In this episode, Lazar and Brent are talking about common discussed PPC metrics and also the most important ones. In this podcast you will learn which metrics you should track and how to optimize them for success.
Lazar and Brent are pretty sure that you will completely relate to this episode. ACoS, TACoS, CTR, CPC? Which metric is the most important one? Should you focus on some of them or always have the bigger picture in mind? Listen to the third episode ,,Most Important PPC Metrics" to find out the answers! Don't forget to follow us on social media and visit our website to find out more!
Lazar (00:00):
Hey guys, welcome to the Wild PPC Bunch podcast. My name is Lazar and I'm a PPC nerd. I have over 10 years of experience in online advertising. And currently I'm the owner of the growing Amazon advertising agency called Sellers Alley.
Brent (00:14):
And I'm Brent, the owner of AMZ Pathfinder. I started this company five years ago and we've been working in online advertising since 2013.
Lazar (00:21):
Every week we will spend around 30 minutes covering one topic and it will get nerdy I promise. We'll prepare a topic, covering everything from PPC basics, in-depth strategy and current trends.
Brent (00:32):
One thing's for sure you won't be for our insights, tactics and ideas straight from two experienced agency owners. So strap in for the ride and enjoy.
Lazar (00:50):
All right, guys, this is a new episode of Wild PPC Bunch. And today we're talking about something super interesting. We're talking about metrics and we're talking about common discussed metrics and the most important ones. Of course there's Brent with me today and hello Brent.
Brent (01:07):
Hello, hello Lazar! How's it going?
Lazar (01:09):
It's pretty well. It's a sunny day in Belgrade Serbia. So it's going to be nice.
Brent (01:13):
Sounds great. Like that new office too, looking very nice.
Lazar (01:16):
Oh, thank you. Thank you. So we're going to discuss something that people usually ask us about and like, how are we tracking some stuff or like, are we thinking about some certain metric while we are optimizing their accounts and so on. So like, I know that you guys in AMZ Pathfinder, just like us in Sellers Alley track a lot of different metrics and..
Brent (01:41):
Exactly.
Lazar (01:42):
We're like really in detail with that. And I know that both your and my team are like, don't like those days when they're doing a lot of reporting thing, because it's a whole bunch of different data, but it really, really helps at the bigger scale.
Brent (01:57):
That's got to be one of the biggest tasks for any agency is like proper reporting because there's so much information that we all know. And as ad experts, the people on the team know, but being able to translate that to, uh, clients who don't have the time or interest necessarily to learn every single tiny metric or, uh, you know, don't, and maybe don't understand some of them like the significance or nuances of them. So education is always a big piece, but also distilling it down to a level that's palatable, you know, the CEO of a company like has: I want to see this on my desk, I want to read this, this and this, I don't care about the rest. You know? So sometimes it has to be custom tailored to that person's preferences or, you know, uh, their, their preference to shield themselves from too much information. Just an interesting idea. But we can dive into that in a future episode
Lazar (02:44):
Yeah sometimes, people don't want to see all the metrics and also like something that we realized in our agency, people usually, like half of them, really like a lot of spreadsheets and a lot of data and a lot of information, the other guys like charts and like they're visual guys and they'll just like to see if the peak is going up or like the line is going down and that's something that is worrying them. And basically we try to do to create a hybrid on our end. So we try to show both of the metrics. So I think we should go through some metrics that people usually ask you about and that are asking us about as well. So like, what are the things that people usually ask you? Like, okay guys, like can you please decrease our spend or like increase our sales? Or if you're a magicians, can you do both?
Brent (03:35):
Simultaneously while standing on one foot? Um, yeah. So I think that the elephant in the room is of course ACoS. And, you know, I feel like this podcast is a bit more advanced level. We don't need to go into describing what that is and clients can lose sight of other metrics if they're too focused on just the idea of ACoS or ACoS alone as like the most important thing. And just to be clear, it's, it's, it's important, but it's not the most important thing. Really what's important is tracking a variety of trends over time. You know, focusing on any one day is not going to really get you much as a business owner. And at the agency side, certainly this is true for both of us. Like we're not really focused on, Oh my God, the conversion rate plummeted on this one day. Well, I mean, that might be the sign of something bigger, but really what's the trend, you know, what are we looking at over time? Is it plummeting and then staying down? Cause that's far more worrying than just one day that's a blip on the radar. So those are the two other pieces of this that I think are interesting to bring up is trends versus singular days. And ACoS not being the sole focus of everything.
Lazar (04:36):
Oh, I just want to jump in with, with one thing. People usually miss the part when there's 72 hour discrepancy on Amazon. So they check what happened like this morning with sales,
Brent (04:49):
Right? Yeah. Useless. Yeah.
Lazar (04:52):
That's, that's not a thing like that, that you can see with, with smaller sellers. That's like across the board with everybody. So like there are random sellers from, from each category or group that are doing that. Like it's, it's like when you, when you have a scale that is not working and you're measuring your weight and like, it's, it's not, it's not the right number, but if you're making progress, you're going to see it. So I understand, I understand that point of view, but like overall, as, as you mentioned, the ACoS is super important, but like what we usually like to, to discuss with our clients is spent as a percentage of total revenue. It's it's the metric with like the most names ever in the world. Right.
Brent (05:35):
That's right. Let's, let's, let's list them out, just so people know. So we call it blended ACoS at Pathfinder.
Lazar (05:42):
Or we call it real ACoS.
Brent (05:43):
Real ACoS . Some people call it total ACoS. And they like to abbreviate that tacos because obviously the Mexican taco is one of the finest food items in the world. So why would you not want to say that? Um, and then what other, what other, uh, what other abbreviations have you heard? This is the that's the couple I can think of. Yeah.
Lazar (06:00):
These are like the most common, like blended real, um, tacos or total ACoS. Yeah. Overall, We start with spend as a percentage of total revenue or as somebody would say, all of the abbreviations that people are using. Right. And that's one of the most important things. Like, but when, when people say, um, about ACoS or real ACoS or blended ACoS they usually want to have specific number. But like what they usually miss is the point when you, you... Imagine that you have like real store, like you open a retail store in your street and you want to do some advertising for it. You're selling TVs. And like first week you're giving them away for free and nobody's going to take them because nobody knows that, that you're giving them away for free. So you need to invest in marketing. So like initially when you're doing product launches or like, or if you're just starting the business or whatever, like that needs some kind of push, you're not going to see the same number, just like you would see when, when campaign has history and product has whole bunch of reviews and so on. And like that, that's the thing that usually people miss or skip. So I would definitely think about that part as well. So what did you see is that is like really good blended ACoS or real ACoS in the account.
Brent (07:31):
Sure. So talking from a, from a percentages standpoint, which is how it should be measured as, as, as the outcome, you know, we typically will see with, uh, I would say a medium sized account and I would classify that as, you know, maybe 350,000 to, uh, I dunno, 700,000, this is a rough range, US dollars per month in sales. Like maybe they have a blended somewhere that falls between 8 to 12% where accounts that are closer to a million US dollars a month, those might be four or five, six. You know, we have some clients who want to keep that at very specific percentage. And then the smaller accounts usually have a higher one. Like, you know, uh, I examined an account recently that was at 150K. Um, and so there's was, uh, closer to like 14 or 15. And, you know, if you just do the math on that, you can see what the ad spend would because of those revenue figures. I was just giving our, uh, you know, obviously the relationship there, you can figure that out. But, uh, if it's too high above 15, I think that, uh, at any account size, you're starting to enter an area where you need to think about that, uh, and maybe figure out how to get it down. Of course there are things that influence it that are beyond our control on the advertising side, you know, totally outside of the zone of, of what we can deal with. Like COVID for instance, obviously we saw that figure go all over the place for some clients, it became super small when they had explosions of sales and then others that had demand fall off a cliff. Well, it started to look really big because, Oh, we were spending, but conversion rates were down, sales were down, nobody was using their products, whatever they might be. And so that's like a big consideration.
Lazar (09:03):
Yeah. People usually like when they just need to be aware of it, like if it's above 15 and like what's the reason for it. And like sometimes they try to push sales or they act more aggressively, which is absolutely fine. And they are just aware of that. There's some bleeding of the money in the account. So that's cool part as well.
Brent (09:23):
Yeah. I should say, you know, everything I just said, if you're launching or if you have a lot of products in your catalog that are launching, that should be accounted for differently, for sure. That's going to be a different percentage, much higher.
Lazar (09:34):
Yeah. Like if everything is on autopilot, like without like bumps and like having new launches and stuff like that. Yeah. Like you should keep around to 12%. But like what we realized, because like when, when we, when we tracked blends a day, because what we usually track is, um, ad revenue as percentage of total revenue. So that's the metric that people don't usually look for, but like, it's super close to blended ACoS. So when you try to do a push and like, when you see that ad revenue is improving, like it's increasing, maybe it's not profitable that much. So you're blended ACoS is going up, but like, if your total revenue is not increasing, obviously your blended ACoS is going to go way more up than then if total revenue increase more, they need to, to grow together basically. So if, if you see that your ad revenue is increasing, but total revenue is staying the same, basically your ad revenue is, um, your ads are like cannibalizing your sales, they're eating your organic sales. And that's something that you don't want basically.
Brent (10:47):
Well, those two things are close cousins. Yeah. And, and to speak to more exact percentages with that. I think we call this percentage attributed just to give it a shorthand name. So percentage of sales attributed to advertising. So we just call it percentage attributed. It would be, uh, maybe between 25 and 35% is like a good range. If you're getting 50% of your overall sales on Amazon attributed to ads, you're probably over reliant on ads and going into this idea of, uh, cannibalization, which is a, a nasty word to use for it. But that's the common thing that people say, and I stick with it, but that is, yeah. That might be the case. If you're, if you're too high on that percentage, you might be ranking well, actually, but then superseding it with ads and too many places and paying for sales, you might get, uh, organically. And that goes back to a question that I'm sure you get a lot, which is like, how can we prevent that from happening? Well, it's very hard to prove a negative. So that is a, that's a, one of these Amazon puzzles that I think will forever, uh, forever, uh, confront us.
Lazar (11:47):
Yeah. Like you can definitely work on your organic sales and the other account, like it like organic sale, but it's search, find, buy, or it's some newsletter traffic or like AdWords or Google ads or some external traffic that you are bringing. Basically you're spending money, but you're not spending directly. You're not giving it to Amazon. You're giving it to some other platform, but like dragging some traffic through to your Amazon listing on like, are you going to calculate that number in your spend or not? It's up to you, but like, you need to be aware of extra spend that you're having. And that's something that is going to affect your blended ACoS big time. So like, what we usually see is like for small clients, for smaller sellers that are just starting, it's okay to have, um, higher ads revenue, as a percentage of total revenue, just because they don't have brand awareness. Like, if there is a brand called Lazar, nobody's going to type for it because like nobody knows about it.
Brent (12:52):
Who's searching for Lazar anyway?
Lazar (12:52):
I have no idea, dude.
Brent (12:55):
Can't imagine, can't imagine why.Why would you do that?
Lazar (12:59):
I don't know, I would do that to check my, my pictures..
Brent (13:02):
Check your rank, make sure your number one stuff.
Lazar (13:05):
Yeah. Who's the other Lazar or Brent.
Brent (13:12):
Yes, percentage attributed is those are the two big we have, we could think of here. Which one you want to tackle next? We got a whole list here.
Lazar (13:19):
Yeah. They're, they're like guys, we have a list of 30 of them. Or even more. Yeah. So do you want to talk, like... One of the things that we should definitely discuss, like when somebody says like, can you increase our sales? Like, how do you usually do it? Like, it's not about just spending more money. You're just focusing on smaller numbers. It's focusing on improving some different metrics like CTR or conversion rate or increasing your average order value. Like, I'm not really sure that a lot of people are checking their average order value, especially if they're checking their PPC order value versus overall order value. Like something that we usually see, those are the metrics that we usually track on a weekly level. We can see that PPC order value, like average one is higher for like five to 10% comparing to average order value in overall. And that's mostly because you have display ads that are cross targeting your products. Like every ASIN targeting option, that's it can include your ASIN's like for defending your listing. We usually do it to the big scale to protect listings from competitors. Uh, basically show our ads on our product listings and we do it in a manner with, um, doing some cross sale or trying to upsell the product, like to sell something more expensive or like with hard quality or more options instead of the one that people are already on. So because of that, the average order value goes up. And also because, um..
Brent (15:02):
You're saying this cause they buy two of them or because..?
Lazar (15:06):
Both, both options. Like if people are buying two of them or like, uh, buying two complimentary products like that work really good together. Sure. Or of they're buying more expensive product, your average order value is increasing. And that's the reason why average PPC order value is higher than like organic one. Just because of that.
Brent (15:26):
Yeah. I don't think we do enough comparison between the two. Uh, we do track it, but we don't do enough comparison between the two. And that should be a good exercise for us to take on.
Lazar (15:34):
Yeah, definitely. Like it's, it's a good way to, to place your products in frequently bought together sections. Like there is no cheat way how to do it. There is no like black hat or white hat stuff that you can do to, to show your product in frequently bought together section with other product. Basically what needs to happen is that people buy both products together, as simple as that. So like, what we usually do is just cross targeting of ASIN's and like hope that is going to work after some time.
Brent (16:08):
Right? And some of the information in the market, basket analysis, consideration reports and brand analytics, you could use to do that, especially the market basket, because you can set the setting to show, uh, you know, exclude your products and you can see what other customers are buying that is not yours. And that's a good way to get other competitor listings. But if you want it to show only your products, you can do that too. And then that allows you to export the report and try to try that same tactic. Um, but maybe that's, maybe that's a little bit outside the scope of this metrics discussion. Can we, we go to, um, the one, I was maybe most excited about page views, sessions clicks, because this is such an unholy mess. Well, it's, it's, it's like a pile of spaghetti that is all tied together and some of it's cooked and some of it's not cooked. It's impossible to pull it apart. Um, but essentially, you know, one of the problems we've encountered for years now, this is not some recent thing. And this is shared across many agencies, consultants that I speak to and Lazar and I know mutually is, you know, tracking the percentage of sessions attributed to ads versus overall is very complicated because Amazon is not clear about how they count actual session. You know, there are some circumstances where if the person's not on the page long enough as I understand it, it won't count as a session. There are certain traffic sources that they might filter or not count as sessions. Cause they're like not legitimate enough. It's very unclear. And I think Amazon wants it opaque. So essentially what we've determined is that tracking this as a percentage, like what percentage of your overall sessions comes from ads is actually a useless exercise and we no longer do it after doing it for years and talking to clients about it. I'm curious to know what you guys do because this is..Uh, yeah, this is a continued bone of contention, A lot, amongst a lot of agencies, consultants, but it's not something that a lot of clients really actually care about too much in our experience.
Lazar (17:59):
Yeah. It's, it's absolutely crazy to be honest. I, I hate it a lot. And one thing that, uh, we can see pretty often is like when, when you compare clicks, like let's talk about all of the options that you can have when it comes to page view. So page view is basically when you have a client that you do product listing page, obviously, and session on the other hand is explained by Amazon, uh, as like, how did they explain it to a visit to your amazon.com page by user all activity within 24 hour period is considered to be a session, right?
Brent (18:38):
So that's a unique yeah. In like this parlance of Google analytics, right? Yeah.
Lazar (18:42):
And like third thing that you have, there is clicks that you can see in campaign manager. And like the amount of clicks are not the same as the amount of sessions. Like when you compare one time period and like obviously total visits are the highest numbers so.. Total visits are like usually I don't have percentage to compare it, to be honest. Like we, we could definitely do it, but like literally nobody ever asked me to do it. So we never did it to tell you, like, this is the total visits compared to sessions or like that kind of stuff. So, um, but what's pretty interesting that, that I see sometimes is that clicks, which is like insane, there are more clicks than sessions.
Brent (19:33):
Right. We had the same exact problem. So how does that make any sense? You know, let's assume that there are some people who click on the ads that have clicked before. Okay. Even allowing for a small percentage of that. There's no way that it could be that high, you know, cause we sometimes have it,you know we've done the math. It's like 120% clicks versus uh, versus, uh, you know, the session it's like, well, that doesn't make any sense. Um, and that's even allowing for something like, okay, maybe there are different skews in the ad group. Uh, but you know, let's, let's take an example where there were not. So we know that that person clicked through and they landed on that page. They had to. It just doesn't add up. Basically the math does not make sense.
Lazar (20:11):
So, like, in the logical world clicks should be the lowest number then sessions then total visits or page views should be the biggest number. Yeah. So it's, it's, it's a total mess. I hate that part. When somebody asks me about it, I I'm getting a headache because I didn't know how to explain it.
Brent (20:32):
If anyone from Amazon ever hears this. Please send us an email. We would highly appreciate it. Clear this up. I've even seen internal communications for Amazon, that someone had forwarded me and their explanation was as clear as bud. I was not ble to learn anything from it. It was not useful. I was like, Oh my God, this is just a nightmare. So before we get headaches, maybe we should move on to the next metric.
Lazar (20:57):
Yeah. And, and to be honest, I'm happy that not a lot of sellers are asking about that. Like we track changes in clicks and changes in sessions and total visits or weeks like compare week over week over week. So yeah. Yeah. So we can see like trends and like what, when you see that a lot of visits are there and a lot of clicks are there and like conversion rate is low and you don't have any say like when you compare those metrics and when you see, you can see the trends basically. And like, Brent, for example, like how do you recognize that the product is in low season or high season? What kinds of metrics do you usually look at?
Brent (21:38):
Well, just total visits, page views. Um, and then what's the conversion rate. How does that look versus where it was doing well? Like, as it dropped by a percentage and a half, we also asked the client sometimes like, is this your high season, your low season? And then, you know, total sales and we're not just looking at a PPC in isolation what our total sales doing. Yeah. Those things are usually helpful.
Lazar (22:01):
Uh, I'm sorry for like jumping from one topic to another, but this kind of stuff that you're checking for high season or low season, it's something that you can check, to check for click fraud. And the thing about click fraud is that people are usually talking a lot about it and it doesn't really happen that often. And it's nothing in a manner that you're going to lose like 100K like, depending on the account size, obviously, but usually it's just like couple of thousands or so on. I know it's still a huge amount of money, but like, okay. How often did, did you, did you manage to catch click fraud until now? We just had it a couple of times in our lifetime.
Brent (22:43):
Oh, I can think of a handful of instances over the past five years.
Lazar (22:46):
Like, and, and like when it comes to metrics there, uh, what we usually see there, uh, the amount of impressions are more or less the same, so that didn't change. CPC is usually even going a bit lower because more and more people are clicking on the ad...
Brent (23:09):
No matter the placement or anything. Yeah.
Lazar (23:11):
Like Amazon thinks that you're more relevant because people are clicking on you and they're showing, showing you and your click is getting cheaper and cheaper. But during those sales, like one of the things that we see there...
Brent (23:25):
And the click through rate is super high, right.
Lazar (23:27):
Yeah.
Brent (23:28):
So the click through rate is suddenly, you know, something that you would never experienced, like, okay. It's 7%. Okay. So something's going on here? That, cause that would be unusual.
Lazar (23:38):
Yeah. Yeah. That, that's something super crazy. Okay. So we talked about click fraud and we didn't even want to do it.
Brent (23:48):
Didn't even have it on chart. Yeah. It's all. It's all good.
Lazar (23:50):
Yeah. Sorry about that. I just jumped with, it's like it's, it's around the conversation. Like the idea of this podcast is also to talk in the same manner. Just like we usually talk about like on our regular call. So guys, you had a chance to see like, we think like outside of the regular.
Brent (24:10):
Not always the most structured. Yeah.
Lazar (24:12):
It's, it's crazy. Like what are the other stuff that we are checking like average CPC and behavior across different geos? That's something that you could definitely talk about because
Brent (24:21):
Sure. Yeah. We shed some light on that. I mean, in general, US is the most expensive. Germany and UK, you know, we have a good amount of clients in the UK and a decent amount in Germany. And we do track this at the country level. Unfortunately, before we did the call, the dashboards are usually load to check. This was not working. Maybe we can retouch on that in a further episode, but I can tell you from experience and just from the accounts, we do have. Spain, Italy are going to be amongst the cheapest, uh, places to advertise. Um, those CPCs are somewhere, uh, I would say in a 30 to 40 cents Euro. Uh, whereas, uh, the UK would be closer to, I think, 70, 80 pence, um, Germany, I think is like more 70, 80 Euro cents. I'm just, just going from memory here. One that stands out notable is Canada is actually like more expensive than you think it would be overall. Uh, I mean, it's not, it's not the US, it's not UK, but it's, it's more costly than you think for a country with a fairly small population, no offense to Canadians listening yeah, we find that that's the case. The one that really stands out for me, that's notable is Mexico. So we have three or four clients selling in Mexico. Two of them are larger accounts, uh, for that marketplace in particular. And I can say from memory, cause this is something I have looked up recently. Uh, the average cost per click in Mexico is 9 cents US which is outstanding. Uh, and so of course it's easy to get a good ACoS there. Even if your product price is low and your conversion rates, you know, just a mediocre at 9 cents a click, it's hard to go wrong. So everyone's sell in Mexico. That's my moral of the story.
Lazar (26:01):
Like you imagine that you need, I don't know, seven or eight clicks, you get one sale. That's not a lot of money spent to get one sale.
Brent (26:09):
No, that's not. Even if your thing is a 700 pesos, which is like not a lot, it's like, it's still the math of that might make sense. Mmm. And so that's been interesting to see, and of course that fluctuates with time of year and stuff like that. I don't have a huge data set to say, I've seen reports from d Badger, for instance, presses on, I think the average cost per click in the US is still somewhere around a dollar or just under a dollar. Does that, does that sound familiar to you Lazar? I don't know if you guys track that too.
Lazar (26:37):
Yeah, that makes a lot of sense. And to be honest, one of the things that I want to talk about as is CPA, and this is like, this was like really good intro or CPA. Sure. A CPA is something that's like, we call it CPA, but it's not really just like cost per acquisition. It's like cost per sale. And we track it in two different versions. We track it for PPC only. And we track it for like overall CPA, which is basically how much money is spent to get one sale. And we did it for PPC level because like all the money that you spent on PPC to get one PPC sale. And we compare that amount of money with, um, overall amount of sales. So basically what we divide there is total ad spend with total order items. So we, we get the information, like it's like $2 dollars or three dollars or $15. And it's, it's kind of important metric to think about because people usually skip that part and they focus just on spend as a percentage of total revenue. That, that makes a lot of sense. Like this is the same thing, but like with a number. So you would, you would know, like to calculate in your pricing, how much money you should give to PPC, basically.
Brent (27:54):
Right, then back it out from there and do the math. And I think that that's the one thing, um, uh, that clients almost never ask about. I'm not sure if they're even thinking about it or conscious of it, but certainly in our, in our space, that's something we consider.
Lazar (28:07):
Yeah. That that's something that we saw as well. Like people usually don't ask about it and they're pretty much always thinking like ,,wow, we didn't even consider about that", but that's something that really, really helps overall. And when you compare your, um, money spent on each sale and on each PPC sale, that's super, super important.
Brent (28:30):
Thanks. Thanks for taking CPA on. Uh, Lazar is taking down on CPA. Let's well, let's wrap it up. We got, we got just a few minutes, I think before you hit the, our usual, uh, length here, keep people, uh, you know, keep people awake. So we got two more. I can think of here, unless somebody read them off conversion rate weirdness on Amazon, you know, USP versus normal conversion rates I say, and then ROAS versus ACoS. Mmm. How about I tackle the conversion rate? You can tackle the ROAS and we will wrap it up there.
Lazar (28:59):
That sounds perfect.
Brent (29:01):
Alright, cool. So conversion rate on Amazon. What I mean by that is Amazon likes to track conversion rate a little bit differently. So they have what's called unit session percentages. So how many units are sold per session? And then they give a percentage. Now that's going to be higher than what we would consider, like a normal conversion rate, depending on what ad platforms you use. But typically, you know, if you buy three units or if you buy one unit, that's still a conversion. So for each unique, um, session, and then a conversion that that percentage is going to be lower than USP. So when people on Amazon talk about conversion rates and they talk about, uh, uh, conversions and ads, I always have to precise with them. Like, what do you mean exactly? Cause yeah, your USP is going to be it's 29%. If you get like a couple of units ordered, uh, per thing, uh, I'm sorry, per order. But if you're talking about ads, we usually come at it from a, from a one relationship. So it's one conversion and it doesn't matter how many items they've purchased. Uh, now where, where that's a little bit different is kind of what we talked about earlier with the average order value. So what's the average order value for ads is that high or low and that's a different metric then I think conversion rate. What do you guys do for conversion rate Lazar? Are you still doing it the more traditional manner or do you kind of use USP method where it's like units instead of a one to one?
Lazar (30:24):
Well, when it comes to what you're tracking is more of unit session percentage than like regular conversion rate. So it's, it's more in depth manner on like when it comes to, uh, optimizing that part from PPC side, you really cannot do wonders there. Uh, depending on the day, basically what's the ad type. When it comes to headline search ads or sponsored brand ads or like display ads, you can, you can generate more like higher CTR and like reach, increase that number. But like overall at that point, you need to have some other cool features on, on your product or like competitive pricing as well.
Brent (31:07):
Right. Interesting. So you guys maybe do it a bit differently than we do, but that's how, that's how we get different perspectives on it.
Lazar (31:13):
Yeah. That that's the whole point.
Brent (31:15):
So do you want to finish it off, finish it off here with ROAS versus ACoS. Let's talk about those two things. It's almost like the same word, just spelled differently.
Lazar (31:23):
And it's almost the same thing, but like in the opposite direction. Like when it goes to ACoS, ACoS is basically your ad spend divided with your revenue from ads. And when it comes to return on ad spent, basically what you divide there is your revenue from ads and you divide it with your ad spend. So it's basically the opposite directions. So, um, when you, when you look at ACoS you want to have that percentage as low as possible, going lower and lower on the other account. Like you, you need to have like healthy part where you want to have ACoS. Because like, if it's too low, it means that you're not spending or you're not expanding enough there on the other hand, when it comes to return on ad spend, the higher number, the better. So basically when you see, let's say number five and it's not, it's almost never round number. It's always like 5.08
Brent (32:26):
Express as a decimal. Yeah. Typically 5.2, 3.8. Yeah.
Lazar (32:31):
Basically how much money you get in return for every dollar invested. So if, if you get number five, it's like for every dollar that you invested, you get $5 back. So the highest is better. And like when it comes to, to return on ad spend, do you have it in two variations. Uh, one variation is for PPC. The other one is basically, um, you divided total revenue with your ad spend. So basically it's just like blended ACoS.
Brent (33:04):
Yeah, blended ROAS essentially.
Lazar (33:05):
Basically, basically that's it. And those are the metrics that we track as well. Well, people usually are not aware of it, like people that like seeing return on ad spend or people that have developed Shopify stores and they are used to, um, basically Google ads. And does it match your Facebook? Yeah.
Brent (33:26):
Or DSP. DSP is expressed as ROAS and we're always converting it to ACoS cause clients who use DSP are familiar with ACoS and they may be more comfortable with that metric.
Lazar (33:37):
Yeah. That makes a lot of sense. Yeah. Yeah. All right. I think that we covered, like whole bunch of different metrics today. Cool. Hopefully it wasn't too boring for our listeners.
Brent (33:49):
I think they're glued to their seats. Their ears are perked up. They can't believe what they just heard. They're blown away.
Lazar (33:54):
Yeah. Okay. Well, thank you so much, Brent, for talking today and talk to you in the next episode.
Brent (34:03):
All right. See you then Lazar.
Lazar (34:05):
Bye bye guys. And once again, if you have any questions, send us an email to ask us on wildppcbunch.com. Have a good one.
Brent (34:14):
Yeah. See you.
Lazar (34:14):
Right.