Working with Google AdWords you quickly learn: It is one thing to create and monitor the activity of a campaign. It’s another thing to know what actions to take based on the data you collect. You'll see AdWords Success when you learn to Prioritize your Campaigns.
Out of my own frustration, I researched and came across a system to analyze and improve campaigns, turning what used to be a drudgery into a relatively easy and enjoyable task.
It's called the Growth-Share Matrix, created by the Boston Consulting Group in the early 1970s. Applying their matrix, I came to understand that all AdWords campaigns fall into one of four categories:
Stars: The campaigns that are both profitable and popular.
Workhorses: The campaigns that are very popular, but generating little money – or you’re losing money on them.
Puzzles: The campaign with a low cost-per-click for one of your most profitable products, on which you get to the first spot with little trouble, but after weeks, there are zero impressions.
Dogs: This campaign is unpopular, and on the rare occasion that you do get a click, it’s at such a high cost you don’t make any money on the conversion.
How to Prioritize your AdWords Campaigns
In the end, you want a portfolio of Star campaigns. Here is a step-by-step process to follow:
First, identify your Star campaigns.
- What aspects of this campaign are working? The URL? The Headline? Is it easy to show up in the first position? Take the best elements of your Star campaigns and apply them to poor performers.
Next, let’s tackle the Workhorses.
- If you are on “Automatic bidding,” switch to Manual Bids and lower them. With all other aspects of the campaign being equal, you may have a good click-through volume at a lower cost.
- Look at the quality score. If it’s below 6/10, you could likely raise it for a lower CPC.
- Cut Bad Keywords! If you’re using a keyword with high cost-per-click, consider cutting it completely.
Time to solve the Puzzles.
- People like what they see when they actually SEE this ad. Is there an opportunity to increase impressions by adding more keywords & ads? Think about other search terms being used for this product or service and consider them.
Consider Letting the Dogs out.
- Can anything be changed to save this campaign? Is it worth saving? If the low performance is impacting the account overall quality score, consider pausing it indefinitely or deleting it altogether.
Once you have sanitized your campaign portfolio using this method, you’ll need a plan to monitor, evaluate and improve campaign performance going forward. We recommend categorizing campaigns by their performance at least once a week. Over time, you’ll find it’s very easy to identify the campaigns in seconds! If your time is limited, always attack campaign improvements in this order:
Keep at it and within weeks you should see better performance on all your campaigns. Little by little, you’ll end up with a portfolio of Star Campaigns!
Lucid Business Strategies helps people like you build and grow a revenue stream throug Google AdWords.
email for info or call (586) 254-0095.