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Ecommerce Advertising: Optimizing For Profit

by David "Psy" Deppner | Feb 1, 2021 | Advertising Profitably

Presented by David DeppnerMeet Magento New York, October 30, 2020 Most of the success metrics used by advertising professionals focus only on ad costs, conversions, and revenue. Why are we ignoring profit margins and the actual impact on the bottom-line? Explore a...
What ROI Can I Get From Google Ads?

What ROI Can I Get From Google Ads?

by David "Psy" Deppner | Jan 6, 2020 | Advertising Profitably

We get this question a lot from online merchants. Before we can answer, we need to get one thing straight: ROI is a term from finance that a lot of marketers use to mean something a little different. Read our blog post on How Digital Marketers Misunderstand...
Your ROI From Google Ads Is Higher Than You Think

Your ROI From Google Ads Is Higher Than You Think

by David "Psy" Deppner | May 27, 2019 | Advertising Profitably

Direct response advertising through Google Ads probably has an ROI greater than any other investment opportunity available to an ecommerce merchant. It’s far greater than most people realize. The real return on investment is obscured by the way traditional cost...
Why Return On Ad Spend (ROAS) Bidding Kills Ecommerce Profit

Why Return On Ad Spend (ROAS) Bidding Kills Ecommerce Profit

by David "Psy" Deppner | Jan 29, 2019 | Advertising Profitably

How does Google calculate ROAS? “Here’s the math: $5 in sales ÷ $1 in ad spend x 100% = 500% target ROAS” (Source: https://support.google.com/adwords/answer/6268637) Before I explain why ROAS kills profit, you need to understand exactly what...
Financial Models For Ecommerce Advertising

Financial Models For Ecommerce Advertising

by David "Psy" Deppner | Jan 12, 2019 | Advertising Profitably

Fundamentally, with pay-per-click advertising, the idea is to balance the cost per click that we’re willing to pay with the profit per click that we expect to achieve. As advertisers, we attempt to find the right level of spending that maximizes the business profit....
Should You Set A Target CPA In Google Ads?

Should You Set A Target CPA In Google Ads?

by David "Psy" Deppner | Dec 10, 2018 | Advertising Profitably

In a word, “No!” In two words, “Hell no!” In eight words, “No, because of the law of diminishing returns.” Here’s why… CPA, or Cost-Per-Acquisition, is a metric based on averages. It’s simply the average cost per conversion. If you’re not really clear...
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