measure true cpa with google universal analytics
DESCRIPTION
Google Universal Analytics helps to identify and measure channel profitability with actual cost to acquire a customer. Read explanation from http://www.niroshan-samuel.com/cpa-in-adwords-facebook-could-be-misleading-cpa-in-adwordsfacebook-could-be-misleading/TRANSCRIPT
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Measure True CPA with Universal Analytics
Niroshan – Samuel
@Niroshan_Samuel
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What are the profitable keywords if the Conversion income is $150?
Keyword Adword CPA
Keyword 1 $100
Keyword 2 $180
Keyword 3 $151
Keyword 4 $120
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Even trained monkey can identify? is it?
Keyword Adword CPA
Keyword 1 $100
Keyword 2 $180
Keyword 3 $151
Keyword 4 $120
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Now we are measuring the actual income with Universal Analytics
Keyword Adword CPA Avg. Income/Customer
Avg.Customer behavior
Keyword 1 $100 150 Buy only the main product
Keyword 2 $180 320Buy the main product and
few add-ons (online, offline)
Keyword 3 $151 160 Buy the main product and upgrade
Keyword 4 $120 80 Buy the main product and higher refund rate
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Key Points
• Identifying actual profitable keywords is a real game changer
• Certain keywords may lead to purchase add-ons and life time value is high
• Certain keywords may not relevant to their need and may lead to refunds
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UA can break the optimization barrier
Actual CPA Optimization
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What are the Profitable Ads in Facebook? (Conversion Value is $150 - No-refunds, No add-ons for the product)
FaceBook Ad FaceBook CPA
AD 1 $100
AD 2 $140
AD 3 $80
AD 4 $120
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This time You Did It
FaceBook Ad FaceBook CPA
AD 1 $100
AD 2 $140
AD 3 $80
AD 4 $120
Each ad has significant profit
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Customer Journey – Multi-Channel Analysis
Facebook Organic PPC
CPA = $40
Average Facebook conversion consume $40 from PPC
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True CPA for Facebook Ads
FaceBook Ad FaceBook CPA True CPA
AD 1 $100 $140
AD 2 $140 $180
AD 3 $80 $120
AD 4 $120 $160
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Profitable Ads Finally
FaceBook Ad FaceBook CPA True CPA
AD 1 $100 $140
AD 2 $140 $180
AD 3 $80 $120
AD 4 $120 $160