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...
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...
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...
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...
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....
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...
