VisualCalc AdWords Dashboard Indicator · PDF file · 2011-06-01VisualCalc AdWords...

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VisualCalc AdWords Dashboard Indicator Whitepaper

Rev 3.2

AdWords Indicator Whitepaper

Introduction The VisualCalc™ AdWords Dashboard is an easy, affordable web-based software solution that can significantly improve the performance of Google AdWords and other PPC (pay per click) campaigns. It transforms your complex AdWords/PPC data into interactive, easy-to-interpret graphs and charts that help you quickly identify and act on issues and opportunities, maximizing the effectiveness and ROI of your AdWords/PPC programs. The VisualCalc AdWords Dashboard turns your raw AdWords/PPC data into graphical performance indicators, such as clicks vs. impressions, conversions by ad group, click through rate by keyword, etc. Indicators can be created for virtually any combination of Google AdWords or PPC data. These indicators are expressed by a variety of graph formats of your choosing, including line graphs, bar charts, pie charts, gauges and heatmaps. Each time the underlying data changes, the indicators that use this data are automatically updated. These Google AdWords indicator graphs are then grouped into customized AdWords dashboards that provide a visual, easy-to-understand view into the performance of your Google AdWords and other PPC campaigns.

When you first begin using your VisualCalc AdWords Dashboard, we provide you with a set of pre-configured indicators. Of course, you are welcome to modify these, delete them, or add new ones as you see fit. Each of these indicators is composed of a set of standard AdWords metrics that are derived from your account data. These standard AdWords metrics are outlined in brief below.


Google AdWords Metrics When using Google AdWords, or any other PPC program, there are a number of metrics that provide critical information about the performance of your PPC campaign. It is important that you monitor these metrics to assess the performance of your campaign. In order to gauge effectiveness of any grouping within your PPC program (campaign, ad group, or keyword), your PPC metrics can be evaluated across a number of different dimensions:

• If available, you can compare them to similar products or services advertised by other companies. For example, is your CTR (click through rate) lower or higher than other vendors advertising similar products?

• You can compare them to other groups within your campaign – either at the same level,

or at different levels. For example, is your conversion rate for the “Blue Widgets” ad group higher than that of the “Red Widgets” ad group? And, how does it compare to the conversion rate for the “Widgets” campaign overall?

• You can compare them to historical averages. For example, are clicks trending up or

down over the last three months? Every PPC advertiser has their “favorite” PPC metrics based on their specific advertising objectives. However, the higher level metrics common to almost every campaign are:

• Impressions: Impressions indicate how many times your ad has been displayed. Impressions are driven by two key factors: 1) the number of searches that are performed on the associated keyword(s); and 2) the position in which your ad is displayed. Your ad position, in turn, is primarily determined by your bid amount on a keyword relative to others for that same keyword (in the case of AdWords, your Max CPC). There may also be other criteria that help determine your ad position – in Google AdWords, for example, your relative quality score also influences the position of your ad. Impressions are also influenced by any budget limits you have set for your campaign. Once you hit your daily budget limit, for example, you will no longer accrue any impressions that day. Impressions can be increased by making modifications to any of these factors: increasing your daily budget, increasing your maximum bid amount, choosing more widely searched keywords, and, in the case of AdWords, improving your quality score (i.e., improving the relevance of your ad copy and landing page to the associated keyword).

• Clicks: Clicks indicate how many times someone has clicked on your ad. Clicks are

determined by your ad’s impressions, combined with its CTR (click through rate). As with impressions, clicks are also dictated by your daily budget – once you hit the budget limit, impressions, hence clicks, will stop for the day. To increase your number of clicks, you can focus on any of these factors: increasing the number of impressions (see above), increasing your daily budget, or improving your CTR (see below).

• CTR (Click Through Rate): CTR is the number of clicks your ad generated divided by

the number of impressions it received. For example, if you ad received 1,000 impressions, and was clicked on 50 times, the CTR would be 5%. CTR is a good measure of how effective your ads are. Although your CTR can be influenced by your ad position, the primary determinant of your CTR is the quality and relevance of your ad copy. Improving the relevance and quality of your ad copy is the best way of improving your CTR.


Google AdWords Metrics (cont.)

• Avg. CPC (Cost Per Click): This is the amount you have spent on a keyword (or ad

group or campaign) divided by the number of clicks over the same time span. Your CPC is determined by your Max CPC bid, and changing your Max CPC is the only way to directly influence the CPC of a given keyword. However, you can influence the Avg. CPC of an ad group or campaign for changing the keyword mix – namely, shifting the weight of the ad group or campaign to less competitive keywords (i.e., keywords that require a lower Max CPC to achieve a given ad position).

• Avg. Pos (Average Position): This is just what its name implies – the average

position of your ad across all of the searches that generated it. Average position is determined by both your bid amount (Max CPC) and, in the case of Ad Words, you quality score, relative to other advertisers for a given keyword. You can improve your average position by increasing your bid or by improving your quality score (improving the relevance and effectiveness of your ad and landing page). For a given spending level, you can also improve your average position by bidding on less competitive keywords.

• Conversions: Conversions measure how many times someone has taken a specific

action on your website that you have labeled a “conversion”. Conversions can be actions such as making a purchase, filling out a “contact me” form, or signing up for a trial. In order to track conversions, you need to check certain settings on your PPC account and install code snippets on your conversion pages. Google offers step-by-step instructions on how to set up conversion tracking. Conversions are driven by both the number of clicks you receive (see above) as well as your conversion rate, which measures the effectiveness of your web site in soliciting the desired action from the visitor. To improve the number of conversions, you must either increase your clicks or improve your conversion rate (see below).

• Conversion Rate: Conversion rate is the number of conversions divided by the number

of clicks. For example, if you received 50 clicks, and 5 conversions, your conversion rate is 10%. You conversion rate is a measure of how effective your landing page and/or web site is in securing a desired action (the conversion) from your PPC visitors. To improve your conversion rate, you can improve the relevance and effectives of your landing page and web site, and make sure that the offers and mechanisms (e.g. buttons) used to “secure” the conversions are compelling and clearly visible.

• Cost per Conversion: Cost per conversion is the total amount spent on a keyword (or

ad group or campaign) divided by the number of conversions. You can decrease your cost per conversions by addressing either side of this equation. If you can lower your overall cost (for example, decrease your Avg. CPC) without negatively impacting the number of conversions, you will improve this measure. Likewise, if you can improve your conversion rate for a given spending level (see above), your will lower this measure.


VisualCalc AdWords Dashboard Indicators These AdWords metrics are the primary measurement “building blocks” used in the initial indicators that are pre-configured with your VisualCalc AdWords Dashboard account. In the VisualCalc indicators, these metrics can be displayed across three levels of detail - Campaign, Ad Group, or Keyword. The default level used for your pre-configured indicators is the Ad Group level. In most cases, this is a good balance between displaying enough data to enable meaningful comparisons, but not overwhelming the user with too many data points. If you have multiple campaigns, and each campaign contains a fair number of ad groups, you may want to modify these indicators to display at the campaign level – the ad group level may be too detailed. Conversely, if you only have a handful of ad groups and keywords, your may want to modify the indicators to display at the keyword level – the total number of keywords may not be overwhelming. In any case, any of the pre-configured calculators below can be easily modified to display at any level. Even in cases where there are is a large total number of keywords aggregated across multiple ad groups, you can filter out ad groups to focus only on those pertinent to the analysis, then display the data at the keyword level. VisualCalc AdWords Dashboard indicators come in a variety of graph types:

Some graph types are better suited than others for specific indicators. Each of these graph types is described in the following pages:

Line Graph

Stacked Bar Graph Dual Axis Graph

Pie Chart

Gauge Heat Map

Computed Fields Graph Cluster Bar Graph


Line Graphs

Line graphs compare the trend over time of a single measurement – such as clicks, conversions, or CTR - across one or more groups of a similar level (campaigns, ad groups, or keywords). Line graphs are better suited for comparing the relative performance of groups to each other than for tracking the sum total across all groups. The example line graph below shows clicks per week by ad group. The Y-axis represents clicks, and the X-axis represents weeks. Each line represents a different ad group, and each point on the line indicates the number of clicks generated by that ad group that week.

The pre-configured line graphs in the VisualCalc AdWords Dashboard are as follows:

• Average Position per Week by Ad Group • Impressions per Week by Ad Group • Clicks per Week by Ad Group • Conversions per Week by Ad Group • Sales per Week by Ad Group


Stacked Bar Charts Stacked bar charts show the performance of a single measurement (e.g., impressions, clicks or conversions) across a multi-point dimension (e.g, weeks or ad groups). Each bar is segmented by a specified parameter, such as ad group or keyword. The total height of each bar represents the total value of all groups together, while the height of each segment represents the value of that specific group. Stacked bar charts are similar to line graphs, but are better suited for displaying the total value of a measurement aggregated across multiple groups. They are not appropriate for comparative measurements that are averages, such as CTR or conversion rate - a line graph is better suited for these types of measurements. The example stacked bar graph below shows conversions per week by ad group. The Y-axis represents conversions, and the X-axis represents weeks. The height of each bar shows the total number of conversions that week. Each segment of a bar correlates to an ad group. The length of each segment indicates the number of conversions generated by that ad group that week.

The pre-configured stacked bar charts in the VisualCalc AdWords Dashboard are as follows:

• Impressions per Week (by Ad Group & Week) • Clicks per Week (by Ad Group & Week) • Conversions per Week (by Ad Group & Week) • Sales per Week (by Ad Group & Week)


Dual Axis Graphs Dual axis graphs are ideal for comparing two measurements with different value types (e.g., percentages vs. numbers) or significantly different levels of magnitude (e.g., 100’s vs. 1,000’s). The measurements are compared across some multi-point dimensions, such as weeks or ad groups. For example, you might want to compare clicks vs. CTR across time, or conversions vs. impressions across ad groups. The example dual axis graph below compares clicks and CTR across ad groups. The Y-axis on the left measures clicks, while the Y-axis on the right measures CTR. The green line indicates the number of clicks for each ad group, while the red bar indicates the CTR for each ad group.

The pre-configured dual axis graphs in the VisualCalc AdWords Dashboard are as follows:

• Clicks vs. Conversions (by Ad Group & Week) • Clicks vs. Cost (by Ad Group & Week) • Clicks vs. Impressions (by Ad Group & Week) • Conversions vs. Cost (by Ad Group & Week) • Sales vs. Cost (by Ad Group & Week)


Pie Charts Pie charts show how one measurement, such as clicks, is broken out by two different levels of detail, such as ad groups and keywords. The top pie shows how the measurement is broken out across the higher, more general level, which each slice representing a specific group within that level, such as an ad group. Once one of the slices of the upper pie is selected, the lower pie shows how that specific slice is broken out by the lower level, more detailed group, such as keyword. The example pie chart below represents impressions. Each slice of the upper pie represents the number of impressions for a corresponding ad group. When one of the ad groups (slices) of the upper pie is clicked, each slice of the lower pie indicates the number of impressions for each keyword in that ad group.

The pre-configured pie charts in the VisualCalc AdWords Dashboard are as follows:

• Impressions per Ad Group by Keyword • Clicks per Ad Group by Keyword • Conversions per Ad Group by Keyword • Sales per Ad Group by Keyword • Cost per Ad Group by Keyword


Gauges Gauges allow you to compare two measurements against each other. Gauges can help provide a quick view of how you are performing against a goal. Each colored section of the gauge corresponds to a range of the comparative value between the two measurements. The sections to the right represent good performance, while the sections to the left represent poor performance. The values corresponding to each section are defined by the user on the bar below the gauge. Each point on the gauge represents a specific instance of a dimension, such as an ad group. The needle of the gauge is an average of all of the discrete instance values. In the example gauge below, clicks are measured against impressions for each ad group.

The pre-configured pie charts in the VisualCalc AdWords Dashboard are as follows:

• Clicks vs. Impressions by Ad Group • Conversions vs. Clicks by Ad Group • Cost vs. Sales by Ad Group


Heatmaps Heatmaps are similar to gauges in that they allow you to compare two measurements against each other – conversions vs. clicks, for example. Each rectangle of the box represents a group, such as a keyword or ad group. The relative size of the group is determined by a user-selectable dimension, such as cost. The color of each group corresponds to a range of the comparative value between the two measurements. Green rectangles represent great performance, yellow so-so performance, etc., all the way through red, which represents poor performance. The value range is defined by the user. The example heatmap below measures conversions vs. clicks. Each rectangle represents an ad group, and the size of the rectangle is dictated by the relative cost of that ad group. The color of each rectangle is determined by how the dividend of conversions divided by clicks for that ad group (the conversion rate) aligns with the user-defined value range on the bar below the heatmap.

The pre-configured heatmaps in the VisualCalc AdWords Dashboard are as follows:

• Clicks vs. Impressions • Conversions vs. Clicks • Sales (Value) vs. Cost • Clicks vs. Cost • Conversions vs. Cost

* Note that all of these pre-configured heatmap rectangles are sized by cost. These can be easily changed by the user to another dimensions, such as clicks or impressions.


Computed Fields Graphs Computed fields graphs enable you to compute and graph the relationship between two measurements; for example, cost per conversion (cost divided by number of conversions), or ROI (value divided by cost). The computed fields graph shows both native measurements (X and Y) as lines, and the computed relationship as bars. Supported computations include addition (X+Y), subtraction (X-Y), average ((X+Y)/2), variance ((X-Y)/Y), and ratio (X/Y). The example computed fields graph below shows cost per conversion by week. The green line (X) represents cost, the red line (Y) represents conversions, and the blue bar shows the ratio between the two (cost divided by conversions, or X/Y).

The pre-configured computed field graphs in the VisualCalc AdWords Dashboard are as follows:

• CTR – Click Through Rate (by Ad Group & Week) • CPC - Cost Per Click (by Ad Group & Week) • Conversion Rate (by Ad Group & Week) • Cost per Conversion (by Ad Group & Week)) • ROI (by Ad Group & Week)


Summary As discussed above, pre-configured indicators give you a head start in developing a VisualCalc AdWords Dashboard that is appropriate for your organization. We expect that these will be tailored to meet the needs of your specific organization. For example, if you run a commerce site, and track the sales (value) resulting from your PPC program, you may want to create more indicators oriented around sales. Conversely, if you are focused on lead generation, conversions may be the centerpiece of your dashboard. One of the key benefits of VisualCalc Dashboards is that it allows you to easily customize your indicators and dashboard for your specific requirements, enabling you to get the most value possible out of your PPC programs. About VisualCalc VisualCalc is the leading provider of easy, affordable, web-based analysis software that helps companies of all sizes grow and manage their business. Since its founding in 2000, VisualCalc has been focused on its vision of making the analysis of complex data accessible to the everyday user. VisualCalc’s unique combination of technology and expertise helps consumers and businesses alike analyze complex data quickly and easily, resulting in better, faster decisions. VisualCalc’s analysis software includes two categories of products: 1) VisualCalc Calculators, which companies provide to their customers to help them quickly and easily evaluate their products and services, and 2) VisualCalc Dashboards, which help organizations monitor and manage their business. VisualCalc is a privately held company headquartered in El Dorado Hills, California. Contact Information VisualCalc, Inc. 873 Embarcadero Drive, Suite 3 El Dorado Hills, CA 95762 Phone: 916-939-2020 E-Mail: [email protected] Website: www.visualcalc.com © 2008 VisualCalc, Inc.

VisualCalc AdWords Dashboard Indicator · PDF file · 2011-06-01VisualCalc AdWords...

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