evolving the way we measure ppc program value with google analytics

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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.

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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: jeff@jeffalytics.com 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

Jeff Sauer | Knowledge.land | @jeffalytics

And Google Dependency

The Cure? Learn to Think

Like a Business Owner

Jeff Sauer | Knowledge.land | @jeffalytics

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!

Jeff Sauer | Knowledge.land | @jeffalytics

We Need Help!

Jeff Sauer | Knowledge.land | @jeffalytics

Enter Google Universal Analytics

Jeff Sauer | Knowledge.land | @jeffalytics

Soon We Can Measure Everything

8 Ways to Evolve Our

PPC Measuremen

t

Jeff Sauer | Knowledge.land | @jeffalytics

1) Collect the Right Data

Jeff Sauer | Knowledge.land | @jeffalytics

Don’t Let IT Be a Roadblock

• Nerd/IT person as roadblockYou Want to

do WHAT to MY Website?

Jeff Sauer | Knowledge.land | @jeffalytics

Use Google Tag Manager!

Get Google Tag Manager: google.com/tagmanager

Jeff Sauer | Knowledge.land | @jeffalytics

Now We Can Easily Track

Website Analytics Heat Maps

Remarketing Conversion Tracking

Audience Measurement Display Ads

Jeff Sauer | Knowledge.land | @jeffalytics

2) Import Your Cost Data

Jeff Sauer | Knowledge.land | @jeffalytics

Start with Bing Ad Spend

Jeff Sauer | Knowledge.land | @jeffalytics

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

Jeff Sauer | Knowledge.land | @jeffalytics

Add Your Data into Google Analytics

With Universal Analytics you can create up to 20 custom

dimensions!

Jeff Sauer | Knowledge.land | @jeffalytics

4) Establish Proper Attribution

Jeff Sauer | Knowledge.land | @jeffalytics

Attribution Models in Google Analytics

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Compare Multiple Attribution Models

PPC is Under Represented in a Last Click

Model

Jeff Sauer | Knowledge.land | @jeffalytics

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:

Jeff Sauer | Knowledge.land | @jeffalytics

6) Calculate Fully Loaded Costs

Photo Credit: brongaeh via Compfight

Jeff Sauer | Knowledge.land | @jeffalytics

How Profit Should Be Calculated

Revenue

Jeff Sauer | Knowledge.land | @jeffalytics

Subtract Our Ad Spend

Revenue

Advertising Investment

Jeff Sauer | Knowledge.land | @jeffalytics

Subtract Cost of Selling Each Product

Revenue

Advertising Investment

Product Cost

Jeff Sauer | Knowledge.land | @jeffalytics

Subtract Fixed Costs of Business

Revenue

Advertising Investment

Product Cost

Fixed Costs

Jeff Sauer | Knowledge.land | @jeffalytics

Now You Have Net Profit

Revenue

Advertising Investment

Product Cost

Fixed Costs

Net Profit

Jeff Sauer | Knowledge.land | @jeffalytics

7) Determine Your True ROI

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

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%

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

True ROI = Bigger

Budgets!

Jeff Sauer | Knowledge.land | @jeffalytics

8) Add in Life Time Value

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%

Don’t Forget About

Lifetime Value

49Jeff Sauer | Knowledge.land | @jeffalytics

Thank You!

Jeff SauerMarketer and EntrepreneurKnowledge.LandMinneapolis, MN, USAEmail: jeff@jeffalytics.com google.com/+JeffSauerNewsletter: bit.ly/jeffalytics

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