Jason Gueits, Pandora
Ever heard of nomophobia? Nearly all of us have developed this fear and it’s only getting worse. It is the fear of being without one’s mobile device…and you are not alone if you’re thinking, “That’s me.”
What strategies do you have planned to maximize ROI & campaign results in 2013? With a brand new year just around the corner, how can your company increase profits and elevate online performance? Hear directly from Google and MoreVisibility on how to improve your AdWords campaign. Through the use of new tactics and techniques, you will be well on your way to success in 2013. Don’t miss out on the latest AdWords updates and features — register for our free webinar now.
Join Google and MoreVisibility on Wednesday, December 5th (1pm EST/10am PST) for a webinar on Google AdWords latest trends. If you are unable to attend this date we are providing an On-Demand version as well.
The webinar will share the most recent features Google AdWords has rolled out and how to put them in play. We will also discuss specific strategies that advertisers can implement to take advantage of these tools and connect with their target audience.
Sign up for our webinar today.
This 60 minute presentation with Q&A to follow, will discuss:
Do you know the value of a conversion? It may seem like a basic question, but there are many factors to consider.
For example, ecommerce advertisers may determine the actual value of a conversion as the purchase price of an item. If a person buys a $100 widget from your site, then the value is $100. But in the real world we know there are other expenses incurred including overhead, shipping, etc.
If you are participating in online advertising, a way to calculate a value of a conversion is to look at Return on Ad Spend (ROAS). ROAS is simply dollars sold divided by dollars spent. It means how many dollars you are getting back for every dollar you spend. Going back to our widget example, if an advertiser spent $20 for advertising on that widget, the ROAS would be 5. 100/20 = 5. For every dollar you spend, you are getting $5.
Return on Investment (ROI) is another way to calculate a conversion’s value. The formula for ROI is (Revenue — Spend) divided by spend. This is a way to determine what percentage of spend you are getting back as profit. If you spent $20 on advertising a widget that sold for $100, to calculate ROI take ($100-$20)/20 * 100 = 400%. ROI should be as high above 100% as possible. Also, remember to take the lifetime value of a customer into account when examining the value of a conversion.
Regardless of how you measure your success, the important thing is that you are taking steps to track and improve results. Making sound decisions on what efforts are working and not working will surely help to boost your bottom line.