How to Compare Campaigns in Google Adwords... My Personal View

This was the basis for the question I posed on Friday

Lets say you have 10 campaigns running on the content network all making conversions. You also have limited funds and want to choose only 5 of these 10 performing Campaigns in order to maximise return on adspend by using the limited budget most wisely. Let's further assume that future performance will be much the same as the historical performance shown below and that there are unlimited impressions available for each campiagn.

This example will show you how complex Adwords can be and that a correct decision is not always that easy or obvious.

The summarised results for the 10 Campaigns are shown below

Value of a conversion = R100
Campaign Impressions Clicks CTR Avg CPC Avg CPM Cost Conversions Conv. Rate Cost/Conv Total Conversion Cost Value of conversions Profit
K1       1,064,498       4,314 0.41% R 0.44 R 1.80 R 1,919 372 8.62% 5.16 R 1,920 R 37,200 R 35,280
K2         407,406       1,011 0.25% R 0.47 R 1.17 R 476 143 14.14% 3.33 R 476 R 14,300 R 13,824
K3         189,090       2,660 1.41% R 0.20 R 2.80 R 530 129 4.85% 4.11 R 530 R 12,900 R 12,370
K4         197,188         391 0.20% R 0.28 R 0.56 R 111 46 11.76% 2.42 R 111 R 4,600 R 4,489
K5         283,267           91 0.03% R 1.23 R 0.40 R 112 43 47.25% 2.61 R 112 R 4,300 R 4,188
K6         562,942         196 0.03% R 0.72 R 0.25 R 141 43 21.94% 3.29 R 141 R 4,300 R 4,159
K7         177,258         294 0.17% R 0.28 R 0.47 R 84 42 14.29% 1.99 R 84 R 4,200 R 4,116
K8         143,492         174 0.12% R 0.29 R 0.35 R 50 20 11.49% 2.48 R 50 R 2,000 R 1,950
K9         154,454         448 0.29% R 0.20 R 0.57 R 88 18 4.02% 4.89 R 88 R 1,800 R 1,712
K10           10,235         218 2.13% R 0.48 R 10.26 R 105 12 5.50% 8.75 R 105 R 1,200 R 1,095

Question ...

Which of these 5 would you choose and in which order of priority

The answer is very important in terms of optimising any Adwords campaign or components of a campaign where there are limited funds available yet there is lots of traffic also available. This is typical of the Google Adwords Content Network

This is my answer with a brief explanation why

The key point in the assumptions above was that there was an unlimited amount of traffic available to all campaigns. This is not pie in the sky when working inside the Content Network.

The table below shows all 10 ranked campaigns from most important to least important campaigns when I have a limited amount of budget to spend. You'll possibly be surprised to see the campaign with lowest volume promises to be the actual top performer. The top 5 are shown in yellow.

To be able to make sensible comparisons in the situation described it's important to reduce all the numbers to a common base and that is Profit per 1,000 impressions or eCPM... earnings per 1,000 impressions (last column in table below). The difference between first and second is enormous in terms of eCPM.

So always remember when you are in a dilemma in terms of where you put your money whether it be on a keyword, an ad or an Adgroup work out the eCPM and it will help you make a rational decision. 

Campaign Impressions Clicks CTR Avg CPC Avg CPM Cost Conversions Conv. Rate Cost/Conv Total Conversion Cost Value of conversions Profit eCPM
K10           10,235         218 2.13% R 0.48 R 10.26 R 105 12 5.50% 8.75 R 105 R 1,200 R 1,095 R 106.99
K3         189,090       2,660 1.41% R 0.20 R 2.80 R 530 129 4.85% 4.11 R 530 R 12,900 R 12,370 R 65.42
K2         407,406       1,011 0.25% R 0.47 R 1.17 R 476 143 14.14% 3.33 R 476 R 14,300 R 13,824 R 33.93
K1       1,064,498       4,314 0.41% R 0.44 R 1.80 R 1,919 372 8.62% 5.16 R 1,920 R 37,200 R 35,280 R 33.14
K7         177,258         294 0.17% R 0.28 R 0.47 R 84 42 14.29% 1.99 R 84 R 4,200 R 4,116 R 23.22
K4         197,188         391 0.20% R 0.28 R 0.56 R 111 46 11.76% 2.42 R 111 R 4,600 R 4,489 R 22.76
K5         283,267           91 0.03% R 1.23 R 0.40 R 112 43 47.25% 2.61 R 112 R 4,300 R 4,188 R 14.78
K8         143,492         174 0.12% R 0.29 R 0.35 R 50 20 11.49% 2.48 R 50 R 2,000 R 1,950 R 13.59
K9         154,454         448 0.29% R 0.20 R 0.57 R 88 18 4.02% 4.89 R 88 R 1,800 R 1,712 R 11.08
K6         562,942         196 0.03% R 0.72 R 0.25 R 141 43 21.94% 3.29 R 141 R 4,300 R 4,159 R 7.39

 

This is Why You Must Attend the Next Workshop... 100% Guarantee

My "Google Adwords and Beyond" workshop takes every one of these variables and shows you how to maximise the conversion opportunities for each one. This is done by untangling the complexities and making it possible for attendees to make a BIG difference to any campaign the day after the workshop. And I do this in such a way you don't need to buy any software.

You will also learn how to master Adwords in such a way you will be able to create campaigns no matter how complex or large in a matter of hours or a couple of days at the most.

And you know something else... once you've mastered Google Adwords you will be ready to go to the next level which will allow you to make an even greater number of conversions and probably at a lower cost than you will get on Google. The workshop also introduces you to this new opportunity.

This workshop is completely unique and cutting edge. It WILL make a dramatic difference to your online success... remember my guarantee. See details here.

Please confirm your interest in attending the workshop... go to this page and complete the simple form

In view of all the new content I will probably be increasing the price for future workshops so strike now. Cost for this workshop is R5000 + VAT.

Previous attendees can attend this workshop at a cost of R1500 + VAT

Check out these links for more information:

Local Search Resources for the Next "Big Thing" Online.
 Click Here
Stay informed about workshop April 28th 2010
 Click Here
Summary of Benefits from Adwords workshop
 Click Here

Back to Home Page

Contact details for SEOza are: unit J6 Hingham Field Office Park, 79 Boeing Rd East, Bedfordview 2007. Tel 011 454 0105 Business Hours 09.00 - 17.00 Monday to Friday. See SEOza listing on Google Maps. ... GPS Locations: S 26.16582 E 28.14080 | Close to Gilhooley's Farm & Jeppe Quondam

 

Back to SEOza home page.