Return on Ad Spend (ROAS)
Millions of dollars in Pay Per Click (PPC) advertising will pass through the First Scribe account managers this year and all of it can be tied to a very important metric of Return on Ad Spend (ROAS).
Return on Ad Spend is literally the revenue generated by the paid visitors. We owe it to each of our clients to tell them, "Your organization spent XX dollars last month and made XXX back in revenue and XX form submissions from those visitors."
We use Omniture SearchCenter to measure every dollar spent back to each visitor and inevitably back to a positive conversion that the visitors brought to the site. Our client may or may not choose to collect conversion data from their respective call centers but we are able to analyze offline data via Omniture as well. This really is a full-circle tool.
An Example Visitor:
- Visit 1, Pay Per Click: Each PPC client is noted and we keep track of their data. They are not personally identifiable but they are distinguishable from other visitors. During this first visit, the visitor clicks on a Google PPC ad, which costs us $3.15. They browse some items but they do not purchase.
- Visit 2, Typed/Bookmark: The visitor returns via a bookmark. They browse but do not purchase. They do sign up for our email newsletter.
- Visit 3, Email Marketing: This visitor receives an email which includes an offer for 10% off of their total order. They add items to the cart and purchase with a total cost of $17.25.
Summary of analysis:
It may be a little much to analyze a specific visitor but this sort of a visit line is common enough that we may be able to look closely and then zoom out to a trend.
- Our Return on Ad Spend is (Revenue/Cost) = 548%
- Although it looks like our Typed/Bookmark customers do not convert, they actually led to a newsletter client (which converted later).
- Email Marketing looks like our big winner but actually the PPC visit captured the client. Email and PPC share the credit.
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