Does AdWords work?

One of the beautiful advantages of advertising on Google AdWords for your furniture store is that you can tell exactly what works and what doesn’t. A big part of developing that insight is knowing what to look for. Below are some of the critical terms to understand if your ads are working and why those terms are important.

Clicks shows how many clicks your ad has received.

Impressions shows how often your ad was shown on a search result page.

Clickthrough rate (CTR) shows the percentage of people who could see your ad (Impressions) and actually clicked on it (Clicks). This one is particularly interesting. Wouldn’t it be awesome to know how many of the people who saw your newspaper ad, billboard, TV commercial, direct mail piece, etc. actually were motivated to call, visit, or request more info even if they didn’t necessarily make a purchase? This powerful metric is unique to online advertising.

Conversions shows how many people clicked from your ad to your site and did something you valued, such as make a purchase, sign-up for your email list, call you, or get directions to your store.

Cost per conversion shows how much each ad conversion cost you.

Of course, there are lots of other important terms and metrics you can use to determine the effectiveness of the Google AdWords campaign for your furniture store, but understanding these can take you a long way towards determining how well you campaign is working. By tweaking your ads, keywords, bids and landing page experience with the goal of increasing CTR and Conversions while decreasing Cost Per Conversion, you’ll be well on your way to more store traffic and lower advertising costs.

“Half the money I spend on advertising is wasted; the trouble is I don’t know which half.” John Wanamaker, (attributed) US department store merchant (1838 – 1922)

With Google’s AdWords reporting tools, John would know exactly which half isn’t working!

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