A Quality Match Total Conv. Return on Ad Spend Keyword Ad group Max. CPC Clicks
ID: 2810487 • Letter: A
Question
A Quality Match Total Conv. Return on Ad Spend Keyword Ad group Max. CPC Clicks Imp CTR Avg CPC Cost position score type Conversions Value unusual jewellery ethnic earrings pakistani jewellery Ethnic 0.25 6 Phrase Ethnic Jewelry Islamic Jewelry Tribal Jewelry 6 665 0.46413 5234 38 2242 0.64 1600 35574 14510.61 3.69 5.86 3.05 143.56 7 Phrase 418.69 29.46 692.98 0.1 2.32 7 Phrase 794.46 7 Phrase 23 kercises 1)Find the CTR (click-through rate) for each of the keywords. Write each CTR as a percentage with two decimal places )Find the Avg. CPC (average cost per click) for each of the keywords 3) Find the Return on Ad Spend (ROA) for each of the keywords. Write each ROA as a percentage with two decimal places. Which keyword has the highest ROA Which keywords are making money? Which are losing money Which keyword is making the most money? Which keyword is losing the most money what is the overall click-through rate? rite it as a percentage with two decimal places. 7) What is the overall Aug CPC? )What is the overall ROA? Write it as a percentage with two decimal places l Do you have any suggestions about how bids should be changed for any of the keywords?Explanation / Answer
1> CTR for each keywords (K1,K2,K3,K4) = number of clicks / number of impressions
K1 = (6 / 665)*100 = 0.90%
K2 = (413/5234)*100 = 7.89%
K3 = (38/2242)*100 = 1.70%
K4 = (1600/35574) = 4.50%
2> Average CPC for keywords K1, K2, K3, K4 = Total Cost / Total number of Clicks
K1 = 1.45 / 6 = 0.242
K2 = 143.56 / 413 = 0.348
K3 = 2.32 / 38 = 0.061
K4 = 794.46 / 1600 = 0.496
3> Return on Ad Spend (ROA) for K1,K2,K3,K4 = Total converted value / Total cost incurred
K1 = (0 / 1.45)*100 = 0.00%
K2 = (418.69 / 143.56)*100 = 291.65%
K3 = (29.46 / 2.32)*100 = 1269.83%
K4 = (692.98 / 794.46)*100 = 87.23%
Out of these keywords, K3 (Pakistani Jewellery) has the highest ROA
4> On the basis of ROA, we can say that
Keywords K1 & K4 are losing money, as they are not able recover their own cost.
Keywords K2 & K3 are making money