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Overall Clicks VS CTR

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# 1
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I have (what I think is) a unique problem. I have an AdWords campaign with an unlimited budget - and I'm trying to see if overall it's better to have more clicks or a better CTR. The CPC is not something that my boss is concerned with, but we have better CTR when we aren't casting such a wide net.

 

Example: Ad #1:

 

Clicks: 64 --> 45 (-29.69%)
Impressions: 2,183 --> 1,343 (-38.48%)
CTR: 2.93% --> 3.35% (14.29%)
 
The above numbers are after we made a target location change to one of the ads. We centralized the ads for people living in the area we are targeting, and our CTR was higher, but overall clicks were lower. I understand that this is going to happen - I just am arguing with myself on if it's better to have all the clicks, or (what I'm assuming) is more qualified clicks. 
 
One side says, "the clicks are being shown to the right people that are searching our terms and potential sales" and the other side says "a click is a click - if they convert later is up to us". Any insight?
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Accepted by topic author Avex H
January

Overall Clicks VS CTR

Top Contributor
# 2
Top Contributor

Hi Avex H,

Having a good CTR helps give you a better QS. Your CPC should go down. The real question you'll need to answer is the conversion rate. Better targeting should mean better conversion rates, and that should mean more profits.

What I'd look at is the current conversion rate compared to the previous conversion rate and calculate the marginal conversion rate for those no longer targeted, assuming the conversion rate for those currently targeted is comparable to the previous conversion rate. It will take a little extrapolation to figure it out. Then the question becomes were those extra impressions, clicks, and conversion rates profitable for you? If the answer is yes, you might want to rethink your geo-targeting. If the answer is no, keep your current targeting.

What you might do is create 2 campaigns with identical keywords and ads. Leave your targeting in place for the current campaign. Set the new campaign to include the previous targeting but excluding the target of your current campaign. That will give you side-by-side performance and eliminate certain seasonal factors that could skew your results. Then compare profitability of the two campaigns. You can adjust your bids accordingly in the 2 campaigns to try to optimize your ROI.

This all depends on your ability to track conversions. Without that, I think you're shooting in the dark.

 

Best of Luck!

 

Pete

 

petebardo -- Deadhead doing AdWords

View solution in original post

Marked as Best Answer.
Solution
Accepted by topic author Avex H
January

Overall Clicks VS CTR

Top Contributor
# 2
Top Contributor

Hi Avex H,

Having a good CTR helps give you a better QS. Your CPC should go down. The real question you'll need to answer is the conversion rate. Better targeting should mean better conversion rates, and that should mean more profits.

What I'd look at is the current conversion rate compared to the previous conversion rate and calculate the marginal conversion rate for those no longer targeted, assuming the conversion rate for those currently targeted is comparable to the previous conversion rate. It will take a little extrapolation to figure it out. Then the question becomes were those extra impressions, clicks, and conversion rates profitable for you? If the answer is yes, you might want to rethink your geo-targeting. If the answer is no, keep your current targeting.

What you might do is create 2 campaigns with identical keywords and ads. Leave your targeting in place for the current campaign. Set the new campaign to include the previous targeting but excluding the target of your current campaign. That will give you side-by-side performance and eliminate certain seasonal factors that could skew your results. Then compare profitability of the two campaigns. You can adjust your bids accordingly in the 2 campaigns to try to optimize your ROI.

This all depends on your ability to track conversions. Without that, I think you're shooting in the dark.

 

Best of Luck!

 

Pete

 

petebardo -- Deadhead doing AdWords

Overall Clicks VS CTR

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# 3
Visitor ✭ ✭ ✭

 

 

Yeah, just do two identical campaigns and but target the areas separately. One campaign should target the focused regions and get you the 45 clicks. The second campaign should target the only the less focused locations and yield 19 clicks. You still get the max 64 clicks, but you will be able to see CPC for each and be able to track conversions separately.

 

There is no right or wrong. It all depends on your margins, and the ROI. Typically you'd want to do whatever makes you the most money, though maybe there is a trade-off in terms of labor/workload and a few extra dollars profit isn't worth significantly more work.

Overall Clicks VS CTR

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# 4
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Thanks! I think this will definitely be something to take into account. The two campaigns should really show where we land from a location standpoint. 

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Overall Clicks VS CTR

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# 5
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Thank you!! This was expertly explained - much appreciated!