What is the value of a specific keyword? Your Pay Per Click campaigns probably have hundreds or thousands of keywords. Do you know which words are worth the most to your business?
The value of a keyword should represent the worth of that keyword to you. Value could be realized as revenue, profit, margin, or some other internal metric. This is something that you can track in Adwords, but some people rarely think about.
Every month you should know:
- How much you spent on AdWords
- How much value (revenue, profit, margin, etc.) you generated from AdWords
- The percentage of value each keyword was responsible for
Ask yourself the following:
- Could my top keywords have made more if I had allowed more budget?
- Are there keywords that are costing more than they are worth?
The answer to both questions above is the same. If you don’t understand the value of each keyword, then you are “flying blind.”
You can find the Total conv. value (highlighted) by logging into AdWords, selecting and Ad Group, clicking the column button, and then selecting “Customize Columns.” Lastly choose the “Conversions” section.
Google makes it simple to find the value of each keyword with the ‘Total conv. value’ column in reporting. But you have to have dynamic value tracking installed for it to work correctly. In the end, you can see which keyword, ad, or ad group is responsible for returning the most value. To use a basketball analogy, then you can ‘go to the guy with the hot hand,’ or in other words, you can increase the budget for what’s working.
After you have value tracking installed and you know the value of each keyword for the past month, do you think that this will be the same next month? Or does value per keyword happen to change over time due to seasonality, market conditions, or changes in competition?
Finch automatically computes the value of each keyword and reallocates budget to earn the most revenue possible. It’s so much easier than trying to track this manually!