ROI: how to calculate the effectiveness of a contextual advertising campaign. How to evaluate the effectiveness of contextual advertising: the path to enlightenment The effect of contextual advertising

Advertising in Yandex.Direct or Google AdWords should solve specific business problems. To determine if you are moving in the right direction, you need to monitor each ad, optimizing its settings and gradually increasing the flow of targeted traffic. Customizing your ads target audience and budget, after a certain time after its launch, evaluate the results and increase ROI by comparative analysis multiple campaigns.

3 questions before starting work

What are the goals of your advertising campaign?

All goals should be expressed in measurable terms:

• number of target actions;
• CPA — cost of action in rubles;
• campaign conversion percentage.

Let's say if you invite to a webinar, then your optimization goal might be to get 200 registrations. sell flower arrangements— increase in the number of orders from the site by 4-5 times. Success in achieving results is determined by KPI. This is exactly the indicator that determines the whole. You need to make comparisons on it even before making all the settings.

What tools to use for analytics?

Best suited for this type of problem.

• Google Analytics.
• Yandex.Metrica.
• liveinternet.

Why consider the effectiveness of contextual advertising?

Without evaluating conversion rates, you cannot make adjustments to the course of an advertising campaign. Ultimately, the results can be extremely unexpected, quite possibly unpleasant. Without conversion measurement, you cannot determine ROI - an indicator of your investment efficiency. Moreover, it is important to calculate the conversion for individual advertising campaigns. This is the only way to understand what brings the desired result, make the maximum list of negative keywords, set up the necessary extensions, and then launch effective retargeting.

Analysis and conversion calculation

First of all, we fix the initial conversion rates. Then we determine the campaign budget and the average cost per click. Start from Yandex.Metrica data obtained during the previous optimization period. You can take information for all time and for the last week. So your audit will be deeper, and your expectations will be more justified.

Once you have decided on the time frame, move on to cleaning the campaign from non-targeted clicks. What should be removed first?

• Inefficient keywords (everything that brought no more than 3 clicks).
• Garbage words (what was skipped from Wordstat).
• Ineffective display regions (characterized by low conversion).
• Inefficient platforms in YAN.

For cleaning you will need statistics:

• by keywords for the period of interest;
• according to the phrases of YAN;
• GEO for campaigns covering several regions or the whole of Russia.

Reports are summarized in an Excel spreadsheet. Now your task is to eliminate everything inefficient. After cleaning, we proceed to the analysis. It is carried out 1-2 weeks after the optimization. The number of clicks, CTR, cost per click and conversion rates are compared - before and after optimization.

Upon completion of determining the conversion values, we display the KPI. We use for this the conversion indicators obtained after cleaning. For example, your conversion rate is 5%. This means that out of 20 attracted visitors, only 1 will leave an application. Let's say average check- 2000 rubles, and the profit from the sale with this number of visitors will be equal to 400 rubles. Accordingly, you can spend a maximum of 400 rubles to attract 1 client (or 20 visitors at the current conversion level).

Let's assume that the marginal cost of a click will be equal to 20 rubles (400/20). If a click costs $20, attracting 20 visitors will cost $400 (20X20), and the revenue at the end of the advertising campaign will be $1,600 (2000-400).

Conclusion: the maximum cost per click depends on the amount of net profit per client, conversion and how many times you want to increase investments. A click price of 20 rubles will allow you to return the money spent on advertising, but nothing more. An increase in profit from investments by 2 times is possible if the maximum cost per click does not exceed the amount of 10 rubles.

Measuring ROI

After measuring KPI, we will be able to determine the most important parameter of any advertising campaign - ROI. This is how we know the true value of our investments. The following formula is used to determine ROI:

The calculation will look like this:

((2000-1600)-400)/400 = 0.

The advertising campaign was not successful, because ROI zero. The investment paid off, but it was not possible to make a profit. For achievement positive result the cost of a click should not be more than 10 rubles. Only then the ROI will be 100%, and you will earn 2 times more than you invest:

((2000-1600)- 200)/200 = 1, or 100%.

Rules to follow when calculating the effectiveness of contextual advertising:

1. Your investment should pay off. And advertising is to make a profit, and not just cover investments.
2. In your measurements, you must be accurate and consistent. Cleaning and performance analysis first, not defining KPIs.
3. The figures must be converted to real sales. Otherwise, there is no point in starting calculations.
4. Analyze both your successes and failures. Take into account the worst and best campaigns, compare them by all indicators.
5. Any analysis must be honest and objective. Don't sugarcoat the results. Only in this way can you achieve a truly excellent result.

In this article we want to talk about how to properly analyze the effectiveness contextual advertising. The context is working, the ad is running, the statistics graphs are inexorably going up and you are celebrating victory to yourself, but everything is cut off when the customer calls and says that everything is just awful and he no longer wants to work with you. How to avoid this situation? Patience, my young friend! Now you know everything.

Another important aspect is that contextual advertising is too overrated and often problems can lie outside of it: an outdated product, a site that does not convert traffic, poor processing of applications, and so on. Therefore, even if the analysis of the effectiveness of the context in all respects showed a failure, before drawing conclusions, analyze all the other stages of working with the client.

Criteria for evaluating contextual advertising

Let's talk sensibly. In your opinion, what evaluation criteria can and should be used when compiling reports and further planning? Contextual advertising, like any other type of advertising, has a specific goal - to sell. This is the main and main criterion in the analysis of the effectiveness of contextual advertising. Not CTR or conversion, but the number of new customers. Let you have a cosmic CTR and a stunning conversion, but all this fades if zero stubbornly looms in the purchase graph.

The importance of online advertising performance metrics in descending order:

• net profit;
• the number of concluded contracts;
• the number of applications (leads) and calls received;
• from a visitor to an application;
• average cost per click and number of clicks (traffic);
• amount keywords in an advertising campaign.

Make a table, enter the above items there and put down a value for each indicator. Moreover, it is necessary to evaluate the effectiveness not of some separate site (for example, or), but individual campaigns, ad groups, and even individual ads.

When drawing up a promotion strategy, immediately set yourself a specific goal, either the number of applications from the site, or, even better, sales. And voice your plan and goals to the customer. After all, there may be a reverse situation, when everything works in the best way. Traffic goes to the site, it converts, requests are constantly received, goods are sold, but at the same time the customer is not satisfied, because at some training he was inspired with the idea that the conversion should not be lower than 4%, and for example, you have it 2 .5%, but at the same time cheap traffic and still low cost of leads.

How to calculate the main indicators?

But in order for you to have those numbers and something to talk about, you must first enter your performance metrics and start tracking them.

Target actions:

1. Web analytics and conversions. and . This can be a subscription, downloading material, visiting a specific page or performing a targeted action on the site.

2. Phone calls. For each advertising source, it is better to use a separate phone number so that you can then determine what works effectively and gives the best qualitative and quantitative indicators. You can also use .

3. Offline. If the mechanisms of business in your area are arranged in such a way that the client finds information on the site, does not call, but immediately comes to the store to buy, and the seller does not always ask where the buyer came from, then it is reasonable to use promotional codes that give the right to purchase at a discount.

1. CTR. The simplest indicator. We take the number of clicks and divide by the number of ad impressions. With good CTR rates, the cost per click will decrease, and ads will be shown higher and more often.

2. Conversion. Everything here is also painfully familiar - the number of hits from the site must be divided by the number of visitors for a certain time period. To increase this indicator, it is necessary that the landing page contains the same information that is written in the advertisement. If you write in contextual advertising that your product costs 1000 rubles, and entering the site the user sees a figure 3 times more, then the conversion will tend to zero.

3. Client cost. By analogy with the previous paragraph, only now we divide all traffic costs by the number of new customers.

four. . A pure classic of economics. ROI = (Income - cost) / Investment * 100% or Net profit / Investment * 100%. those. how much the money that you invest in advertising pays off.

An example of analyzing the effectiveness of contextual advertising

Given. Construction company"My house". Monthly advertising costs: Yandex Direct - 20,000 rubles, Google AdWords - 22,000 rubles. Plus 10,000 for escort. Promotion period 3 months.

In this way total consumption for 3 months\u003d 20000 * 3 + 22000 * 3 + 10000 * 3 \u003d 156,000 rubles.

During this time, Moi Dom concluded 9 contracts with a total value of 21 million rubles and a planned net profit of 3,150,000 rubles.

ROI= 3,150,000 / 156,000 * 100% ~ 2019%. That is, from each invested ruble, the company earns on average 2019 rubles. Such a high rate of profitability is due to the high marginality construction business. In other areas, achieving such ROI is much more difficult.

Using this knowledge, you can increase the effectiveness of any advertising campaign. The main thing is to take the context seriously. Good luck!

• By advertising campaign - CTR, average cost per click, number of clicks
• According to the performance indicators of the client's site - the number of visitors who came by advertisement and made a purchase.

To measure these indicators, special counters are used, the codes of which are installed on all pages of the advertiser's website. We can offer setting up several web analysis systems at once:

Determine the goals of the advertising campaign

If the goal is set incorrectly or not at all, then the effectiveness of the advertising campaign cannot be measured and will put the agency in an unpleasant situation where the client will be dissatisfied, despite the money and time spent.

“We want to get 100 registrations per month, and each registration should cost no more than 400 rubles.”

Bad example:

"We want to increase the number of customers." In the case of setting such a goal, when evaluating the effectiveness of an advertising campaign, the advertiser and the agency will have to go into philological disputes.

Goals that can be measured quantitatively or numerically are called KPI (key indicators efficiency - Key Performance Indicators). It is by them that you need to judge the results of an advertising campaign.

It is important to compare KPI data with similar indicators before the campaign was launched. Which means tracking the effectiveness of advertising should begin even before it starts. How to do it? Let's talk about it below.

Learn more about efficiency counters

Web analysis systems are used to track the effectiveness of an advertising campaign. They exist great amount, counters are divided into server and html counters. Google Analytics, Yandex.Metrika and LiveInternet are best suited for solving the problems of advertising campaigns.

These counters are related to the type of html counters and are installed directly on the site pages (unlike server options). This means that to install them, it is enough to have access to the content management system of the site. They are a short html code that works when you open the web page where it is installed.

The main convenience of using Google Analytics and Yandex.Metrica is that they are closely integrated with Google AdWords and Yandex.Direct contextual advertising campaign management systems. It is easier to get the reports that the advertiser is interested in using them than when using other counters.

Using these tools, you can track not only contextual, but also any other advertising campaigns conducted on the Internet. You can track banner ads, mailings, campaigns in Google AdWords, Direct, Begun , in Magna, MediaTarget and any other systems.

To start tracking the effectiveness of an advertising campaign, in the counters to be determined Landing pages(or simply " Goals”), the achievement of which will mean the “transformation” of an ordinary site visitor into a target action on the site. The process of such a transformation is called the term "conversion ».

However, at the moment when a visitor who is interested in our services gets to the Landing Page, for example, a contact form with the sales department, he instantly turns into an individual useful to us, and the counter writes a “conversion” to his account - a useful action displayed in the corresponding reports of the counter.

Conversion rate - this is the ratio of the number of useful actions to the total number of visits to the site - this is one of the most important parameters for the effectiveness of an advertising campaign. It shows how “quality” the audience was attracted to the site with the help of an advertising campaign.

A huge responsibility for the effectiveness of the campaign lies with the site owners - if the site is inconvenient for the user, no advertising can turn interested visitors into useful ones.

The above example is worth clarifying: The landing page for the completed form will not be the form itself, but the page that is shown after clicking on the “submit form” button. So we will know that the visitor accurately filled out and sent it. This is how tracking on the iConText site works - take a look at our sales contact form.

We calculate the limit values ​​​​of target indicators

Once we know our conversion rate, we can do some fun arithmetic: calculate how many of those who came through advertising become useful visitors, and how much each of them cost. Then you can calculate how many of the "useful" become customers and what is the average size of the deal. And knowing the margin from each transaction, you can Calculate the maximum click value you can afford to pay per ad visitor. Consider an example:

1. Let's assume that the site conversion is 5% (that is, 5% of the visitors who came buy our service or perform another targeted action on the site). This means that out of 20 attracted visitors, only 1 will become a client.

2. Suppose that the average sale through the site is 2,000 rubles. If the margin is 20%, then the profit from each sale will be 400 rubles.

3. Accordingly, the maximum amount of money that can be spent on attracting one client is these same 400 rubles (provided that we are ready to work “to zero” and not receive any profit at all).

4. Therefore, we are ready to pay 400 rubles for every 20 visitors (after all, the conversion is 5%). It turns out that the marginal cost of a click is 400 rubles / 20 visitors = 20 rubles.

5. We check: If a click costs 20 rubles, then attracting 20 visitors costs 20 × 20 = 400 rubles, of these twenty, only one will buy a product that will bring us a profit of the same 400 rubles.

6. These simple calculations can be adjusted taking into account how much of the profit of 400 rubles you are willing to spend on attracting new customers. Accordingly, the lower this figure, the lower the marginal cost per click.

7. Once you've settled on your marginal cost per click, it's time to take a look at the competitive landscape for the topic—is it even possible to buy clicks for that price?

We measureROI – cthe most important performance indicator

After we measured our KPI we are ready to calculate the most important parameter of any advertising campaign - ROI (return on investment - return on investment). This term is expressed as a percentage and shows the effectiveness of advertising investments.

For calculationROIthe following indicators are used:

• Product cost - all costs for the purchase of parts for products, delivery to the warehouse, production of goods, wages to employees, etc.
• Income- profit from the sale of a product or service.
• Amount of investment - the total amount of investments in advertising.

AT general view The formula for calculating the ROI of an advertising campaign looks like this:

If a ROI = 100%, it means you got twice as much money than invested in advertising. ROI can also be negative. Only with its help you can understand whether the advertising campaign was successful or failed.

Such an ROI analysis It is recommended to conduct at least once a month to keep track of current performance.

What does tracking provide? ROI?

You get a significant advantage over competitors who do not keep such detailed statistics. Realizing the return on your investment, you have the opportunity to increase the return on invested funds through their competent distribution.

Case for increasing the ROI of cybermarket Ulmart

Our tasks before launching the campaign:

Solution

The task was solved in two stages:

1. The first step was to gather an audience for retargeting. On the client's site were highlighted landing pages, which have retargeting codes set to collect an audience. Also used targeted advertising VKontakte to reach a wider audience.
2. At the second stage, about a month after the start of work, a retargeting advertising campaign was launched. Gathering an audience for retargeting using previously installed codes on the site and through advertising continued. In parallel, various settings were tested.

Result

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