Next level PPC: Going beyond a ROAS goal - ADchieve
EcommerceWiki Week 2019 - Amsterdam
Next level PPC: Going beyond a ROAS goal - ADchieveby Alex van de Pol
The ROAS goal has been set as the golden standard of KPI’s in E-Commerce for quiet some years. It’s a metric that is easy to understand and act on, but it does not optimize for the company’s bottom line financial result. In this presentation we will show you how to use business intelligence data, algorithms and API’s to optimize your ad spend for the incremental impact on your company’s profit.
About the Speaker
Alex van de Pol
Alex is the Technology Evangelist at ADchieve. In this role he is responsible for showcasing the potential of automation and algorithms in the PPC-market. Together with a team of data scientists, programmers and consultants, he creates tailored algorithms and automated campaigns for every unique business case. Previously, Alex worked on behalf of Google to support starting advertisers in building their first Google AdWords campaigns.
A chat with Alex
Ecommerce Foundation (EF): Why is the ROAS goal not optimal to use as a unique KPI?
Alex van de Pol (AVDP): ROAS is an easy to use and interpret KPI, but it does not take into account all the factors that drive the bottom line of a company’s financial goals. An obvious example is the difference in product margins. Advertisers with large assortments often have significant differences in product margins. In most Google Ads accounts all products still have the same ROAS target however. Also, different keywords and audiences are generally treated the same when it comes to attribution. The incremental impact of keywords and audiences can vary significantly however as many users are likely to find your website anyway.
EF: What are the Do’s and Don’ts when it comes to web advertising?
Do: Use the power of algorithms and rules to automate processes. Too often, we as humans still think we can do better than the computer or are too afraid to give the control away. The amount of data that is used in web advertising has increased rapidly and we humans can’t simply process this complexity anymore.
Don’t’: Stop testing and doing some real-world checks. When giving away control to an algorithm it becomes harder to understand how and why some decisions have been made. In the past we have seen numerous cases were business are hurt due to wrong data or attribution.
EF: What is the role of web advertising in a business’ expansion?
AVDP: Web advertising plays a significant role across the entire buying funnel. One simple rule in advertising is to be where your customers are. Time spent on media has been shifting from offline to online for quite some time now. Since recently time spent on online media has even surpassed time spent on offline media. Due to web advertising businesses can leverage the power of data to expand rapidly by targeting the right customers, with the right message on the right platforms across the web. In addition the fast feedback loop in web advertising can ensure that costs are rightly balanced.
07/16/2019 10:30 (Europe/Amsterdam)
Search Engine Marketing