How much time/data should we let accrue before we begin optimizing?
We just started a new account and I was wondering how much time/data we should collect before we begin optimizing?
My biggest concern is that we've already blown through over $1,500 in spend and have only 3 conversions.
I understand spend depends on a humungous array of factors and also since we are still new account, it will take more time for Google to register our account, but is there ANY standard or benchmark that we can work against?
I want to make sure that we don't blow through a huge chunk of cash unncessarily. Or put another way, I want to make sure we spend only the amount we need that will allow us to optimize effectively.
Thoughts much appreciated!
Re: How much time/data should we let accrue before we begin optimizing[ Edited ]
March 2014 - last edited March 2014
Great question! As a general rule of thumb, you need to have statistically significant data before making any decisions on how effective your AdWords Campaigns are.
However, I first think you should start with an ROI goal - what is the maximum amount of spend you're willing to invest for a Conversion. Once you have that number, start working backwards to achieve your goals and optimize performance.
All that said, depending on your business, spending $1,500 and only having 3 Conversions does seem to be concerning for me. I'd start looking at your Keywords and Ads, and really trying to see what is resonating with your target consumer, and what will lead to an increase in Conversions.
There isn't a standard list of bencharks, per se, but from a Conversion standpoint, you should focus more on profitable Conversions for you vs what a benchmark would be. Typically, all things being equal, the lower the cost of the item, the higher the online conversion rate would be. A big factor in determining the conversion rate is your landing page. Make sure your landing pages are ideal to funnel searchers to convert.
What to analyze when setting goals/optimizing:
Length of time to a Conversion - do customers convert right away, or over time?
Average lifetime value of customer - does a customer buy from you once, or do they come back for repeat purchases?
Profit per sale - How much do you make per conversion - you need to make sure this is inline with your ROI goals.
I'd recommend crawling before you walk - take the time to really understand AdWords and how the system works and take the time to carefully see how you can leverage the power of the tool to help your Campaigns.
One of the biggest mistakes of new advertisers is not knowing what Search Terms your Ads are actually showing for. You can see this in your Search Terms report:
I've included some other links below that may be helpful.
AdWords Step by Step Guide - www.google.com/adwords/pdf/step_by_step.pdf
Search Funnels - look at the different Keywords searchers are typing in to find your Ads -
Landing Page Experience - https://support.google.com/adwords/answer/2404197?hl=en
Growing AdWords -