Introducing SMART Goals by Google
Google recently introduced Smart Goals to help advertisers that has previously not been able to or has yet to measure conversions and optimize their campaigns to maximize their Adwords budget.
Smart Goals helps to identify what traffic as most likely to convert when they visit your site by using dozens of key factors that correlate with likelihood to convert: things like session duration, pages per session, location, device and browser.
These key factors are distilled from data collected and analysed from other websites that has opted in when using Google Analytic.
Can I make use of Smart Goals?
There are a few prerequisites. From Google adwords blog:
- Must link your Google Analytics and AdWords account.
2. Your Adwords must have 1000 clicks within a 30 days period starting from when you link your Google Analytics to your AdWords account.
3. The reporting view must not receive more than 1 million hits per day.
4. The Data Sharing setting Google products and services must be turned on for your Google Analytics account.
* As this is a newly released feature, it may have not been made available to you yet.
How to set up Smart Goals
Smart goals just works. By enabling it, it automatically starts identifying what it deems the highest quality traffic that you have.
Also to help you decide if you want to activate Smart Goals, you can see the Smart Goals report in the “Conversions” section of Google Analytics to see how Smart Goals traffic perform against your regular traffic. This is to help you evaluate Smart Goals before you activate the feature.
If you’ve decided to make use of smart goals, you’ll need to import the data into your Adwords and let it run for a few weeks before you can start making it to maximize your Adwords budget.
How to make use of Smart Goals for your Adwords budget
To use Smart Goals to optimize your AdWords performance, divide the cost of your ads by the number of completed Smart Goals to get your cost per acquisition (CPA) and set your target CPA in Adwords accordingly.
Extracted from Google:
You spent $2,000 in Adwords over the past two weeks and have 80 Smart Goals conversions. Therefore, the average CPA for a Smart Goals session during that time period is $25 ($2,000 / 80 = $25). This is the average cost for you to acquire a session with a high likelihood to convert, based on the Smart Goals model.
In this example, you should set your target CPA in Adwords to $25.
Hope this helps to make the best out of your advertising dollars!