I got this question today from a friend in the online business, ”how do you evaluate the performance of every online marketing channel?”
I am not going to tell you all procedures I am using to evaluate performance, because that would turn this post into a large book. However, one technique I am using is the Multi-Channel Funnels in Google Analytics. I believe it contain’s some of the most powerful conversion reports out there.
Let’s start out with one of the report’s, the Assisted Conversions report. Note! In order to use this report, you will have to tag all your campaigns using the Google Analytics UTM.
So.. what does this report show (click image above to zoom)?
- Assisted Conversions:
is the number of conversions the channel assisted but is not the final interaction. The higher the number the more the channel is assisting in the conversion path. - Last Interaction Conversions:
this one is the simple, last click to conversion. This is the channel that “deliver” the sale. - Assisted/Last Interaction Conversion:
The closer the value to 0 the more it indicates it is a channel that completes more sales than assisting conversions. A value close to 1 indicates equally assists and completes a conversion.
Easy right?
Let’s do a quick analysis! Social-media (0.30 ratio) is a goal-scorer, that is a surprise to me let’s keep investing in this channel. TVPlay (10 in ratio) i.e. an advertising video clip e.g. Youtube / TV play. This channel is more of an assisting channel.
Now that I have introduced the macro-view over the channels, let’s dig deeper into the really cool micro part.
In the image below I have isolated a campaign during a week that cost me €3000.
(click to zoom)
Using old methods (click 2 sale) would calculate the CPO to €111.
This high CPO would make me consider to shut down this display channel (banner).
But let’s go Ninja!
The 28 assisted conversions should also be used in the calculation. But they are not ”real” conversions. Therefore, I use the 28 conversions as contribution effect to sales of 40-50% (this % contribution is set by you). €3000 / 27+(28/2) = CPO €73
Wow that is insight! Let’s continue with this campaign and give it some more time!
I hope you enjoyed this article. Please let me know if you have any questions or want share something…
Thanks for sharing and it is very helpful. But one problem about the last example, calculating the CPO. If the assisted conversions are counted as 40-50% of sales, then why the last interaction conversions are still counted as 100% conversions. I mean should the CPO calculated as $ 3000/(27/2 + 28/2)? Or is it better to track the whole conversion paths and give certain percentage of sales to all the channels involved( for example, if for one conversion, the path is GDN->SEO->Direct->Facebook, we may give GDN&Facebook 0.4 each, SEO& Direct 0.1 each. Then the total conversions wont look like weird). Thanks a lot.
Sorry for this late reply.
It all depends on what your company is selling. The % is set by you what you believe is reasonable.
In a performance-based campaign I only look at assist and last interaction. Whereas, a branding campaign the first interaction and last interaction. The argument for using last interaction 100%, is due to a CTR last interaction is more or less “solid”. Off course there is the argument of tracking between more devices (computer->iphone->ipad-> computer). My point is that there is less guess work using last click.
The assist and first interaction is more indication of “helping” the campaign. There is no really proof that e.g. Facebook campaign actually helped in a transaction but there is indication of it. It is more important to look at the trend in your online marketing than being to rational in your evaluation i.e. focusing to much on the actual number from the analytic tool. Stats in GA or any other tool will always lie. This will probably be my next topic to write about