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Media and Communications

AdWords Impression Share

AdWords Impression Share

So I just wanted to explain something that
is commonly misunderstood about how people behave online and in particular how you can
evaluate this data in Google AdWords. So what we are looking at is a number of campaigns,
you will be familiar with this interface. Something that Google will always tell you
it looks like it is because it just wants to take your money, but these campaigns are
limited by budget. Now that might not immediately appear to be a problem for you but I want
to just explain why for many businesses its actually making conversion rates worse and
therefore the cost per conversion higher which makes the return on investment a lot worse.
So let me just explain a couple of things. If we go to tools&analysis and we look at
conversions, and then down here on the left you will see search funnels. This is a description
of how an audience behaves through a funnel through multiple impressions and multiple
clicks of your ad. For many products and services users need more than one click and more than
one impression before they convert into a sale or a lead, and this is very important
in particular for products which are much more expensive have a high ticket price or
are quite technical in nature so things like house purchases, things like that obviously
would fit into that category. Software purchases things like that also suffer with this particular
issue. So the one we are interested in here, we are looking at 30 days worth of data. We
had 284 total conversions, and the interesting thing is 1.37 days to conversion and needed
1.13 ads on average and to see 2.81 ads during that 1.37 days. So typically users are searching
up to 3 times. The other thing that we can do is look a the history window up here and
we can change that to 90 days worth of data to give us a bigger window. So this is more
considered purchase people are researching over a longer period of time. So we are just
going to look at time lag. So a great deal of the conversions for this particular account
happen within the first day of search with a few coming in in 1 to 2 days and some coming
2 to 3 days and some coming 3 to 4 days. So it could be that because we are limited by
budget we are not picking people up more than once when they are searching and since we
know that typically they are requiring multiple impressions and multiple clicks if our ad
isn’t there that means we are loosing out on those impressions and clicks required to
produce a conversion. So, days to conversion now is showing 4.15 we can even look at hours
per conversion if you want to. Interesting data. We have got 70% of our conversions happening
within 1 hour, but we have got 20%/19% of our conversions happening more than 24 hours
later. So anybody who doesn’t convert within an hour, we are not really getting them coming
back and that could be because of low impression share. So let me just explain what this is,
so if I go back to campaigns. OK so we are limited by budget, now impression share you
should understand what an impression is that is your ad showing, so impression share is
the number of times your ad could have shown versus the number of times that a search query
was typed into Google which could have shown your ad. So if there are a 1000 queries that
match your keywords per day and your ad shown 100 times then that is 10% impression share.
So how do we look at impression share? We go to columns and we want to look at competitive
metrics, we want to look at search impression share and we want to know what we have lost
through rank that is through quality of our ads relevance to keywords bidding high enough
to be on the first page of Google, and we want to know the impression share we have
lost through budget, not enough money in our account or not enough daily budget to support
the clicks we would otherwise have. So lets just scroll across, so search impression share
on this top campaign is nearly 70%, we are at 44/45% nearly on this one and we are at
76/77% nearly on this one. Now it is interesting, it probably isn’t the only reason why, but
the one with the highest impression share also has the lowest cost per conversion. The
campaign with the lowest impression share has the highest cost per conversion. So we
would always say there are multiple reasons why this might be but we would always recommend
that you try and keep your budget high enough to buy as much traffic, to buy all of the
traffic that is searching for what you do. If you can’t afford that then the alternative
is to reduce your targeting by geography. So if you are trying to target the whole of
the UK with £100 per day budget or $100 per day budget and you need 1000 then you would
be better off targeting 10% of the country to give you 100% of a smaller region if you
impression share is then closer to 100% and your conversion rate improves, you cost per
conversion comes down and those leads are valuable your sales are valuable then you
can increase that target area and your budget with it and you should find that your campaign
scales perfectly.

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