Simplifying ROI for Easier Google Ads Reporting

Colby: 00:00:11

Hey, everybody.

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It's Colby from Soul Aid here to

answer some of your questions.

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First one that I have in front of me.

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Without paying for another tool, and

given that GA4 standard reports and

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Google Ads use different attribution

models, which platforms or report

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would give a simple enough ROI to

be understood by all stakeholders?

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for this, I definitely believe

that it should be easy and your

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report should be digestible and

shouldn't be so complex that people

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can't read them and understand.

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And I think making things as simplistic

as possible is good, and it also

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is a good measure of you showing

that you know what you're doing.

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And one of the good ways that we can

do this, and the most simple ways,

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is through media efficiency ratio.

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you've probably been hearing

John talk about it, and some

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other people from our team.

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Media efficiency ratio is the total

cost of ads, divided by the total

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revenue, or cash in divided by cash out.

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what this tells us is the total

amount of ads we have in the market.

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What impact does that have on our revenue?

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And you might hear that there's

a lot of running around upstairs.

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It's just my toddler, my

roof isn't going to collapse.

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But, I want to back up

just a tiny bit here.

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And point out that attribution

is probably going to get worse.

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at the iOS updates, people are opting out

of tracking, that cookies are going away.

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that everyone's not

playing together nicely.

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I don't think we're going to have the wild

west days, the glory days, where we have

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beautiful data, and we're going to be able

to beautifully track the, 7 to 15 steps a

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user takes before they make a 20 purchase.

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The most efficient way we can do

this is knowing that we're putting

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in a total amount of dollars towards

advertising, and we're getting some out.

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And through all the changes we're

making, we want to see a positive

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relationship between these.

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I think we should quickly talk about

how you would calculate that here.

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And like I was saying, total cost of

ads divided by total revenue here.

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You would go in let's say you grab

last seven days of data, you grab

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the last seven days of Google and

Facebook you don't need anything

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fancy here, just a spreadsheet.

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Go into your ad platforms, grab your total

cost, and just put them right in there.

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You could do it by campaign basis, but

your stakeholders are probably going

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to want something nice and simple for

them to understand, so do it from a

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very high level perspective first.

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And then once you do that, just make

sure you use the same time frame.

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You can go to Shopify or WooCommerce,

whatever you've got, and look at the total

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amount of revenue that you generated.

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Put that together in the formula.

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If you are getting a 1.

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09x, your stakeholders are probably pretty

unhappy, and you are too, but that's okay.

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To do better, And measure

this relationship and start

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to make action, take action.

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I would say, make changes individually

in each platform, and when you're doing

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that, keep things consistent in the other.

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If you're doing things sporadically

in both, and you see your MER going up

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or down, you're not going to know why.

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When you make some changes in Google, Stop

let it be consistent see what the impact

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of that is and don't be doing anything

in Facebook Give it some time maybe two

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to three weeks and then do the same for

Facebook And then when you start seeing

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things work, you'll then be able to know.

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Oh, yes.

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This has a positive

relationship on my mirror.

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So continue to do those sorts of

things out there in the marketing world

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Keep your stick on the ice Thanks.