Google Ads Tutorial Projections & KPIs

Before you start or run a Google Ads campaign, you need to work out the projections & the KPIs to see whether your campaign can run profitably or not.

In this Google Ads tutorial, I’ll show you a very simple way to calculate your conversions, conversion rate & cost per acquisition using a spreadsheet.

This takes only a few minutes to set up and can save you a lot of money if you know your numbers.

Transcript

Before you start your Google Ads campaigns, you need to work out some kind of projections and key performance or profit indicators. So in this video I’m going to show you how to calculate and work out your KPI’s and do some projections.

Hello, my name is Uzair and thanks for joining in. If you like videos like this one, then put your request in the comment box below and I will do my best to create similar videos for you. So let’s get started. In this video I’m going to show you how to calculate and work out your projections or your goals or KPI’s, before you start any Google Ads campaign.

Because it is quite important to set up some targets and to see whether your campaign is running as per your calls, and if it is then very well and you can carry on improving it. But if it’s not, then you need to tweak your projections or optimize your campaigns. So let’s have a look at some of the most important numbers which we have in our Google Ads account.

So all you do is you create a simple spreadsheet like this one I have in the column, all my impressions, CTR, clicks, CPC, total cost, conversion rate, number of conversions, and cost per acquisition or cost per conversion, or you can have, any other metrics you like from your Google Ads account.

But these are the key and the most important ones which you need to keep a very close eye-on. How do you know how much money you would require or budget you require to run a campaign? So this is how I project. I’ll put in a number, let’s say I show my ads 100,000 times. So these are my impressions, and then I’ve got three columns over here.

One is for a five percent conversion rate, 10 and 20, and you can adjust or tweak accordingly, but these are some minimum numbers which I work with. Then let’s say my CTR is three percent. So we get 3000 clicks or visitors to our website. And to work out these numbers is fairly straightforward. You can see that’s the formula. B3xB4 equals 3,000.

Let’s keep things very simple and my CPC is £1.00, which gives me a total cost or my total budget of £3,000.It depends on whether you want to run it for a weekly basis or a monthly basis. That’s up to you. And then I work on let’s say five percent conversion rate. Now, a conversion could be a lead, a signup or a sale, depends on the goals of your campaigns and your website.

So now I can see that for £3,000 at five percent conversion rate, I will potentially get 150 conversions at a cost per acquisition of £20.00. So now I know whether this is workable or not, whether I will make a profit or not at this acquisition cost. Now to work out all your other numbers, all I do is copy that and paste them into these columns and I change my conversion rate so everything else stays the same.

All I’ve done is changed my conversion rates, so now obviously the conversion rate has doubled.My number of conversions have doubled as well, and my cost per acquisition has halved from 20 to 10, and then over here again it has doubled and it has halved again. So now I can see very quickly and easily, what I will achieve with these conversion rates and what will be my cost per acquisition.

That’s it for this video. I hope you enjoyed it and I’ll see you in the next one. If you have any comments or questions about this video or other videos which are on our YouTube channel, then please put them in the comment box below and I’ll do my best to answer them for you.

For more tips & tutorials, visit our blog

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About Uzair Kharawala
Uzair Kharawala is the Co-Founder at SF Digital. He is a Certified Google Partner, is a Cricket fanatic and loves Photography.
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