AdWords is now Google Ads. Our new name reflects the full range of advertising options we offer across Search, Display, YouTube, and more. Learn more

Ads
2.3K members online now
2.3K members online now
Improve your Google Ads performance and boost your ROI, CTR, and Quality Score
Guide Me
star_border
Reply

CTR drop due to location extensions?

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hi everyone,

 

I noticed something weird after adding location extensions to a few of my campaigns. Basically, after roughly 3 weeks of testing I decided to compare campaign performance with and without location extensions on them.

 

Just to clarify, I am comparing the same campaigns during the same period, the only variable is whether they showed up with or wiothout extensions.

 

As expected, performance is reasonably better in almost every aspect (converted clicks, clicks conversion rate, even cost per converted clicks). One thing which I cannot really understand is why the most obvious KPI (in this case CTR) seems to be unaffected. Moreover, there is almost 1% difference in favour of when the ads that appeared without the extension on them. 

 

Note that this affects both brand and non brand campaigns.

 

This issue is not really a deal breaker for me, but it is just annoying not being able to understand the reasoning behing the whole process.

 

Thanks in advance,

Teodor

2 Expert replyverified_user
1 ACCEPTED SOLUTION

Accepted Solutions
Marked as Best Answer.
Solution
Accepted by topic author Teodor I
September 2015

Re: CTR drop due to location extensions?

Top Contributor
# 6
Top Contributor

Ohhh ...I see your point Tommy;
The answer is no. If I have, let's say,  an increase / decrease in CTR from 3 to 4 or from 4 to 3 (meaning the range is 3-4) I don't take any action, since (statistically) this is the same  (statistical) value.

 

Now, the explanation: Google does not report the margin of error , for any metric (including avg. position) - not to confuse the users with too much statistics. But, it is calculated  in the background. So, I have to assume what changes in values., (e.g CTR, avg position,,,) would be considered  statistically meaningful to make changes in the campaign.

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer’

View solution in original post

Re: CTR drop due to location extensions?

Top Contributor
# 2
Top Contributor

Teodor;

Honestly 1% difference in performance is well within the margin of error (To my knowledge  Google uses   a confidence level of 95%). stastiscally 1% difference is not a statistically significant value to draw a conclusion.

 

 How many impressions are you comparing? Adding to that some external factors (e.g.  Seasonal, competitor behavior, ) you would  agree (intuitively) that  1% cannot indicate  a  change  / trend which could be considered meaningful. 

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer’

Re: CTR drop due to location extensions?

Top Contributor
# 3
Top Contributor
Hi Teodor,

Is your 1% difference more like 3% CTR to 4% CTR or 4% CTR to 3% CTR? That would actually be a 33% increase (or 25% decrease) in terms of what Moshe is referring to and could be quite significant.

Are you reviewing any of your device data at all or just top level stats. You may find a different outcome by reviewing mobile vs desktop/tablets for instance. Location extensions IMO, don't seem to have too much impact on desktop users, but occasionally, for mobile based activity, they work really well.

-Tommy

Tommy Sands, AdWords Top Contributor | Community Profile | Twitter | Philly Marketing Labs
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer.’

Re: CTR drop due to location extensions?

[ Edited ]
Top Contributor
# 4
Top Contributor

Nope. I was  misunderstood..

Let me give an example, to illustrate what I meant.

When you say, there is a difference of 1 % you mean that the CTR range is let's  say: 4+-1% compared to, let's say, 3+-1%. The margin of error (also known as the "spread") overlaps - hence, there isn't  a result which is statistically significant.

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer’

Re: CTR drop due to location extensions?

Top Contributor
# 5
Top Contributor
It's still not clarified what exactly where discussing here but I wasn't suggesting anything about statistically significant at all, Moshe. When comparing two numbers (percent of change) moving from 3% to 4% or from 4% to 3% is a big change, (increase or decrease) especially when looking at CTR - enough, IMO to warrant investigating or celebrating. I used the word significant to express this, perhaps a poor choice if we're being super scientific but it's a big change regardless.

If you were consistently seeing 2% - 3% CTR's and then made some changes to your campaigns in an effort to help increase your CTR and were seeing now 4%-5% CTR's, you wouldn't find that important or worthwhile or am I missing something here?

-Tommy
Tommy Sands, AdWords Top Contributor | Community Profile | Twitter | Philly Marketing Labs
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer.’
Marked as Best Answer.
Solution
Accepted by topic author Teodor I
September 2015

Re: CTR drop due to location extensions?

Top Contributor
# 6
Top Contributor

Ohhh ...I see your point Tommy;
The answer is no. If I have, let's say,  an increase / decrease in CTR from 3 to 4 or from 4 to 3 (meaning the range is 3-4) I don't take any action, since (statistically) this is the same  (statistical) value.

 

Now, the explanation: Google does not report the margin of error , for any metric (including avg. position) - not to confuse the users with too much statistics. But, it is calculated  in the background. So, I have to assume what changes in values., (e.g CTR, avg position,,,) would be considered  statistically meaningful to make changes in the campaign.

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer’

Re: CTR drop due to location extensions?

Top Contributor
# 7
Top Contributor
And I see yours, the parts I understand anyways.

"not to confuse the users with too much statistics" - I'm afraid that in this bucket too as I'm just a marketer. :/
Tommy Sands, AdWords Top Contributor | Community Profile | Twitter | Philly Marketing Labs
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer.’

Re: CTR drop due to location extensions?

[ Edited ]
Visitor ✭ ✭ ✭
# 8
Visitor ✭ ✭ ✭

Moshe,

Thanks for sharing your thoughts. Yes, I do realize that "public" face of adwords is simplified, exactly for the purpose of not to confuse users with too much statististics. I just find odd that the location extensions had a negative impact (persumably) on my CTR. In this case, ads where the extension was not shown, performed a little over 30% worse as oppposed to ads with extensoion on them.

Similar to Tommy I am approaching things mostly from a marketer's perspective here, and therefore using the effect of other extensions I have used in the past as a benchmark. During the 3 weeks of testing, the campaigns in question have gathered roughly 150 K impressions, so I am guessing the results I am getting should be more or less representative.

I am still happy with the overall impact the location extensions had, I just though there might be an obvious reason for the CTR difference which I am missing out.

 

Teodor

Re: CTR drop due to location extensions?

Visitor ✭ ✭ ✭
# 9
Visitor ✭ ✭ ✭
Hi Tommy,

The difference I am referring to is in the region of 30%, so perhaps Moshe has a point here. However, I will definitely check performance depending on the device. This might provide me with some extra insight.

Thanks,
Teodor

Re: CTR drop due to location extensions?

Top Contributor
# 10
Top Contributor

Teodor;

Unfortunately, Google does not offer Adwords experiments to test extensions; otherwise we might be able to set an experiment;

Anyway; follow Tommy's suggestion, about changes due to a device,  and come back after gaining enough impressions (2 weeks?)  and let us know.

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer’