Showing posts with label google analytics. Show all posts
Showing posts with label google analytics. Show all posts

Tuesday, June 25, 2013

How to disrupt google AdWords PPC? Why AdWords will never move from PPC to PProiC?

Everyone knows that google milk cow is AdWords and that the best way to attract customers is is help them finding you. AdWords business model is quite simple: Pay Per Click (PPC). But what about ROI?
Most business care about paying customer and don't want to wast money on others no?
As mentioned on AdWords FAQ, ROI is simple to compute : (Revenue - Cost) / Cost = ROI. 
Why AdWords nor Google Analytics doesn't allow you to PProiC easily (Pay Per ROI Click)?
Because you are selling a brand, cost is hard to measure, we can't measure the exact ROI, blablabla....
The truth is that if most companies were able to measure real PPC easily, they will stop using standard PPC because its simply too expensive. Let's take an example: 1$/click, 8266 clicks, 39 sales ->  211.95$/sales. If your average sales is 150$/click, you are loosing 61.95$/click and need to pump more money into your business?
Why do you think so many companies are doing email marketing with mailchimp or marketo or try to optimize their campaigns with acquisio? They want positive ROI/limit the dilution of their marging and are just desperately looking for PPC alternative like ROI dashboard but who can compete free Google Analytics, QMining?
PPC are great solutions to increase sales but also a powerful tool to kill many companies who are looking for better tool to reach their audience. Google has to be disrupted but who is strong enough to take that challenge...
Why Google might never move to PProiC? Because it will never go against its core business model, would you? no one does until they face the wall like Microsoft did last month.

Thursday, March 21, 2013

Google Analytics Hidden Business Model

What is GA (Google Analytics) Business Model?

Analytics is used by google to improve adwords product (most of google revenue). Nothing is free.

Here is the most common reason why GA is free:
  • Provide accountability and transparency to existing Google advertisers (adwords clients)
  • Provide confidence and prove the value of online advertising to potential new advertisers
Here is 2 another ones?
  • Provide advertiser tools to speed their site (real-user monitoring)
  • Increase ads relevance  (hidden)
Why real-user monitoring?
Since 2011, google ranking consider site speed. Faster are sites, more search people will be done.

How can GA be used by google to increase ads relevance?

In order to understand this concept, let's look at google eco-system.

If a user visit several site monitored by google Analytics, GA information can be leverage to better recommend ads anywhere and improve google search ads.

With GA, you get quite interesting information about users: their behavior, the content and sites they visit, their frequency and time spent and this across multiple sites. GA is an amazing source of user information. 

In order to get better customized ads, you need:
  • session data (behavior, site visited, content type, frequency, etc.)
  • aggregate data to user data
  • get more information about the user (no simply an id, a google+ or gmail account) 
Once you get the data, the biggest challenge is merging the sessions. In order to do it, your need a way to merge the sessions. Here is the ways google does it:
  • Google analytics (same sessions id between sites)
  • gmail login (get a uniq id)
  • Chrome browser (control browser, control browser global id)
  • google+ and gmail account (user info)

The next biggest challenge is leveraging the social graph, which explain google+ war against facebook. 
The ad platform has to leverage GA, gmail, google+ etc. to improve its search.