Google Ads - A simple way to measure ROI Google Ads - A simple way to measure ROI

Google Ads - A simple way to measure ROI

Google is the number 1 most visited website in the world.

What is Google Ads – An overview?

When talking about the Google Advertising platform (an online digital platform), you have different types of ads and campaigns to achieve different goals and objectives. Firstly, and most popularly, you have the Search Network. This network type is considered to be the basis of the Google Ads platform.

Other ad types include the Display Network, and numerous campaign types that can be run, such as, display banners, and YouTube pre-roll ads. It is also equipped with several metrics that can be used to target specific and different types of people.

The great thing about the Google platform

Google is the number 1 most visited website in the world. This is because, daily, people are looking for products and services and use Google as a means of obtaining the required information.

What does this mean for businesses?

People are actively searching for the products and services that your business has to offer. If your company does not appear on the front page of Google search results, then you will miss out on that opportunity. Using Google Ads as a means to appear in the top search results, is not as easy as merely bidding on specific keywords. It is much more intricate and complex than that. It’s more like a form of art that takes a while to comprehend fully. It takes monitoring, optimisation, ensuring that you pay as little as possible, for the most possible clicks. It also the most relevant clicks which will lead to more conversions on your website, whatever that might be: a lead, an online sale or whatever your business considers a conversion to constitute.

How do we measure the return on investment (ROI)?

A lot of companies might say that they don’t have R5000 or R50000 to spend on Google Ads. The thing is, it is not about the amount that you put in. I say this because R1000 can be a lot of money if you have to pay that and not get anything in return. But R100000 can be nothing when you make a million from that initial investment.

Thus, when it comes to Google, you have to determine/calculate an amount that would suit your business by taking certain factors into consideration: your industry, how many products/services you have to sell.

In the Google space, it is essential to know how much to spend and spend the right amount to generate a return on that investment. You shouldn’t think that you can simply invest R500 to see how it works, because I can assure you that it doesn’t work like that, as it won’t give you an accurate reflection of how well it truly works.

How do you determine the budget of your Ads?

You can determine it by taking the following factors into account:

1) Industry competitiveness

What keywords are you bidding on and how big is the competition of those keywords?

If the keywords are highly competitive, then you will pay a lot more.

2) Target area?

The bigger the area that you are targeting, the more money you will have to spend to reach the entire area.

3) How good is your quality score?

The higher the quality score you have, the less you will pay per click. To improve your quality score, you first have to determine the following factors:

i. if you are bidding the right amount on a specific keyword, how good your click-through rate is;

ii. how relevant your ad is in terms of your search term;

iii. landing page experience - is your landing page relevant to the search term and results, i.e. does the ad lead to the correct landing page and is it optimised for conversions?

This is where agencies come to play. They are able to assist in the optimisation of landing pages and using the correct words on those landing pages to increase your conversion rate.

When starting out with Google Ads, the best thing is to test it out over a month or two and during that time determine whether you are spending enough money, what search terms convert and which don’t. The professionals at Noo Media are qualified to assist you with your Google Ads and to help you increase conversions without spending more and finally converting your conversions into sales.

Last modified on Thursday, 07 March 2019 10:17
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