Hi, everyone. Regina here with starter PPC. If you recently started Google ads and you're wondering, is this actually a channel I want to continue pursuing? We're going to talk about how to analyze whether or not Google ads is working for you and whether it's worth it to continue investing in for your business. So the example that I'm using is a B to C e commerce company, but it doesn't matter. I think that these concepts are universal and they apply to all industries. We're just going to be looking at some of the numbers and mostly I'm going to be focusing on the ways that Google ads affects your overall business as a whole. A lot of times we're working with clients and the clients are just looking in the Google ads dashboard to see what is the return on my ad spend, right? Or what is the cost per conversion? I need it to be X number. That used to be an acceptable way of analyzing Google ads. It's not anymore. If you guys haven't seen my other video called ROAS is shrinking. I would highly encourage you to check it out. And you know what? I actually take that back. That was never a way to fully analyze how Google is affecting your business the returns that it's bringing for your business. And I'm going to talk to you about why. there's two reasons why looking in the dashboard isn't enough. One is according to the row as a shrinking video you should watch. Google's ability to track has been diminishing and diminishing, and it continues to diminish, right? Every time somebody. Sue's Google for privacy laws. Google loses its ability to be able to track users and it was never perfect. Users can be dropped when they switch devices. They might click on an ad and then a week later they might buy on their husband's computer. There's all sorts of things that can go wrong with the tracking and it's just getting worse and worse. It used to be that if you were a beta C e commerce company, you could say, I want a three X ROAS, right? I want to. 300 percent return, which means I want to spend 1 on an ad and I want to get 3 back. And that's going to cover my costs. And I want to be able to see that three in my dashboard. And it's just not acceptable anymore because what used to look like a three in the Google ads dashboard now looks like a two. And it's just getting worse every quarter that goes by, it seems to just lose its ability to track more and more. The other reason why it's not okay to just analyze the numbers in the Google ads dashboard to see what your return is on Google is because there's so many other boost effects that Google ads has on your business. And that's what we're going to go over today. So Google ads, it's vast, it's everywhere. It can follow people around the entire internet. If you're spending money, for example, in another. platform like being Facebook, Amazon ads anywhere really, and you're sending users to the website, Google will pick those users up and it will blast them with remarketing ads, which actually increases the conversion rate on those other ad channels. That's one thing that we're going to look at, and there's a myriad of other effects. that Google has, and that's what we're gonna explore together. So in this example, you'll see the Google ads account is about three months old. So we actually started cost is in blue here. We actually started spending on September 20th. So that's why you see the blue going up the week of September 18th a hundred dollars only that week. Cause we started at the end of it. And then it goes up and up from there. There was a dip here. I don't know why and then in December, we're spending the most ever. So we're going to analyze these three months for this business. And we're going to talk about how the overall business has been affected by the Google ads spent. So I'm going to start by hopping into the client's Shopify store where we can see, for example, the overall conversion rate. Which is what I just mentioned, right? So Google is picking up all users that visited the website, not just users that clicked on an ad and it's remarketing to them, right? So it's doing all these reminder. Image ads, which are called display ads YouTube video ads, and it's following them around on all different websites and trying to get them to come back. It's not just doing remarketing that's causing this. it also has smart bidding attached to it. If that user who is In market to buy product that you sell, right? Which we know because they were recently on the website. Google will bid really aggressively on that user. And when be more likely, at least to win the click and get a high, good placement and spend more on that user when they're then searching again. let's say they clicked on a Facebook ad two weeks ago, visited the website. Google's going to pick them up. And try to remarket to them. But even if the remarketing has no effect today when they're like, oh, I guess I better finally buy that gift for my mom, they're doing another search like they did two weeks ago to finally make the purchase. Google's gonna go, oh my God, our guy is now doing a search again. Let's win this click and it's gonna a bit more aggressively for that click and try to win. That conversion. And even if the conversion doesn't show up in Google because, they clicked on a Facebook ad and they Google's tracking isn't very reliable these days, it's going to increase the chance of the conversion happening and then Facebook. From it's click two weeks ago is going to say got a conversion, right? Because it's going to look back 30 days and it's going to say they interacted with a Facebook ad two weeks ago. I guess we got a conversion. So that conversion rate on Facebook is going to be boosted. That's just one small example, also we're going to get into this in general, but here's the stat, right? So right now I'm. Comparing the entire date range that Google was running compared to the previous period, and you can see a 30 percent increase in conversion rate. That little Green number right there. That's huge. You guys, 30 percent increase in conversion rate for the store as a whole on average, right? That's for all channels on average. I guess that's it for this metric. So let's turn to the next tab over where I've gone over to the analytics tab in Shopify I'm comparing this state range to the previous period, right? So Google ads versus no Google ads before it. And here we can see that the average order value has actually gone up by 15%. People on average are spending 15 percent more. their purchase than they were before we were running Google ads. How can that happen? Google is sending people to the website who have a higher intent to buy. So whereas before a larger percentage of the stores traffic was just people that found you on organic. Maybe they were clicking through your Instagram page. They're not on this shopping network looking for things to buy. So this is going to increase the average order value. Google is good at finding cold leads who are in market to buy your product. So what happens is Google spends more money on people that have a higher purchase intent. it's able to get those people at the top of the page that have their wallet in hand. And they're willing to look through the shopping ads because they know they're going to buy something, right? So those people have a higher purchase intent. And the reason why these are just more dedicated purchasers. They know what they want and they're willing to pay for it. So 15 percent average order value increase. Hi there. Quick interruption. Do you know the main thing that prevents small business owners from getting their Google ads account into a position to grow and scale budget? A lot of businesses, especially those that are just starting out, have limited budgets. And so because of this, they're turned away by most ad agencies because most ad agencies have minimum budget thresholds that they're willing to work with. So what happens is the business owners end up learning Google ads themselves. And the problem with that is that most of the advice online is geared towards larger accounts. And the advice doesn't have any of those strategies or tricks that can kickstart the algorithm into giving a small account a leg up over larger competitors. So it often just doesn't work and the business just ends up losing money month over month. If this sounds familiar, Starter PPC can help. We offer Google Ads management services that are designed for accounts that have between 1, 000 and 5, 000 budgets. Because all of our clients are just starting out, we've come up with ways to keep our management fees significantly lower than most agencies, because we know that every dollar saved on management fees just goes towards the ad budget, which is going to help the algorithm gather speed and power. So if you're serious about growing your business, and you'd like a team of Google ads experts to help you without breaking the bank, check us out at starter PPC. com. Okay. Back to the video. Usually we actually usually see a returning customer rate increase. right here. In this case, there really isn't any, there's just a 1 percent increase. I suspect we'll start to see this as time goes on because it takes users some time to come back and buy. And we've only been running the ads for 90 days. And I also think that this particular product is not prone to repeat orders too much at all. So I think that Google doesn't have a ton of effect on it, but that whole targeting cold user is Who are in market thing is usually what causes the returning customer rate to go up. So what happens is in your Google ads, your return on ad spend is going to stay consistent while your MER, your media efficiency ratio, is going to go up and up. And why does that happen? Because your revenue is going up by getting. Repeat purchases from users that originally interacted with an ad made a purchase, right? You paid for that. Click that's the row as and then they come back later and buy from your email list you didn't have to pay for that click. So that's why you're NER, your media efficiency ratio goes up and up while your ROAS is supposed to stay stagnant while you grow. It should not go up. If it's going up, that means you're not growing fast enough. If your ROAS is getting higher over time, that means you can add budget because you're leaving conversions on the table, The market is ripe for you to spend more money if your ROAS is going up. So again, your MER should go up with repeat orders going up, but your ROAS should not. I think this is interesting sales by source. So the Facebook the current time window is in dark blue and the old time window is in light blue and you can see that there's more sales. From Facebook and Instagram than there were before we were running Google ads. I don't know whether this particular business increased their spend on Facebook ads and that could be affecting this. But oftentimes we will see boosts in sales because of that whole conversion rate increase phenomenon that I mentioned. And by the way, if you're not already aware of this and you're running Facebook ads, I Google's conversion metric will do the 30 day look back based on clicks and attribute the sale. If somebody converted 30 days after they clicked, but it also bundles in a second metric that a lot of people don't know about, which is the 24 hour view through conversion rate. What does that mean? That means if you're running Facebook ads and your ad scrolls past someone on their Instagram feed or their Facebook feed, and they don't. Click on it. purchase happens within 24 hours, right? Without the click, Google will go ahead and include that conversion and attribute it to that ad that scrolled past them on the feed without a click. someone interacting with the Google ad within 24 hours because they never even clicked on Facebook. And so Facebook does this and it pumps up the Facebook numbers a little bit. So just something to keep in mind. Okay. This is huge. This next one is huge. So direct traffic. Direct traffic is up by 93%, you guys. Direct traffic has nearly doubled since we have started Google Ads. Now, why does this happen, It doesn't seem realistic that someone would just wake up one day and be like, I'm going to type in a URL and go directly to this URL that I've never been to before and buy something That's not happening. It's just being attributed as direct traffic. Why? Because Shopify cannot see that they interacted with an ad because the tracking was dropped. The tracking is not very reliable and probably it was dropped in Google ads dashboard as well. Although the tracking is slightly different for Google's algorithm versus Shopify's algorithm. So I think Google's slightly better at keeping track of those users and tracking them. But we will see this in analytics, which is a whole third type of tracking, right? 93 percent increase in direct traffic, a huge percentage of that can be attributed to people that interacted with the Google ads. And oftentimes people who see an ad, they also, they never click sometimes, right? They see the ad, they see the ad again, and then they think, what was the name of that product? I'm going to go buy it. And they type it in and they click on it. This also boosts the search. Like organic search, right? That same phenomenon, they type it into Google, they open a new tab cause they don't want to click on an ad cause they're in the middle of replying to their grandma on Facebook. And so they open a new tab and they just search for it. And then Shopify says it's organic search. So a 65 percent increase in organic search is also affected by the fact that we're now running Google ads. I'm showing the percent increase. We've got the total number of engaged sessions going up by 166 percent and not all of that was attributed in paid page social and paid search, right? Some of it was unassigned. What is unassigned? Where does that come from? Why did that go up by 486 percent 487 organic search up by 193 percent according to Google Analytics, even higher than Shopify's attribution direct traffic is up by 17 percent organic social is somehow up referral traffic, which I just lump into direct traffic because Sometimes the Google Analytics thinks it's referral if the link has something attached to the end of it, even though it's really just direct somebody clicked on the link somewhere. I consider this part of direct and that's up by 129 percent from the previous period. So this is wild. You guys there are a lot of. Complimentary metrics There are positive tailwinds that Google ads has that affects your sales. That affects your overall business and your overall marketing. And this is why we are so focused on the MER metric to look at your total revenue and divide that by your total media spend. don't look at just the ROAS inside of the Google ads dashboard because our goal is to grow your business. And we know that it's nearly impossible to tell, Down to a tee, how effective Google is over other channels. If you want to do that, there are cross channel attribution tracking softwares out there, but the pricing on those right now are out of reach of small businesses. Unfortunately, they tend to be really pricey. And they're complex to get started with because it's got so much analytics in there. So what we do at starter PPC to combat this is we try to help the business grow regardless, We track Murr and we say, okay, if you're Murr is cover your overhead and still make a profit, then you might as well push for growth. So we keep track of that every 30 days. And if the past 30 days was enough to justify pushing for growth, then we push for growth. If it wasn't, then we wait, we hold off and we optimize. And we don't try to grow because we know that growth is the easiest way to gain more profit. Because you'll have volume of sales and each sale has that profit in it. So you'll have more profit when you have more sales in theory. that is our focus here at starter PPC. And I wanted to show you guys this cause I think it's also fascinating to see how Google ads can have the biggest impact ever on All businesses really, because it's just so vast and it's everywhere. Bye.