How do you compare your SEM performance?

1 Set your goals and KPIs

Before you start comparing your SEM performance, you need to define your goals and key performance indicators (KPIs) for each campaign. Your goals should be specific, measurable, achievable, relevant, and time-bound (SMART). Your KPIs should be aligned with your goals and reflect the outcomes you want to achieve. For example, if your goal is to increase sales, your KPIs could be conversion rate, cost per acquisition, and return on ad spend.

2 Choose your comparison methods

When comparing your SEM performance, you can use several methods depending on your objectives and data sources. Historical comparison looks at your current performance compared to your past performance over a specific period of time to track trends, seasonality, and growth. Competitive comparison uses tools like SEMrush, Moz, or SpyFu to compare your performance with competitors and identify advantages, gaps, and opportunities. Lastly, industry comparison uses tools like Google Ads Benchmark Tool or WordStream to compare your performance with industry averages or benchmarks to evaluate how you stack up against peers and industry standards.

3 Select your comparison metrics

Depending on your comparison method, you will need to choose the most relevant metrics to measure and compare your SEM performance. These metrics are important for understanding how attractive and relevant your ad is, as well as how effective it is at converting visitors into customers. Click-through rate (CTR) is the percentage of users who click on your ad after seeing it, while quality score is a rating from 1 to 10 that Google assigns to your ad based on its expected CTR, ad relevance, and landing page experience. Cost per click (CPC) is the amount you pay for each click on your ad, while conversion rate is the percentage of users who complete a desired action after clicking on your ad. Cost per acquisition (CPA) is the amount you pay for each conversion from your ad and return on ad spend (ROAS) is the ratio of revenue generated from your ad to the cost of your ad.

4 Analyze your comparison results

Once you have collected and calculated your comparison metrics, you need to analyze them and draw insights from them. Look for patterns, anomalies, trends, and correlations that can help you understand your SEM performance. For instance, evaluate how your performance compares to your goals and KPIs, previous performance, competitors, or industry. Additionally, consider the factors that influence your performance such as keywords, ad copy, landing page, bid strategy, or seasonality. Lastly, identify the strengths and weaknesses of your performance as well as the opportunities and threats for improvement.

5 Implement your comparison findings

The final step is to use your comparison results to optimize your SEM strategy and tactics. You should use your findings to make data-driven decisions that can enhance your performance and achieve your goals. For instance, you can adjust your budget, bid, and targeting based on ROAS, CPA, and quality score, as well as test and refine keywords, ad copy, and landing page based on CTR, conversion rate, and feedback. Additionally, it is important to monitor and measure your performance regularly in order to compare it with benchmarks and KPIs. Through learning from successes and failures, you can apply the best practices and lessons learned. Comparing SEM performance is an ongoing process that requires planning, execution, analysis, and optimization in order to improve SEM results and ROI.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?