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Most pay per click performance measurement has been at the keyword level i.e. which keyword resulted in conversion.
The problem is this is a blunt measurement tool. It would also be great to know what steps led up to that keyword. For example, did the visitor search on a number of different keyword variations before s/he arrived at that particular keyword. Up until now, this type of tracking has been painful to implement.
However, Google has just released Search Funnels in Adwords, which should make things a whole lot easier.
Search Funnels are a set of new reports describing the Google.com search ad click and impression behavior leading up to a conversion. Currently, conversions in AdWords are attributed to the last ad clicked before the conversion. Search Funnels gives advertisers data on how “upper-funnel” keywords are assisting conversions before the last click. It also enhances basic conversion reporting for AdWords.
So, advertisers can see which searches led up to the purchase, and can bid on these terms, too. Also helps Google’s bottom line, of course, by driving up the cost of keywords that may not be obvious
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