End-to-end analytics in practice: more profit, cheaper advertising

The task is very simple: to increase investment from advertising investments, i.e. for every dollar invested in advertising, get even more net profit from orders.

We have a company for the production of designer perfumes. Release in small batches. Exclusive smells. Elite perfume to order. The main market for the United States. Also 3 months ago, the customer started an advertising campaign on the Canadian market.


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Part 1. Budget Allocation

Customer’s advertising budget consists of 5 AdWords advertising campaigns.

Campaign Broadband Campaign. The name speaks for itself - a broadcasting company. Included are all popular requested keywords that only relate to custom-made perfumes. A third of the advertising budget - $ 2345 - invested in this advertising campaign.

Campaign USA Designer Perfumes. This advertising company has more specifics (order exclusive perfumes with delivery in the USA). Another third of the budget - $ 2087 invested in this advertising campaign.

Campaign USA Elite Designer Perfumes. This advertising campaign is replete with technical terms, such as components of elite perfumes, ways of creating, etc. It is not enough exact requests. The advertising campaign budget is $ 1349.

The Canada Designer Perfumes campaign, as the name implies, is similar to the USA Designer Perfumes, with the only difference being that it is launched in Canada.

Part 2. The overall effectiveness of advertising campaigns.

Next, we evaluate the overall effectiveness of advertising. Those. We analyze what we cost the visitor who came to the landing page. The landing page is an ordering page (place an order, leave a request, write a letter).

Conclusions based on investment in Google AdWords advertising.

1. From the point of view of money invested in advertising, the most profitable advertising campaign is USA Elite Designer Perfumes. It has less money spent on advertising, fewer empty clicks and more targeted clicks.

2. There is an understanding of how orders give priority. For example, the average profit for the order of designer perfumes will be less if the order came from Canada because the attraction of a Canadian visitor is more expensive by 30%.

3. CPC is not a key indicator. The most expensive cost per click is the cheapest cost of the received order form or letter from the visitor.

4. It is most profitable to invest in the Elite Designer Perfumes advertising campaign. Recommendation: run a similar advertising campaign in Canada.

Part 3. CRM analysis. How many orders were actually received?

Next we go to CRM (Hubspot). According to the CRM data, it can be seen that for the last month only 26 letters, requests or requests were actually received through the paid advertising channel. Recommendation: In the CRM for each client add a country field (USA, Canada) then it will be clear by advertising from which region the client came. In this review, Designer Perfumes will be combined into one category.





From this statistics it is clear that:

Campaign Broad Campaign . Many people are interested in perfumes to order, but very few people are really ready to order a service. In practice, the campaign does not make sense because it works at a loss. Perhaps visitors are not ready to form a request, do not agree with the price, etc.
Campaign Designer Perfumes . Visitors understand what they are paying for. 30% completed the target action, 70% did not. Perhaps they need to be further convinced to complete the order. Perhaps they place an order elsewhere for some reason.
Campaign Elite Designer Perfumes . The most effective in terms of "less advertising costs more real requests." The number of interested people corresponds to the maximum number of applications received. It is recommended to run this campaign in other regions (Canada).



We count the final cost of the received request or sent letter.

Despite the largest budget and the number of clicks, Broad Campaign brought only 3 real requests. The average cost of a received letter or a completed form is $ 782.

Designer Perfumes (USA + Canada), with a comparable budget, brought 3 times more real requests for order fulfillment. The average cost of a letter received or a completed form is $ 273.

The company Elite Designer Perfumes with a 2 times smaller budget brought 4 times more real requests for order fulfillment. The average cost of a received letter or a completed form is $ 104.

Part 4. Analysis of real customers

Next, we analyze real orders in CRM and see how the deals ended.



Explanation of the table: Orders not received means that the customer was interested in a half-finished item, specified the price, availability, delivery terms, etc. but in the end the order is not placed.
Possibly still ordered means that the customer has requested the exact price, availability, delivery condition. Pending order confirmation.

Part 5. Summary statistics. Spent Earned Not earned. Perspective

In general, we see in the market that investing in advertising $ 6,420 hypothetically, we can earn $ 27,403.

Separately by advertising campaigns, the situation is as follows.

Campaign Broad Campaign.
Invested: $ 2345. It was possible to earn $ 1197. Earned $ 0.
Campaign Designer Perfumes.
Invested: $ 2726. It was possible to earn $ 8848. Earn $ 2984.
Campaign Elite Designer Perfumes.
Invested: $ 1349. It was possible to earn $ 17358. Earn $ 4190.

Finally, we can calculate the profit on each dollar invested in advertising.



By investing in Broad Campaign we lose money.

By investing in Designer Perfumes we can earn 1-3 times more.

By investing in Elite Designer Perfumes we can earn 3-12 times more.

Part 6 Conclusions. Recommendations

Analytics include Google AdWords performance evaluation only.

Facts that do not count can affect analytics:
- optimization of the advertising campaign itself (keywords, audience selection)
- site optimization (structure, internal transitions)
- seasonality and general market condition
- demand for services provided
- price of services compared to competitors

… and others.

For the month of work from the advertising company Google AdWords, only 26 real requests came (completed forms, letters). This data is not enough for imposing more complex formulas and coefficients. If there are more than 100 requests, it will be possible to predict the average profit per order, the percentage of improvements, etc.

General recommendations for the next month:

1. Stop the Broad Campaign campaign. The company does not pay for itself. The saved budget is $ 2345.
2. Most of the money saved (for example, +1000 $) to invest in an advertising campaign Elite Designer Perfumes.
3. Analyze the launch of the Elite Designer Perfumes advertising campaign in other markets (Canada, Germany, Australia).
4. A smaller part of the money saved (for example, $ 700) to invest in an advertising campaign Designer Perfumes.

The general recommendation will work provided that the market capacity allows to increase orders, i.e. in the region where the ad is published, there are enough people who want to see the ad and click on it.

If the capacity of the market is not enough, it makes sense to offer a new service in the same market or provide services in a new market.