Google Shopping campaigns are incredibly detailed. However, it can be overwhelming to see all the information. There are many columns that show metrics about how your products are performing when you open your Google Shopping Campaign. What do these metrics mean and what are the most important? We will walk you through eight metrics that can help you track the success of your products and campaigns.
Conversion is when someone interacts directly with your product listing, and then takes the action that you have designated as their conversion. This action can be determined when you set up your campaign. An ecommerce store typically focuses on sales to convert Google Shopping campaigns.
Conversion = Number of predetermined actions taken
There are several things you can do to increase conversions if they are low. You can stand out from the rest by offering competitive pricing. For a competitive advantage, you can increase your CPC (more details below). Your conversion rate can be improved by using quality titles, descriptions, and photos.
2. Cost per Click (CPC).
Cost per click refers to the cost your business pays for every click on your ads. CPC can fluctuate as certain words are auction-style bid on. CPC bidding can be quite costly depending on the industry. A healthy Google Shopping budget will enable you to place higher bids and help your products rank higher than their competitors.
The Average CPC is the average price that you pay per click for your product. While the Max CPC is the maximum price that you would be willing to pay for the product. This ceiling will prevent you from spending too much on product advertising.
CPC = Cost per Click
Negative keywords can help lower your CPC. They prevent your products being displayed for non-related queries.
3. Clickthrough Rate (CTR).
Clickthrough rate refers to the percentage of people who see your listing and click on it. You can measure the effectiveness of your product ads by monitoring their clickthrough rates.
CTR = Clicks/Impressions
This metric may be too low. If it is, you can make some adjustments to the ad such as changing the title or description.
4. Impression Share (IS).
Impressions share is a comparison metric. It shows how many impressions your listing gets compared to how many impressions it could receive. This is a great way to compare your ads with those of your competitors.
Impression share = Number of Impressions / Estimated number of Impressions Eligible
5. Conversion Cost
The cost per conversion is the average amount you pay for every conversion. This number should be lower than your product’s cost. This metric should be lower than the cost of your product.
Cost per Conversion = Cost / Conversions
Increase your budget and bids to increase your impression share. You control how often your ads are shown. Increasing your bid can increase the chances that your ad will appear.
6. Outranking Share
Another comparison metric is the outranking share. It shows how often your ad was ranked higher than an advertiser’s in the auction. This can also indicate that your ad appeared in search results when an advertiser’s did not.
Outranking Share = # Times Ad Outranked Competitors
7. Rate of Overlap
The overlap rate, another comparator metric, shows how often an advertiser’s advertisement received impressions at the same time as your ad. If your overlap rate is 30%, it means that 3 out 10 times your ad appears, another advertiser’s ad also appears. Knowing your overlap rate can help you compare yourself to your competitors.
Overlap Rate = (Times Ad Overlapped Competitors’ / Total Times Ad Shown) x 100
8. Return on Ad Spend (ROAS).
The return on ad spending is the ratio of how much money you spend on a campaign to how much revenue it generates. This metric basically shows how much revenue shopping ads generate for every $1 you spend on them. This metric will allow you to determine if your business is breaking even and how much.
ROAS = Revenue/Ad Spend
There are many ways to increase your ROAS. Your products and your bidding strategies are two key factors to consider. Your ROAS can be increased by setting your bid strategy to “manual Bidding”. This will give you more control over your money and not let Google decide how it should be spent. This metric will increase if your product descriptions, photos and titles are optimized. Your product will appear on more relevant searches.
Not available from Google. You must calculate this metric yourself.
All metrics have their place, but these eight metrics will help guide you in evaluating and moving forward with your Google Shopping Campaign strategy. This blog post will provide a step-by–step guide to setting up a Google Shopping Campaign.
By: Amy Smith
Title: 8 Google Shopping Metrics to Pay Close Attention To
Sourced From: www.volusion.com/blog/8-google-shopping-metrics-to-pay-close-attention-to/
Published Date: Wed, 20 Apr 2022 15:05:00 GMT