Google Ads Optimization in 2021: The Definitive Guide

Search ads can drive profit on autopilot. Here is the example of one of our accounts that consistently brings in a 6-figure profit per year.

What’s even more interesting is this account requires less than 9 hours per month to analyze stats and to test new hypotheses.

Do you want your search ads to do the same for you?

  1. Set up your campaigns the way I recommend in the “Keys to Profitable Search Ads” advanced course.
  2. Use this guide for ongoing optimization.
  3. Start a progress log in the PROMO SYSTEMS’ community.

 

Making changes ≠ optimization

 

 

A lot of specialists think they “make an optimization” or “make data-driven decisions” without realizing what it means. They confuse making changes in the account with data-driven optimization. You get some outcomes no matter what changes you make (and even when you make no changes). Data-driven optimization factors in the following:

Is the data for a metric statistically significant?

Specialists who make a decision based on data (such as conversion rates per keyword) that may fluctuate a lot in the future, get random results from the changes they make. And they won’t even be able to pinpoint the new results they’ll get to changes they’ve made. Garbage in, garbage out. Learn how to tell if your conversion rate is statistically significant (spoiler alert: stats per keyword and ad are rarely significant).

What is the chance of getting the current difference in performance due to randomness? 

For instance, if you think that one of your ads has a 15% higher conversion rate than you either have run a test with tens of thousands clicks per ad or you’re dealing with statistical noise. You’ll learn more about why it is so and what to do about it in this article.

 

Example

 

Notice: Google doesn’t mark the stats as significant despite over 1,600 conversions. The catch? It’s an A/A test (yes, the campaigns are 100% identical. The purpose of such tests is a topic for a separate article.) Even though the difference in performance was considerable during the first 4 weeks, it has been gotten due to randomness. So, the initial 15% uplift was imaginary.

 

 

Like this kid imagines that the car turns because of his actions, most PPC specialists think that the performance outcomes result from their changes. But, usually, they get just inconsistent random outcomes.

The real goal of optimization

Some specialists think they need to lower the CPC. Though, a lower CPC doesn’t necessarily lead to a higher profit.

Other specialists think they need to increase the quality score. Though, a higher QS may lead to a decrease in profit.

There are specialists that are trying hard to increase CTR, believing the higher CTR leads to a lower CPC. Though,  there is no direct correlation between fact CTR and CPC.  An ad with higher CTR may decrease your conversion rate.

While

the real goal of optimization is to get a consistently higher profit.

 

This guide consists of the three sections that will help you on your way to a consistently higher profit:

 

Need help with implementing this guide? Start your own progress log in the PROMO SYSTEMS’ community. Organize your thoughts, systematize your approach, and help others at the same time. Optimizing your Google Ads this way is much more fun than doing it alone.

 

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