Archive for March, 2014

Measuring Effectiveness of Impressions Through AdWords Metrics

Friday, March 21st, 2014

In my last post, we talked about how the new Flexible Conversion Counting does not solve the age old problem of trusting View Through conversions and how can we account value those View Through conversions basis our user understanding. Now, these View Through Conversions also help us in understanding how our impressions have been delivered and how we are effectively advertising.

Consider a campaign for selling shoes online where we are advertising for www.xyzshoesale.com (name representative). Based on the intent of the campaign which can be lead generation or brand building we decide on the metrics for us to judge the performance of the campaign. However, if it is a brand building campaign, the only way advertisers show the performance is through Share of Voice metrics which is calculated by dividing the Total Number of Impressions delivered by the campaign against some assumed number of impressions which are arbitrarily decided taking in consideration the impressions of the most broadly matched keyword of the category. This process is very random and again throws a number which is hard to believe. Because, the number of broad impressions for a category keyword does not necessarily always cover the amount of potential impressions for a product.

To overcome the same and to have a more logical way of counting the impressions, we at Puretech decide on the branding campaign with a different metrics apart from the SOV. No doubt, advertisers dig for SOV and SOV only as that metrics is what they can showcase to their bosses but along with the Share of Voice metrics, we also use the following calculation to identify how effective are our impressions.

1. Download a keyword report with the following details – Impressions, Clicks, Cost, Converted Clicks, CTR, Search Impression Share, Assisted Impressions & Assisted Clicks.

2. Please take a look at the below formula carefully:

  • Total Impressions / Search Impression Share = Actual Potential Impressions for the Keywords
  • Total Impressions – Clicks – Assisted Clicks – Assisted Impressions = Actual Missed Impressions
  • Actual Missed Impressions / Total Impressions = % of Impressions used for Branding
  • Total Potential Impressions = ∑ ( Missed Impressions )Keywords
  • (100 – (Actual Missed Impressions / Total Potential Impressions)) = % Share of Voice
  • Total View Through Conversions / Actual Missed Impressions = View Through Conversion Rate
  • Cost Per Impression = Cost / Total Number of Impressions
  • So, Cost Per View Through Conversion = (Actual Missed Impressions * Cost Per Impression) / Total View Through Conversions

Thus, we can calculate the cost and other associated metrics for a branding campaign with the help of View Through Conversions.

If the goal is pure branding and there is no Action required from the user, we can perform the 1st 4 steps and calculate the Share of Voice. Please note that this method gives us the Share of Voice only for the Search Network and not Display Network. This method can be modified a lot to suit the needs of the advertiser to calculate the important metrics accurately based on the campaign. Please get in touch with Puretech’s Paid Search Marketing Experts to know what metrics would suit your paid search campaign.

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Contributed by: K. Kulkarni, Digital Strategist, Puretech Internet

New Conversion Metrics

Friday, March 7th, 2014

Flexible Conversion Counting – Has anything really changed? How can you associate a value to view-through conversions?

AdWords has been re-inventing itself year after year with some great features. Re-marketing, Click to Call, Product Listing Ads, etc. were some of the path breaking ones which to my mind ensure that advertisers look forward to spending more money with Google and in turn take the best out of these features. But, for long, the metrics on which performance of campaign was measured were same. So, for agencies like ours as well as for Google, showing value in advertising other than just old school conversions was getting increasingly difficult.

One Per Click & Many Per Click conversions were themselves contested with different clients asking for different measuring metrics. Targets set during the quarterly projections were based on both metrics although the latter is not at all in control of the advertiser. On the other hand, true as it may be, for any advertiser who has a conversion focus, accepting the numbers of View – Through conversions as conversions is very difficult. Even if it has been authenticated by Google itself, believing that somebody actually bought or completed the required action because of an impression of the AdWords ad and accrediting that sale to the money spent without even a click was not something that advertisers liked. As an agency representative, I have encountered numerous occasions when we found it really difficult and ultimately had to give up on our course of convincing the client to include View – Through Conversions as a part of our performance.

In the new changes introduced by Google in February, the following has changed.

Converted Clicks – It basically replaces the ‘Conversions – One Per Click’ column & counts the number of clicks that have resulted in a conversion. Please note that in a scenario where the customer decides to complete the required action multiple times, using a single click, only 1 conversion will be counted. This metric is generally looked at by advertisers who have a lead based goals for single products or services.

Conversions – The new name of the ‘Conversions – Many Per Click’ column with an option to track Unique as well as All conversions. This essentially means, when you have selected ‘Unique Conversions’ in your conversion settings, it will count only 1 conversion regardless of the number of completed actions on a particular click. For e.g. A user clicks on an ad of www.buygamesonlinenow.com and buys 1 game today. Then he visits the site again tomorrow through a bookmark and buys 4 more games tomorrow, the number of conversions attributed to the click will be just one. Essentially, the ‘Converted Clicks’ & ‘Conversion’ columns will show the same numbers.

So has anything changed due to this?

Quite a few things have changed although not path breaking but they can’t be ignored as trivial.

Automatic Bidding Strategies:If you use a bid strategy focused on conversions, such as Enhanced CPC or Target CPA, your conversion counting settings will only be used for bidding if your conversion bid metric is set to “Conversions.” If you set your conversion bid metric to “Converted clicks,” your counting setting won’t affect automated bidding because it doesn’t change the counting of converted clicks.

If you use a bid strategy focused on conversion value, such as Target ROAS, your conversion counting settings will always be used, regardless of your conversion bid metric. Target ROAS optimizes for conversion value, which always uses your conversion counting settings.

Total & Cross Device Conversions: While tracking single conversion and counting unique conversions, keep an eye on the “Conversions” column in your reports for any comparisons to estimated conversion data (rather than simply relying on “Converted clicks”). If you have chosen to track only the unique conversions the estimated cross-device conversions will also be based on unique conversions instead of all conversions.

What happens if you do nothing:If you leave your conversion actions set to count all conversions, your reports will simply have different column names: “Conversions (many-per-click)” will be renamed “Conversions,” “Conversions (1-per-click)” will be renamed “Converted clicks,” and the numbers will look the same as before until you change your settings.

Automated bidding solutions like Conversion Optimizer and eCPC will continue to function as they did previously for both the “Converted clicks” column and the “Conversions” column.

What happened to the View – Through conversions?

View Through conversions still exists and there is no hard evidence to track these conversions and attribute any value to them as they do not come from a click. So, you will still need to believe Google’s word of they being influenced due to the online advertising through AdWords. The thing is that advertisers do not question what Google says but they do not seem to be able to calculate any value for these conversions. So, here is a quick peek in my way of associating value to View Through conversions.

(This will work only for e-commerce or sale based campaigns.)

Step 1 – Check the Total Number of Conversions in your campaign.

Step 2 – Check the Total Conversion Value of these Conversions.

Step 3 – Divide the Total Conversion Value by the Number of Conversions. This gives you the average conversion value.

Step 4 – Check the View Through Conversion column.

Step 5 – Visit analytics & check the average order value of the site for the period in consideration.

Step 6 – Compare the Avg. Order Value from analytics to the Avg. Conversion Value metric you have got and select the one with least value. (this will ensure that you are not over estimating or reporting the value of the conversions)

Step 7 – Multiply the value selected in the above steps with the View Through Conversion metric. This is the monetary value associated with the View Through Conversions

Please note that this value will most likely not be the actual value to calculate how much view through conversion add to your kitty but this will be the closest way in which you can measure the same. Alternatively, you can also measure the effectiveness of your impressions. That I will explain in the following post. J

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Contributed by: K. Kulkarni, Digital Strategist, Puretech Internet