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In pay-per-click advertising, everyone needs to know how to calculate return on investment (ROI). Moreover, everyone wants to learn how to improve ROI. No matter how much you’re making now, the desire to maximize ROI is never-ending.
This is not merely a quest driven by greed but a fundamental goal for anyone that wants to succeed with paid advertising. Either you know deep ROI formulas or not or you don’t even want to use PPC ROI calculator, but at least by taking small steps in your daily campaign monitoring you can boost your ROI.
Read on to find out how to improve PPC ROI, and learn the importance of change detection but for that purpose you need adopt a smart and AI powered tool which can help you in knowing if something bad or even good happens in your campaigns.
You can improve PPC ROI in many different ways, such as:
The list goes on, with seemingly endless factors and features of Google Ads to consider. Anytime you make a change to your campaign, it can deliver a positive or negative impact.
It doesn’t matter how small or seemingly insignificant that you think they may be, these changes contribute to a constant shifting in the dynamics of your PPC campaign and Google Ads ROI.
The question is:
Are you ready to detect changes? If you are, you can react quickly, and that is crucial when you want to know how to improve ROI in your PPC campaigns.
The purpose of change detection is to pinpoint instances when there is a deviation in the probability of something occurring. Typically, you will identify:
For example, let’s consider an airplane flying towards its landing destination. The pilot can utilize change detection to determine whether or not he needs to deviate from his current flight path in order to successfully land at the destination.
The image above indicates that a simple miscalculation can lead to an undesirable result, with the pilot landing in the wrong destination. In the realm of aviation, such a mistake could cost a lot of money in the form of excess fuel, wasted time, and the loss of trust and support from unhappy passengers.
So, how does this theory help when you want to know how to calculate return on investment in the world of PPC advertising?
When it comes to pay per click ROI, you must be strict about your projections. Sticking to your intended path is critical because even a slight deviation has the potential to do major damage to your bottom line.
With the high stakes in mind, it’s time to learn about course correction. Let’s find out how to understand your past actions, so you know when to make changes in your journey, and ultimately, you learn how to maximize PPC ROI.
Imagine our pilot made a wrong move that set him on course to land in the wrong spot, but before landing, he realized his error. Now, he has time for a little course correction to ensure he arrives at the intended destination. Although this time he landed on right destination but still he spent more time, used extra fuel. So time and money both impacted here.
When you want to maximize return of investment in PPC advertising, you should always think about what changes you need to make along the way.
So what if pilot get to know in the beginning that he made wrong route and correct the course on time and continuously. on a continual basis, the pilot is sure to land at the right destination, saving fuel and time, and keeping his passengers — the airline customers — happy in the process.
Similarly, a PPC manager can take the same approach to make minor adjustments on a continual basis to stay on track towards his advertising campaign goals. He must be aware of campaign audit checklist to remain confident that everything is according to SOPs.
It’s important to stay alert and aware of any changes in your campaign from day one. With continuous monitoring, you can stay on top of developments to ensure your campaign remains closely aligned with your PPC goals.
Now, let’s take a look at the different types of changes in PPC advertising campaigns.
Simple changes are deviations that are easy to identify. On your Google Ads dashboard, you will see a graph that indicates how well your ads performed in the past.
Through this chart, you can analyze set periods to get a better understanding of some simple changes in your campaigns:
Compare ad performance for today with yesterday to determine if your campaign has improved. If it is ailing since yesterday, you can try to figure out why.
For example, you may have more impressions and clicks today compared to yesterday. Analyze the changes to get insights into any factors that may have led to this uptick in impressions and clicks.
When you want to maximize ROI in PPC, you should get into the habit of making a week-to-week comparison of campaign performance.
Let’s say that your clickthrough rate (CTR) surged this week, and you have no idea why. By digging into the data, you may discover that fraudulent clicks are a contributing factor. In this scenario, regular change detection can save you a lot of money that you would otherwise waste on invalid clicks.
A month-by-month comparison makes sense for all PPC managers, as many financial targets will have monthly milestones in place. You may have a goal of increasing leads by 10% each month.
With change detection, you can evaluate your efforts to see if your campaigns generated the results you were hoping to see.
Simple changes like these three only provide surface knowledge, and they are easy to detect and track with tools like Google Sheets and Google Analytics.
Complex and deep changes in Google Ads are another matter entirely, as these developments are harder to calculate due to the massive volume of data processing involved.
Think about this scenario, where you have:
So, what if you want to monitor changes at multiple levels, such as on the campaign, ad group, geo-location, device, and the hour of the day?
In order to do this, you would need to process about six million rows of data for one campaign. Imagine you had 100 campaigns of a similar structure in your Google Ads account?
Suddenly, you’re dealing with mass volumes of big data. Change detection in this environment is complex and cumbersome. Unless you’re a data scientist armed with cutting-edge data analytics tools, it’s going to be a near-impossible task.
There is an online tool paid search analytics which can tell you exact stats how much variations and combinations you have to look for your data if you want to analyze campaigns with different parameters.
So will you able to this analysis alone?
The alternative is to hire a team of domain experts, data scientists, and programmers to conduct the research and analysis for you. However, not every small business owner has the resources to do that.
What you need is a data science tool for PPC advertisers that will provide the answers, without costing them a fortune. The answer is PPC Signal.
Whether the change is big or small, simple or complex, positive or negative, PPC Signal can provide actionable insights for PPC managers and analysts. Not only will you know how to calculate return on investment (ROI) — you’ll have what you need to maximize ROI in your paid search campaigns.
Just look at the dashboard of the PPC Signal. Either you have one campaign or multiple on a signal dashboard you can check the overall health of your campaigns easily.
Each tile in the dashboard representing unique signal which needs your attention on priority. From the left side of the screen you can apply different filters to see different signals based on parameters you select from filter.
You will have few signals as well in the dashboard which will specially highlighted as anomaly.
So every signal almost showing the change detection which is very important and if proper action is not taken it may lead to great loss for you. For example, in the above signal, for the last 7 days it is detected as conversions are decreasing fast and cost per conversion is increasing, it means you will go in loss instead of getting profit. So why to miss such signals if they are rectify timely which can help you in achieving high ROI in Google Ads?
The story doesn’t end here, when you click on Explore button. You can further go into the details of that particular signal.
You can add more metrics on the signal trend and compare side by side with your own analysis as well. Let’s add click metric here and see the results.
You can also click on tabular view button to show the stats in table.
So nothing is hidden from you. Now even you know the detail data science or not. This tool has done a job for you by combining data science with Google Ad knowledge to save you from big chaos on your PPC campaigns.
So what are you waiting? Let’s give it a try to PPC Signal demo and explore different signal. If you want to explore your own data, you need to login and check your stats, get the insights of change detection on your real campaigns and keep going happy with you PPC campaigns.
Before you start using PPC Signal, you must calculate return on investment in terms of percent. For example, a 1% increase in PPC ROI may be significant progress for your business.
PPC Signal calculates ROI in terms of a factor, rather than by a percent value. So, if you make one change per day for an entire year, you will have improved your ROI by a factor of 365X over the year.
PPC Signal and change detection come together to offer PPC managers a new way of thinking about PPC ROI. Going forward, you must think ahead to consider your goals and the path you’re on right now.
It’s good to adopt the mindset that change always has the potential for positive results. By making small changes regularly, you can maximize ROI and ensure you hit your goals in the end, regardless of the journey. Let’s explore PPC Signal now
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