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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?


Put a Lot of Trust into Google Metrics


What I Thought Was ROI

Look at that ROI!

Now Give me all of your budget!


No, Seriously. Give Me Your Budget

Give Me Your Budget!


Decision Makers Were Skeptical

I’m Skeptical of Your

Numbers

That is ROAS, Not

ROI


I had Tool Blindness

Photo Credit: mirror.co.uk

http://www.mirror.co.uk/news/world-news/whale-under-boat-amazing-pictures-2940085


And Google Dependency

The Cure? Learn to Think

Like a Business Owner


What is Important to Us

CPC CTR

CPA ROAS

Quality Score

CPL/CRO/LTV, etc.


What is Important to a Business Owner

Net Profit

None of Our Tools

Measure That!


We Need Help!


Enter Google Universal Analytics


Soon We Can Measure Everything

8 Ways to Evolve Our

PPC Measuremen

t


1) Collect the Right Data


Don’t Let IT Be a Roadblock

• Nerd/IT person as roadblockYou Want to

do WHAT to MY Website?


Use Google Tag Manager!

Get Google Tag Manager: google.com/tagmanager

http://google.com/tagmanager




Now We Can Easily Track

Website Analytics Heat Maps

Remarketing Conversion Tracking

Audience Measurement Display Ads


2) Import Your Cost Data


Start with Bing Ad Spend


And Automate Your Bing Data Upload

Supermetrics Data Uploader: http://supermetrics.com/product/supermetrics-uploader/

http://supermetrics.com/product/supermetrics-uploader/

http://supermetrics.com/product/supermetrics-uploader/


Other Data Needs Developers

I love APIs

and Batch

Processes!

Pro Tip: Import your cost data for

Agency fees, Social, Email, SEO, PR, etc.


3) Use Custom Dimensions and Metrics

Photo Credit: Caneles via Compfight cc

http://www.flickr.com/photos/94446676@N00/4908273720

http://www.flickr.com/photos/94446676@N00/4908273720

http://compfight.com/

https://creativecommons.org/licenses/by/2.0/


Add Your Data into Google Analytics

With Universal Analytics you can create up to 20 custom

dimensions!


4) Establish Proper Attribution


Attribution Models in Google Analytics


Compare Multiple Attribution Models

PPC is Under Represented in a Last Click

Model


5) Take Data Out of the Tools(Don’t Be Afraid)

Photo Credit: dotpolka via Compfight

http://www.flickr.com/photos/80284579@N00/249129144/


https://creativecommons.org/licenses/by-nc/2.0/

Taking Data Out of the Tool Allows

you to:


6) Calculate Fully Loaded Costs

Photo Credit: brongaeh via Compfight



https://creativecommons.org/licenses/by-nc/2.0/


How Profit Should Be Calculated

Revenue


Subtract Our Ad Spend

Revenue

Advertising Investment


Subtract Cost of Selling Each Product

Revenue


Product Cost


Subtract Fixed Costs of Business

Revenue


Product Cost

Fixed Costs


Now You Have Net Profit

Revenue


Product Cost

Fixed Costs

Net Profit


7) Determine Your True ROI


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

http://bit.ly/TrueROI

http://bit.ly/TrueROI


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%


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

http://bit.ly/AdWordsROI

http://bit.ly/AdWordsROI

True ROI = Bigger

Budgets!


8) Add in Life Time Value


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