End-to-end analytics in practice: more profit, cheaper advertising
The task is very simple: increase investment from advertising investments, i.e. for every dollar invested in advertising, get even more net profit from orders.
We have a company for the production of designer perfumes. Release in small batches. Exclusive smells. Elite perfumes to order. The main US market. Also 3 months ago, the customer launched an advertising campaign in the Canadian market.
Customer’s advertising budget consists of 5 AdWords advertising campaigns.
Broadband Campaign The name speaks for itself - a broadcast company. All popular requested keywords are included that only relate to custom perfumes. A third of the advertising budget - $ 2345 - was invested in this advertising campaign.
USA Designer Perfumes Campaign. This advertising company has more specifics (order exclusive perfumes with delivery in the USA). Another third of the budget - $ 2087 invested in this advertising campaign.
USA Elite Designer Perfumes Campaign. This ad campaign is teeming with technical terms such as elite perfume components, creation method, etc. There are few exact requests. The budget of the advertising campaign is $ 1349.
The campaign Canada Designer Perfumes, as the name implies, is similar to USA Designer Perfumes, with the only difference being launched in Canada.
Next, we evaluate the overall effectiveness of advertising. Those. We analyze what the visitor who came to the landing page costs us. The landing page is the checkout page (place an order, leave a request, write a letter).
Conclusions from your investment in advertising with Google AdWords.
1. From the point of view of money invested in advertising, the most profitable advertising campaign is USA Elite Designer Perfumes. It has less money spent on advertising, less empty clicks and more targeted clicks.
2. There is an understanding of which orders to give priority. For example, the average profit for ordering designer perfumes will be less if the order came from Canada because attracting a Canadian visitor is 30% more expensive.
3. CPC is not a key indicator. The most expensive cost per click is the cheapest cost of the received order form or letter from the visitor.
4. It is most beneficial to invest in an Elite Designer Perfumes ad campaign. Recommendation: launch a similar advertising campaign in Canada.
Next, we move on to CRM (Hubspot). According to CRM, it is clear that over the past month, only 26 letters, requests or requests were actually received through the paid advertising channel. Recommendation: In CRM, add a country field to each client (USA, Canada), then it will be clear from the advertisement from which region the client came from. In this review, Designer Perfumes will be merged into one category.
From these statistics it is seen that:
Campaign Broad Campaign . Many people are interested in custom-made perfumes, but very few people are really ready to order a service. In practice, a campaign does not make sense because it works at a loss. Perhaps visitors are not ready to form a request, do not agree with the price, etc.
Designer Perfumes campaign. Visitors understand what they pay for. 30% completed the target action, 70% not. Perhaps they need to be further persuaded to complete the order. Maybe they place an order elsewhere for some reason.
Elite Designer Perfumes campaign . The most effective in terms of “less advertising costs more than real requests”. The number of interested people is as close as possible to the number of applications actually received. It is recommended that this campaign be launched in other regions (Canada).
We calculate the final cost of the received request or the sent letter.
Despite the largest budget and the number of clicks Broad Campaign brought only 3 real requests. The average cost of a received letter or completed form is $ 782.
Designer Perfumes (USA + Canada) with a comparable budget brought 3 times more real requests for order fulfillment. The average cost of a received letter or completed form is $ 273.
The company Elite Designer Perfumes with a 2 times smaller budget brought 4 times more real requests for order fulfillment. The average cost of a received letter or a completed form is $ 104.
Further in CRM we analyze real orders and see how the deal ended.
Explanation of the table: Orders not received mean that the client was interested in the shelf, specified the price, availability, delivery conditions, etc. but in the end the order did not place.
Perhaps another order means that the client requested the exact price, availability, delivery condition. Awaiting order confirmation.
In the whole market, we see that by investing in advertising $ 6,420 hypothetically we can earn $ 27,403.
Separately for advertising campaigns, the situation is as follows.
Campaign Broad Campaign.
Invested: $ 2,345. It was possible to earn $ 1197. Earned $ 0.
Designer Perfumes Campaign
Invested: $ 2726. It was possible to earn $ 8848. Earned $ 2984.
Elite Designer Perfumes Campaign
Invested: $ 1349. It was possible to earn $ 17,358. Earned $ 4190.
Finally, we can calculate the profit for each dollar invested in advertising.
Investing in Broad Campaign we lose money.
Investing in Designer Perfumes we can earn 1-3 times more.
Investing in Elite Designer Perfumes we can earn 3-12 times more.
Analytics includes performance evaluation only Google AdWords.
Analytics can be influenced by facts that are not taken into account:
- optimization of the advertising campaign itself (keywords, audience choice)
- site optimization (structure, internal transitions)
- seasonality and general market conditions
- demand for services provided
- price of services compared to competitors
... and others.
For a month of work from the advertising company Google AdWords, only 26 real requests came (completed forms, letters). This data is not enough for the imposition of more complex formulas and coefficients. If there are more than 100 requests, it will be possible to predict the average profit from the order, the percentage of improvements, etc.
General recommendations for the next month:
The general recommendation will work provided that the market capacity allows you to increase orders, i.e. in the region where the ad is published there are enough people who want to see the ad and click on it.
If the market capacity is not enough, it makes sense to offer a new service in the same market or to provide services in a new market.
We have a company for the production of designer perfumes. Release in small batches. Exclusive smells. Elite perfumes to order. The main US market. Also 3 months ago, the customer launched an advertising campaign in the Canadian market.
Part 1. Budget allocation
Customer’s advertising budget consists of 5 AdWords advertising campaigns.
Broadband Campaign The name speaks for itself - a broadcast company. All popular requested keywords are included that only relate to custom perfumes. A third of the advertising budget - $ 2345 - was invested in this advertising campaign.
USA Designer Perfumes Campaign. This advertising company has more specifics (order exclusive perfumes with delivery in the USA). Another third of the budget - $ 2087 invested in this advertising campaign.
USA Elite Designer Perfumes Campaign. This ad campaign is teeming with technical terms such as elite perfume components, creation method, etc. There are few exact requests. The budget of the advertising campaign is $ 1349.
The campaign Canada Designer Perfumes, as the name implies, is similar to USA Designer Perfumes, with the only difference being launched in Canada.
Part 2. Overall effectiveness of advertising campaigns
Next, we evaluate the overall effectiveness of advertising. Those. We analyze what the visitor who came to the landing page costs us. The landing page is the checkout page (place an order, leave a request, write a letter).
Conclusions from your investment in advertising with Google AdWords.
1. From the point of view of money invested in advertising, the most profitable advertising campaign is USA Elite Designer Perfumes. It has less money spent on advertising, less empty clicks and more targeted clicks.
2. There is an understanding of which orders to give priority. For example, the average profit for ordering designer perfumes will be less if the order came from Canada because attracting a Canadian visitor is 30% more expensive.
3. CPC is not a key indicator. The most expensive cost per click is the cheapest cost of the received order form or letter from the visitor.
4. It is most beneficial to invest in an Elite Designer Perfumes ad campaign. Recommendation: launch a similar advertising campaign in Canada.
Part 3. CRM analysis. How many orders were actually received?
Next, we move on to CRM (Hubspot). According to CRM, it is clear that over the past month, only 26 letters, requests or requests were actually received through the paid advertising channel. Recommendation: In CRM, add a country field to each client (USA, Canada), then it will be clear from the advertisement from which region the client came from. In this review, Designer Perfumes will be merged into one category.
From these statistics it is seen that:
Campaign Broad Campaign . Many people are interested in custom-made perfumes, but very few people are really ready to order a service. In practice, a campaign does not make sense because it works at a loss. Perhaps visitors are not ready to form a request, do not agree with the price, etc.
Designer Perfumes campaign. Visitors understand what they pay for. 30% completed the target action, 70% not. Perhaps they need to be further persuaded to complete the order. Maybe they place an order elsewhere for some reason.
Elite Designer Perfumes campaign . The most effective in terms of “less advertising costs more than real requests”. The number of interested people is as close as possible to the number of applications actually received. It is recommended that this campaign be launched in other regions (Canada).
We calculate the final cost of the received request or the sent letter.
Despite the largest budget and the number of clicks Broad Campaign brought only 3 real requests. The average cost of a received letter or completed form is $ 782.
Designer Perfumes (USA + Canada) with a comparable budget brought 3 times more real requests for order fulfillment. The average cost of a received letter or completed form is $ 273.
The company Elite Designer Perfumes with a 2 times smaller budget brought 4 times more real requests for order fulfillment. The average cost of a received letter or a completed form is $ 104.
Part 4. Real customer analysis
Further in CRM we analyze real orders and see how the deal ended.
Explanation of the table: Orders not received mean that the client was interested in the shelf, specified the price, availability, delivery conditions, etc. but in the end the order did not place.
Perhaps another order means that the client requested the exact price, availability, delivery condition. Awaiting order confirmation.
Part 5. Summary statistics. Spent. Earned. Not earned. Perspective
In the whole market, we see that by investing in advertising $ 6,420 hypothetically we can earn $ 27,403.
Separately for advertising campaigns, the situation is as follows.
Campaign Broad Campaign.
Invested: $ 2,345. It was possible to earn $ 1197. Earned $ 0.
Designer Perfumes Campaign
Invested: $ 2726. It was possible to earn $ 8848. Earned $ 2984.
Elite Designer Perfumes Campaign
Invested: $ 1349. It was possible to earn $ 17,358. Earned $ 4190.
Finally, we can calculate the profit for each dollar invested in advertising.
Investing in Broad Campaign we lose money.
Investing in Designer Perfumes we can earn 1-3 times more.
Investing in Elite Designer Perfumes we can earn 3-12 times more.
Part 6 Conclusions. Recommendations
Analytics includes performance evaluation only Google AdWords.
Analytics can be influenced by facts that are not taken into account:
- optimization of the advertising campaign itself (keywords, audience choice)
- site optimization (structure, internal transitions)
- seasonality and general market conditions
- demand for services provided
- price of services compared to competitors
... and others.
For a month of work from the advertising company Google AdWords, only 26 real requests came (completed forms, letters). This data is not enough for the imposition of more complex formulas and coefficients. If there are more than 100 requests, it will be possible to predict the average profit from the order, the percentage of improvements, etc.
General recommendations for the next month:
- Stop the Broad Campaign ad campaign. The company does not pay for itself. The saved budget is $ 2345.
- Most of the money saved (for example, $ 1,000) is invested in an Elite Designer Perfumes ad campaign.
- To analyze the launch of the Elite Designer Perfumes advertising campaign in other markets (Canada, Germany, Australia).
- A smaller part of the money saved (for example, $ 700) should be invested in the Designer Perfumes advertising campaign.
The general recommendation will work provided that the market capacity allows you to increase orders, i.e. in the region where the ad is published there are enough people who want to see the ad and click on it.
If the market capacity is not enough, it makes sense to offer a new service in the same market or to provide services in a new market.