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If you could double your online business, would you?
This same question applies to a website that generates leads into a sales process, not necessarily just eCommerce.

Both are a numbers game.

Here’s a realistic example for eCommerce Sales:

* Quality traffic = 10,000 in a month, cost to generate using Google Shopping Ads was $10,000.
* Total market visibility share is less than 15%.
* Sales rate is 4% from traffic (4% of 10,000 is 400 transactions)
* Average Basket Value is $200
* Total sales revenue is therefore $80,000.
* Cost of marketing is therefore 12.5% or revenue.
* Average NET margin is 45% of sale.

So WHY would you NOT scale up now?

Valid reasons not to scale could be issues around logistics – can’t land stock fast enough, can’t store stock, can’t dispatch sales fast enough. But let’s say you could solve these easily or didn’t have them at all, what then?

Why not double the traffic, double the marketing budget, double the market visibility share to 30% and DOUBLE the REVENUE?

Actually: you could easily QUADRUPLE (4X) this business with about the same rate of profitability, and probably better if you get concessions at the inventory buying end.

It’s just math. But it does depend one super important factor:

Is the market visibility share calculation valid? (We do this for our clients). This is a metric that must fit within a very specific tactical approach to advertising in Google. If the tactic isn’t quite right, then the metric becomes unreliable or blatantly wrong.

I have access to another set of data where I see the following scenario:

* Quality traffic = 1000, cost to generate using Google Search Ads was $2000.
* Total market visibility share is about 40%.
* Enquiry rate is 25% from traffic (10% of 1000 is 250)
* Sales success rate from enquiries is 4%
* Total sales are therefore 10.
* Cost per sale is therefore $2000 / 10 = $200 per sale.
* Average NET commission per sale is >$2000.

You could double this business overnight.

So WHY would you NOT scale up now?

No idea.

Call us if this is of interest, or see the link in the comments for details.

What do you think about this? Could it be the beginning of the end?

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How to Measure Brand Lift - Alternative Methodologies.

Whenever we run brand marketing activities, we are faced with the challenge of understanding how those activities affect online traffic and conversions. There may be no direct way to measure that connection.

Most agencies report their brand marketing in terms of the reach or frequency of showing the ad to the target demographic, but this tells you nothing about the results. You probably want to understand how your investment is paying off in terms of the brand becoming more well-known or desirable, known as brand lift.

In some instances, agencies may connect online activity with brand marketing, for example, through YouTube ads or similar methods, and try to express it as a cost per acquisition (CPA) of winning a conversion from the user who clicked on the ad. However, human nature means that when watching YouTube or reading the news, we tend to engage in what we are there for and not be bothered right now with an ad. We might remember the brand and try to look it up later or recall the brand name when we have an interest in what the brand was offering.

In those cases, we have to rely on existing datasets to see if any patterns emerge that might correlate with brand marketing. If patterns emerge, we could potentially credit the brand marketing with the result.

In this article, I provide 2 Alternative Methods for measuring the effect of Brand Marketing without necessarily having direct line of sight back to the campaign:

How to Measure Brand Lift - RankPower User journeys are very complex. Take advantage of the Brand Search touchpoints to undertand whether Brand Marketing is working as expected.

https://rankpower.com/google-ads/the-google-ads-transparency-center/

The Google Ads Transparency Center - RankPower This one-stop shop was designed with you in mind by ensuring you have easy access to information about the ads you see from Google.