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PPC Management Tool: Interactive Metrics Tree video-screencast

Insights | 07 Nov, 2014

Our interactive metrics tree will help you to clearly understand which metrics make up a campaign cost-per-acquisition (CPA) and how the different metrics relate to one other. Let our Head of UK Agency Matt Owen walk you through it. 

Video transcript

Hi, my name's Matt Owen. I'm the Head of the UK Agency at Jellyfish, and today I'm going to take you through a PPC management tool that's exclusive to Jellyfish, and we call this the Jellyfish Metrics Tree. The Metrics Tree, we can see this here on the screen, allows you to do a number of really useful things around your PPC campaigns.

For example, you can use it to create a forecast. Punch in some data around the variables of the campaign and it will give you an indication on acquisition volumes and CPA around that. You can use it for reporting. So it's a great way to simplify a lot of very complicated campaign data into a much easier to understand picture of the campaign.

But today I'm going to use it to look at some campaign insight and analysis. In other words, I'm going to enter some real campaign data and then look at how we can optimise that campaign and the kind of inter-relationship between the different optimisation levers that we can pull and how they influence the metrics across the campaign.

So to start off, I'm going to enter some campaign data. This is some real campaign data from a live Jellyfish campaign. My CPC at the moment on this campaign is £2.31. A little tip here, once you enter that data, just click on one of the other boxes. You can see here that that's updated itself in the Metrics Tree. My current impression count is just over 570,000. So we just put it into the tool there. CTR is 0.51%. And last, but definitely not least, my conversion rate is currently 2.73%.

Okay. So we can see that that's all updated in the Metrics Tree. This campaign is currently generating 79 acquisitions a month at a CPA of £84.62. The campaign target here is to increase the volume of acquisitions while maintaining the CPA at roughly this £85 level.

Optimisation

What we're going to do now is step through some optimisation tasks to see how that is going to impact on the metrics and on the ultimate goal, which is that CPA to volume target. The first thing I'm going to do is to look at increasing the bid caps across the campaign. Now logically, we would expect this to generate more impressions within the campaign. For example, keywords that are on page 2 could be on page 1. Keywords that were on page 1 but maybe in lower positions could have better positions as a result of the bid change. It's quite likely that our click-through rate is going to increase, and that's because our keywords have better visibility. So basically, there will be more traffic running through those ads. The CPC is probably going to increase as well because those higher positions are more expensive. That's great news for Google and for Bing, from their point of view. We kind of also expect the conversion rate to decrease. The traffic is probably going to be less directed more around expensive, generic terms, so probably less propensity to convert.

So let's see how that impacts. I'm going to adjust the bid cap. I'm down here and just clicking this right- hand arrow. Straight away we can see that I've increased the bid cap. My CPC's gone up. Yep, impressions up, CTR up, conversion rate down, exactly as you'd expect. I'm just going to make one more change there and bring the CPC up to £2.77. Okay. So impressions up, CTR up, conversion rate down, acquisitions are now 95, but my CPA is just over £100. That's not acceptable.

Efficiency

Okay, so we need to make the campaign more efficient. How can we do that? Well, first step, we're going to add some negative keywords into the campaign. So we'd expect, as a result of that, impressions to decrease again. Essentially, we're going to be filtering out the irrelevant traffic, so there's going to be less impressions served around the campaign. The click-through rate is probably going to increase because we have more relevance. CPC is going to drop because we're removing some of the unnecessary traffic around the campaign. The CTR is also, by the way, going to help the relevancy of the ads, so we'd also expect the CPC drop to be around that relevancy metric as well, around quality score. Just let's see how that works in practice. We're going to look at the negatives. We're just going to increase that. Yep, and sure enough, we've got a decrease in cost per click here, decrease in impressions, CTR is up, and conversion rate has gone up as well because the traffic is probably more relevant.

I'm just going to tweak that one more time. We're going to get to this point here. Okay. So essentially what we have now is a campaign where we're driving just under 100 acquisitions. CPA is just under 100, so that's definitely improved. It's heading in the right direction, but there's more that we can do.

Keyword generation

My next action is essentially to use some of the tail keywords to mine the keyword set and to essentially use those as seeds to generate further keywords. We're going to broaden the keyword portfolio and make that more relevant. That's almost certainly going to increase the impressions because we have more keywords. CTR is probably going to increase as well. That should be a positive sign. We would expect another CPC drop, again partly due to relevance and quality score because the CTR is improving, and also because we've probably got a less competitive keyword set around that as well. Also, we suspect that the conversion rate will go up as well basically because the keywords are more granular, and there's going to be more propensity to convert around that.

So let's have a look at how that works. I'm going down to the tail keywords here. I'm giving that just an initial click. Yep. We can see that our impression count has gone up there, CTR conversion rate looking good as well, so we're going to do that one more time on the tail keywords. Okay. A couple more clicks there. Great. We brought the CPA down now to almost where we want it to be, this £83 mark. That's very close. We've got more acquisitions.

Raise the bid caps

I'm thinking that possibly we can start to raise the bid caps again around the campaign because we want to drive even more volume to see how that looks. So let's repeat that bid cap process and be a bit more aggressive on the landscape. So there we go. We're increasing this to £2.91 here. Our CPA is still looking a little bit hot, but we've got a lot more acquisitions around here as well. CTR is also looking good. That's going to be good from a quality score point of view. Now another angle of the campaign we can look at is around conversions. Currently, we're up 2.87%, but clearly landing page efficiency, relevancy testing is going to be great. It's going to help the overall effectiveness of the campaign. It's also going to be positive in terms of quality score because it's another relevant signal as well. Let's just see what impact we can make.

Landing page optimisation

We're assuming that we can test landing page copy and maybe do some A/B testing around that. That's this landing page relevancy element here. So I'm just going to increase this by a fair degree because we find that landing page testing can deliver very profound impacts on conversion rates. So here we go. Conversion rate has gone up. We can see that here. Average CPC has gone down a little bit. That's back to the relevancy angle. We'll just keep going on this a little bit. I'm just going to adjust this until we get to . . . so we're now looking at £82 CPA. Our conversion rate has gone from about 2.8% to 3.14%. So that's a feasible increase from our experience.

The big news is we've pretty much doubled our acquisition volume from our original volume of around about 80 acquisitions. So essentially, by working through that process, we can see how the different metrics affect each other, how important it is to always think around the relevancy of the campaign, to think around quality score. It's such a key way to increase the efficiency of the campaign, and that by really thinking around all these different optimisation aspects of the campaign and manipulating those, we can end up at the right CPA and hopefully increase the volume of acquisitions for you.

So that's just a walk through our Metrics Tree. I hope you found that useful. Do get in touch if you'd like any more information on our PPC management. Thank you so much for your time.

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