evolving the way we measure ppc program value with google analytics
DESCRIPTION
The new features in Universal Google Analytics are an awesome way to evolve the way you measure your PPC programs. Take advantage of data imports, exports and clear thinking around the value we create, and you will be a hero to your organization. This presentation was first given at HeroConf in Austin, TX to a crowd of PPC experts.TRANSCRIPT
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…
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My Vocabulary Was Mainly Acronyms
CTR CPC
CPA ROI?
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Put a Lot of Trust into Google Metrics
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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!
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Decision Makers Were Skeptical
I’m Skeptical of Your
Numbers
That is ROAS, Not
ROI
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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.
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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/
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Other Data Needs Developers
I love APIs
and Batch
Processes!
Pro Tip: Import your cost data for
Agency fees, Social, Email, SEO, PR, etc.
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3) Use Custom Dimensions and Metrics
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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)
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Taking Data Out of the Tool Allows
you to:
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6) Calculate Fully Loaded Costs
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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
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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