To make sure you get the results you want, you have to check the performance of your Shopping Campaigns regularly. I will show you different ways to analyze your Google Shopping Campaigns in this PPC Adventure. Before I tell you more about important KPIs and how to analyze Google Shopping Campaigns I would like to do a quick repetition of Shopping Campaigns.
- Repetition of Shopping Campaigns
- Important Key Performance Indicators
- Analyzing Google Shopping Campaigns
- Product Groups Tab, Products Tab, Dimension Tab
- Auction Insights Report, Bid Simulator
Google Shopping Campaigns help you to reach the online shoppers that matter the most to you. Shopping Campaigns show your product image, price, and business name when somebody is searching for a product on Google.
As I told you in PPC Adventure Part 4, you need to link your Google Merchant Center and Google AdWords accounts to set up a Google Shopping Campaign. Always check if the content complies with the Google Shopping Policies because otherwise, your Shopping Campaigns might be turned off.
Do you remember which parts have to meet the requirements of Google Shopping? You have to make sure that
- your type of business,
- and website meet the requirements for Google Shopping.
You also have to send an up-to-date product data at least every 30 days. Those requirements are important and you should always keep them in your mind.
Before I start to tell you more about how to analyze Google Shopping Campaigns I will show you the most important KPIs you need for your analysis. Key Performance Indicators (KPIs) are metrics that are used to determine the progress in achieving strategic, financial, and operational goals.
When someone clicks at one of your ads, this is counted as a click. You can see by the amount of the clicks how appealing your ad is to people who see it.
Cost-per-click is about how much you are willing to pay for a click on your ad. CPC is one of the safest ways to get a targeted audience. It is flexible, accountable and easy to control. You can read in the “Iceland Causes Huge Conversion Boost” blog post when it is good to have a high CPC.
Each time your ad appears in the search results of Google or the Google Network, it is counted as one impression. Impressions tell you, how often your ad is shown. Important is, that you just have to pay for each 1,000 impressions.
CVR (conversion rate)
The conversion rate is the average number of conversion per ad click and is shown as a percentage. For this, you just have to divide the conversions through the number of total ad clicks. Here is an example: If you have 1 conversion from 100 clicks, the conversion rate would be 1%. (1 / 100 = 1%)
Cost-per-acquisition is focused on making somebody a customer. The question is: how much do you have to spend to make somebody a customer? You can add tracking codes to your sites and links to find out, how the customers are coming to your products. Afterward, you can improve this with e.g. adding unique promotional codes.
CTR (clickthrough rate)
The clickthrough rate helps you, to find out how enticing your ad is and if the ad fits to the keywords and targeting settings. The clickthrough rate shows you how many people who have seen your ad end up by clicking on it.
ROI (return on investment)
The ROI tells you, how much profit you have made with your ads compared to how much you have spent on those ads. This is how you can calculate the ROI: (Revenue – Cost of goods sold) / Cost of goods sold.
Try the first and only tool specially designed for Google Shopping!
ROAS (return on advertising spent)
The ROAS is an advertiser-centric metric that tells you the effectiveness of the advertised campaigns. It measures the revenue which is generated for every dollar or euro that you spent on advertising. You can calculate the ROAS in this way: Revenue from ad campaign / Cost of ad campaign.
Google recommends the following KPIs for measuring the success of an online advertising campaign:
We would also recommend the ROAS and CPA for measuring the success of your online advertising campaign. 🙂
Analyze your Google Shopping Campaigns
To make sure that you get the results you want, you have to check the performance of your Shopping Campaigns regularly. How can this be done? The performance of your Shopping Campaigns can be monitored in a few places in your Google AdWords account. In each of this tabs you can analyze different KPIs.
- Product Groups Tab
- Products Tab
- Dimensions Tab
- Auction Insights Report
- Bid Simulators
Product Groups Tab
You can see with the Product Groups Tab, if your product groups are performing good or if there is something that could be improved. The following information can be seen in this tab:
One positive thing is, that you can download a report and that you can add different segments to this report. You can view your performance by days, click type, or device. It is not possible to segment impression share, benchmark CPC, and benchmark CTR by click type or device.
If you want to understand the performance of individual products in your campaign you can use the Products Tab for analyzing. In this Tab, you can see the following information for your analysis:
You can get customized performance reporting at any level of granularity in the Dimensions Tab. The Dimension Tab includes:
Here applies the same as with the Product Groups Tab: You can download a report from the tab and it is not possible to segment impression share, benchmark CPC, and benchmark CTR by click type or device.
I asked one of my colleagues how he analyzes Shopping Campaigns and he prefers this one. You can set an email schedule report and get the reports e.g. once a week. This is helpful when you need the same information each time.
Auction Insights Report
You want to compare your own performance with advertisers who are participating in the same auctions as you? Well, then the Auction Insights Report is the right way for you. This report can help you to find out in which parts you are succeeding or If you are missing opportunities for your performance.
You can make even better strategic decisions for your bidding and budgeting choices with the information you are getting from this report. The Auction Insights Reports are different for Search Campaigns and Shopping Campaigns. I will focus on the Auction Insights Report for Shopping Campaigns in this blog post.
This report provides you 3 different statistics:
The impressions you received divided by the estimated number of impressions you were eligible to receive is the Impression Share. It also shows you the Impression Share of your competitors.
The Overlap Rate shows you how often a competitor’s ad received an impression when your ad also received an impression.
The Outranking Share shows you how often your ad ranked higher in the auctions than the one of your competitor. It also shows you how often your ad showed when the one of the competitors did not. This is divided by the total number of ad auctions you participated in and is shown as a percentage.
You have the possibility to generate a report for one or more ad groups or campaigns and you can segment the results by time and device. One thing you should notice is, that the Auction Insights Report gives you information on how your competitors participate in the same auctions as you do BUT it will not reveal their keywords, quality, bids or any of their settings.
If you want to know how the auctions on AdWords work watch this video:
A nice way to find out how a bid change might affect the performance of your Shopping Campaign is the Bid Simulator. It helps you to find out if the performance will increase or decrease when you change the bid.
How does the Bid Simulator work? It collects data from ad auctions from the previous seven days and analyzes it. The Bid Simulator considers the quality of the ads, the competitors’ bids, and the product data.
After the analysis, the Simulator estimates how certain changes to the bids would impact your clicks, impressions, costs, and conversions. The Bid Simulator can be used for an individual product group or a product group with subdivisions.
Of course, there are several more ways to analyze Google Shopping Campaigns. For example, you can also use Google Analytics and the AdWords Reports. A machine learning tool, such as Whoop!, can be very helpful for your Shopping Campaigns. The algorithm is based on a self-learning approach and analyzes historical data and newest trends to adjust bids on the item level.
As you see, analyzing Google Shopping Campaigns can be a little bit difficult and there can happen lots of mistakes when you analyze them. That’s why I will tell you about the most common mistakes when analyzing Shopping Campaigns in the next PPC Adventure. If there is anything else you want to know don’t hesitate to ask me 🙂
- PPC Adventures Part 1: My Journey to the Google Shopping Island
- PPC Adventures Part 2: The AdWords Fundamentals Treasure
- PPC Adventures Part 3: The E-commerce Jungle
- PPC Adventures Part 4: The Shopping Advertising Exam
- PPC Adventures Part 5: E-commerce Trends And Best Practice Online Shops
- PPC Adventures Part 6: Common E-commerce Mistakes
- PPC Adventures Part 7: How to Grow Your E-commerce Business With Email Marketing