If you run Google Ads campaigns for yourself or for your clients, you would agree that auditing the campaigns from time to time is very important. It helps you uncover different performance signals and problematic optimisation strategies. At the same time, you get to understand different aspects of account that you should work on. You get several insights that can help you make data-driven decisions.
What is the Lin-Rodnitzky Ratio?
Lin-Rodnitzky ratio is a quick method to access the overall performance of your Google Ads campaigns. It was developed by the founders of 3Q digital – Will Lin and David Rodnitzky.
If you ask me if it is still relevant?
I would say that the method is old and several things have changed with Google Ads since it was devised. But if are ready to ignore a few important aspects like Conversion Attribution, Assisted Conversions and want to have a quick overview of a Google Ads account’s performance, the Lin-Rodnitzky ratio still stands relevant.
The benefits of the Lin-Rodnitzky ratio
Google Ads audits can be very time-consuming. But Lin/Rodnitzky Ratio makes this process a bit easier and faster by quickly providing you with key insights in a single number.
Are there any pre-requisites for the Lin-Rodnitzky ratio?
Yes, Conversion Tracking is required. Your account must be having conversion set up done and you should have at least a few weeks of performance data in your account.
How to calculate the Lin-Rodnitzky ratio?
To calculate the Lin-Rodnitzky Ratio, you need to prepare the Search Term Report and filter it by Conversion = > 0.
Next, add the metric – Cost Per Conversion to the table.
Let’s understand it step by step now.
- Go to select Search Campaigns.
- Select a date range of at least 3 to 4 weeks.
- Go to Keywords > Search Terms
- Make sure to add the Conversion and Cost/Conv. Columns to the view if they are not already there.
- Click Add Filter just above the table in the top left area.
- Select Conversion from the Filter dropdown.
- Add Conversions > 0 and Hit Apply.
- Scroll down to find Total: Filtered search terms row and look for the value in the Cost/Conv column. Note it down.
- Now, find Total: Search campaigns row and note down the value from Cost/Conv. column for it.
- Finally, divide the Value of Total Search Campaigns Cost/Conv. by Total Filtered Search Terms Cost/Conv.
What’s the number that you get?
Understanding the Lin-Rodnitzky ratio
- 1.0-1.5: The campaign setup and optimization strategy of the account can be termed overly cautious. Most probably, it indicates that the only queries receiving any traffic are brand terms or the most highly targeted ones. It implies that the account is missing out on a significant number of additional conversions, each and every one of which may be highly profitable for the company. The campaigns need expansion.
- 1.5-2.0: Overall, it looks like you’ve done a great job of keeping the account in good shape. There is a balance of consistent winners that generate leads or sales and new keywords that are being tested to identify growth prospects.
- 2.0-2.5: The account is too aggressive. There are too many queries that attract clicks but do not bring in conversions. This might be due to overuse of broad match keywords, information intent keywords, lack of proper attention to the account, or a lack of thorough analysis of key performance metrics.
- 2.5+: The account seems to be mismanaged. Money is being wasted daily. Only a few search terms are bringing in conversions, the rest are attracting only clicks.
However, if the search queries are still very much relevant to the offerings, this score might also indicate something real bad with landing pages.
What to do when your Lin-Rodnitzky Ratio is very low?
You are very likely playing extremely safe. You have a very narrowed down targeting. It might be appearing great for you, but you are definitely missing out on opportunities for scaling your campaigns up and bringing in additional conversions.
You need to take some risks and experiment. Expand your campaigns to tap on the opportunity that new search queries can bring in for you.
Work with your keywords match types, open them a bit. If using Exact, consider using Phrase matches. If running ads only for brand keywords, have non-brand specific campaigns/ad-groups and keywords too. Find new keywords to expand your keywords portfolio.
You can also experiment Dynamic Search Ads to scale up the numbers.
What to do when your Lin-Rodnitzky Ratio is too high?
In simple terms, it means that the majority of your search queries are not bringing in any conversion. There’s an issue with intent. Either the queries are very broad intents are or they are simply not very relevant to what you offer.
Some of the things that you can do are:
- Check your Search Term report for relevance. Add Negatives for irrelevant terms.
- You may consider pausing the worst performing keywords.
- If you are using Broad match or one-word keywords, you should rethink and switch to Phrase match and narrow down on the intents of your keywords.
- You can also consider lowering bids for poorly performing keywords and increasing them for better-performing ones.
- Check your landing page for its relevance with your ad copies. Is there any disconnect?
- Is your ad claiming anything that’s not there on the landing page? Check for it.
Do check your score today and share the finding in the comment section below.
To conclude on Lin-Rodnitzky Ratio, I would say it’s not an official Google Ads Performance or Audit metric. Neither does it guarantee that it’s always accurate. But in most cases, it does give a clue as to how the campaigns are being managed and optimized.
If you need to understand how you can improve your existing campaigns, subject your spends well, and scale the numbers up, you can order a detailed Google Ads Audit Report today.