Crealytics Insights


Break down silos in ecommerce to drive performance

incrementality

Effective Performance Advertising 2/4: Incremental Value

Crealytics’ latest Effective PPC video has arrived. This series reveals game-changing perspectives on PPC advertising…in just a few minutes! Today’s video explains the concept of incremental value – and why you should consider it in your ad campaigns.

Online retailers use Return on Ad Spend (ROAS) as way to measure the efficiency of their Performance Advertising programs. This is ironic, as ROAS often works against business needs…and leads to poor budget allocation.

Our latest Espresso Shot video explains why industry best-practice is more flawed than you think. It also explains how switching from ROAS to Incremental ROAS (iROAS) is an important step in the evolution of Performance Advertising:

While the above video explores the basics of incremental ROAS, an open question remains: How can I quantify incremental revenues and iROAS?

At Crealytics we prefer to conduct incrementality tests, but they can take a long time. A more short-term, pragmatic solution is to start with educated estimates.

To get you started, download this free incrementality exercise. As well as a simplified case study, you’ll also receive an interactive spreadsheet to help you discover the incrementality of your own PPC campaigns.

Our next video shows you why you shouldn’t just focus on revenue when it comes to measuring your campaigns’ effectiveness.

And don’t forget – you you can always get Crealytics’ latest insights sent straight to your inbox.

 


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

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.

 

 


CLV

Effective Performance Advertising 1/4: Overview

Crealytics’ first Effective PPC video has arrived. This series reveals game-changing perspectives on PPC advertising…in just a few minutes! Our inaugural video introduces what’s wrong with the current state of Performance Advertising and how it can be fixed.

Traditionally, Performance Advertising focused on measuring impressions and clicks. The last few years have seen a big shift – toward more business-oriented KPIs like revenue and ROAS. But this evolution has stagnated. We’ll explain how efficiency metrics like ROAS can easily hurt your business and how to make the next step in the evolution towards effective Performance KPIs.

 

 

Our next video will offer more detail on incremental value. You’ll also learn why switching from ROAS to Incremental ROAS (iROAS) is an important step in the evolution of Performance Advertising.

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.

 


Effective Performance Advertising 4/4: Customer Lifetime Value

Crealytics’ latest Effective PPC video has arrived. This series reveals game-changing perspectives on PPC advertising…in just a few minutes! Our final video in this series explains the concept of Customer Lifetime Value (CLV) – and why you should consider it in your ad campaigns.

Smart online retailers have increasingly adopted Customer Lifetime Value as a Key Performance Indicator. Taking a customer-centric view beyond the first conversion on follow-up purchases allows the business to grow aggressively…and aim for mid- and long-term profitability.

Today however,  budget and bidding decisions still center around Return on Ad Spend (or “ROAS”). This leaves Performance Marketers disconnected from Customer Lifetime Value. In this Espresso Shot, we shed light on why this gap is harmful and how it can be closed.

 

This Espresso Shot uses a simplified Lifetime ROAS model – however, Lifetime ROI is the preferred method for most online retailers. To understand the difference between ROAS and ROI, visit the third part of our series.

And remember, you can always get Crealytics’ latest insights sent straight to your inbox.