What is Lin Rodnitzky ratio?

Published at May 2, 2022

#Google Ads#Google Ads Audit#PPC [pay per click] for busy people
What is Lin Rodnitzky ratio?

what-is-lin-rodnitzky-ratio

What is Lin Rodnitzky ratio?

The L/R ratio is an indicator pointing to the efficiency of an account.
This score divides the CPA of all search queries by the CPA of all your search queries with at least 1 conversion.

Range

1.0-1.5: The account is too conservative. This means that the account is likely missing out on a lot of incremental conversions.

1.5-2.0: The account is well-managed. There is a combination of consistent winners that always bring in sales and experimental queries that are being tested to identify growth opportunities.

2.0-2.5: The account is too aggressive. There are too many queries getting clicks that are not driving conversions.

2.5+: The account is being mismanaged. Money is being wasted, daily.

Script

This Google Ads script will help with the L/R calculations. Be aware that this is not a MCC script.

https://tools.optmyzr.com/scriptdownload/getscriptinstant/49

Thoughts

The ratio is useful if you want to do enough testing in order to find new conversions, but not too much that you are wasting marketing dollars in futile pursuits.
The ratio can be useful for search heavy Google Ads Accounts
i.e. accounts that depend on search terms to bring traffic

That said, in order for the L/R ratio to have any weight, the account needs to

Have conversion tracking enabled
Not switched to Data-driven attribution
Not using automated bidding strategies [which use 50+ signals]
Not having made any changes in the attribution window [especially in the time frame the L/R is calculated]

Do be aware that the L/R ratio is created more as an indicator than a guide.
Below is a screenshot of a Reddit thread where one of the creators explains his reasoning behind the L/R ratio

Screenshot 2022 05 02 at 10 21 30 r PPC Lin Rodnitzky Ratio

If you want to know more about Google Ads audits, then visit the following link

Google Ads Audit guide & free [Notion & Google Sheets] template

Top posts in Google Ads

How to audit Google Ads campaigns

How to audit Performance Max campaigns

How to audit Search campaigns

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