Chapter 7

Campaign Management and Campaign Optimization

  • Once your campaigns are running you can track their performance and optimize them to generate ROI and deliver better results.

7.1 Basic Metrics Campaign Metrics

Metric Explanation
Impressions The number of times your ads have been served on the Google ad networks
Clicks The number of times users clicked your ads
CTR Click Through Rate =
This metric helps undersrtand the relevancy of your ad
Average CPC The average cost per click
Cost The total amount spent on your campaign
Average Position This metric shows your ads position relative to those of their advertisers
Conversions The total amount of conversions derived from this campaign
Converted Clicks The total amount of clicks that turned into a conversion
Converted Clicks The total amount of clicks that turned into a conversion
Impression Share The impressions you’ve received on the SERP network divided by the estimated number of impressions you are eligible to recive.
Screenshot of the Campaigns Tab

Ad Performance Metrics

  • To view the ad performance metrics, you need to click the “Ads” tab.
Screenshot of the Ads Tab

Keyword Performance Metrics

Screenshot of the Keywords Tab

7.2 Performance Analysis

  • Performance analysis is the starting point for management and optimization of campaigns.


  • Segments Analysis goes a step further from your standard statistics and slices the data by time, click type or device. Here are a few insights that you can find when doing Segments Analysis:
  • Top Vs Others: Analyse how your ads are performing when they appear at higher ad positions versus lower ad positions. This gives you insights as to which is the best ad position for you. top-vs-others-segment-adwords
  • Time: Analyse how your ads are performing at different times of the day, week, month, quarter or year. This gives you an idea on how to optimize your campaigns for the best hours or days of the week. adwords-time-segment-adwords
  • Click type: Analyse how your ads are performing by where the potential customer clicked on the ads – headline, phone number, site-links, etc. click-type-segment-adwords
  • Device: Analyse how your ads are performing on different devices. This gives you an idea about consumer behaviour and device dynamics. device-segment-adwords
Some additional information in one line


  • Dimensions lets you slice data similar to Segments – but on different parameters. Some of the key views available on the Dimensions tab are:
  • Geographic and User Location: In this view you can track where the clicks came from. The origin of clicks information can be used to refine the targeted locations. adwords-geo-and-user-location-dimension
  • Time: In this view you can track performance of your ads on an hourly basis and day of the week basis. This helps you in deciding on the hours and days for your Ad Scheduling. adwords-time-dimension
  • Destination URL: In this landing page view you can track which webpages the clicks are landing on and how each of the landing pages are performing. adwords-destination-url-dimension

Keywords Performance Analysis

  • Keywords Performance Analysis can be done with three different tools:
  • General statistics available on the Keywords tab are available by clicking the Keywords Tab on the AdWords Console and shows you metrics like impressions, clicks, CTR, CPC, etc. keywords-performance
Keywords Tab
  • Keyword Diagnosis Report available on the keywords tab by clicking on the Details tab and clicking the Keyword Diagnosis link and shows you whether your keywords are triggering your ads and a snapshot of your keywords Quality Score.
Keyword Diagnosis
  • Search Terms Report is available on the Keywords Tab by clicking on the “Search Terms” button and shows you the keywords or phrases used by your prospects which triggered your ads and the performance metrics for those searches. You can use the search terms report to add new keywords which are not there in your campaign, add negative keywords which you don’t want your ads to show for, refine match types of your keywords and provides insights for ad text / copy refinement based on what prospects were searching for exactly.
Search Terms Report

Ad Performance

  • Ad Performance Analysis enables you to see which of your ads performed well against the metrics like CTR, CPC, Avg. Pos. Conversions, etc. You can adjust the timeframe for viewing these metrics and also compare performance of two timeframes. Based on this you can pause the poorly performing ads and add new ads variations.
Ad Performance
  • Sometimes the performance metrics can be too much to handle – in which case there you can filter the required metrics through the Filter tool in the Ads tab. There you can use the filters to figure out which ads are delivering the highest revenues and profits, ads with higher Cost Per Conversion, etc.

    Filter is very useful when you have a large account.

Filter Ad Performance
  • Ad Extensions Analysis provides you insights into how each of the ad extensions performed. This gives you insights into which extensions the potential customers are clicking – e.g.: if a particular site-link on prices is clicked more often, that means the customers are looking for prices and you can incorporate prices in the ad text to improve your ads’ performance.

Top Movers Report

  • This report enables you to view campaigns that have the highest changes (increases or decreases) compared to the previous time period - in clicks, costs and conversions with an idea on what is causing it. This report gives you insights into which campaigns and ad groups you need to take action on and also see the impact of changes made previously.
Top Movers Report

Auction Insights Report

  • Auction Insights Report provides you insights on your competition on AdWords for similar keywords that you are targeting and also some benchmarks on the performance against competitors. Auction Insights Report shows how often your ads rank higher than that of your competitors’, share of impressions, avg. ad positions, campaign overlap %, ads appearing on top of page %, etc. These insights help you make decisions on keyword choices, bids and budgets by showing you where you are performing well and where there are opportunities for improving performance.
Auction Insights Report

7.3 Conversion Analysis

  • The most important performance measure or metric for any AdWords campaign is conversions. Conversions have to be measured against marketing or business goals for each of the campaigns.
  • If your marketing goal is sales or leads – you can measure them through Cost Per Conversion or Costs Per Lead, along with Number of Conversions and Conversion Rate.
  • If the marketing goal is Brand Awareness – you can measure it through Number of impressions, Reach and Frequency of Ads, and Customer Engagement.

7.4 Conversion Optimizer

  • The most important performance measure or metric for any AdWords campaign is conversions. Conversions have to be measured against marketing or business goals for each of the campaigns.

    If your marketing goal is sales or leads – you can measure them through Cost Per Conversion or Costs Per Lead, along with Number of Conversions and Conversion Rate.

    If the marketing goal is Brand Awareness – you can measure it through Number of impressions, Reach and Frequency of Ads, and Customer Engagement.

Conversion Optimizer

7.5 Analysis for Bid Adjustments

  • Bid Adjustments can be used to control when and where your ads are shown and to enhance the performance of campaigns, ad groups, ads and keywords that are working for you. We can make bid adjustments based on location, device and time.

Location Analysis and Location based Bid Adjustment

  • Geo or Location based bid adjustment are increasing or decreasing bids for specific locations (countries, regions, states, and cities). This enables bid adjustments based on performance parameters for that specific location.
  • For example, If Kenai, Alaska is driving better conversions, you can increase bids for searches originating from A Kenai. If Soldotna is poor in conversions, you can decrease bids for searches originating from Soldotna.
Location Bid Adjustment

Device Analysis and Device based Bid Adjustment

  • Device based bid adjustment allows you to increase or reduce your bids for mobile devices. This enables you to target the potential customer on-the-go in a better way.
Mobile Bid Adjustment Time

Time Analysis and Ad Scheduling based Bid Adjustment

  • Ad Scheduling can be used to display ads in specific times of the day and days of the week. You can use bid adjustments with ad scheduling to increase or decrease the bids in order to improve the performance of your campaigns for specific day parts or days of the week.
Mobile Bid Adjustment

Quality Score Analysis

  • Quality Score is an aggregated estimate of your campaigns overall performance and measures the quality of your ads, keywords and landing pages. This shows you if your ads are relevant to your keywords, if your keywords are specific and not too generic in nature (measured by Expected Click Though Rate) and also if the landing page is responsive in design and provides a good user experience. Quality Score is rated from 1-10 where 1 is the lowest and 10 is the highest. By default, a Quality Score of 6 is given to a new keyword added to the campaign and later is changed based on the above criteria. It is always good to have your Quality Score to be 6 or higher.
  • Ad Rank is a measurement system that calculates a rank for all AdWords Accounts that are competing for a similar keyword. Ad Rank consists of Quality Score multiplied by the Max. Bid amount. The higher the ad rank - the higher ad position your ad will get and if the ad rank is lower than the number of ad slots available – then your ad may not be showed at all.
  • The higher the Quality Score the higher the Ad Rank you will get – resulting a higher ad position and lower will be your cost per click.

Ad Copy Testing

  • Ad Copy Testing or Split Testing of ads is an essential optimisation task. You can create different ad texts within the same ad group to see which one resonates well with the target customer and delivers better results.
  • The simplest way to test ad copy is having multiple ads with different ad copy running in the same ad group with the ad rotation set to evenly rotate. You can then evaluate the different ads on their performance like CTR, CPC, Conversions, etc. You can keep the better performing ads and introduce different ad copy based on the successful ones to optimise them further.
  • Another way to do this is turn on the ad rotation to optimise for conversions or optimise for clicks – this setting lets AdWords automatically optimise the ads that are performing better.
  • By optimising the ad copy – the performance of the campaign can be improved.

Impression Share Analysis

  • Impressions Share Analysis will give you an idea of the percentage of times your ads are showing based on all relevant searches that are there in the targeted locations of your campaign. So the closer the impression share is to 100% - means that your ads are showing to all the potential traffic on Google Networks.
  • There are separate metrics for Search Campaign Impression Share and Display Campaign Impression Share and both these can be accessed on the main campaign console of AdWords (if its not visible just go to columns and select the metrics to display).
  • THERE ARE 4 METRICS WITHIN IMPRESSION SHARE ANALYSIS – Impression Share, Exact Match Impression Share, Lost Impression Share (Rank) and Lost Impression Share (Budget). As explained earlier impression share is the main metric which indicates the percentage of times your ads are showing compared to a total possible. The other metrics support this main Impression Share Metric in providing more details.
  • Search Exact Match IS or Search Exact Match Impression Share show the % of queries that were matching the keywords in our targeting, this can be used to improve the keyword coverage from broad to phrase and exact match type. This metric is only for Search campaigns and not for display campaigns. All other metrics are available for both search and display separately.
  • Search Lost IS (Rank) or Search Lost Impression Share (Rank) is a metric which will show you the percentage of lost impression share due to poor ad rank – thus based on this metric you can improve the rank of your ads by increasing the bids, keyword mentions in the ad copy, and keyword grouping.
  • Search Lost IS (Budget) or Search Lost Impression Share (Budget) is a metric which will show you the percentage of lost impressions due to shortage of budget on the campaign.