True ROI Measurement in Google Analytics
-
Upload
jeff-sauer -
Category
Education
-
view
2.646 -
download
1
description
Transcript of True ROI Measurement in Google Analytics
True AdWords ROI Measurement For E-Commerce Websites
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
Your Guide
2
Jeff Sauer Marketer and Entrepreneur Jeffaly.cs and Knowledge Land Minneapolis, MN, USA google.com/+JeffSauer knowledge.land
Do You Have TBAGD?
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
What is TBAGD?
Tool Blindness
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
What is TBAGD?
Tool Blindness
Google Dependency
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
What is Tool Blindness?
Photo Credit: mirror.co.uk
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
What is Google Dependency?
Let’s Talk About ROI
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
ROI Does Not Stand For:
• Regal or Idiot • Roided Out Imbecile • Randy ‘Ol Ins.gator • Rager on Ibiza
Return on Investment
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
Return On Investment
How Much Money Did We Spend?
Investment
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
Return On Investment
How Much Money Did We Spend?
How Much Money Did We Make?
Investment Return
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
Yet We Send Reports Like
This
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
ROI According to Google Analytics
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
And We Think To Ourselves
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
But Executives Think of Us Like This
It’s Not Your Fault
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
It’s Not Your Fault
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
It’s Not Your Fault
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
It’s Not Your Fault
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
You Simply Have a Case of TBAGD
Tool Blindness
Google Dependency
Time to Evolve
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
Evolution of Man
Photo Credit: wallpapersus.com
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
Since We’re an Un-Conference
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
Let’s Remove the Google Goggles
Let’s Remove the Beer Goggles
Sidebar: Google Image
Search for Ugly to Pretty
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
Ugly to Pretty = Goldmine
ROI in Google Analytics
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
This is ROI in a Vacuum
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
ROI by Very Definition, That’s All
By Defini.on, This is Return on Investment
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
Investment and Revenue Are Important
Investment
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
But… We Forgot About Profit
We Forgot About Dre Profit
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
We’re Still Far From Supermodels
Finding Your True ROI
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
How ROI Should Really Be Calculated
Revenue
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
Subtract Our Ad Spend
Revenue
Adver.sing Investment
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
Subtract Cost of Selling Each Product
Revenue
Adver.sing Investment
Product Cost
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
Subtract Fixed Costs of Business
Revenue
Adver.sing Investment
Product Cost
Fixed Costs
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
Now You Have Net Profit
Revenue
Adver.sing Investment
Product Cost
Fixed Costs
Net Profit
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
Here’s an ROI Equation to Use
Gain From Investment (Net Profit)
Cost of Investment
Cost of Investment
ROI
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
Pulling It All Together
Revenue $82,730 100%
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
Pulling It All Together
Revenue $82,730 100% Ad Spend $10,942 -‐
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
Pulling It All Together
Revenue $82,730 100% Ad Spend $10,942 -‐ Return on Ad Spend $71,788 656%
AKA ROI in AdWords
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
Pulling It All Together
Revenue $82,730 100% Ad Spend $10,942 -‐ Return on Ad Spend $71,788 656% Cost of Goods Sold $62,021 75%
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
Pulling It All Together
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%
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
Pulling It All Together
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%
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
Pulling It All Together
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%
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
Pulling It All Together
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%
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
We’re Getting Closer
Incorporating Lifetime Value
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
Future Purchases = No Ad Spend?
Assume No Future Spend
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
Future Purchases = No Ad Spend?
Assume No Future Spend
AND
Customer Has 1.5 Life.me Purchases
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
We Find the True ROI of our Efforts
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%
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
We Have Cured Measure Blindness!
Thank You, Old Chap!
Source: hkps://answers.yahoo.com/ques.on/index?qid=20080201184249AAHqd5l
Jeff Sauer | @jeffaly.cs | #measurecamp| True AdWords ROI Repor.ng
Jeff Sauer Marketer and Entrepreneur Jeffaly.cs and Knowledge Land Minneapolis, MN, USA google.com/+JeffSauer knowledge.land
Thank You!
57