Introduction to Performance Monitoring and Conversion Monitoring
Key Concepts of Performance Monitoring
By tracking your performance and conversions, you can identify which clicks are more valuable and increase the efficiency of your ad spend. In order to do this, you first should track what your users are doing on your site. With more data about your customers, you can make better decisions about how to run your business.
For example, if it's determined that a particular product on your site is very popular, you can invest more money into bidding competitively for keywords that lead to more traffic and conversions for that site.
How Google Measures Performance
AdWords uses a dynamic variable called 'Quality Score' to evaluate keyword relevance. Quality Score is based on your keyword's clickthrough rate (CTR) on Google; the relevance of your ad text, keyword, and landing page; and several other relevance factors.
A Quality Score is calculated every time your keyword matches a search query - that is, every time your keyword has the potential to trigger an ad. Quality Score is used in several different ways, including influencing your keywords' actual cost-per-clicks (CPCs) and the first page bid estimates that you see in your account. It also partly determines if a keyword is eligible to enter the ad auction that occurs when a user enters a search query and, if it is, how high the ad will be ranked. In general, the higher your Quality Score, the lower your costs and the better your ad position.
Quality Score helps ensure that only the most relevant ads appear to users on Google and the Google Network. The AdWords system works best for everybody, including advertisers, users, publishers, and even Google, when the ads we display match our users' needs as closely as possible. Relevant ads tend to earn more clicks, appear in a higher position, and bring you the most success.
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