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Analyzing google shopping campaigns: 6 KPIs you need to know

Did you know you can create a filtered view of certain metrics when analyzing your Google Shopping Campaign’s performance? Make sure you’re monitoring these KPIs to get the most out of your Google ads and max your Teespring product sales.

1. Click Through Rate (CTR)

A high CTR is a good indication that your ad is relevant to your target audience.

CTR is measured by dividing the number of clicks your ad received over the number of impressions. Knowing your CTR is key to determining your campaign’s performance. There is no perfect CTR you should be striving to achieve, but you definitely want to see this percentage increase or stay consistent over time. Besides a measure of success, increasing this metric also contributes to a higher quality score.

2. Conversion Rate

Improving your conversion rate will get you a better return of your ad spend.

The conversion rate is the average number of conversions (sales) per ad click shown in percentage. If you are spending $1000 a month on advertising to get 300 purchases, doubling your conversion rate is basically doubling the value of your ad spend. It allows you to get more sales with the same amount of traffic. This KPI gives you an idea of how good your ROI is. You can aim to optimize your conversion rate over time.

3. Cost Per Conversion (CPA)

Keeping your CPA low can be a huge benefit to your budget, giving you the opportunity to buy more exposure in the online advertising space.

Tracking your CPA will help you answer the question: How much do I have to spend to make someone a customer? CPA measures how much your business pays in order to attain a conversion (sale). Learn how to lower your CPA & about Target CPA Bidding.

Learn the difference between conversion tracking on Facebook vs. Google in this webinar:

4. Quality Score

Earning a high quality score can lower your CPC.

This is an estimate of the quality of your ads, keywords and listing page. Higher scores can lead to lower costs and better ad positions on the search engine results page. A good quality score (between 7 and 10) means you pay less money to advertise with AdWords. A bad quality score (6 or lower) means you pay more money. Google is transparent about the quality score of your campaign and it can be found in your keywords “Status” column.  

5. Average Position / Ad Rank

Better quality ads = better Ad Rank and more impressions.

This statistic tells you how your ad ranks against other ads on the search engine results page. The higher the average position of your ad, the higher the chances of your ad being seen, clicked, and converted. Learn more.

6. ROAS (Return on Ad Spend)

ROAS data gives you a holistic picture of which campaign is benefitting your business the most.

This metric tells you how much you earned for every dollar spent. You can find this metric within the Google Ads interface by adding the filter: All Conversion Value / Cost. For example, let’s look at a scenario in which your ad spend in an hour is $20 and you get 2 conversions. Let’s pretend that the first conversion is a purchase of a t-shirt priced at $20 and the second conversion is a purchase of ten sweatshirts priced at $30 each. In this situation the CPA for each conversion will be $10. However, when you look at ROAS, you can see that the revenue driven by these two conversions is quite different (conversion one has a ROAS of 2.0 and conversion two has a ROAS of 30.0). This is especially important with Smart Shopping campaigns because the bidding system will automatically prioritize bids to searches that are more likely to result in higher revenue purchases, which will help you get more out of your advertising spend.  

2 responses to “Analyzing google shopping campaigns: 6 KPIs you need to know

  1. Phil. Lindsay says:

    I feel like your profit margin is too high. Sell cheap and sell more .

    1. Erica Bickel says:

      Hi Phil, you have the option to select as high of a profit margin as you like when designing, as long as it’s above our base cost.

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