Measuring Goals & Bidding Options

Question 1

What are some tips on setting goals?

Answer 1

 Marketing goals need to be set before advertising

 Before setting goals, understand:

o Your business

o Your buying cycle

o Your customers

o Your supply chain

o Your work flow

 Your goals should fit your business o Some companies might be looking to increase impressions o Other companies might be looking to generate on-site conversions

 Measure your goals using tracking tools

 Your goals should drive your decisions

Question 2

What is meant by the following terms?

1. Bids
2. Clicks
3. Cost
4. Average CPC
5. Conversions
6. Conversion Rate
7. Cost per action
8. ROAS

Answer 2

 Analyze your goals by ads, keywords, and search queries to make good marketing and business decisions  Important metrics:

1. o Bids – max CPC for any click
2. o Clicks – number of times users click on your ad
3. o Cost – amount you paid for these clicks  Cost does not always equal max bid x clicks  In the auction system, an advertiser only pays one cent more than is needed to beat the ad rank below them  Advertisers often pay less than the max CPC for a click
4. o Average CPC – average amount you pay for a click (this is often less than the bid or max CPC)
5. o Conversions – tracked actions such as checkouts, form fills, etc.
6. o Conversion Rate – conversions / clicks
7. o Cost per action – cost / conversions  Important in lead generation
8. o ROAS (return on ad spend) – revenue / cost  Important in ecommerce situations

Question 3

What are the different bidding options? (T) (3)

Answer 3

1.  Max bids (focus on bids)

o Most control

o Requires the most work

 Set each bid individually

2.  Budget optimizer (maximizes clicks) o The program works within your budget to bring the most traffic to your site  Uses whichever keywords available to maximize traffic; it does not consider conversion rates
3.  Conversion optimizer (focus on conversions) o Requires a minimum number of conversions o Less bid control

Question 4

What is bid modifier?

Answer 4

Bid modifiers enables you automatically change bid by conditions such as geography, time of day, or device o Modifiers are useful for industries where outside conditions impact sales

 i.e. If sales spike on Wednesdays, bid modifiers can increase bids on Wednesdays