SEA strategy: the importance of properly measuring your Google Ads performance

Recently, we covered the subject of Google Ads taking control after COVID, as well as Google Ads Smart Bidding.

To take things a step further, we felt it essential to address the issue of performance measurement.

How do you measure your performance on Google Ads?
Of course, a good SEA strategy can’t be conceived without an in-depth analysis of the numbers and behavior of your ads.

How to measure your return on investment? How can you easily and effectively measure your performance on Google Ads? We’ll answer all your questions.

How do you measure your return on investment (ROI)?

Whatever your reason for using Google Ads (increasing sales, getting more leads, etc.), it’s important to always keep your ROI in mind.

Without monitoring this aspect of your SEA strategy, you won’t be able to see the real effect of your investments.

And first of all, on Google Ads, in order to calculate your ROI, you absolutely need to know your costs (advertising, but also manufacturing if applicable).

  • You can also apply the following calculation:
    ROI = (Margin – Advertising cost) / Advertising cost
  • If you want to calculate your ROAS (return on advertising investment) you can do so as follows:
    ROAS = Revenue (e.g. from Google Ads) / Advertising cost

Track your Google Ads conversions and revenues

Google Ads provides you with a campaign management and analysis tool, so you can track your conversions precisely.

This enables you to determine how many clicks have actually generated conversions. This way, you can find out whether a product, keyword or ad is profitable for your business.

Of course, the value of each conversion must be greater than what you spent.

Sample Google Ads report

Why measure your Google Ads performance?

Get more visits

Measuring your performance as part of your SEA strategy gives you the means to achieve your objectives.

Do you want more traffic to your website? Then you need to focus on increasing clicks and click-through rates.

Keeping track of these figures will tell you whether your current strategy is working: campaigns and ad groups by theme or brand, lists of keywords around the same theme, careful ad copywriting, and so on.

Increase sales and conversions

To set new sales targets, you need to track conversions and revenue on Google Ads.

A product on Google Shopping or a keyword in your text ads that works very well leads to a large number of conversions, while on the other hand, you may find that certain products or keywords are ineffective.

It’s time to invest in the products and search terms that bring you the highest returns.

You also need to make sure that your campaigns link to the right pages and products.

Indirect conversions report – Google Analytics

Increase your brand awareness

Do you want to raise your profile? Launch a brand?

It’s theincrease in impression volume that you’ll need to study closely, as well as customer engagement, audience size and frequency of use.

Your SEA strategy should be based on Google Ads campaigns designed to reach as many of your target audience as possible.

What’s more, you also want to encourage web users to interact with your content as much as possible: keep a close eye on the click-through rates (CTR) of your campaigns.

Google Ads campaign objectives

SEA strategy: improve your ROI

In conclusion, if you want to succeed with your SEA strategy, you need to monitor your Google Ads on a regular basis.

Most important of all? Without doubt, being able to identify campaigns that generate few conversions, so that you can rework them or remove them permanently.

SEA campaign: measure for better international development

Do you currently sell only in France, and would like to export your products to North America, South America or perhaps Asia? Do you dream of developing your application internationally to reach a wider audience?

There’s nothing like measuring your results, so you don’t invest without a concrete basis for success. Thanks to Market Finder and Google Analytics, you can really understand your foreign visitors, identify them, and then respond to their specific needs.

Google Market Finder

Google Analytics and Market Finder: two essential tools for your SEA campaigns

Market Finder: your ally for international market entry

Google’s Market Finder is designed to help you expand abroad and support your international marketing strategy. It’s the right tool if you want to find out more about advertising solutions for your SEA campaign, and the importance of measuring your results.

After entering your URL on Market Finder, Google identifies the markets most suited to your business. This gives you the most coherent countries relevant to your business, with extremely precise insights: monthly search volume, recommended bid, ease of doing business index, real net disposable household income. In short, everything you ever wanted to know!

Google Analytics: essential information about your site

Google Analytics, on the other hand, is designed to help you expand abroad and support your international marketing strategy. It’s the right tool for keeping a close eye on your SEA campaign budget. Thanks to Google Analytics, you’ll get precise answers about where your visitors come from, what they do during a browsing session, average spend, session time… Key elements for a controlled and effective opening onto the world.

With Google Analytics, you’ll get precise answers about where your visitors come from, what they do during a browsing session, average spend, session time…

SEA campaign: precise reports to help you expand internationally

Google Analytics offers you reports sent by email, according to elements as different as :

  • Audience type” reports, for information on users: gender, age, origin, language, interests…
  • Acquisition reports detailing how users arrived on your site: marketing campaigns, social networking campaigns,Facebook advertising, website, search engines…
  • Reports on behavior on your site: most visited pages, most frequent entry and exit pages…

Essential data for conquering markets in other countries

Tracking this data is particularly important when launching a new product, or when you’ve recently set up in a new foreign country. It will enable you to adapt your message to your new target audience, as well as your Google Ads campaigns, for example, as part of an effective and consistent international SEA campaign.

You’ll be able to offer content based on the sites from which your visitors come, or on certain search themes, but also relevant content: images, texts, videos adapted to your target language and not just translated.

How to set up an effective SEA strategy for an e-commerce site?

In addition to a well-calibrated search engine optimization strategy, SEA (or paid search) campaigns can help you rapidly achieve the objectives you’ve set for your e-commerce site.

But just like a marketing plan, a SEA campaign needs to be properly organized beforehand, to get the best return on investment. Before you get started, here are a few things you need to know to put in place a well-informed, and above all personalized, SEA strategy for your e-commerce site.

Step one: identify your goals!

All paid search campaigns can serve different purposes:

  • Acquire new customers, by developing your website’s notoriety and thus its audience
  • Make your communication campaigns profitable
  • Introduce new products, promote a launch or an event
  • Follow-up prospects and customers
  • Increase your sales
  • Etc…

Before taking the first steps towards creating your campaign, you need to ask yourself which objectives are relevant to your company’s digital strategy.

Keep in mind that your campaign must take into account aspects that are specific to your organization. For example:

  • Which brands are your priorities?
  • What are the highest-margin products in your catalog?
  • What is your stock situation, and what are your supply forecasts?
  • What are your planned sales events and promotions?

Step two: consider the buying journey

An important phase, the conversion tunnel (also known as the purchase or sales funnel) represents the various stages a prospect goes through before becoming a customer. This may involve consulting mailings, visiting the website, social networks, physical stores, etc., right through to purchase.

Google recently renamed this phase the “messy middle”.
The “Messy Middle” is the more or less short period between the expression of need and a customer’s purchase.
This period contains a random path of exposure to your marketing messages and those of competitors, made up of various stages of inspiration, research and comparison before the final decision is made: the purchase.

Your mission is to guide and shorten this phase. That’s how you’ll improve your ecommerce site’s conversion rate.

That’s why it’s important to know your customers, the competition and the information available on the market: your SEA strategy will be all the more effective for it. Each stage of this process must be accompanied by specific actions to achieve your objectives.

Don’t forget: optimize your e-commerce site to improve the performance of your SEA campaign.

As part of your SEA strategy, it’s essential to optimize your e-commerce site. In fact, while many companies link their ads to existing pages on their websites, the proper organization of your account will also depend on the tree structure and categories of your site.

The prerequisite for successful campaigns is clear categorization (ordered by product category, brand, etc.) and the creation of optimized landing pages to serve your campaign objectives.

In particular, they must include a unique, well-defined call-to-action (CTA) to encourage your targeted visitors to take that action (request for quote, purchase, reservation…).

Step 3: Define your performance indicators

Once you’ve defined your sales objectives and categorized your site, it’s essential to quantify them to get a concrete view of your results, and optimize the profitability of your campaign.

At the end of this stage, you’ll need to set up a series of performance indicators (KPIs) that will enable you to measure your return on investment (ROI) and the real effect of your expenditure.

Here are the main KPIs to track and analyze to determine the specific performance of the SEA strategy implemented for your e-commerce site:

  • Cost-per-click (CPC): the average amount charged for a click on your ad. It is calculated by dividing the total cost of clicks by the total number of clicks.
  • Quality Score: this is a score between 0 and 10, assigned to your ad by Google as part of a Google Ads campaign. It is defined according to criteria of relevance, expected click-through rate and landing page quality.
  • Click-through rate (CTR): this indicator corresponds to the number of clicks obtained in relation to the number of impressions of your ad.
  • Average position: this is the position at which your ad is displayed on a page in relation to other ads.
  • Number of impressions: this is the frequency with which your ad is displayed. An impression is counted each time your ad is displayed on a search results page.
  • Conversion rate: this percentage corresponds to the average number of conversions carried out each time an ad is interacted with.

Finally, analyze the evolution of your sales and your site’s overall audience over the long term. Because a well-executed SEA campaign generally has a global impact on your business that cannot be immediately measured on a single channel.

Step 4: Choose the right strategy for each of your objectives

Once your objectives are clear and defined, taking into account the customer journey and integrated into a relevant overall acquisition strategy, you can launch targeted actions, step by step.

Develop brand and product awareness

The first step is to introduce your brand, products or services to potential prospects. At this stage, your mission is to generate visibility for your company.

One effective strategy is to set up a Display advertising campaign, which will initially enable you to reach a large audience. In particular, you can explore the solutions offered by Youtube Ads.

With over a billion videos viewed every day, YouTube represents a real opportunity to develop your brand image with specific targets (age range, geolocation, interests…) and promote your products.

From a wide choice of formats (True View, Discovery TrueView, Bumper, Masthead, Google Preferred…), choose the one that best suits your needs. True View, for example, displays an ad while the user is watching a video, and has the advantage of being billed only if the viewer watches at least 30 seconds of the ad.

Generate interest in your products

This involves convincing Internet users who already have a potential interest in the products you offer. To specifically target them and get them to visit your site, you can opt for a Search campaign via Google Ads.

This type of campaign allows you to display your ad alongside perfectly targeted Google search results, in affinity with the needs met by your products. In this way, you reach users at the precise moment they are looking for the type of products or services you offer.

Motivate purchases and drive traffic to your e-commerce site

When an Internet user is determined to buy a product you have in your catalog, your natural aim is to encourage them to buy it on your site.

You can then opt for a Google Shopping campaign, which will enable you to display a product listing in search results as well as in Google’s Shopping tab.

The advantage of this format is that it directly targets web surfers who are in the buying process. These people are actively researching and comparing similar products before making their choice.

Google’s results pages display products at the top of the page, when users’ queries are clearly related to a purchase: products sold on your e-commerce site are thus promoted.

Follow up with a potential customer or prospect

Despite the quality of the campaigns you’ve set up, it sometimes happens that web users don’t make a purchase when they first visit your site, or when they see your ad.

You can then use Google Ads’ remarketing tool to carry out a personalized commercial relaunch. This allows you to boost the performance of your campaigns by re-presenting your ads to targeted web users who have interacted with one of them.

These solutions enable you not only to re-engage your audience, complete purchases or abandoned shopping baskets, but also to conclude your prospects’ conversion processes!

Do you have questions about your campaigns? Are you struggling to optimize your SEA strategy to maximize sales on your e-commerce site?

Get in touch with us! Our experts will help you build a customized strategy, fully parameterized to meet your specific objectives and evolve over time in line with your performance.

Part. 1 – Performance Max & Ecommerce v

Performance Max campaigns: will the future of ecommerce campaigns necessarily involve Performance Max?

Max. performance

This is a new advertising campaign format from Google Ads that promises maximum performance for advertisers, with greater ease of use.

Will it bury search or shopping campaigns? Only time will tell.

For now, let’s take a look at Google’s new advertising solution and the benefits it can offer e-tailers.

Performance Max: what's it all about?

Google presents it as a new Google Ads campaign format to maximize advertiser performance across all the channels offered by Google Ads. It’s a new way to buy Google ads on YouTube, Display, Search, Discover, Gmail and Maps from a single campaign.

Why this new offer?

Google starts from the premise that consumers consult an ever-increasing variety of sites and platforms on a daily basis, and especially when they want to make a purchase.

The figures put forward are as follows: for certain products, consumers have more than 500 points of contact before making a purchase!

We’re talking here about the famous “messy middle” described by Google in its newsletter “Think with Google: How intent is redefining the marketing funnel”.

We talk about the “Messy Middle” in the artilcles of SEA Strategies for Ecommerce.

The consumer’s procrastination and the wide variety of contact points before a purchase can be difficult for advertisers to keep up with.

That’s whyautomating and Machine Learning campaigns to engage customers effectively and at scale is an important expectation for e-retailers.

Google Ads Performance Max campaigns do just that, and here’s how.

The promise of Google Performance Max

The benefits promised by Google Performance Max to e-merchants are as follows:

💡
1. Reach the customers who convert best according to your objectives
The promise

More qualified traffic, more leads, more purchases
complementary traffic to that generated by search campaigns

Resources

Access the entire Google Ads inventory (YouTube, display, search, maps, Gmail…) from a single campaign to reach your specific objectives.

Use Google’s real-time consumer tracking to serve your ads at the right times

The plus

You can set the acquisition of new customers as your objective. Simply upload the list of your existing customers, define your criteria and after the campaign, you’ll receive a report on the conversion rate of new customers brought in by Performance Max.

💡
2. Improve your return on advertising investment (ROAS)
The promise

Your budget is optimized across all channels to seize the best opportunities

Resources

Performance Max campaigns use automated bidding and targeting technology, data-driven attribution* (DDA) and personalized ads to help you find more customers, wherever they are in the Google Ads inventory.

Data-Driven Attribution* (DDA) is still optional, but it enables campaigns to be optimized by activating them on the sites, networks and interactions that are most likely to convert, in real time.

The plus

Google claims that Performance Max campaigns are capable of generating 13% more conversions at the same or lower cost per conversion when run with comparable campaigns.

💡
3. High visibility for your campaigns (transparency and wealth of information)
The promise

Understand how automation works and how you can improve your campaign. See which criteria impact performance (audiences, formats, trends, etc.).

Resources

Performance Max integrates with the Insights page in your Google Ads account to help you streamline your feeds:

By identifying the performance factors of your campaigns from one period to the next

Helping you solve any problems you encounter

By sharing Google marketing information to help you adapt and develop your business and your ads

By integrating with recommendations to continually achieve better results for your Performance Max campaign, and allowing you to focus on the levers you can control

The plus

Advertisers will be able to learn about the main performance criteria for their campaigns, and gain a better understanding of their audiences.

💡
4. Benefit from the power of the Google Ads algorithm
The promise

Get better results faster, to accelerate the learning curve of campaigns.

Use exclusive functions such as Audience Signals

Resources

Performance Max combines Google Ads’ automation technology with all sales data and Google Ads bids to achieve optimal machine learning:

The algorithm has full visibility of bidding data across all Google media. Smart Shopping campaigns achieve on average + 20% higher conversion value than similar technologies.

The algorithm bids in real time on all channels. And real-time bidding offers an average 15-30% increase for the same CPA/ROAS.

Creation is automated based on your account data. On average, responsive search ads generated up to 10% more clicks and conversions.

Attribution is based on data analysis (Data Driven Attribution – DDA) to give you full funnel visibility. We’ve seen a 5% increase in conversions at a similar CPA for customers using DDA on Search.

Focus on... Audience signals

Introduced with Performance Max, Audience Signals is presented by Google as a more effective way of reaching your most important audiences.

When advertisers create Performance Max campaigns, Audience Signals enable them to influence automation by directly indicating the audiences most relevant to their business, those with the highest probability of conversion.

In this way, Audience Signals enables advertisers to accelerate the campaign learning curve.

Tips to avoid overdependence

While automated recommendations from Google Ads can be useful, it’s crucial to maintain control to avoid unnecessary expenditure. By combining automation with manual adjustments, you can balance smart bidding with your overall strategy.

NB: Regular performance monitoring and adjustment of ROAS targets are essential to avoid unpleasant surprises.

Conclusion

In the past, Google’s new solutions have often lived up to their promises and delivered excellent performance for advertisers.

But as always, be careful not to switch all your Google Ads campaigns at once.

Creating a schedule and identifying the most relevant categories in your catalog to activate as a priority is crucial to securing all the benefits and lessons learned needed to achieve your 2022 performance objectives.

However, if you need an expert to structure your Google Ads campaigns for your Ecommerce business and make the most of Google’s algorithms, we’re specialists in the field.
Don’t hesitate to ask a Google Ads agency such asAdenlab about the solutions to be applied, as there are different ones for each strategy.

We're here to advise you and develop your sales

Part. 2 – Performance Max & Smart Shopping

Google Ads Smart Shopping campaigns, soon to be replaced by Performance Max : Planning

In 2021, Google announced that Performance Max would gradually replace Smart Shopping campaigns and Local Services ads in Google Ads. The migration is scheduled to start in April 2022.

Here’s how this change will work over the coming months, and what it means for your Google Ads campaigns.

Performance Max: what's it all about?

Launching in November 2021, Google Performance Max is a new type of automated campaign that promises to maximize advertisers’ performance across all Google channels (Shopping, YouTube, Display, Search, Discovery, Gmail and Maps) in a single campaign.

After a successful launch, Performance Max will soon become the only campaign type for companies running Google Ads Smart Shopping campaigns and Local Services Ads.

Planning & Updates

Smart Shopping campaign updates from April 2022

What are the stages in the migration to performances max? What tools will advertisers have at their disposal for this migration?

The migration to Performance Max campaigns will take place in stages.
Advertisers will be able to switch their Smart Shopping campaigns to Performance Max from April 2022.

To help advertisers make the switch quickly and easily, Google has announced a “one-click” upgrade tool.

This tool will enable one-click upgrades on specific campaigns, or on all campaigns.

When should you migrate to Google Performance Max?

Here are Google’s tips for choosing the right time to implement PMax:

💡
Warning: if you do nothing, your campaigns will switch over automatically!

Indeed, if no action is taken on Smart Shopping or Local Campaigns on your accounts by July, the old campaigns will be automatically upgraded. This should be effective by September 2022.

Changes to be expected with Performance Max upgrades

How will Google set up your campaigns without your intervention?
Thanks to its algorithm and the millions of data it processes!

The new Performance Max campaigns will be based on existing Smart Shopping and Local Campaigns.

This means that most existing parameters will be retained.
A relative relief for advertisers.

After the automatic switchover to Performance Max, campaigns will benefit from new functionalities, so they should also become more effective:

New ad inventory available (which will also be added to YouTube, Search and Discovery)
New perspectives in automation
Advice

Scaling your schedule: some tips for switching to Performance Max

How do I switch my Google Ads campaigns to Performance Max?

For advertisers who don’t want to use the Google Ads one-click tool, it’s possible to create new Performance Max campaigns right now, and we even recommend that you do so, to carry out tests ahead of the migration.

We explain this in more detail in our article on launching your Google Ads Performance Max campaigns.

Conclusion

The automation of advertising campaigns is rapidly gaining ground.

Advertisers are well advised to turn to Performance Max, if only to understand and better master this new solution, in particular by testing several variants that enable them to retain a degree of control over their campaigns (message, budget or target audiences).

Need help with the transition to Performance Max upgrades? We’re here to help.

Adenlab specializes in managing Google Ads campaigns for e-commerce sites, and we’ll be delighted to guide you in maximizing your performance.

We're here to talk to you