Correlation Between Account History And Performance Of Your Adwords Campaigns
If you are just starting out with Google AdWords and you find the performance of your campaigns less than satisfying than all you need might just be a little bit of patience.
Byron Walker did a very interesting case study where he compared the performance of 2 nearly identical campaigns with the same landing pages on 2 different accounts.
Here are the major differences between the 2 campaigns/accounts:
Campaign 1:
Established Google AdWords account – good history
Campaign already running for several months
Domain that hosts landing page is several months old and gets consistent traffic
Campaign 2:
New Google AdWords account – no history yet
New campaign running only for a week or so
Domain that hosts landing page is new and didn’t get much traffic until now
Now, the difference in terms of performance and ROI between these 2 campaigns were more than surprising. For example, campaign 1 showed the following performance indicators:
Average CPC: $0.40
Average Position: 2.4
ROI: 97.10%
And for campaign 2:
Average CPC: $0.57
Average Position: 4.4
ROI: 7.5%
Well, we all know that account-, campaign- history plays a role in the calculation of your quality score, which defines your ad position for a specific max. bid price, but honestly, I didn’t expect such a huge “indirect” influence on your campaign ROI of this parameter.
Click here to check out the video of this case study
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Nice! This hammering it home for me. I’ve had a tendency to expect 100% ROI straight after launching a campaign, and getting disappointed when only breaking even on decent amount of spend.
I now know I need to lower my expectations, optimise the campaign during at least a month. Only after which should I expect decent ROI, and if not, maybe ditch the campaign.
Thanks for the twitter follow by the day.
Hi Zac,
Glad you liked the post. By the way, if you are starting a brand new campaign and you are already breaking even that’s actually quite good. At the very beginning, your campaign of course isn’t optimized and after a few weeks of tweaking, testing and optimizing your campaign should get a fairly good ROI.
Whenever I start a new campaign and it’s just slightly below being profitable I’m actually quite happy, because I know I can make it profitable within a few weeks and I can expect an ROI of 50-100%.
Robert