Over 65% of all high-intent searches result in someone clicking on an ad. Moreover, average small businesses waste approximately 25% of their monthly paid search budget by failing to optimise their campaigns. Therefore, it’s essential to carry out regular PPC analysis to enable you to see real improvements in your campaigns.
Why PPC campaign analysis is important
Analysing and tracking the performance of your PPC campaigns gives you an in-depth understanding of where the budget is allocated, where the gaps are, what competitors do, and above all if they deliver expected ROAS (Return On Ad Spend).
PPC analysis helps you to identify areas where the money is potentially being wasted, but it also highlights areas of opportunities that should be utilised and tested for better return
PPC competitor analysis
The battle for leads, customers and revenue through PPC advertising has become very intense recently, and it’s getting harder and more expensive to deliver relevant traffic. In this case, it’s imperative to conduct an in-depth competitor analysis to evaluate against competitors and their strategies.
PPC analysis helps to drive conversions within a competitive market environment by evaluating the situation and using competitors’ weaknesses to your advantage. Performed regularly, competitor analysis and benchmarking allow advertisers to stay relevant and continuously engage with the audience, resulting in better ROAS.
Key metrics for PPC analysis
Here’re some essential areas to best focus on when performing a PPC Audit.
Wasted spend is one of the most crucial metrics in PPC analysis, as it allows you to identify and optimise areas where your budget can be allocated more wisely. For example, after identifying less effective campaigns, you might decide to refine campaign bids based on CPA, device targeting, scheduling or low ad engagement.
Click-through rate (CTR)
Click-through rate (a measure of how often people click on ads and engage) is another essential metric for PPC Analysis. Having a high impression share isn’t enough if searchers aren’t actively clicking on ads. As a result, opportunities are missed negatively affecting ROAS.
Quality score is one of the most critical metrics for PPC campaign optimisation affecting ad placements. The goal is to create ads and landing pages that are as relevant to the search query as possible. The higher the score, the more relevant the traffic is sent to your site. Consequently, cost per acquisition (CPA) decreases too.
Reviewing your account structure is another essential optimisation check. It allows you to evaluate whether Campaigns or AdGroups should be expanded, broken down into smaller sections or even paused in order to save budget. Also, it’s important to review your bidding method and campaign settings to ensure it is performing as well as it could be.
If your impression share low, it means your ads aren’t appearing in many relevant search results. One likely cause is that customers aren’t searching for the terms in your ads. Alternatively, your budget may be too low for valuable keywords. In either case, your prospective customers aren’t seeing ads, and therefore may never be acquired, affecting overall performance as a result.
Ad text optimisation
Ad text must be regularly monitored as it affects pretty much every key metric: your CTR, Quality Score, and consequently your ROAS. It’s also crucial in evaluating the performance of your ads and facilitating benchmarking against competitors, which in turn enables to remain relevant and competitive.