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Home > Blog > Digital Marketing > Data Visualization >

Examples of 80/20 Rule in Marketing

So, your campaign has taken off, but now that your Google Ads account is beginning to grow, the scale of the task at hand suddenly dawns on you.

It’s not that easy anymore.

Many digital marketing managers invest countless hours in their Google Ads account optimizing their campaigns for the best return on investment (ROI).

But when it comes to measuring the performance of a bigger Google Ads account, you can quickly feel overwhelmed with the amount of data. You could be handling hundreds of campaigns, Ad groups, Ads and keywords.

How do you know what to look at first?

There simply isn’t enough time in each day to stay on top of everything.

Here’s the good news:

You don’t have to look at everything. You just need to consider the most significant effect in your accounts and then focus your efforts on those areas to maximize your ROI.

The question is, how do you know what areas have the most significant effect?

Luckily for you, PPCexpo takes this matter seriously and has got the answers you need to solve this problem.

What is the Most Significant Effect?

This term refers to the most significant contributors in your Google Ads account, based on specific metrics.

We can discover these contributors by applying Pareto’s Principle, which helps us identify the main causes of gains or problems.

For example, when you want to know your highest-performing keywords, the theory dictates that your top 20% of keywords will contribute to 80% of your impressions. Or maybe they’ll deliver 80% of the clicks or 80% of the revenue.

On the other side of the spectrum, the lowest-performing 20% could be the cause of 80% of your wasted spending.

So, how can we use Pareto’s Principle to our advantage?

The Advantage of Knowing the Most Significant Effect

By putting Pareto’s Principle to work, digital marketing managers can quickly discover the most significant/least significant contributors in their campaigns. This applies to various levels, including Ad groups, Ads, keywords, and demographics such as geo-location.

When you have the information, you can focus on your least significant contributors, and look for ways to improve their performance, or else cut them completely. In either case, you’ll be saving money.

By assessing the most significant contributors, you can refine your spending, ensuring that you get the maximum possible ROI on your account.

The end result of this in-depth analysis with the Pareto Principle is that you will save both time and money.

To really get the most out of this strategy, you need to visualize the data.

How to Create Innovative Visualizations of Most Significant Effect

With the Pareto Principle in mind, PPCexpo has pioneered a dynamic method of bringing campaign data to life so that digital marketing managers can quickly analyze the performance of a bigger Google Ads account in a matter of seconds.

We told you we’re serious about this!

Our innovative visualizations are essentially a unique twist on the traditional Pareto Chart.

The principle has long been recognized as a useful tool for analyzing effort and subsequent results, and now PPCexpo is raising the bar with it.

4 Major Benefits of the Pareto Chart from PPCexpo

You can gain a lot by using the Pareto Chart in your campaign analysis. Here are four big benefits that you should consider.

Examples of 80/20 Rule in Marketing

1. Highlight the Most Significant Contributors

This chart can help you identify the most significant contributors or the least significant contributors to your campaign for a wide range of metrics or outcomes.

Let’s say you want to discover the best or worst performers for any of the following:

  • Impressions
  • Clicks
  • Conversions
  • Wasted Spend

 

You can use the Pareto Chart to find 20% of contributors that are generating 80% of the results. From there, you can improve campaign performance.

2. Compare Period Data

You can compare the most recent period data with the previous period data, which helps you investigate the state of significant contributors in the previous period.

This allows you to chart the recent past of keywords, and get a better understanding of their true value to your campaign. PPCexpo is the first company to bring this concept into PPC analytics.

3. Save Time and Money

With the insights provided by the Pareto Chart, you can focus on the right things. No longer will you be wasting your time or your money on elements that are already on target.

Also, you can cut your losses on aspects that aren’t working, which ultimately enables you to achieve the best possible return on your advertising spend (ROAS).

4. Establish Your Brand as a Thought Leader

Aside from boosting ROI and getting better at paid advertising, you can leverage your high-performing campaigns to build brand credibility.

By sharing these easy-to-understand visualizations with your customers, you can win their confidence.

Narrow Your Sights to Improve Results

Measuring the performance of a bigger Google Ads account doesn’t have to become an all-consuming mission.

With the Pareto Chart from PPCexpo, you can conduct analysis quickly, and efficiently, by focusing on the aspects that generate the most significant effect on your campaign performance.

This will free up your resources to work on other areas, which in time helps you build better campaigns, and earn greater results. Most Significant Keyword Report will help you to measure your PPC account.

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