Effective Performance Advertising 3/4 : Measuring Revenue, Profit and ROI

This post is part of the series Crealytics Espresso Shot

Other posts in this series:

  1. Effective Performance Advertising 2/4: Incremental Value
  2. Effective Performance Advertising 3/4 : Measuring Revenue, Profit and ROI (Current)
  3. Effective Performance Advertising 1/4: Overview

Crealytics’ latest Effective PPC video has arrived. This series reveals game-changing perspectives on PPC advertising…in just a few minutes! Today’s video discusses revenue, short-term profit and ROI optimization.

Online retailers care deeply about the profit from any given order. Different factors influence the value of each conversion for your business: category margins, discounts and advertising costs.

But in Performance Advertising today, best practice is to only measure revenue. Our latest Espresso Shot video explains why this approach is more flawed than you think. It also elaborates on why ROI and Profit are better suited than Return on Ad Spend (ROAS) for assessing – and optimizing – the short-term business impact of advertising campaigns.

 

In our next video, we’ll how you how Customer Lifetime Value helps you optimize campaigns for long-term profit.

Don’t forget, you you can always get Crealytics’ latest insights sent straight to your inbox. You can also see our eCommerce Café series – here.

 

 

Continue reading this series:

ABOUT THE AUTHOR


Alexander has several years of experience as an IT consultant and Product Owner in the e-commerce industry. Today he works as a Senior Product Manager for crealytics.

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