adwords theory

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Rethinking AdWords

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RethinkingAdWords

The Current Model IsA

gen

cy F

ee

Ad Spend +-

+-

It rewards agencies for

spending your money

instead of

making you money

Why Not Manage

ROAS?

ROAS is lacking a key dimension....

The Problem

Ad

Spen

d

Revenue

VOLUMEROAS doesn’t account for....

Ad

Spen

d

RevenueVolume

ROAS can be Misleading

Ad Spend: $2,000

ROAS=400%

Revenue: $8,000

“Keep your eye on the ROAS”

Ad Spend: $500

ROAS=400%

Revenue: $2,000

“Keep your eye on the ROAS”

Ad Spend: $500

ROAS=400%

Revenue: $2,000

“Keep your eye on the ROAS”If you only looked at ROAS you might have missed the fact that your revenue just

fell by 75%

Ad Spend Revenue

$500 $2,000

$1,000 $4,000

$1,500 $6,000

$2,000 $8,000

..... .....

ROAS=400%In all of these (very different) cases

ROAS=400%In all of these (very different) cases

But you’d rather

be here

Ad Spend Revenue

$500 $2,000

$1,000 $4,000

$1,500 $6,000

$2,000 $8,000

..... .....

SPENDING A LOT

MAKING A LOT

Don’t Spend

orMore Less

SPENDBETTER

OUR MODELPay us to make it better

or don’t pay at all

key performance indicatior

Profitability X

Volume

G8A KPI

Total Revenue

Cost per Acquisition

key performance indicatior

G8A KPI

Total Revenue

Cost per Acquisition

key performance indicatior

G8A KPI

Take a peek under the hood:See the math..

Want To Learn More?

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