Presented by David Deppner at Meet Magento Poland, September 19, 2016
This presentation explores the evolution of AdWords over the past decade and a half, diving into the key factors that are pushing up costs steadily over time. We'll discuss how Google's self interest and how they've structure t...
How does Google calculate ROAS?
"Here's the math: $5 in sales ÷ $1 in ad spend x 100% = 500% target ROAS" (Source: https://support.google.com/adwords/answer/6268637)
Before I explain why ROAS kills profit, you need to understand exactly what ROAS means in Google AdWords. I have a complaint...
In a word, “No!”
In two words, “Hell no!"
In eight words, “No, because of the law of diminishing returns."
Direct response advertising through AdWords probably has an ROI greater than any other investment opportunity available to an ecommerce merchant. It’s far greater than most people realize. The real return on investment is obscured by the way traditional cost accounting records the transactions and reports on them on a monthly basis. It’s easy to get distracted by tax accounting rules and forget the fundamentals of solid financial decision making.