Simplifying ROI for Easier Google Ads Reporting

Colby [00:00:11] Hey, everybody. 2

[00:00:11] It's Colby from Soul Aid here to answer some of your questions. 3

[00:00:14] First one that I have in front of me. 4

[00:00:16] Without paying for another tool, and given that GA4 standard reports and 5

[00:00:20] Google Ads use different attribution models, which platforms or report 6

[00:00:24] would give a simple enough ROI to be understood by all stakeholders? 7

[00:00:28] for this, I definitely believe that it should be easy and your 8

[00:00:32] report should be digestible and shouldn't be so complex that people 9

[00:00:37] can't read them and understand. 10

[00:00:39] And I think making things as simplistic as possible is good, and it also 11

[00:00:43] is a good measure of you showing that you know what you're doing. 12

[00:00:46] And one of the good ways that we can do this, and the most simple ways, 13

[00:00:49] is through media efficiency ratio. 14

[00:00:51] you've probably been hearing John talk about it, and some 15

[00:00:54] other people from our team. 16

[00:00:55] Media efficiency ratio is the total cost of ads, divided by the total 17

[00:00:59] revenue, or cash in divided by cash out. 18

[00:01:02] what this tells us is the total amount of ads we have in the market. 19

[00:01:07] What impact does that have on our revenue? 20

[00:01:09] And you might hear that there's a lot of running around upstairs. 21

[00:01:12] It's just my toddler, my roof isn't going to collapse. 22

[00:01:14] But, I want to back up just a tiny bit here. 23

[00:01:17] And point out that attribution is probably going to get worse. 24

[00:01:21] at the iOS updates, people are opting out of tracking, that cookies are going away. 25

[00:01:27] that everyone's not playing together nicely. 26

[00:01:29] I don't think we're going to have the wild west days, the glory days, where we have 27

[00:01:33] beautiful data, and we're going to be able to beautifully track the, 7 to 15 steps a 28

[00:01:40] user takes before they make a 20 purchase. 29

[00:01:42] The most efficient way we can do this is knowing that we're putting 30

[00:01:46] in a total amount of dollars towards advertising, and we're getting some out. 31

[00:01:51] And through all the changes we're making, we want to see a positive 32

[00:01:54] relationship between these. 33

[00:01:56] I think we should quickly talk about how you would calculate that here. 34

[00:01:59] And like I was saying, total cost of ads divided by total revenue here. 35

[00:02:02] You would go in let's say you grab last seven days of data, you grab 36

[00:02:07] the last seven days of Google and Facebook you don't need anything 37

[00:02:10] fancy here, just a spreadsheet. 38

[00:02:11] Go into your ad platforms, grab your total cost, and just put them right in there. 39

[00:02:16] You could do it by campaign basis, but your stakeholders are probably going 40

[00:02:20] to want something nice and simple for them to understand, so do it from a 41

[00:02:23] very high level perspective first. 42

[00:02:25] And then once you do that, just make sure you use the same time frame. 43

[00:02:28] You can go to Shopify or WooCommerce, whatever you've got, and look at the total 44

[00:02:32] amount of revenue that you generated. 45

[00:02:35] Put that together in the formula. 46

[00:02:36] If you are getting a 1. 47

[00:02:37] 09x, your stakeholders are probably pretty unhappy, and you are too, but that's okay. 48

[00:02:43] To do better, And measure this relationship and start 49

[00:02:46] to make action, take action. 50

[00:02:49] I would say, make changes individually in each platform, and when you're doing 51

[00:02:53] that, keep things consistent in the other. 52

[00:02:55] If you're doing things sporadically in both, and you see your MER going up 53

[00:03:00] or down, you're not going to know why. 54

[00:03:02] When you make some changes in Google, Stop let it be consistent see what the impact 55

[00:03:07] of that is and don't be doing anything in Facebook Give it some time maybe two 56

[00:03:10] to three weeks and then do the same for Facebook And then when you start seeing 57

[00:03:14] things work, you'll then be able to know. 58

[00:03:16] Oh, yes. 59

[00:03:17] This has a positive relationship on my mirror. 60

[00:03:19] So continue to do those sorts of things out there in the marketing world 61

[00:03:25] Keep your stick on the ice Thanks