Knowledge is the Foundation To Success  

According to Google, “Click Through Rate (CTR) is the number of clicks your ad received divided by the number of times your ad is shown (impressions).”

Every once in a while a new pay-per-click (PPC) advertising client will come in who considers their account CTR to be the benchmark by which their accounts performance is judged. Depending on the keyword strategy, it is most likely not a good idea to use CTR to judge an entire account’s performance.

True, we know that CTR has a big influence on the somewhat mysterious Google AdWords Quality Score(s). It is also a great indicator for comparing performance on your various AdGroups’ different ad copies. There are certainly many instances when Click Through Rate (CTR) is a very good indicator of performance.

Now, what about when low CTR is a good thing?

There are definitely times you want to eliminate a worthless click from a potential keyword, and while this would have a negative impact on the Click Through Rate (CTR) it would certainly have a positive effect on the account.

For example, a strategy that I recently adopted for a client really drives this point home.

One of my client’s competitors has a very common word for a company name. For the sake of confidentiality I will simply call it “widget.” Well, this competitor name “widget” is also the name of a very popular movie, an artist, a location overseas, a highway landmark, and dozens of other completely unrelated things. As you might imagine, the search volume for this popular term is through the roof, while the percentage of people actually using it for the company name we wished to target is extremely small. So small in fact, that it would almost certainly discourage anybody from even trying it as a keyword.

I thought it was worth trying, and to give it the best chance at success I used only the exact match version of “widget” in its own campaign, with a very specific ad designed to only solicit the searchers looking for my client’s services.

The results were surprisingly great. The campaign resulted in my client converting at half of his target conversion cost. The CTR for this keyword was a downright horrible 0.02%, however this was a good thing as it meant the ad was eliminating all of the unnecessary searchers and only targeting the exceptionally small amount of people looking for my clients competitor. In this case, the exceptionally low CTR was a good thing.

The low CTR also had a definite impact on the keyword’s quality score and forced my client’s minimum bid up to $10/click. Even with the the high minimum bid, the conversion cost was cheap and the quality of leads generated tens of thousands of dollars in new revenue for my client. Winner.

Now, the 0.02% CTR dramatically lowered the whole account’s CTR. If that figure had been used as a benchmark to judge performance, it would have been a huge mistake that would have cost my client a considerable amount of revenue. In this case, the actual conversion cost/rate was a far better benchmark than the pathetic CTR.

The bottom line here is that a low CTR can be a good thing in some strategies and is not always the best indicator of an entire account’s performance. Every account is different, just as every marketing strategy is different. Helping to determine the best strategy for your PPC marketing campaign is just one of the many unique skills that JumpFly PPC account manager brings to the table.

What’s your benchmark?

One of my favorite Google tools has recently had an upgrade and is now available for download, AdWords Editor 7.0. The previous version of AdWords editor was 6.5.1. You can find out which version of AdWords editor you are currently using by opening AdWords Editor, then view Help/About AdWords Editor. AdWords Editor 7.0 is about 16.6 Megs in size and should take about 2-5 minutes to download over any high speed internet connection.

When you open AdWords Editor you should be prompted with the upgrade screen automatically.

Now before you upgrade, there are some important things to consider. If you have comments or unposted changes, I would recommend you click “Backup then Update” when you see the automatic prompt to upgrade. This allows AdWords Editor to create a backup file that includes any unposted changes and/or comments. Once you have installed the new version you can simply import the backup file. Google Help has a great article on the steps needed to correctly import a backup file (AEA). Personally, I always recommend backing up any files before upgrading any software.

It’s also important to note that after you upgrade to AdWords Editor 7.0, you will need to download your account(s) again.

There are some notable improvements to AdWords Editor 7.0.

First page bid estimates are now shown for keywords. The first page bid estimate is the approximate max CPC bid it would allegedly take for your ad to be shown on the first page of Google results. Previously minimum cost-per-click bids were displayed.

Keyword Quality Scores are now displayed in the Keywords tab. This column will display a number from 1 through 10, with 1 through 4 being poor, 5 through 7 being OK, and 8 through 10 being Great. There is a great help article on how AdWords calculates Quality Score, for those interested in jumping down the rabbit hole.

The Keyword Opportunities Tool, still in BETA, now uses your AdWords Editor 7.0 language and location settings. You can change the Keyword Opportunities locale used for the results by clicking the very small blue “Edit” link that appears at the very upper right of the Keyword Opportunities tool window. The sentence will read “Results are tailored to…” There is also a great help article with more information on how to change the Keyword Opportunities Tool’s language and location targeting.

Speaking of Language and Location settings, you can now view your campaigns targeting settings on the Campaigns tab. Now, these columns are hidden by default, however you can select them with the column chooser.

The Keyword Expansion tab now shows “absolute numbers” instead of the odd scaled values previously seen. The numbers supposedly reflect the traffic for the last month.

Adwords Editor 7.0 now has optional usage tracking. This allows Google to collect completely anonymous statistics about how you use the different features. The statistics do not include personal information or any of the contents for your AdWords account. The idea here is that the information gathered will help the design team further understand what needs improvement. This feature is turned off by default, and can be enabled, or disabled, by going to Tools menu/Settings, and then select “improve AdWords Editor by enabling usage tracking.”

When it comes to PPC management, Adwords Editor 7.0 is truly a must have tool. It could very well be the most popular software on my machine. It’s great to see the AdWords Editor design team continue to release new improvements on a regular basis. In a recent meeting with Google, I also submitted my personal AdWords Editor wish list that included separate data for Content and Search, as well as the ability to compare data from different time periods, along with graphical representations, as seen in the Account Snapshot tool. Considering the recent improvements, perhaps my wish list is not too far off in the future.

I recommend you download AdWords Editor 7.0 today.

Earlier this fall, Google changed their alcohol policy regarding beer. For the first time, they allowed the U.S. AdWords advertisement of beer for sale. Monday, Google announced another update to the AdWords alcohol policy. Starting this week, Google now allows the advertisement of hard alcohol and liqueurs that target the U.S.

This is good news to hard alcohol and beer manufacturers who can now take advantage of the increased holiday traffic, as well as the new opportunities for branding in the online marketplace.

The biggest difference between the ability to market beer and that of hard alcohol, is that beer is allowed to be marketed for sale through PPC advertising, while hard alcohol and liqueurs must “promote the information about the hard alcohol and liqueur that their websites contain.” Any ads that directly promote the actual sale of hard alcohol or liqueur are still not allowed on AdWords. This means that the sale of hard alcohol and liqueur cannot be promoted in your Google AdWords ad copy or be the purpose of your website. Ads for the purpose of branding hard alcohol and liqueur are absolutely allowed to target the U.S.

In other words, you can sell beer with Google AdWords, however you can only brand or use the promotion of hard alcohol and liqueur for non-sales related websites.

Its important to note that Google considers beer, wine, champagne, hard alcohol, and liqueur to be products intended for sale to, and consumption by, adults. Therefore, any ads promoting these products will be given a Non-Family Safe status. From a PPC management aspect, this means that anybody who has activated their “Google SafeSearch filter” will not be able to see these ads.