True ROI Measurement in Google Analytics
- 2. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
Your Guide
2
Jeff
Sauer
Marketer
and
Entrepreneur
Jeffaly.cs
and
Knowledge
Land
Minneapolis,
MN,
USA
google.com/+JeffSauer
knowledge.land
- 4. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
What is TBAGD?
Tool
Blindness
- 5. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
What is TBAGD?
Tool
Blindness
Google
Dependency
- 6. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
What is Tool Blindness?
Photo
Credit:
mirror.co.uk
- 7. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
What is Google Dependency?
- 9. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
ROI Does Not Stand For:
• Regal
or
Idiot
• Roided
Out
Imbecile
• Randy
‘Ol
Ins.gator
• Rager
on
Ibiza
- 11. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
Return On Investment
How
Much
Money
Did
We
Spend?
Investment
- 12. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
Return On Investment
How
Much
Money
Did
We
Spend?
How
Much
Money
Did
We
Make?
Investment
Return
- 13. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
- 15. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
ROI According to Google Analytics
- 16. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
And We Think To Ourselves
- 17. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
But Executives Think of Us Like This
- 19. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
It’s Not Your Fault
- 20. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
It’s Not Your Fault
- 21. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
It’s Not Your Fault
- 22. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
You Simply Have a Case of TBAGD
Tool
Blindness
Google
Dependency
- 24. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
Evolution of Man
Photo
Credit:
wallpapersus.com
- 25. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
Since We’re an Un-Conference
- 26. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
Let’s Remove the Google Goggles
Let’s
Remove
the
Beer
Goggles
- 28. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
Ugly to Pretty = Goldmine
- 30. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
This is ROI in a Vacuum
- 31. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
ROI by Very Definition, That’s All
By
Defini.on,
This
is
Return
on
Investment
- 32. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
Investment and Revenue Are Important
Investment
- 33. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
But… We Forgot About Profit
We
Forgot
About
Dre
Profit
- 34. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
We’re Still Far From Supermodels
- 36. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
How ROI Should Really Be Calculated
Revenue
- 37. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
Subtract Our Ad Spend
Revenue
Adver.sing
Investment
- 38. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
Subtract Cost of Selling Each Product
Revenue
Adver.sing
Investment
Product
Cost
- 39. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
Subtract Fixed Costs of Business
Revenue
Adver.sing
Investment
Product
Cost
Fixed
Costs
- 40. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
Now You Have Net Profit
Revenue
Adver.sing
Investment
Product
Cost
Fixed
Costs
Net
Profit
- 41. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
Here’s an ROI Equation to Use
Gain
From
Investment
(Net
Profit)
Cost
of
Investment
Cost
of
Investment
ROI
- 42. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
Pulling It All Together
Revenue
$82,730
100%
- 43. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
Pulling It All Together
Revenue
$82,730
100%
Ad
Spend
$10,942
-‐
- 44. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
Pulling It All Together
Revenue
$82,730
100%
Ad
Spend
$10,942
-‐
Return
on
Ad
Spend
$71,788
656%
AKA
ROI
in
AdWords
- 45. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
Pulling It All Together
Revenue
$82,730
100%
Ad
Spend
$10,942
-‐
Return
on
Ad
Spend
$71,788
656%
Cost
of
Goods
Sold
$62,021
75%
- 46. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
Pulling It All Together
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%
- 47. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
Pulling It All Together
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%
- 48. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
Pulling It All Together
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%
- 49. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
Pulling It All Together
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%
- 50. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
We’re Getting Closer
- 52. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
Future Purchases = No Ad Spend?
Assume
No
Future
Spend
- 53. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
Future Purchases = No Ad Spend?
Assume
No
Future
Spend
AND
Customer
Has
1.5
Life.me
Purchases
- 54. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
We Find the True ROI of our Efforts
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%
- 55. Je��
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
We Have Cured Measure Blindness!
- 57. Jeff
Sauer
|
@jeffaly.cs
|
#measurecamp|
True
AdWords
ROI
Repor.ng
Jeff
Sauer
Marketer
and
Entrepreneur
Jeffaly.cs
and
Knowledge
Land
Minneapolis,
MN,
USA
google.com/+JeffSauer
knowledge.land
Thank You!
57