Articles written in January, 2009

January 28 2009

Why your Bounce Rate may start to go up from now on.

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Starting today, chances are that your Bounce Rate is going to go up, and your Time on Site metrics will start to become more realistic.

Should you panic and freak out? Should you hide under the bed and lock the door to your room? Should you pause all of your campaigns? Obviously, you shouldn’t do any of those things, but I should explain what’s going on before you reach a state of dementia.

Google Analytics has changed the classification of the setVar function – Custom Segments that appear in the Visitors >> User-Defined report. Previously, whenever a user reached a page that was making use of this setVar function within the Google Analytics Tracking Code, Google Analytics would consider that what they refer to as an “interaction hit”. Interaction hits, like Pageviews, Events, Transactions, and Experiments with Google Website Optimizer are what Google Analytics uses to calculate Bounce Rate and Average Time on Site.

So, for example, let’s say a visitor landed on a page of your website, but left without visiting any other pages. That is, as we all know and love, considered a Bounce. But, let’s say that that same page was using the setVar function. Before today, that visitor would NOT have been counted as a bounce, because Google Analytics would have fired off two “interaction hits” – one for the pageview on that landing page, and one for the custom segment caused by the usage of setVar. However, from here on out, a user that only views 1 page of your site and leaves will be counted as a Bounce, setVar function or no setVar function.

This also has an affect on your Average Time on Site metric. This is calculated by Google Analytics by taking the time stamp of when the first pageview on a website occurs, and subtracting that from the time stamp of your second pageview on a website. Now, if you don’t visit a second page and you bounce, Google Analytics cannot do the math, because it has nothing to subtract from, so it reports a 0:00:00 average time on site.

Previously, because of our setVar friend, Google Analytics would be able to do math, because it would have the time stamp of that first pageview, AND, the time stamp of the setVar function firing off. Since these happened so close together, you could easily see extremely low average time on site numbers, like a second or two. Clearly this was confusing and didn’t make sense, which is another reason why the good folks at Google Analytics have decided to make this change.

When should I use Custom Segments / setVar?

There are a few good places to use this function. One place is on the receipt / “Thank You” page that a user sees after they buy something from your store. This way you can identify anyone who reaches this page as a “shopper” or “customer” or as “awesome”, or anything that you want to call people who reach this page. Then, in your Visitors >> User-Defined report, you’ll be able to do some analysis on this segment of people.

You can also use Custom Segments / setVar based upon an option they select on a “Contact Us” or inquiry form. Let’s say your form has a question that asks users to select between: “Executive, Director, or Marketer”. You can use setVar here to identify people based upon their selection, and analyze the behavior of each custom group of people.

So don’t call your pay-per-click manager or SEO engineer and proclaim that the sky is falling – chances are very good that you will not notice too much of a difference, if at all. If you don’t use Custom Segments / setVar, then you have nothing to worry about. If you use setVar on multiple landing pages and in different places on your site, brace for impact because your Bounce Rate is going up. But hey, think of it like this: it’s for the better – this is now a much more accurate calculation – a truer representation of your real Bounce Rate and Time on Site metrics.

January 16 2009

Revenue Per Click: The Forgotten Metric

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I am one of the few people who really appreciate the Revenue Per Click metric for paid (cpc) keywords and ads. In fact, I heart it. I may even carve the Tree of Luv with “RPC + JT” for Valentine’s Day. 🙂

So, what is this Revenue Per Click metric that makes my heart flutter? It’s simply the average revenue for each individual click on all of your pay-per-click keywords and ads. When your Google Analytics account is synced with your Google AdWords account – and “Destination URL Auto-Tagging” and “Cost Data” are enabled – the AdWords sub-section of reports within the Traffic Sources section becomes enabled. Within that first “AdWords Campaigns” report, you should see a new 4th tab in the main report area, named “Clicks”. This is an import of all of your top-level Google AdWords data, just as it appears in the AdWords interface.

Because Google Analytics is so awesome, the good engineers at Google have thrown in three metrics in the top row of metrics on the report table that are not available in AdWords. These are ROI (Return on Investment), Margin (which is Goal Value + Ecommerce Value, minus Cost, divided by Revenue; which I also really like), and my favorite of the three, Revenue Per Click.

Revenue Per Click in Google Analytics

As our loyal readers and subscribers to our blog will tell you, I am not a big fan of taking actions, or even thinking about taking actions, based upon the results of one metric or one statistic, with Bounce Rate being the only exception to this rule. Knowing this, you may be thinking “well, if that’s the case, how can Revenue Per Click help me?”

I like RPC in contrast to Average Cost-Per-Click, or CPC. Since you can do this in Google Analytics at the Campaign, Ad Group, or Keyword levels, you can very easily compare the two metrics side-by-side, and quickly determine the ratio of money spent (CPC) vs. money earned (RPC). This will allow you to quickly discover which Campaigns, Ad Groups, or Keywords are responsible for your (hopefully) high profit margin, or which parts of your AdWords marketing efforts need to be optimized.

For example, you may see an average CPC of $0.17 for one of your top keywords, with a click-through rate (CTR) of 9.45%. This sounds good so far, but when you look over at the RPC column, you may see $0.21, which means you are just barely breaking even in terms of profit. Having the RPC metric right there in front of you, you’ll be able to quickly glean this insight and work on figuring out why this keyword isn’t performing anywhere near as well as your other keywords (perhaps you need some landing page optimization?).

In another example, you may see an average CPC of $0.43 for a newer, product-oriented keyword, with a good 8.89% CTR. It’s RPC is literally through the roof at a high-flying $22.48! The math is pretty simple here: on average, you make $22.48 for every $0.43 that you spend. This now becomes a very subtle call-to-action that reads: “Focus more money here right now!!!

Start using Revenue Per Click today! Log-in to your Google Analytics account, click on “Traffic Sources”, then click on “AdWords >> AdWords Campaigns”, and click on the “Clicks” tab to begin making your analysis life a bit easier from now on!

January 5 2009

What is your competition up to these days?

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Happy New Year readers! 2009 is going to be a comeback year for everyone – I can really feel it! Let’s make the most of this fresh and exciting New Year by stepping away from our Analytics kingdom for just a little while and focusing on our Site Intelligence efforts, such as, stepping onto the dark side…I mean…your competition!

While it is illegal to use “black hat” techniques to keep tabs on your competition (such as using “spy ware” type software programs), keeping your eyes and ears open to what your competitors are doing is a critical part of being successful online. Knowing what your opponents are up to can give you great ideas and inspiration for your own website or marketing efforts. It can (and should) also serve as an alert or warning system as to what not to do online, which can be equally as important for you.

Here are just some of the many different things you can do to stay on top of your competitor’s efforts:

1. Visit their website!
Pretty simple, right? If you know the URL of your competitor’s websites, check it out to see what they have going on. Pay close attention to how they market to their potential customer base, the language they use, and the type of sales angle that they incorporate. Be observant of the layout of their website, color scheme, navigation, and – of course – products and services offered.

2. Search for them online
See how successful (or how futile) their online marketing efforts are by searching for their brand name. You don’t have to click on their ads or organic search results – just look them up on Google and Yahoo a few times. Here, you’ll want to take note of how aggressive / passive their marketing language is, and what incentives / discounts / promotions they are offering.

3. Sign up for their newsletter / monthly email alerts / RSS Feeds
This is an excellent way to learn “what’s hot” with you business adversaries. Normally, your competitors will promote the latest and greatest product or service to their email database, including any speaking engagements or other important announcements that they have. Learn how they speak to their database and what re-marketing efforts they are using, and consider similar methods for your own Email marketing efforts (if they are using good methods).

4. Check out their social media / blog / viral marketing programs
Are your competitors present in Facebook, LinkedIn, and Twitter? Do you know what StumbleUpon and Digg are? When was your competitor’s last blog post? If your competition isn’t focusing on any of these newer mediums, then this is an excellent opportunity to gain ground and establish a presence before they catch on. If they are already engaged in Social Media efforts, consider subscribing to their blog, their RSS feed, and “follow” or “connect” with them. They will most likely speak to their audience much differently in these mediums than they will on their website or newsletter – take note of what they are saying and doing here.

5. Do your competitors advertise / market offline?
Have you seen your competitor’s brand and products in a magazine or newspaper? Are they running a late-night infomercial or day-time TV ad? Have you heard their phone number repeated 9 times in a 30 second radio spot on your drive home from work? You may not be able to afford these mediums as they are FAR more expensive than pay-per-click advertising, but it’s good to pay attention to their offline messaging – visit their site the next time you’re in front of your computer and see if there is a connection between the ad that you read or heard and their website.

6. Look at your Referring Sites / Hostname / Domain Name Reports
Your analytics package should be able to tell you what websites have been sending you traffic, and, what domains are delivering you traffic. This is a great way to tell if your competitors are checking you out. Fight the urge to block out or exclude this traffic from appearing in your reports – keep this valuable data in your analytics package. If your competitors are really checking you out, chances are that you are doing something that has caught their attention, and you are most likely going down the right path.

7. Enable Data Sharing / Benchmarking (with Google Analytics)
Google Analytics allows for you to compare your basic website’s metrics against the averages of websites that are a similar size to yours. This is available within the Visitors >> Benchmarking report. The catch: You must anonymously share your data with Google and other services, such as AdWords, to be able to have access to this section. The benefits of knowing how you stack up against websites in your industry – and across every available industry in this section – far outweigh the risk of anonymously sharing your data with Google (keep in mind they already have your website data when you use Google Analytics, so it’s not that much of a leap of faith to enable Data Sharing in your Google Analytics account).

8. Use online research tools like Google’s Insight for Search!
Finally, get a grip on historical and current trends of keywords and key phrases with free programs like Google Trends for Websites and Google Insights for Search. You can perform searches for your competitor’s brand names and products, and you’ll be able to gauge the level of interest at global, national, and regional levels. If there are terms or key phrases gaining popularity that your competitors are using, you may want to consider jumping on those while they’re hot.

Checking out what your competition is doing can help guide your own efforts, as you learn what to do and what not to do. However, always keep in mind to play fair and behave in an ethical fashion – NEVER slander, defame, or bad-mouth your competitors on your website, your blog, or on your MySpace page. Don’t click on their pay-per-click ads, never subscribe their contact or info email to spam mailings, and refrain from posting negative reviews of their YouTube videos or their Local Submission listings.

Have a great 2009!!!

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