If you are an e-commerce retailer that has advertised online, you most likely know the main benefit of Google Ads is that it provides clear returns:
You can see how much you spend; how much revenue you have made online from this spend and then calculate the efficiency of this. The intent-driven nature of the ads makes it one of the most effective forms of advertising. When people need something they can easily search, and they’re not busy and distracted by doing other things; something that is hard to come by these days in the world of information overload. That’s exciting isn’t it?
Google has over 40,000 engineers who have specifically developed machine learning that uses data to determine when ads show, to whom, and for how much you are charged by Google. Dynamic Creative set up campaigns to drive the most benefits of Google Ads for you to maximise the revenue you get back.
However, what we at Dynamic Creative and Google don’t see from the data are the additional benefits to your business. There are the benefits to gaining market share, that are not factored into the return on ad spend that we do see. Does that make sense?
The first example and best example of this, is customer lifetime value and repeat purchases. Let me explain: if someone finds your website from a search engine and makes a purchase – this is something we track. However, if in addition to this, they also have a delightful experience and come back to purchase again or purchase something else, then we won’t capture these ongoing returns.
A second example would be for larger ticket items, where customers may not want to purchase online. They may telephone and we can track a call, but we wouldn’t track the value from the call. We also wouldn’t see whether you can cross sell or create an ongoing order from these calls.
On the flip side of this, we won’t be able to see whether a sale is from a pre-existing customer. If someone has purchased from you before, and uses a search engine to find you again, then we would just see this as a sale. Although, it is obviously best they are able to find you and purchase again, rather than losing that repeat business to a competitor. Right? Even if your organic listing is showing at the top, it’s best to increase the search results “real estate space” and control the messaging.
Another frustrating thing is that if someone is not satisfied with their purchase, then we won’t see any refunds or returns coming through in the data either. This is something that you will need to address. The best place to start is applying best practice customer service.
There are other benefits to Google Ads beyond the attributed sales and revenue. The lifetime value of a customer and business through other channels like the phone are important to growing a business. Owning a business is difficult at the best of times – we absolutely get that, as we work with over 400 small to medium businesses across Australia. We are also an Australian owned and operated business. The good news is, we are here to help. If you need help setting up your Google Ads, then please reach out to see how we can assist you. We have a variety of subscription plans available to suit your needs that can drive huge amounts of value when used properly.
The link to create a Google Ads account is here.
Google’s guide to set up Ecommerce tracking.