How to interpret the campaign to perform in Google Adwords

Google Adwords campaigns are based on an economic investment, so their maximization will depend on the analysis carried out.
According to specialists, the correct interpretation of data is based on:

Optimization and reporting

Before beginning the analysis of the campaign it is necessary to ensure that there is a critical mass to determine the conclusions. Commonly the critical mass has about 100 clicks. One point to keep in mind is that the information obtained will serve to obtain conclusions for decision-making, where it is relevant to know what relationships exist between the different metrics.
For its part, the basic indicators of a campaign are:

• Impressions,
• Clicks
• CTR
• Cost
• CPC
• Position
• Quality level
• Conversion
• Conversion Rate
• Cost / Conversion

Where each of these elements will affect the behavior of others. Because of this it is necessary to know what values ​​to modify to optimize the campaign.
Most common relationships:

• Clicks / Impressions = CTR> user response rate when viewing the ad
• Cost / Clicks = CPC> the cost it took to get a click
• Conversions / Clicks = % Conversions> conversion ratio
• Cost / Conversions = Cost per Conversion
• Bid * quality level = ranking

Where the most relevant indicator will depend on the stated objective of the company.
For example:
An objective of the Branding type is realized by those companies that wish to make themselves known or to know what people think of it. It is the case of Coca Cola where its objective is not the sale itself but to be in the mind of the consumer.

In these types of campaigns, information regarding impressions will be important. In addition, the success indicator will be given by the CTR (if a campaign is being displayed)

Traffic branding objective

It is about generating branding but also making the announcement known to direct it to the web or to a product that has just been launched on the market.
The information obtained by the impressions is important if you intend to optimize the campaign.
The CPC shows the cost of generating traffic and of becoming known in turn the success indicator will be given by number of clicks and the CPC

Target traffic and conversions

This is when the client wants traffic to be the marketing objective, such as requesting more information, visiting a specific page, signing up for a newsletter, among other options.
Here the information about impressions, CTRs, and clicks are going to be important to optimize the campaign.
The conversion ratio, the cost / conversion that will show the cost per acquisition, must be highlighted.
Where the success indicator will be reflected in the number of conversions and the cost / conversion.

Target traffic and sales

In this case, brands advertise in Adwords to earn money, where they will be related to online stores. The relevant information to optimize the campaign will be given by impressions, CTRs, clicks, position and quality level. It is also important to observe the conversion to sale ratio, which may generate more sales. On the other hand, the cost / sale will show the cost of generating sales. In turn, the sale value will show the benefits that are being generated. It should be clarified that the value must always be greater than the cost, because otherwise the campaign will not be profitable.
Here in success indicator it will be given by the number of sales, the value of sales, and the% CA
For a correct optimization you must:

• Analyze
• Identify the problems
• Identify the causes
• Define the indicator to optimize
• Find a way to optimize it
• Make the changes and apply them
• Track the results
• And back to the beginning