<strong></strong> This series of five blogs looks at the fundamentals of Adwords and how some quite basic changes to the way that you manage your Adwords account can yield massive performance benefits. This third blog looks at keyword grouping and account structure.
This series of five blogs looks at the fundamentals of Adwords and how some quite basic changes to the way that you manage your Adwords account can yield massive performance benefits.
This third blog looks at keyword grouping and account structure.
In the last section, it became apparent that basing the bids on the value of the clicks that a keyword generates is critical, but that for most keywords, it’s also almost impossible.
By grouping keywords that are similar, and are likely to have similar performance, together you can get much more data upon which to make your bid adjustments. In order to help you to organise your keywords, Google allow you to group them into Ad Groups, and these are in turn grouped into Campaigns. You control different settings at different levels, but this is covered in more detail later.
This hierarchical structure makes it much easier to group keywords together to manage them. By putting similar keywords together within the same Ad Group, you can manage their bids together as Google allows you to set bids at Ad Group level or at keyword level.
Also, because you can group similar Ad Groups together, you can easily drill down into the overall performance to identify areas where the performance is too good (i.e. the CPA is too low, so you are missing out on profitable volume) or too poor (i.e. the CPA is too high so you are making too little profit from each conversion).
Campaigns can also be used to separate keyword groups that have totally different conversion values, in order to make it easier to interpret their CPAs. For example, a kitchen electricals advertiser may have separate Campaigns for each product type, since a toaster, an espresso machine and a dishwasher are likely to have totally different average order values.
Within these Campaigns, they may have Ad Groups for each brand, or each product sub-type (e.g. two slice toasters, four slice toasters), with all of the keywords pertaining to that brand (or sub-type) and product type appearing within that Ad Group.
The alternative to this would be to include totally different product types in the same campaign. But if sales of toasters are worth £5, and dishwasher sales are worth £50, what do you learn by putting them in the same campaign, and seeing an overall cost per conversion of £30?
There are no benefits to grouping disparate keywords in the same campaign in this way, particularly since you can now apply a single budget to a group of campaigns (in the past, each campaign had its own budget, which could cause problems). It may be that two levels of structuring doesn’t give you as much insight as you’d like – but whilst Google only give you two levels, with a good naming convention and a bit of Excel jiggery-pokery, you can create virtual levels.
In the earlier example, suppose that you wanted to split toasters into brand and sub-type, so that you could group together all of the ‘two slice’ keywords or all of the ‘four slice’ keywords together.
A strict hierarchy wouldn’t allow you to do that, but if you were to use a standard naming convention for your Ad Groups like Product Type – Brand – Product SubType, then you could aggregate the performance of everything with the same Product Type and Sub-Type, or everything with the same Brand across multiple campaigns, or any other combination that made sense to you.
Of course, there is one other reason to group keywords into Ad Groups along these lines. Every keyword within an Ad Group shows the same advert, so clearly if you want adverts to be relevant (and you really do!), you need to make sure that the keywords within each Ad Group are as similar as possible.
In the next part, I’ll look at adverts and testing – why relevant adverts are more important than you may realise, and the importance of testing.