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
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Evolving the Way we Measure PPC Program Value with Google Analytics
Jeff SauerFounder, Knowledge.Land
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2Jeff Sauer | Knowledge.land | @jeffalytics
Your Guide
Jeff SauerMarketer and EntrepreneurKnowledge.LandMinneapolis, MN, USAEmail: [email protected] google.com/+JeffSauerNewsletter: bit.ly/jeffalytics
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Back in 2006…
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Jeff Sauer | Knowledge.land | @jeffalytics
My Vocabulary Was Mainly Acronyms
CTR CPC
CPA ROI?
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Jeff Sauer | Knowledge.land | @jeffalytics
Put a Lot of Trust into Google Metrics
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Jeff Sauer | Knowledge.land | @jeffalytics
What I Thought Was ROI
Look at that ROI!
Now Give me all of your budget!
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Jeff Sauer | Knowledge.land | @jeffalytics
No, Seriously. Give Me Your Budget
Give Me Your Budget!
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Jeff Sauer | Knowledge.land | @jeffalytics
Decision Makers Were Skeptical
I’m Skeptical of Your
Numbers
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That is ROAS, Not
ROI
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Jeff Sauer | Knowledge.land | @jeffalytics
I had Tool Blindness
Photo Credit: mirror.co.uk
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Jeff Sauer | Knowledge.land | @jeffalytics
And Google Dependency
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The Cure? Learn to Think
Like a Business Owner
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Jeff Sauer | Knowledge.land | @jeffalytics
What is Important to Us
CPC CTR
CPA ROAS
Quality Score
CPL/CRO/LTV, etc.
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Jeff Sauer | Knowledge.land | @jeffalytics
What is Important to a Business Owner
Net Profit
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None of Our Tools
Measure That!
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Jeff Sauer | Knowledge.land | @jeffalytics
We Need Help!
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Jeff Sauer | Knowledge.land | @jeffalytics
Enter Google Universal Analytics
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Jeff Sauer | Knowledge.land | @jeffalytics
Soon We Can Measure Everything
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8 Ways to Evolve Our
PPC Measuremen
t
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Jeff Sauer | Knowledge.land | @jeffalytics
1) Collect the Right Data
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Jeff Sauer | Knowledge.land | @jeffalytics
Don’t Let IT Be a Roadblock
• Nerd/IT person as roadblockYou Want to
do WHAT to MY Website?
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Jeff Sauer | Knowledge.land | @jeffalytics
Use Google Tag Manager!
Get Google Tag Manager: google.com/tagmanager
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Jeff Sauer | Knowledge.land | @jeffalytics
Now We Can Easily Track
Website Analytics Heat Maps
Remarketing Conversion Tracking
Audience Measurement Display Ads
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Jeff Sauer | Knowledge.land | @jeffalytics
2) Import Your Cost Data
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Jeff Sauer | Knowledge.land | @jeffalytics
Start with Bing Ad Spend
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Jeff Sauer | Knowledge.land | @jeffalytics
And Automate Your Bing Data Upload
Supermetrics Data Uploader: http://supermetrics.com/product/supermetrics-uploader/
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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.
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Jeff Sauer | Knowledge.land | @jeffalytics
3) Use Custom Dimensions and Metrics
Photo Credit: Caneles via Compfight cc
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Jeff Sauer | Knowledge.land | @jeffalytics
Add Your Data into Google Analytics
With Universal Analytics you can create up to 20 custom
dimensions!
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Jeff Sauer | Knowledge.land | @jeffalytics
4) Establish Proper Attribution
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Jeff Sauer | Knowledge.land | @jeffalytics
Attribution Models in Google Analytics
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Jeff Sauer | Knowledge.land | @jeffalytics
Compare Multiple Attribution Models
PPC is Under Represented in a Last Click
Model
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Jeff Sauer | Knowledge.land | @jeffalytics
5) Take Data Out of the Tools(Don’t Be Afraid)
Photo Credit: dotpolka via Compfight
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Taking Data Out of the Tool Allows
you to:
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Jeff Sauer | Knowledge.land | @jeffalytics
6) Calculate Fully Loaded Costs
Photo Credit: brongaeh via Compfight
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Jeff Sauer | Knowledge.land | @jeffalytics
How Profit Should Be Calculated
Revenue
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Jeff Sauer | Knowledge.land | @jeffalytics
Subtract Our Ad Spend
Revenue
Advertising Investment
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Jeff Sauer | Knowledge.land | @jeffalytics
Subtract Cost of Selling Each Product
Revenue
Advertising Investment
Product Cost
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Jeff Sauer | Knowledge.land | @jeffalytics
Subtract Fixed Costs of Business
Revenue
Advertising Investment
Product Cost
Fixed Costs
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Jeff Sauer | Knowledge.land | @jeffalytics
Now You Have Net Profit
Revenue
Advertising Investment
Product Cost
Fixed Costs
Net Profit
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Jeff Sauer | Knowledge.land | @jeffalytics
7) Determine Your True ROI
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Jeff Sauer | Knowledge.land | @jeffalytics
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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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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Jeff Sauer | Knowledge.land | @jeffalytics
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
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True ROI = Bigger
Budgets!
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Jeff Sauer | Knowledge.land | @jeffalytics
8) Add in Life Time Value
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Jeff Sauer | Knowledge.land | @jeffalytics
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%
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Don’t Forget About
Lifetime Value
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49Jeff Sauer | Knowledge.land | @jeffalytics
Thank You!
Jeff SauerMarketer and EntrepreneurKnowledge.LandMinneapolis, MN, USAEmail: [email protected] google.com/+JeffSauerNewsletter: bit.ly/jeffalytics