How to Measure Your Campaign Success in Google Ads for Trade Business

You can typically see the influence of Google Ads for trade business promoting their products or services on the platform through increased sales and brand visibility. In fact, more than 84% of businesses plan on using Google Ads in 2024, with 43% of advertising outlining lead generation as their main purpose. However, you still need to understand how to measure your Google Ads campaign success to determine whether you’re connecting with the right audience. It can be quite confusing from the start, but there are several methods you can use to breakdown the numbers and understand if you’re getting the most from your money.

5 Ways to Measure the Campaign Performance in Google Ads for Trade Business

1. Use Conversion Tracking

When measuring the performance of your Google Ads for trade business campaign, one key metric to focus on is your conversion rate. Conversions are the actions you want your customers to take, such as making a purchase, filling out a form, or calling your business. But first, you’ll need to set up conversion tracking in your Google Ads account. This involves adding a small piece of code to your website or using Google Tag Manager. Once you’ve set up conversion tracking, you can see how many people are taking the desired action after clicking on your ad.

Another way to track conversions is by using Google Analytics, where you can set up goals to track specific actions on your website, such as form submissions or purchases. It allows you to see how your ad campaigns are driving traffic to your website and which pages are leading to the most conversions. For example, if you notice people are clicking on your ad but not converting, you may need to optimize your landing page to make it more compelling and user-friendly. In calculating your conversion rate, divide the number of conversions by the total number of ad clicks and multiply by 100.

Let’s say you received 100 clicks along with 10 conversions on your ad, then your conversion rate would be 10%. A high conversion rate indicates that your Google Ads for trade business campaign are effectively reaching your target audience and driving them to make your desired action. Digital Trek offers Google Ads management services to help you understand and improve your ad campaigns to bring in more customers to your business. Contact us and get a free quote!

2. Monitor Your CTR

Source: Instapage

Click-through rate (CTR) is a measure of how often people click on your ad or link when they see it. It’s important to monitor your CTR because it shows how well your ad or link is performing. A high CTR indicates your ad is relevant and interesting to your target audience. There are a few ways to improve your CTR, like adding relevant keywords in your ad copy and including ad extensions to provide more information about your business.

When monitoring your CTR, you need to track how many times your ad or link was displayed (also called impressions) and the number of clicks it received. You can use tools like Google Analytics to track this information. You can calculate your CTR by dividing the number of clicks by the number of impressions and multiplying it by 100. So if your ad was shown 1,000 times, and it received 50 clicks, your CTR would be 5%. This shows that 5% of the people who saw your ad clicked on it because they found it relevant or interesting.

It’s a good idea to check your CTR regularly, like once a week or once a month. This way, you can see if your CTR is going up or down over time. Keep in mind, though, that your CTR can differ on each campaign. For example, your CTR might be higher on Facebook than on Google. This is because different platforms have different audiences and different ways of showing ads or links.

3. Add UTM Parameters to Analyze Your CPC

Your cost-per-click (CPC) is the amount you pay each time someone clicks on your ad. Monitoring your CPC helps you understand how much you’re spending on each conversion and whether your campaign is generating a positive ROI for your business. You can calculate your average CPC by dividing your total ad spend by the number of clicks your ads received. So if you spent $500 on a Google Ads for trade business campaign and received 100 clicks, your average CPC would be $5.

You can use UTM parameters to monitor your CPC. UTM parameters are tags you add to URLs to track where your website traffic comes from. In this way, you can see which of your ads are driving the most clicks and at what cost. Here’s how you can get started with UTM parameters on your Google Ads for trade business:

  • Create a spreadsheet: Use a spreadsheet to track your ad campaigns and its performance. Include columns for the campaign name, ad group, keyword, ad copy, landing page URL, and UTM parameters.
  • Create UTM parameters: Decide on the UTM parameters you want to use, such as utm_source, utm_medium, utm_campaign, utm_content, and utm_term. These parameters help track where your website traffic comes from and how users interact with your site.
  • Generate URLs with UTM parameters: Use a URL builder tool like the Google Campaign URL Builder to create properly formatted URLs with UTM parameters. Include relevant information like the source (e.g., Facebook), medium (e.g., cpc), campaign name, and optional details like content or term.
  • Maintain consistency: Stick to a standard naming convention for your UTM parameters. Use the lowercase consistently, avoid redundancy, and keep your URLs clean, descriptive, and easy to read. Consistency in naming conventions helps avoid confusion and ensures accurate tracking.

Using UTM parameters and tracking your ad campaign performance helps you make data-driven decisions to improve your CPC and overall ad campaign. Just make sure to avoid using UTM parameters on internal links within your website. UTM tags are for tracking external traffic sources like social media platforms or Google Ads for trade business. Using them on internal links can lead to tracking errors and wrong attribution of user actions.

4. Track Impressions and Reach Using Pixels

Besides conversions, CTR, and CPC, it’s also important to track your impressions and reach. Your impressions are the number of times your ad is displayed to users, and your reach is the number of unique users who see your ad. Monitoring these metrics can help you understand how many people are seeing your ads and whether your targeting and ad placement are effective. A low impression might require some adjustments in your targeting. While low reach indicates a need to explore additional ad placements.

Source: Spiralytics

You can use tracking pixels to measure your impressions and reach. Tracking pixels are tiny, invisible images embedded in web pages to track consumer behavior on those sites. When a customer interacts with your ad and visits your website, the tracking pixel sends the information back to the platform, such as Google Ads for trade business. Setting up tracking pixels is straightforward and involves:

  • Log in to your Google Ads and navigate to your account’s conversion tracking section under the “Tools and Settings” menu. Then click on “Measurement” and “Conversions” before choosing “Create Conversion” to generate a new tracking pixel in a short piece of HTML code. Give it a descriptive name that reflects the action you want to take. Adjust the settings of your tracking pixel, like category, counting method, and conversion value, depending on which action you’re tracking.
  • Next, add the tracking pixel code to your website, typically in the header section of your pages. You can do this manually or by using a plugin if you built your website on a platform like WordPress. Place the code strategically on the pages you want to track, such as your homepage or product pages. This ensures that the pixels are recording the impressions and reach from those pages.
  • To view the results, log in to your ad platform and check the performance of your campaigns. Look for metrics like impressions, clicks, and CTR to gauge the effectiveness of your ads. You can also use this data to optimize your campaigns to maximize its impact. You can adjust the targeting, ad creative, or budgets based on what’s working best instead of making a guess.

Although tracking pixels helps businesses understand their customers’ preferences, some considers it an invasion of customer privacy. As a business, you should clearly explain to your customers that you use tracking pixels and what information you collect with them. For example, you could put a notice on your website or in your privacy policy that says you use tracking pixels to see how many people visit your site, what pages they look at, and if they make a purchase. This way, your customers know what’s happening and can decide if they’re okay with it or opt out when they want to.

5. Consider the Full Picture When Calculating Your Campaign ROI

It’s important to analyze your ROI to measure the overall success of your Google Ads for trade business campaign. Your ROI measures the amount of revenue you generate from your ad spend. In calculating your ROI, divide your total revenue by your total ad spend and multiply by 100. So if you spent $500 on ads and generated $2,000 in revenue, your ROI would be 400%.

A high ROI indicates your Google Ads for trade business campaign is generating a good return on your investment. But you’d have to consider other factors, such as your conversion rate and customer lifetime value (CLV), to get a full picture of your ROI. Doing so gives you a better idea of how well your ads are performing and which changes you need to make to have better ad campaign results. For example, if your ROI is high but your conversion rate is low, it may indicate that you’re attracting the wrong type of customer.

Trace Where Your Money Goes Through Measuring Google Ads Campaign Performance

Measuring the campaign success of your Google Ads for trade business is essential for ensuring that your advertising efforts are paying off. Tracking metrics like conversions, CTR, CPC, impressions and reach, and ROI, you can make informed decisions about how to optimize your campaign and allocate your marketing budget.

 

Remember, the key to success is to regularly monitor and analyze your campaign performance, and make adjustments as needed. With the right strategies and tools, you can maximize the impact of your Google Ads for trade business campaign and drive more customers to your trade business.

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