AdWords is incredibly useful. But it can also be tricky to manage. AdWords management experts contend that this particular digital marketing method is useless if it is not done right. Case in point, metrics. The uninitiated can find AdWords metrics somehow jargon-filled and overwhelming. What follows is a description of a few important ones, and what they really stand for.
Google primarily evaluates ads using the click-through rate (CTR) metric. There are two sub-types in this. The basic CTR measures the rate of clicks on each ad, and the average CTR shows the ratio of ad clicks to impressions. A low CTR is generally bad since it it shows a lack of relevance and could drag down quality scores. It means that web users aren’t that inspired to click on the ad because they deem it irrelevant.
Not all low CTR scores, however, imply that the ad itself is bad. Factors such as search medium, time of search, position of the ad, and keyword used have a direct impact on CTRs. One ad may have better CTR performance despite its relatively less number of clicks. Does this mean you should ignore the one with the lower CTR but more clicks? Definitely not. You’ll waste a lot of potential by leaving all those clicks behind. That’s like ignoring all interested consumers deliberately. Your task is to make the ad more relevant for consumers to push through and drive CTR up.
The quality score is closely tied to the CTR. Good CTR helps determine your quality score as per Google’s criteria. A low quality score means that Google considers your ads largely irrelevant to users, mostly due to poor CTR. Google assigns a quality score to each keyword and uses it to determine ad rankings, as well as how much you pay for each click.
Quality scores basically show how relevant your ad is to web users. By now, you should know that relevance is critical to arousing a web user’s interest. People browse for whatever they deem useful online, unless they’re doing so just for the heck of it. Ads should be no different. They have to fit in with customers’ needs and/or wants, or they’ll be ignored.