How to Use Simple Math to Get Better Insight PPC

I highlighted how you can assess the value of your campaigns average KPIs and how to identify outliers for better campaign insights. I will continue showing you how to improve the value of your campaign with some simple math tips. We will continue to use the example of setting up a new ad group to promote fireplace components.

If you remember from my last post, after we identified that we were going to focus on quality and service as the selling points for this new ad campaign, we developed two different forms of ad copy to reflect each campaigns’ different value proposition. I’ve listed out the results below. Now, what do you think? Should we remove Ad Copy #2 and just keep Ad Copy #1 because its average CTR is higher?

EXAMPLE One: CTR Performance Comparison Between Two Ad Copies



Step One: Use Standard Deviation to Remove Outliner

As illustrated in the Part I of this series, before comparing the averages, we need to separate outlier (i.e. values that fall outside 2 standard deviations from the average) from the rest of the values. As you can see, the CTR on Day 6 of Ad Copy #1 is outside a reasonable range, so we don’t include Day 6 while comparing the performance between Ad Copy #1 and Ad Copy #2.

EXAMPLE Two: Use Standard Deviation to Remove Outlier



Step Two: Use T-Test to Confirm the Difference

After removing the outlier, the updated average for Ad Copy #1 is 4% vs. 5% for Ad Copy #2. We can use a T-Test to confidently declare those two ad copies perform significantly different. (I am aware of any terms with “test” within could be intimidating so allow me to comfort you a bit by revealing that the T-Test was originally developed to test quality of beer. Call it Beer-Test if it soothes you. J) The following are things you need to know about this simple test:

• T-Test is an one-way test, if the outcome doesn’t support our assumption (i.e. two ad copies perform differently) it does NOT suggest the opposite is true (i.e. two ad copies perform the same)
• You can use it to validate the outcomes from Before/After Test on one set of objects
• You can use it to validate the outcomes from A/B Test on two sets of objects
• In general, T-Test value > 0.05 implies your assumption is NOT correct (i.e. the chance of your assumption is not correct > 5% )
• The easy way to perform a T-Test is using Excel T-Test function

EXAMPLE Two: Excel T-Test Function

1. Array 1: the first data set
2. Array 2: the second data set

o Tails

1. To validate the conclusion of one data set performs better than the other
2. To validate the conclusion of one data set performs differently from the other (i.e. could be better or worse)

o Type

1.  For Before/After Test
2. For A/B Test with a same standard deviation
3. For A/B Test with a different standard deviation other (i.e. could be better or worse)

EXAMPLE Three: Use T-Test to Confirm the CTR Performance Difference Between Two Ad Copies



To compare two ad copies with different standard deviations, we should apply 2 for tails and 3 for type while using Excel’s T-Test function and the formula looks like “=ttest(array of Ad Copy #1 CTRs, array of Ad Copy #2 CTRs, 2,3)” with an outcome of 0.4 which means: we cannot confidently declare those two ad copies perform differently because the chance of our assumption is wrong is 40% . Is it because there is no difference or we need more samples? Let’s add more power to our analysis.

Step Three: Use Power Analysis to Identify Sample Size

In a statistical test, power is the probability that the test result could help us confidently confirm our  assessment and Power Analysis is a simple math we can use to calculate the minimum sample size which enables us to confidently decide whether those two ad copies perform differently. Before conducting Power Analysis, you need to know:

• Required parameters

• Tails
•             One-tail: To validate the conclusion of one data set performs better than the other
• • Two-tail: To validate the conclusion of one data set performs differently from the other
• Test value: the value you would like to compare to sample.
• Sample average
• Sample size
• Sample’s standard deviation
• Confidence level

• Analysis Outcomes

• Result of Power Analysis is between 0 and 1.
•             0:0% possibility to confirm the assessment based upon the given parameters
•             1: 100% possibility to confirm the assessment based upon the given
• For conducting T-Test, we need an outcome of 0.8 or higher from Power Analysis to confirm our assessment parameters

Many universities and research institutes offer Power Analysis tools on their websites to help us conduct this analysis with ease – for example, for example, here is a good one from DSS Research. For our case (tail: 2, test value: 4%, sample average: 5%, sample’s standard deviation: 2%, confidence level: 95%), after entering those parameters into its Power Analysis tool, I learned 32 good samples are required to confidently confirm our assessment. Conclusion: Let’s keep collecting data for now.

In Part III of this series, we will re-visit those two ad copies’ performance. But until then, today’s takeaways are:

1. Having the right samples is a critical step for any analyses. Use Empirical Rule (aka 2-Standard-Deviations Away You Are Out Rule) to control the quality of the sample and use Power Analysis to check its quantity.

Power Analysis to check its quantity.

2. Don’t jump into conclusions based on face value of the numbers. Instead, apply a T-Test to confirm your assessments.


3. T-Test results only confirm one side of story (i.e. “those beers taste no different” does NOT confirm “those beers taste the same”), so clarify your assessment before put it to the test.

Email : naturalseosolution@gmail.com | Mo : 8763723377 | Skype : sunmoon.mohanty

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Five Things You Need to Know About AdWords’ New Keyword Planner

Google’s AdWords Keyword Tool has been the standard for AdWords keyword research for over a decade, but there’s a new sheriff in town: the AdWords Keyword Planner. This new keyword tool combines the functionality of the existing Google Keyword Tool as well as AdWords Traffic Estimator into a single integrated workflow to help advertisers find new keywords for their PPC campaigns.

My understanding is that the new Keyword Planner will eventually replace the Google Keyword Tool and Traffic Estimator, so if you currently use either of these tools in your search marketing efforts, be they organic or paid, here’s what you need to know about the new tool.

1. Keyword Planner Is a Playground for Keyword Discovery

AdWords Keyword Planner works like a standard keyword research tool but with more bells and whistles. Features include:

• Keyword search options: You can look for new keywords to add to your campaigns based on the product or service you’re marketing, your landing page URL, your product category or all of the above.
• Keyword statistics and performance estimates:  Specify targeting options (such as country, language and search network) to get more accurate estimates on PPC results for each keyword.
• Keyword filters: You can narrow your keyword list based on criteria like average CPC and monthly search volume. You can also include or exclude keywords containing specific terms and exclude keywords that are already in your AdWords account.
• Group view and list view: Keyword Planner can either show your keywords as a list, as in the old keyword tool, or you can also see them grouped into niches by relevance.

These new features make Keyword Planner more robust than the old Google Keyword Tool. Here’s what it looks like!



Behold the AdWords Keyword Planner Tool

2. Keyword Planner is a PPC Campaign Creation Wizard That Maintains State

A key technical difference between Keyword Planner vs. the Google Keyword Tool is that it’s designed to be a “wizard” for creating AdWords campaigns. The Keyword Planner walks you through several steps including:

1. Choose how you want to get your keywords.
2. Pick keywords and/or keyword groupings to add into your “Keyword Plan”
3. Get bid and budget estimates for the keywords you picked
4. Export your data

Thus, your “Keyword Plan” can be viewed as like having a keyword shopping cart. It maintains state so that you can take the keywords you picked in the keyword picking stage, and then do more work on it later in the traffic and bids estimation stage. This is better than having separate tools for doing Keyword Suggestion and Traffic Estimation because previously you had to export from one tool and import into the next – the new process flow is more seamless.

So, even if you leave the tool, then come back a day later, it remembers the keywords you picked from your last session, as shown here:

3. You Can Create Campaigns Based On Your Own Keyword List

If you already have a keyword list from another tool, previous research, your own analytics, etc., you can upload your custom list into the Keyword Planner interface and do all the same keyword researching tasks like organizing keywords, get estimates, filtering keywords (etc.) – all based on the list of keywords that you provided.

4. Keyword Planner Has a New Keyword Mash-Up Capability

Another new feature that wasn’t available in the old Keyword Tool is the ability to mash up and multiply keyword lists. For example, let’s say you own a chain of car dealerships. You could mash up a list of keywords related to the cars you sell (Honda Accord, Honda CRV, etc.) with a list of all the town and city names near your dealerships to get a single combined list. You can then get estimates on those new keywords.

5. The New Keyword Planner is Available Now, But Only if You’re Lucky!

Like what you see? Check your AdWords account under the tools tab, and you may have access. Currently, Keyword Planner is in limited beta – I estimate that it’s live in around 1% of AdWords accounts out there today. However, Google says they will be rolling out the tool to more accounts soon, so keep your eyes peeled.


While you’re waiting, if you’re into advanced long tail keyword research, keyword grouping and discovering keyword niches – be sure to check out my free Keyword Tool, Keyword Niche Finder and Keyword Grouping tools!

Email : naturalseosolution@gmail.com | Mo : 8763723377 | Skype : sunmoon.mohanty

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