If you are advertising on Google or Facebook and have outsourced this management, your PPC agency will normally send you a monthly report on the performance. Lets look at why you should take a look at the reports, and what you can understand of your advertising campaigns.
The most important question is normally, are you profiting from it? If not then it really doesn’t make sense for you to continue if it doesn’t improve?
The person who has your best interests at heart will not be your advertising agency, but you. So you definitely would want to know the advertising campaigns are performing.
For example, you spent $1000 on advertising and received 10 enquiries. Based on past performance, lets say that you normally close 2 deals and make $800 each after deducting other costs.
- Spent on Ads = $1000
- 10 enquiries
- Close 2 deals, each profit $800
- Profit after advertising = (2*$800)-$1000 = $600
In that case, after deducting the advertising cost you still manage to earn $600. Yes, you are still making money from your advertising. Great!
With this simple example, you will have understood why it is important to know how many enquiries you are getting from your advertising. Without it, you will not be able to come up with the above insight. In that situation, advertising then is at best guesswork.
Does Google or Facebook work better
The next question is, are you spending it in the best way you can?
Say for example you spent $5000 on Google, $6000 on Facebook. Suppose you found out it costs you $100 to get an enquiry via Google, while it costs $150 to get an enquiry on Facebook.
In this case, you might want to see if it is possible to spend more on Google simply because it costs less to get an enquiry via Google, i.e. $100 compared to $150 via Facebook. Not only that, enquiries that come through Google are also normally easier to close as customers search with keywords on Google and the purchase intent is stronger.
Again you can see why it is so important for you to be able to track how many enquiries are coming from each channel.
Google Search or Display Network?
Next, suppose you saw it is more efficient to spend on Google search as you see here $70 per enquiry compared to $120 per enquiry on Google Display Network.
Again you will want to check if it is possible to spend more on Google search. Easy isn’t it?
Which audience works better
You can also check if your targeting is correct. That is whether interests, in-market audiences, keywords, audience lists, websites work better for you.
Here we see by targeting people who were “researching on property”, the cost per enquiry is lower. So this is an area you will want to spend more of your budget on, as compared to other methods like “interested in condos”.
To advertise on Mobile or Desktops
Lastly, it is also possible to check on the results from devices, age, gender, time of day, location etc. In this example, we see that advertising via mobile devices works better than “PC & laptops” as it has a lower “cost per enquiry”.
All this will enable you to know how your advertising is performing. Even if you do not know how to read the reports, you now have a way to ask your agency how your advertising is doing in terms of the above cases I mentioned.
By understanding these various components, you will then be able to spend wisely on the best channels and settings thereby giving you the best possible returns from your advertising dollars.
All the above insights can only be derived if enquiries are being tracked i.e. your website reports to Google or Facebook when somehow sends you an enquiry. Ask your PPC agency if they have set this up for you. If they have, then you are off to a good start and will be able to ask your agency based on the above mentioned points. If not, get them to set the tracking for you as soon as possible and start tracking!
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