How to evaluate the effectiveness of context advertising

The launch of the website does not imply the self-development of a project. Without a competent advertising campaign on the existence of a supplier of goods or services, who only managed to launch the Landing Page, simply no one will know. An effective tool, in this case, is paid search (PS), which is formed as part of working with Yandex.Direct or Google AdWords (the most popular and comprehensive websites), or with similar systems.

It is very important to achieve efficiency (profitability) from the PS, i.e. Attracting new customers should not cost more or equal to what will be earned on sales/services. Here it should be remembered that the PS is only a tool that does not open the “treasury” without skillful tuning. Next, we will discuss how to analyze the advertising company, collecting information from the above websites.

Data collection

If the main services through which you can distribute your own PS are Yandex.Direct and Google AdWords, then the analytical tools for them are Yandex.Metrica and Google Analytics, respectively.

Due to these functional elements, the website owner can obtain the following statistics:

  • bounce rate (the number of users left on the website or immediately left it);
  • the time spent on the website, and the depth of promotion through the pages;
  • main objectives (committed and imperfect actions by users), etc.

Both services more or less equally review the work of users with the analyzed website. But data often diverge, which requires managers to use both systems. You can resort to working with complex analytical services that synchronize statistics from Yandex and Google, forming a general report.

Key parameters of paid search

Today, you can order an advertising campaign in Yandex.Direct or run it through Google AdWords, but in any case, you should be aware of the indicators by which the effectiveness of the paid search is assessed.

  1. CTR (Click through Rate). The value of the Clickability of ads placed in an advertising campaign. It is calculated by dividing the “number of clicks on ad units” by the total number of ads shown. The higher the rate, the cheaper the cost of each click to the advertiser and the their ads appears more often.
  2. CR (Conversion). In this case, the ratio of website visits that resulted in the execution of a target action (call to the manager, filling out a feedback form, using chat, etc.) to the total number of visitors is calculated.
  3. CPA or CPL (cost per action/cost per lead). This indicator is defined as the ratio of the amount of the cost of an advertising campaign to the total number of targeted actions. The resulting value is the cost of one action performed, or the “lead” – attracted user. Naturally, the profitability of the paid search increases in proportion to the decrease in CPA.
  4. ROI (return or investment). This value is a return on marketing investment that indicates profitability (> 100%) or loss ratio (<100%) of advertising investments. Formula: ROI = profit-expenses / expenses * 100%.

If we correctly synchronize the indicators calculated in this way, then we can draw more accurate conclusions about the success of the ongoing advertising campaign.

Procedure

Finally, learn how to deal with the received data.

  1. Build graphs of changes in each indicator in the time interval. The ideal situation is when CTR and RIO grow, and CPA decreases.
  2. Analyze CTR and conversion values and find out the number of bounces for specific keywords. Perhaps some of the “keys” should be removed from circulation, which will not only increase the efficiency of the paid search but also save marketing funds.
  3. When conducting multiple advertising campaigns, select only the most effective ones by rejecting unprofitable ones.
  4. Perform an analysis of incoming traffic by a bounce rate, which will allow filtering out existing advertising by stop words, subsequently removing ineffective requests.
  5. Finally, process each ad, achieving a complete match between the title and the text to which this or that request leads. This will reduce the cost per click, increasing the CTR.

Regardless of which of the services you decide to set up: Yandex.Direct or Google AdWords – follow the suggested rules of management and analytics. In this case, your advertising campaigns will bring the benefits that are expected of them.