First, you get to the Analysis tab by clicking on the platform's top menu, in the "Marketing" tab. And what do you find in this Pareto Ads tab? A lot!

As its name suggests, the information in this tab allows you to make analyzes and gives you ideas about various improvement points in your account. So, shall we explore it?

Risk Score

Pareto created the award winning “Risk Score”, based on the principles of the financial market. With the help of Risk Score, you will be able to assess whether your account is well optimized and to what risk you account is submitted.

Using our super algorithm, we calculate how well structured the account is, based on different parameters that we present later. See the example of the Pareto account:

A “high risk” means low optimization. A “Controlled risk” will indicate high optimization and aggressive expansion, which is analogous to investing in stocks. On the one hand, a “low risk” means high optimization, but little expansion, just like investing in savings.

In addition to this, you will also find a graph that shows the evolution of your Risk Index over time. That way, you can understand how your account has evolved.

The red bars mean negative fluctuations, the green bars show positive fluctuations and the gray bars show constant behavior of the index.

Notice that below the graph there is a “ruler” where you can select the time period you want to see on the graph. By hovering your mouse over the bars, you can see your Pareto Score on that date.

In addition to that, it is possible to analyze each of the optimization possibilities behind the Risk Index! See in detail every opportunity to increase profitability that your account has!

What is behind the Risk Index?

Now that we know what the Risk Index means, how about understanding the metrics behind it?

This index is calculated from evaluations of almost 30 KPIs, which involve different categories. With the help of these KPIs, we can find many opportunities for improvement in the account!

At Pareto, we consider some important analysis categories: Account Structure, Account Efficiency, Targeting, Ad Performance, and Rank Quality.

On the Pareto Radar Chart you can quickly see which areas of your account are most vulnerable and which ones you have the most control over.

See the example below of the Pareto Radar chart of our own account. On the platform, you can see the values of each metric.

Categories and KPIs

Now, let's go over the KPIs that make up these categories of our Risk Index.

Select the desired category to see in detail these indicators of your account. Thus, it is possible to deepen your study and find out what needs to be improved in your account.

On the platform, you can analyze each metric calculated to generate your Risk Index. Have fun finding every detail that can be optimized in your account to improve your result!

Our advanced algorithm provides different weights for each metric. For this, it considers the importance of each one.

Category 1: Account Structure

Some indicators that influence this metric are: Conversion Tracking and Enabling the Attribution Model. That is, if your account is tracking conversions in the best possible way. And here at Pareto we managed to track the site in a very effective way!

Two other indicators on structure indicate how the campaigns are structured in the Pareto Structure and how efficient your Brand Campaign is.

Other important indicators involve importing metrics from other analytics platforms, such as Search Console and Google Analytics. These are important in order to link organic traffic data and various performance metrics related to the website.

Category 2: Cost Efficiency

The first indicator in this part involves the efficiency of excluding and activating search terms. It measures how many search terms have triggered your ads and how many of them are controlled by you. It’s important to have good control over the terms that activate your ads so you don’t pay for disqualified clicks.

The second indicator evaluates whether the account is using remarketing lists to improve the cost performance of the account.

Read more at: The 7 Best Remarketing Audiences for Google Ads

We also have the Pareto Ratio, which assesses whether your account is balanced in terms of the proportion of spend on terms that have conversion or not.

Finally, the latter indicates the proportion of investment in broad keywords, as this type of match is not the most efficient.

It is worth mentioning that it is also possible to access the end of the Insights section, a more detailed view of this category. There, we have a funnel view, which shows the journey of searches, impressions, clicks and conversions.

Category 3: Targeting

The next major category is Targeting, which will show you whether we’re applying bid modifiers. Some of those evaluated are Age, Parental Status (that is, whether the person has children or not), Gender, Location and Device (Mobile, Computer and Tablet).

In addition, we consider whether there are any schedules for ads with bid modifiers based on the time of day and day of the week.

The higher the score in this category means that you have more control over the account.

Read more in this article: What are Bid Adjustments in Google Ads

Category 4: Ad Performance

Another major category in our Risk Index measures Ad Performance.

The first one considers whether the ads with the best performance are being prioritized through the optimized rotation.

It is also evaluated if there are Ad Extensions. These bring more relevance and increase your quality index. Some of the main extensions are: Sitelinks and Callout.

Another important item is the ad experiments. These indicate how many of your ad groups have more than one ad. Thus, we make it possible to carry out statistical tests to show which one is more efficient.

Category 5: Rank quality

Finally, we reached the Rank Quality category, within our Risk Index.

Pareto is one of the few companies in the world to present a numerical value for your account's Quality Score (calculated based on the Google Ads Quality Score). It will show you how well you are doing at keyword auctions compared to competitors.

Other indicators in this category include the predicted clickthrough rate, the relevance of the ad and the landing page experience.

So, that was the Pareto Ads Risk Analysis section. There, you will find precious information about your Google Ads account!

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