized ads, including retargeting.

So other logical uses of audience targeting include the segmentation of the user base (first-party data) into cohorts based on a shared attribute or identifier, and therefore defined by behavior (i.e., page visitors), and/or engagement (high consumption of content).

With the growing importance of first-party data due to privacy regulations, nurturing customer lists is crucial.

Screenshot from Google Ads, July 2024

But audiences can also be used for observation rather than targeting, as in the above example.

Since these won’t affect the campaigns’ performance, it is strongly suggested that as many relevant audiences as possible be added.

Once the data is collected, it will provide valuable insights into which segments are most valuable and which audiences are underperforming. This will enable you to make the right adjustments.

5. Negatives And Negative Lists

Keywords are still the strongest signal. But due to the complexity of natural language and the different (often unique) ways people search, even with the most sophisticated machine learning, machines can still struggle to fully understand the intent.

Therefore, it’s as important as ever to narrow down the chances that keywords might match unwanted search queries. You must continually review and mine the search query data available.

Even with the current limitations, search query reports can really help you understand what Google thinks a website or a page is about.

At a time when Google is encouraging advertisers to move to using more broad match and keyword themes, this can help reduce costs for unwanted, less relevant searches and exclude terms that don’t align with your campaign goals.

This ongoing process also helps improve your quality score and overall campaign efficiency.

6. Features Available (And Applicable To The Account/Campaign) In The Platform

Continuing from the point above, one of the reasons to use additional features like the ad extensions is the benefit these can have on the quality score.

It goes without saying that QS alone should be a compelling enough reason.

Additionally, considering that ad listings on search engines can be quite expensive, wouldn’t it make sense to try to always maximize the on-page real estate?

If we are paying a large amount of money to be there, we want to ensure it’s worth it. Besides, the more space we can take, the less will be available for competitors and other advertisers!

Additional features also include less-used options, such as the capability to upload offline conversions (more on that in a moment) or run experiments and A/B testing.

With the push for automation by platform owners, manual adjustments are becoming more limited.

Leveraging machine learning and AI for actionable insights and optimization options is now more critical than ever.

7. Conversion Tracking

Accurate conversion tracking is the bedrock of effective PPC campaigns – and this is one of my favorites – and it’s essential that we are tracking the right goals.

In digital marketing, everything should be measurable, and marketers should be accountable for the performance of their advertising campaigns. Conversion tracking should always be at the cornerstone of planning and executing media buying.

However, we often see examples of PPC accounts and campaigns that are either missing conversion tracking altogether or are tracking the wrong endpoints.

Provided we have our conversions firing and recording correctly, some expert tips are to:

• Use the segmentation option from within Google Ads to easily and quickly see a breakdown of the conversion types by campaign (see example below). In fact, the segmentation view is an extremely useful, yet massively underrated, tool!

Screenshot from Google Ads, July 2024

• Set the right conversion goal(s) for each campaign when using Target cost per action (CPA) or Target return on ad spend (ROAS) bid strategies.
• Set up and make use of custom columns to add the different conversion points and/or performance metrics such as CPA, return on investment (ROI) or ROAS.

Besides, the importance of conversion data has increased exponentially as it informs machine-driven optimization, so importing offline conversions and using enhanced conversions are now essential practices.

8. The Role Of Automation And AI

The role of the marketer has evolved significantly with the advent of AI and automation.

It’s now crucial to maximize the effectiveness of these technologies.

Automated systems can mine and provide actionable insights from vast amounts of data, which manual methods cannot match; only understanding and leveraging these capabilities will help marketers stay ahead.

9. First-Party Data and Privacy Regulations

We probably cannot stress enough about this; with increasing privacy regulations, third-party data is becoming less reliable, so nurturing first-party data has never been more important.

Building and maintaining comprehensive customer lists in full transparency allows for targeting with greater accuracy and personalization while ensuring compliance with privacy laws and campaign effectiveness.

Conclusion

In the dynamic world of PPC advertising, continuous improvement is key.

By regularly updating and refining your strategies across (some of) these nine areas, you can achieve sustained success and drive better results for your campaigns.

Back in 2021, my recommendation was to embrace the Pareto Principle and focus on where you can make a difference right away:

“Look for those campaigns and terms that are responsible for the majority of the ad spend.

It is likely that 20% of those are accountable for 80% of your outgoing costs.

If those campaigns or keywords are hitting your targets, improving their performance might really help you to take things to the next level and become the company CFO’s best friend.”

Now I still think your job is to focus on the 20%, but the grunt work, the 80% is likely to be best left to the machines.

The advent of AI tools and the push for automation have transformed the role of marketers, making it essential to leverage these technologies effectively, while privacy regulations underscore the importance of first-party data.

Like never before, it is important to stay informed about the latest tools and trends and not hesitate to adapt the approach to meet the evolving needs of your audience.

Key Takeaways for 2024:

• Prioritize data-driven decisions by leveraging the latest performance insights.
• Regularly update and refine your strategies to stay ahead of the competition.
• Utilize the full range of available features and tools to maximize campaign effectiveness.
• Adapt to the evolving role of automation and AI in PPC advertising.
• Focus on first-party data to navigate the challenges posed by privacy regulations.

More resources: 

Featured Image: BestForBest/Shutterstock

Navigating A Cookieless Future: PPC Strategies For Privacy-First World

The digital advertising landscape is constantly changing, and a recent announcement from Google has shifted things yet again.

On July 22, 2024, Google made a surprising U-turn on its long-standing plan to phase out third-party cookies in Chrome.

This decision comes after years of back-and-forth between Google, regulatory bodies, and the advertising industry.

Advertisers have relied on third-party cookies – small pieces of code placed on users’ browsers by external websites – to track online behaviour, build detailed user profiles, and serve targeted ads across the web.

The initial plan to remove these cookies was driven by growing privacy concerns and regulations such as Europe’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) in the US.

However, Google’s recent announcement doesn’t mean the death of the cookieless future has been permanently averted. Instead, it signals a more gradual and user-choice-driven transition, allowing us to keep cookies for a little bit longer.

Google now plans to introduce a new experience in Chrome that will enable users to make informed choices about their web browsing privacy, which they can adjust at any time, thus giving control back to the user.

This change in approach emphasizes the ongoing tension between privacy concerns and the need for effective digital advertising.

While third-party cookies may stick around longer than initially expected, the trend toward more privacy-focused solutions continues. As such, it’s crucial for businesses running PPC campaigns to stay informed and adaptable.

In this article, we’ll examine the debate surrounding the elimination of cookies for enhanced privacy, explore the potential alternatives to third-party cookies, and discuss how these changes might shape the future of PPC campaigns in an evolving digital landscape.

Should We Get Rid Of Cookies For Enhanced Privacy?

The digital advertising industry has been debating this question for years.

Despite Google’s recent decision to keep third-party cookies in Chrome, the overall direction of the industry is moving towards more privacy-focused solutions.

Other major browsers, including Safari and Firefox, have already implemented restrictions on third-party cookies, underlining the industry trend toward increased privacy for users.

Of course, whether cookieless is the best path to greater privacy is still debated.

Yes, this would reduce some forms of tracking on the one hand, but on the other hand, it will spur efforts toward arguably even more invasive tracking methods.

Cookies also store a couple of user-friendly purposes like login information and user preferences.

As the industry continues to talk about these questions, one thing is obvious: the future of digital advertising will be a dance between user privacy and effective ad targeting.

However, that may be the case. Only time will tell whether it is in accepting the eventual phasing out of third-party cookies or developing new technologies that make the use of privacy user-friendly in the end.

What Options Are There To Replace Third-Party Cookies?

The urgency to find replacements halted after Google announced that Chrome would retain third-party cookies while adding more controls for users.

However, Google is still moving forward with its Privacy Sandbox initiative, which aims to develop privacy-preserving alternatives to third-party cookies.

The Privacy Sandbox is a collective name given to ongoing collaborative efforts to create new technologies designed to protect user privacy while ensuring digital ads are as effective as possible.

For some time now, Google has announced a raft of APIs around this, including the Topics API, Protected Audience API, and Attribution Reporting API.

These technologies are designed to offer a subset of the functionality of third-party cookies in a far more privacy-friendly manner.

While Google decided to retain third-party cookies for the time being, it is worth noting that the company is still investing in these alternative technologies.

This reflects the fact that the trend in the long run is toward a more privacy-centric Web, even though the transition might be happening at a slightly slower pace than initially planned.

In mid-2023, Google announced the release of 6 new APIs for Chrome version 115, designed to replace some functionalities of third-party cookies:

• The Topics API allows the browser to show ads based on broad interest categories or “topics” that users care about without tracking them individually. For example, topics could include fitness, travel, books, and literature.
• Protected Audience API enables interest-based advertising by allowing an “interest group owner” to ask a user’s Chrome browser to add a membership for a specific interest group.
• Attribution Reporting API helps advertisers understand the most effective ads without revealing individual user data.
• private-aggregation”>Private Aggregation API works with aggregated data from the Topics API and Shared Storage, similar to Attribution Reporting.
• Shared Storage API allows advertisers to show relevant ads without accessing visitors’ personal information.
• Fenced Frames API enables websites to display ads in a privacy-safe manner without tracking or collecting visitor information.

It’s important to note that these APIs are still evolving, and more may be developed in the future.

The UK’s Competition and Markets Authority (CMA) has raised concerns about various aspects of these APIs, including user consent interfaces, the potential for abuse, and impacts on competition in the digital advertising market.

As a digital marketer, it’s crucial to stay informed about these developments and be prepared to adapt your strategies as these new technologies roll out.

While they aim to provide privacy-friendly alternatives to third-party cookies, they will likely require new approaches to targeting, measuring, and optimizing your PPC campaigns.

First-Party Data

As third-party cookies slowly become a thing of the past, first-party data becomes very important. First-party data is information you collect directly from your audience or customers, including the following:

• Website or app usage patterns.
• Purchase history.
• Newsletter subscriptions with email.
• Reactions and feedback forms from customers, online surveys.
• Social media engagement with your brand.

First-party data is collected based on the users’ consent and falls under the Utility Standards of privacy regulations.

It also provides direct insights about your customers and their activities towards your brand, enabling more accurate and relevant targeting.

Alternative Tracking Methods

As the industry moves away from third-party cookies, several new tracking and measurement methods are emerging:

Consent Mode V2: A feature that adjusts Google tags based on user consent choices. When a user doesn’t consent to cookies, Consent Mode automatically adapts tag behavior to respect the user’s preference while still providing some measurement capabilities. This approach gives users more control over their data and its use, balancing user privacy and advertisers’ data needs.

Enhanced Conversions: Implementing this improves conversion measurement accuracy using first-party data. It uses hashed customer data like email addresses to connect online activity with actual conversions, even when cookies are limited. By utilizing secure hashing to protect user data while improving measurement, Enhanced Conversions offers a privacy-focused solution for tracking conversions.

Server-Side Tracking: This method collects data from the user’s browser and sends it to the server. Instead of placing tracking pixels or scripts on the user’s browser, data is collected and processed on the server side. This method reduces user data exposure in the browser, improving security and website performance while allowing for effective tracking.

Customer Lists: This utilizes first-party data for audience targeting and remarketing. Advertisers can upload hashed lists of customer information, like email addresses, to platforms for targeting or measurement purposes. This approach relies on data that customers have directly provided to the business rather than third-party tracking, making it a more privacy-conscious method of audience targeting.

Offline Conversion Tracking: OCT connects online ad interactions with offline conversions. It uses unique identifiers to link clicks on online ads to offline actions such as phone calls or in-store purchases. This method provides a more holistic view of the customer journey without relying on extensive online tracking, bridging the gap between digital advertising and real-world conversions.

Small businesses, with their adaptability, can navigate these changes.

Though no single method would be a perfect replacement for the functionality of third-party cookies, together, these alternatives can supply similar functionality for advertisers and solve the privacy fault lines that brought about their deprecation.

Advertisers are likely to need this combination of methods to achieve desired advertising and measurement goals in the era beyond cookies.

Long-Term Strategies For Small Businesses

1. First-Party Data Collection Strategy

Shift your focus to collecting data directly from your customers:

• Add sign-up forms against email capture on a website.
• Create loyalty programs or share valuable content in return for information about your customers.
• Use tools like Google Analytics to trace user interactivity on a website.
• Customer feedback surveys to understand their view about a business and learn more about your customers.

This process will be successful by building trust:

• Be open and transparent about how you collect and make use of the customer’s data.
• Communicate and offer your customers whatever value they get in return for their information.
• Give customers an easy way out and allow them an opt-out option. Customers must have control over their data.
• Provide regular training to raise employee awareness about privacy regulations and best practices for handling customer data.

Invest in a robust CRM system to help organize and manage first-party data effectively.

2. Diversify Your Marketing Channels

Businesses should not keep all the eggs in one basket.

Yes, the need for PPC will always be there; however, in light of this drastic step, it is imperative now to diversify marketing efforts within/between:

Diversification allows you to reach customers through numerous touchpoints and reduces your reliance upon any platform or technology.

Remember that the rule of seven states that a prospect needs to “hear” (or see) the brand’s message at least seven times before they take action to buy that product or service.

3. Embrace Contextual Targeting

Contextual targeting is a kind of targeting that displays advertisements by webpage content and not by the profiles of users. How to work with this approach:

• Choose relevant, meaningful keywords and topics aligned with your products or services.
• Choose placements where your target audience will most likely be viewing.
• Produce several ad creatives specifically for various contexts to prompt relevance.

Pros Of Contextual Targeting

• Privacy-friendly since it does not utilize personal data.
• When well done, targeting people actively interested in connected subjects is remarkably effective.

Cons Of Contextual Targeting

• Accuracy in targeting audiences might be lower than the audience-based targeting methods.
• Requires planning and analysis of content.

4. Use Tracking Solutions With A Focus On Privacy

Next comes server-side tracking and conversion APIs (refer to this article’s Alternative Tracking Methods section for more information). These methods shift data collection from the user’s browser to your server.

Pros

• Improved data accuracy: Server-side tracking can capture events that client-side tracking might miss due to ad blockers or browser restrictions.
• Cross-device tracking capabilities: Server-side solutions can more easily track user interactions across different devices and platforms.
• Future-proofing: As browser restrictions on cookies and client-side tracking increase, server-side solutions will likely remain more stable and effective in the long term.
• Ability to enrich data: Server-side tracking allows data integration from multiple sources before sending it to analytics platforms, potentially providing richer insights.

Cons

• Increased complexity: Server-side tracking and conversion APIs are more technically complex than traditional client-side methods, potentially requiring specialized skills or resources to implement and maintain.
• Potential latency issues: Server-side tracking may introduce slight delays in data processing, which could impact real-time analytics or personalization efforts.
• Ongoing maintenance: Server-side solutions often require more regular updates and maintenance to ensure they remain effective and compliant with evolving privacy regulations.

These solutions may become overly technical. You can also partner with a developer or an agency to ensure their implementation.

5. Investment In Creative Optimization

With reduced accuracy in targeting, your ad creative is more crucial than ever:

• Design creative, eye-catching visuals to blockbuster visuals.
• Be bold, clear in your ad copy, and fast in delivering your value proposition.
• Test different ad formats to find out what will make a connection with people.
• Run A/B testing over ad variations, images, headlines, or CTAs.

6. Embrace Privacy-First Solutions

Track the numerous efforts underway within Google’s Privacy Sandbox and other fast-developing privacy-centric solutions.

Be prepared to test these tools and to scale up their adoption upon release to stay ahead of the curve.

For now, enable Enhanced Conversions inside Google Ads to deliver a better model of your return on ad spend (ROAS) using hashed first-party data.

7. Train And Educate Employees End

Provide continuous training to your workforce:

• Educate your employees about data privacy and security.
• Keep them updated with all the latest privacy regulations and their impact on businesses.
• Conduct training on best practices in collecting, storing, and using customer data.
• Embed a culture of privacy awareness across the organization.

8. Collaborate With Experts

Navigating a cookieless future can be tricky.

A PPC agency or consultant can help you with the latest changes and best practices, implement advanced tracking and targeting solutions, and optimize your campaigns in this new landscape.

When choosing an agency:

• Check for experience in privacy-first campaigns.
• Ask about their approach to first-party data and alternative targeting methods.
• They have a record for converting to changes in the industry.

Start Now And Be Flexible As Digital Advertising Changes

Google’s decision to keep third-party cookies in Chrome while adding more user controls represents a significant shift in the digital advertising landscape.

While this move will definitely grant a bit of breathing room to the advertisers who are heavily reliant on third-party cookies, it doesn’t change the overall trend towards user privacy and control over personal data.

The strategies outlined in this article – focusing on first-party data collection, diversifying marketing channels, embracing contextual targeting, and investing in privacy-focused solutions – remain relevant for long-term success in digital advertising.

These approaches will help you navigate the current landscape and prepare you for a future where user privacy is increasingly prioritized.

Yes, third-party cookies are sticking around longer than initially expected, but the push to find more privacy-friendly advertising solutions still continues.

By implementing these strategies now, you’ll be better positioned to adapt to further changes down the road, whether they come from regulatory bodies, browser policies, or changing consumer expectations.

The time to start future-proofing is now. Start by auditing your existing strategies, building first-party data assets, and testing new targeting and measurement capabilities.

Stay informed about developments in privacy-preserving technologies like Google’s Privacy Sandbox, and be prepared to test and implement these new tools when they become available.

Taking a proactive, strategic approach that puts the user’s privacy and trust first ensures that your PPC campaigns will continue to thrive. The future of digital advertising may be uncertain.

Still, with the appropriate strategies and respect for users’ privacy, you can turn these challenges into opportunities for growth and innovation.

More resources: 

Featured Image: BestForBest/Shutterstock

How To Get Ad Creative AI-Ready In Search Ads via @sejournal, @LisaRocksSEM

PPC ads are at the core of many marketers’ digital media mix, so it is critical to stay on top of new features and ad tech advancements.

The hot topic and major changes involve AI to automate and improve the efficiency of pay-per-click campaigns.

However, it’s unsurprising that AI is not replacing the marketing strategist or PPC manager. On the contrary, the marketing team is more important than ever to provide high-quality manual creative ad assets to the ad platforms to inform the AI machine.

While this is an automated process, the advertiser is at the heart of this, providing the creative strategy, vision, and messaging. You power the AI.

Note: This article focuses on Google Ads due to their market share and volume, but many of these suggestions can be applied to any ad platform.

The AI power component comes into play through “automatically created assets,” where the “asset” is the headline or description of the ad copy. The “manual assets” refers to what the advertiser writes and enters into Google Ads.

Consider:

• Automatically created assets generate new headlines and descriptions continuously to form ad copy that is relevant to the query and ad’s content.
• Automated assets are used alongside and in combination with advertiser manual assets to show the search ad that is predicted to perform the strongest.
• Reporting (asset details report) is available on automatically generated content, and advertisers can remove it if needed.

First, the advertiser must opt in at the campaign level. This is a good thing because there is prep work to be done to get the greatest benefit from AI tools.

automatically created assets in Google Ads” width=”480″ height=”246″ class=”aligncenter” />

Next, prepare your inputs for AI-driven ads:

• Landing page.
• Manual assets.
• Keywords.

1. Landing Page And Website

One key aspect of getting the most from AI is the landing page and website content. The AI algorithms need content to draw from, and the better the content, the more potential outputs will have.

After providing the URL, Google will find the relevant information on your page to generate ad creative.

Clear and ad-focused content. Clever, flowery marketing language or excessive jargon takes a back seat to concise, fact-based language.

Correct and up-to-date content. This can be a challenge for some smaller advertisers who do not have complete control over frequent content changes without incurring web dev fees. You may want to wait on AI right now if this is the case. For everyone else, be proactive and mindful about writing content for ads. Next, the “reactive” approach is to review reports to determine if web content should be altered or automated assets should be removed. The automated assets will change if the web content changes or assets are removed.

Content alignment. Ensure that the landing page content aligns with the ad copy. Keywords and messaging should be consistent with the search ads to maintain user trust and engagement.

Clear value proposition. Highlight the unique benefits or solutions your product/service offers. Use a compelling headline and subheadline that immediately captures the visitor’s attention.

Write strong CTAs. A common problem is advertisers simply not being clear in their CTAs in ad copy or on landing pages. Use action-oriented language repeated on the page and ad. Stick to one clear CTA. For a refresher, see this post.

Bonus: It is also a good idea to make a long-term plan to permanently change web content to aid AI in the future, as it is here to stay.

2. Manual Assets

The “manual assets” refer to the headlines and descriptions you write and enter into Google Ads.

Since the headlines and descriptions are served in many combinations, it’s important that the assets communicate a cohesive message. Enabling AI will allow automatically generated descriptions to be thrown into the mix.

Headlines: With up to 15 headlines with a maximum of 30 characters, try to assign a strategy to the type and number of headlines. For example, include:

• Brand name: Although your company will appear in the “business name” field, it might not be the brand or product name you need to communicate here. Control the language and use a pin if needed.
• Keywords from the adgroup.
• CTA: ensure this is consistent and consider pinning this headline.
• Feature/benefit.

Descriptions: Up to 4 total, with up to 90 characters per description.

While you want to use keywords, unique headlines, and consider Google suggestions, the ad should ultimately be clear, concise, and persuasive enough to get users to click and convert.

3. Keywords

In search campaigns with automated assets, keywords still matter and inform Google and, ultimately, your customer what the ad is about.

We want to stick with best practices in account structure and keyword selection. The keywords should always be closely connected to your ad and landing page.

If you have not been a perfectionist on this recently, now is a good time to review and evaluate your keywords, keeping AI automation in mind.

A great shortcut: While in the ad creation tool, venture into the ad suggestions area where Google will show you “popular keywords from the adgroup” you can click to add as a headline.

Finally, Performance

• You can see the automatically created assets that were generated and served by reviewing the asset detail report.
• Remove assets you don’t like: under the Responsive search ad > View asset details.

Conclusion

One of the misconceptions about AI in ads and automatically generated assets is that it’s a “set and forget” model that solves problems with ad management resources, time, and performance.

As we can see above, the process to enable AI takes knowledge, strategy, and ongoing management to ensure the messages served to your ideal customers can meet and exceed what is done manually.

This can only be achieved with humans setting it up for success.

Learn more on this topic: Google Ads: A Quick Guide To Every AI-Powered Ad Creative Feature (And What’s Coming Soon)

More resources:

Featured Image: VectorMine/Shutterstock

Which Metrics Matter In PPC? via @sejournal, @navahf

Pay-per-click (PPC) advertising has evolved quite a bit since it first began in the early days of the internet.

Metrics like cost per click (CPC) remain an important part of the conversation, while others (like average position) have retired.

Understanding the history of each major metric, as well as how they relate to each other, is critical to determining which metrics to focus on.

This guide will attempt to be as agnostic as possible on account structure strategy (though a certain amount of subjectivity is unavoidable).

Here’s what we’ll be covering:

• The major metrics in PPC: In this case, we define PPC as any channel where you pay per click. This means there will be some video/social metrics.
• Relationships between metrics.
• Which metrics matter today and likely will matter in the future?

Major Metrics In PPC

Given that Google is a dominant player, we’ll focus mostly on those metrics. However, we’ll call out additional network metrics where needed.

Additionally, we’re not separating YouTube from Google Ads. We will only cover “go do” metrics vs. informational ones (i.e., the setup metrics).

By the way, this section is a bit beginner-friendly. So, if you’re already familiar with PPC metrics, skip ahead to the next section.

Relationship Between Metrics

There’s a lot of interconnectivity between PPC metrics, and it can be a bit daunting to know which relationships to build strategy around.

While there’s a case to be made for every metric playing a role in your account choices, these are the top relationships to focus on.

CTR And Conversion Rate

The most critical relationship to focus on is CTR vs. conversion rate.

This is because these two metrics help hold your ad account and website accountable for their respective roles in winning customers.

If your CTR is really good and your conversion rate is not, there are a few potential paths you can explore:

• Is the landing page letting you down? This could be a design issue or a technical one (conversion tracking isn’t configured correctly).
• The ads are engaging, but they target people who aren’t quite ready to purchase. Adding more prequalifying language into the ads can solve this.
• Targeting is outright incorrect, and the clicks are accidental. This can be caused by search partners with display expansion or misconfigured Performance Max campaigns.

When CTR is low but the conversion rate is good, the fixes will be a little different:

• The ad creative may not be enticing enough. You may want to be more direct in asking folks to contact you or order now.
• Your budget may not support prime-time bidding, so you end up serving a lot during off-hours when folks are less likely to engage. You can correct this with an ad schedule to force budgets to only spend during peak hours.
• There may be a double or triple counting issue, where you’re getting more than one conversion count per click. Use the “conversion action” segment to identify any false positives. This is critical to catch because double-counting conversions will influence smart bidding and reporting.

When both are good or bad, it can be a little tougher to know where to focus optimization or scale efforts.

The best starting point will always be your customers and the quality of your leads.

Average CPC And Search Terms/Placement Type

It can be very tempting to overoptimize for cheap clicks, but if you only focus on CPC, you may price yourself out of the auction.

While we don’t have full search term access, leveraging what we do have is critical to making informed choices around which ideas we budget for.

If your average CPCs are low for your industry, here is what you should check for:

• Branded queries sneaking into non-branded campaigns. This can happen if you’re using broad match, as well as if you don’t use negatives to sequester branded traffic.
• Non-search placements are using search budget. These placements aren’t inherently bad, but if you’re bidding for search, you will overbid on other placements.
• If you’re losing more than 50% impression share due to rank, you are likely choking volume too much to be profitable.

When the average CPC is high for your industry, here is what to check for:

• Accidental duplicates that might be causing you to bid against yourself (and potentially cause serving issues). While search terms will be the best source of truth for this, you also can check a keyword’s status. If you get the “another eligible keyword was chosen” status more than 25% of the time, you likely need to clean up close variant duplicates.
• The bidding strategy may be forcing you to bid too high because there isn’t enough conversion data to inform smart bidding. Consider switching back to manual or using target impression share/max clicks with a bid cap. The bid cap should be no more than 10% of your daily budget.

CPA And ROAS’s Influence On Volume/Value

One reason Smart Bidding (Max Conversions and Max Conversion Value) catches a lot of heat is that people don’t fully understand how to help them learn profitable budget allocation.

It is very normal for a brand-new account using Smart Bidding to have a bad experience if they don’t have enough conversions (30+) in a 30-day period.

When you need volume, CPAs and ROAS have to be more conservative. For example, you might be willing to take a $100 CPA on a $300 product/service. The ROAS goal would be 300% (we spent $100 to achieve $300).

This mindset is really important for product/company launches, as well as if you are facing a shortage of leads.

Conversely, if you’re under scrutiny for marketing costs, you may set more aggressive goals, so each customer is worth more (even if you get fewer of them).

For example, I might only be willing to pay $30 for that $300 product/service.

This inherently means that I will get fewer leads than when I was willing to pay $100 to acquire them, but that might also provide needed operational filters (not overloading sales/customer success teams with leads).

The ROAS equation is a little tougher because you still want to factor in lifetime value. Most industries do well somewhere between a two-time and five-time ROAS goal.

It’s also worth noting that your CPC will be directly impacted by which school of thought you adopt. Absolutely use bid floors and caps to make sure you bid enough to enter the auction, as well as balance how much of your budget goes to a single click.

As a general rule, you don’t want more than 10% of a daily budget going to one click because a 10% conversion rate is really good for non-branded.

However, the floor is a bit trickier to set. If you don’t have the data for your industry CPCs, consider starting with 3% of your daily budget.

Which Metrics Matter

Ultimately, the metrics that matter are the ones enabling you to “go do” off of the analysis, as well as the ones weighted in the auction.

These metrics are weighted in the auction:

• Conversions.
• CTR.
• CPC.
• Quality score*: While this is not officially weighted in the auction anymore, the core signals informing it still are.

These metrics are your “go do’s:”

• CPA/ROAS: Are you making enough money off of your ads? If not, adjust targets.
• Impression share: Based on what, if any, is lost to, make structural, bidding, or budgeting changes
• Conversion rate/CTR: Are the account and website supporting each other in winning business, and do you trust the reporting of both?

Metrics like Ad Strength and optimization score are friendly suggestions but don’t actually impact your account performance.

Final Takeaways

It can be tough to know where to focus on your ad account.

Hopefully, this review of the metrics and their relationships to each other helps you prioritize what to focus on, report on, and act on.

More resources:

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