Columnist Jacob Baadsgaard shares insights from a study looking into how various paid search metrics correlate with return on investment (ROI).
Are your AdWords campaigns working… like, really working?
That might be a surprisingly hard question to answer. Anybody with an AdWords account can see if they’re getting clicks, and it’s not too hard to set up conversion tracking — but chances are that the reason you put money into AdWords was that you wanted to get money out.
In other words, you want your ad spend to produce sales.
As obvious as this statement is, actually determining how different factors in your AdWords campaigns affect sales can be fairly difficult. To try to shed more light on the subject, we recently conducted a study on how different variables affect ad performance at Disruptive Advertising (my company). We pulled data from well over half a million keywords and measured return-on-investment against dozens of variables.
In short, we wanted to answer the question: What predicts profitability in an AdWords account? Our findings may surprise you.