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Google Universal Analytics helps to identify and measure channel profitability with actual cost to acquire a customer. Read explanation from http://www.niroshan-samuel.com/cpa-in-adwords-facebook-could-be-misleading-cpa-in-adwordsfacebook-could-be-misleading/
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Measure True CPA with Universal Analytics
Niroshan – Samuel
@Niroshan_Samuel
What are the profitable keywords if the Conversion income is $150?
Keyword Adword CPA
Keyword 1 $100
Keyword 2 $180
Keyword 3 $151
Keyword 4 $120
Even trained monkey can identify? is it?
Keyword Adword CPA
Keyword 1 $100
Keyword 2 $180
Keyword 3 $151
Keyword 4 $120
Now we are measuring the actual income with Universal Analytics
Keyword Adword CPA Avg. Income/Customer
Avg.Customer behavior
Keyword 1 $100 150 Buy only the main product
Keyword 2 $180 320Buy the main product and
few add-ons (online, offline)
Keyword 3 $151 160 Buy the main product and upgrade
Keyword 4 $120 80 Buy the main product and higher refund rate
Key Points
• Identifying actual profitable keywords is a real game changer
• Certain keywords may lead to purchase add-ons and life time value is high
• Certain keywords may not relevant to their need and may lead to refunds
UA can break the optimization barrier
Actual CPA Optimization
What are the Profitable Ads in Facebook? (Conversion Value is $150 - No-refunds, No add-ons for the product)
FaceBook Ad FaceBook CPA
AD 1 $100
AD 2 $140
AD 3 $80
AD 4 $120
This time You Did It
FaceBook Ad FaceBook CPA
AD 1 $100
AD 2 $140
AD 3 $80
AD 4 $120
Each ad has significant profit
Customer Journey – Multi-Channel Analysis
Facebook Organic PPC
CPA = $40
Average Facebook conversion consume $40 from PPC
True CPA for Facebook Ads
FaceBook Ad FaceBook CPA True CPA
AD 1 $100 $140
AD 2 $140 $180
AD 3 $80 $120
AD 4 $120 $160
Profitable Ads Finally
FaceBook Ad FaceBook CPA True CPA
AD 1 $100 $140
AD 2 $140 $180
AD 3 $80 $120
AD 4 $120 $160