Understanding Google Ads metrics is critical for evaluating performance and optimizing your campaigns.
For SaaS startups, tracking the right KPIs can significantly impact your marketing success.
Here are the key metrics to focus on:
Google Ads Metrics to Track
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Conversions: Track actions like demo sign-ups, trial sign-ups, or lead form submissions. These conversions show how well your campaigns drive potential customers to take action.
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Cost Per Conversion: Measure how much you're spending to acquire each lead or sign-up. Monitoring this helps ensure a good return on investment and informs budget adjustments.
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Conversion Rate: This percentage indicates how many ad clicks result in conversions. A higher conversion rate suggests effective ad copy, landing pages, and targeting strategies. Optimizing this rate can lead to more trial users and, eventually, paying customers.
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Return on Ad Spend (ROAS): Calculate this by dividing conversion value by ad spend. ROAS shows the revenue generated for every dollar spent on ads. A high ROAS indicates efficient ad spend and successful campaigns.
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Phone Calls: Track phone calls generated by your ads, especially for high-touch sales approaches. Phone calls often indicate high buying intent and can be valuable leads.
Applying Google Ads KPIs in Startup Examples
Lets see how these metrics would look like in typical Startup scenarios. We have an example campaign below with the following numbers.
Example Metrics:
- Clicks: The number of times your ads were clicked.
- Conversions: The number of successful actions, such as purchases.
- ROAS: Indicates how much revenue you earn for every dollar spent on ads.
Key Metrics Explained
- Clicks: Simple to understand, showing the total number of clicks your ads received.
- Conversions: Indicates how many of those clicks resulted in desired actions.
- ROAS: Calculated as conversion value divided by cost. For example, if you spent $41K and made $133K, your ROAS is 3.23x.
Comparing Performance
Adjust the date range to see how your metrics change over time. Compare the last 30 days with the previous 30 days to identify trends. For instance, an increase in clicks and conversions with a decrease in cost per conversion is a positive sign.
Campaign-Level Metrics
At the campaign level, it’s crucial to customize your columns to include:
- Clicks
- Conversions
- Conversion Value
- ROAS
By analyzing these metrics, you can determine which campaigns are performing well and which need adjustments.
Keyword Performance
Dive deeper by examining keyword-level performance. Identify keywords driving the most clicks and conversions and compare their ROAS. Pause or adjust bids for underperforming keywords to optimize your budget.
Example:
- A keyword with 373 clicks but zero conversions should be paused.
Competitive Metrics
Use auction insights to see how your ads perform compared to competitors. Metrics like search impression share and top impression share provide insights into your ad visibility.
Example:
- If your impression share is 93%, you are capturing most of the market for your keywords.
Location Performance
Evaluate performance by location to adjust bids accordingly. Increase bids for high-performing locations and decrease them for low-performing ones.
Example:
- If Texas shows a 1200% ROAS, consider increasing your bid adjustment for that state.
Google Ads Best Practices
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Start with Results: Focus on conversion data to set benchmarks and identify improvement areas.
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Benchmark Against Industry Standards: Compare your metrics with industry benchmarks to set realistic goals and understand your performance.
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Regular Analysis and Optimization: Continuously review and refine your campaigns. Identify the best-performing keywords, ads, and audience segments, and make necessary adjustments.
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Utilize Phone Call Tracking: For high-touch sales models, phone call tracking is essential. It helps identify which ads and keywords drive valuable interactions.
How ShoutEx Can Help
At ShoutEx, we specialize in optimizing Google Ads campaigns for SaaS startups. Our services include:
- Strategic Planning: We help set clear, achievable goals and develop tailored strategies.
- Detailed Analytics: We provide in-depth analysis of your campaigns, tracking key metrics to ensure target achievement.
- Ongoing Optimization: Our team continually optimizes your campaigns, adjusting bids, targeting, and ad copy to maximize ROI.
By focusing on these key metrics and best practices, you can enhance your Google Ads performance and drive better results for your SaaS startup.
If you're ready to elevate your Google Ads campaigns, contact ShoutEx for a personalized strategy session.