- Apr 24, 2013
- 65
- 17
- First Name
- Anthony
Hello,
I was reading PCGs report on AdWords and I thought I would provide a sample formula dealers can use to measure ROI.
It doesn't really matter what "x" is. You can define these in google analytics and import it automatically into adwords (as value for conversion). Then look at the "All Conv. value" column.
One last step. I'm sure these is a more elegant way of doing this, but:
Presto! You know have ROI! In this example, if you exclude Brand terms, this hypothetical campaign got a 7.7x ROI. If the expected ad cost was $500/unit, it beat expectations by 11%. Again, you can choose any value for x, just stick with it so you can compare month/month changes. x doesn't effect the ROI calculation, it only effects the percent change vs expected. This is also a good way to split apart brand terms! Your brand terms should have a 10-20x better ROI than non brand terms. (You have already paid for them!
Forms and leads are statistically provable. For example for most dealers ~80 unique vdps = 1 sale.
Key page views get a little bit fuzzy - but you can always leave that off if there are any concerns.
PS! Once you have this setup Google can auto bid on this using ROAS. Hope this helps!
I was reading PCGs report on AdWords and I thought I would provide a sample formula dealers can use to measure ROI.
It doesn't really matter what "x" is. You can define these in google analytics and import it automatically into adwords (as value for conversion). Then look at the "All Conv. value" column.
One last step. I'm sure these is a more elegant way of doing this, but:
Presto! You know have ROI! In this example, if you exclude Brand terms, this hypothetical campaign got a 7.7x ROI. If the expected ad cost was $500/unit, it beat expectations by 11%. Again, you can choose any value for x, just stick with it so you can compare month/month changes. x doesn't effect the ROI calculation, it only effects the percent change vs expected. This is also a good way to split apart brand terms! Your brand terms should have a 10-20x better ROI than non brand terms. (You have already paid for them!
Forms and leads are statistically provable. For example for most dealers ~80 unique vdps = 1 sale.
Key page views get a little bit fuzzy - but you can always leave that off if there are any concerns.
PS! Once you have this setup Google can auto bid on this using ROAS. Hope this helps!
