Do the Math.
Calculate the number of combinations in your
pay-per-click (PPC) campaign. It may surprise you.
Complexity Is the Enemy of ROI.
Know Your Enemy.
To achieve the best ROI, you need to overcome the complexity of your PPC campaign.
One factor that contributes to the complexity of your campaign is the number of combinations created by the dimensions and metrics. As the number of combinations increases, the complexity of your campaign increases proportionally.
Why? Because you have to analyze more correlations in the same amount of time.
Now, you can calculate the impact of dimensions and metrics combinations on the complexity of your PPC campaign.
In a PPC campaign, dimensions (e.g. keyword, device, geography, etc.) can be combined with metrics (e.g. click, cost, conversion, etc.) to describe a user interaction.
Suppose, the keyword=‘PPC analytics’ has 1,000 clicks on device=mobile in geography=Houston. In this example, PPC analytics, mobile, and Houston are attributes of dimensions, and clicks is a metric.
As the number of dimensional attributes (i.e. number of keywords, geographies, etc.) and metrics grow in a campaign, the number of combinations will grow proportionally. This growth creates complexity, and makes it difficult for you to detect a change.
Let’s consider another example, suppose we want to know:
- Which device is best for conversion, the choice is going to be 1 out of 4 (i.e. desktop, mobile, tablet, smart TV) e.g. desktop
- Which day of the week is best for conversion, the choice is going to be 1 out of 7 (i.e. 7 days of the week) e.g. Friday
- Which hour of the day is best for conversion, the choice is going to be 1 out of 24 (i.e. 24 hours of the day) e.g. 7pm
- Which device + day of the week + hour of the day is best for conversion, the choice is going to be 1 out of 672 (i.e. 4 * 7 * 24), e.g. mobile + 9am + Tuesday
The complexity of combinations can negatively impact your ROI because, when facing a large number of combinations, it becomes difficult to detect where important changes are occurring.