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Evolving the Way we Measure PPC Program Value with Google Analytics
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Transcript of Evolving the Way we Measure PPC Program Value with Google Analytics
Evolving the Way we Measure PPC Program Value with Google Analytics
Jeff SauerFounder, Knowledge.Land
2Jeff Sauer | Knowledge.land | @jeffalytics
Your Guide
Jeff SauerMarketer and EntrepreneurKnowledge.LandMinneapolis, MN, USAEmail: [email protected] google.com/+JeffSauerNewsletter: bit.ly/jeffalytics
Back in 2006…
Jeff Sauer | Knowledge.land | @jeffalytics
My Vocabulary Was Mainly Acronyms
CTR CPC
CPA ROI?
Jeff Sauer | Knowledge.land | @jeffalytics
Put a Lot of Trust into Google Metrics
Jeff Sauer | Knowledge.land | @jeffalytics
What I Thought Was ROI
Look at that ROI!
Now Give me all of your budget!
Jeff Sauer | Knowledge.land | @jeffalytics
No, Seriously. Give Me Your Budget
Give Me Your Budget!
Jeff Sauer | Knowledge.land | @jeffalytics
Decision Makers Were Skeptical
I’m Skeptical of Your
Numbers
That is ROAS, Not
ROI
Jeff Sauer | Knowledge.land | @jeffalytics
I had Tool Blindness
Photo Credit: mirror.co.uk
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And Google Dependency
The Cure? Learn to Think
Like a Business Owner
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What is Important to Us
CPC CTR
CPA ROAS
Quality Score
CPL/CRO/LTV, etc.
Jeff Sauer | Knowledge.land | @jeffalytics
What is Important to a Business Owner
Net Profit
None of Our Tools
Measure That!
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We Need Help!
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Enter Google Universal Analytics
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Soon We Can Measure Everything
8 Ways to Evolve Our
PPC Measuremen
t
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1) Collect the Right Data
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Don’t Let IT Be a Roadblock
• Nerd/IT person as roadblockYou Want to
do WHAT to MY Website?
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Use Google Tag Manager!
Get Google Tag Manager: google.com/tagmanager
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Now We Can Easily Track
Website Analytics Heat Maps
Remarketing Conversion Tracking
Audience Measurement Display Ads
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2) Import Your Cost Data
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Start with Bing Ad Spend
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And Automate Your Bing Data Upload
Supermetrics Data Uploader: http://supermetrics.com/product/supermetrics-uploader/
Jeff Sauer | Knowledge.land | @jeffalytics
Other Data Needs Developers
I love APIs
and Batch
Processes!
Pro Tip: Import your cost data for
Agency fees, Social, Email, SEO, PR, etc.
Jeff Sauer | Knowledge.land | @jeffalytics
3) Use Custom Dimensions and Metrics
Photo Credit: Caneles via Compfight cc
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Add Your Data into Google Analytics
With Universal Analytics you can create up to 20 custom
dimensions!
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4) Establish Proper Attribution
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Attribution Models in Google Analytics
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Compare Multiple Attribution Models
PPC is Under Represented in a Last Click
Model
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5) Take Data Out of the Tools(Don’t Be Afraid)
Photo Credit: dotpolka via Compfight
Taking Data Out of the Tool Allows
you to:
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6) Calculate Fully Loaded Costs
Photo Credit: brongaeh via Compfight
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How Profit Should Be Calculated
Revenue
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Subtract Our Ad Spend
Revenue
Advertising Investment
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Subtract Cost of Selling Each Product
Revenue
Advertising Investment
Product Cost
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Subtract Fixed Costs of Business
Revenue
Advertising Investment
Product Cost
Fixed Costs
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Now You Have Net Profit
Revenue
Advertising Investment
Product Cost
Fixed Costs
Net Profit
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7) Determine Your True ROI
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Here’s an ROI Equation to Use
Gain From Investment (Net Profit)
Cost of Investment
Cost of Investment
ROI
True ROI Measurement: http://bit.ly/TrueROI
Jeff Sauer | Knowledge.land | @jeffalytics
Here’s a Real Life Example
Revenue $82,730 100%Ad Spend $10,942 -Return on Ad Spend $71,788 656%Cost of Goods Sold $62,021 75%Gross Revenue $9,767 12%Total Fixed Costs $5,000 6%Net Profit $4,767 6%True ROI 44%
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That’s a Big Difference!
Revenue $82,730 100%Ad Spend $10,942 -Return on Ad Spend $71,788 656%Cost of Goods Sold $62,021 75%Gross Revenue $9,767 12%Total Fixed Costs $5,000 6%Net Profit $4,767 6%True ROI 44%
There is a Big Difference
between tools and reality!
Learn How To Get This Spreadsheet: http://bit.ly/AdWordsROI
True ROI = Bigger
Budgets!
Jeff Sauer | Knowledge.land | @jeffalytics
8) Add in Life Time Value
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Lifetime Value = Long Term Investment
Revenue $124,095 100%Ad Spend $10,942 -
Return on Ad Spend $113,153 1034%
Cost of Goods Sold $93,031 75%Gross Revenue $20,122 16%
Total Fixed Costs $5,000 6%Net Profit $15,122 18%True ROI 138%
Don’t Forget About
Lifetime Value
49Jeff Sauer | Knowledge.land | @jeffalytics
Thank You!
Jeff SauerMarketer and EntrepreneurKnowledge.LandMinneapolis, MN, USAEmail: [email protected] google.com/+JeffSauerNewsletter: bit.ly/jeffalytics