Presented by ClearSaleing co-founder and former Google insider Adam Goldberg, this webinar covers an array of topics explaining how misguided search engine marketers (SEMs) can be based on many industry-standard metrics that lead to false conclusions. This webinar contains several examples as to how these online advertising metrics can lead search engine marketers down a dangerous path that can greatly impact their online advertising budgets and goals. In order to optimize online advertising sources (Pay-Per-Click, Comparison Shopping Engines, Banner ads, etc.), Search Engine Marketers need the appropriate online advertising analytics. This is part 1 of a 3 part series called Optimize Your Online Ad Investment: The Metric, The Measure and The Method.

1. The Metric Are You Using the Right Metric to Measure Your Online Advertising? ClearSaleing Confidential Adam S. Goldberg Co-Founder & Chief Innovation Officer P: 800.592.0464 ext. 902 [email_address]

3. Goal of advertising ClearSaleing Confidential A company may advertise to build their brand, gain new customers, gain market share, build awareness, introduce a new product, change their image, etc., but at the end of the day all of the reasons to advertise are to directly or indirectly produce more profit.

6. Which sample ad is the most effective? Sale Price: $1,000 Sale Price: $3,000 Sale Price: $3,000 Product: PN 2387 Profit Margin: 13% Profit ($95) Product: PDP 4250 Profit Margin: 18% Profit $165 Product: LG 37LP1 Profit Margin: 24% Profit $270 ClearSaleing Confidential Cost Per Conversion $225 Cost Per Conversion $375 Cost Per Conversion $450

7. The CTR Myth ClearSaleing Confidential A B C CTR 4% 3% 2% Orders 70 55 40 Revenue $21,000 $27,500 $24,000 Profit $2,100 $4,125 $4,800

8. How to calculate an ads projected value ClearSaleing Confidential A B C CTR 4% 3% 2% Impressions 300,182 300,182 300,182 Projected Clicks 12,007 9,005 6,003 Conv. Rate 1.75% 1.83% 2.00% Orders 210 164 120 Profit/Order $30 $75 $120 Projected Profit $6,300 $12,300 $14,400

10. The lower my CPA the better? ClearSaleing Confidential Position CPA Avg. Order Profit 1 $44 $450 $40 2 $46 $420 $38 3 $27 $415 $43 4 $30 $405 $51 5 $34 $400 $55 6 $20 $385 $54 7 $21 $360 $51 8 $23 $300 $40

11. Where should I place my ad? ClearSaleing Confidential A B CPA $50 $25 CPC $1 $.50 Clicks 50,000 10,000 Conv. Rate 2% 2% Orders 1000 200 Revenue $300,000 $60,000 Margin 25% 25% Profit/Order $25 $50 Total Profit $75,000 $15,000

12. Wal-Mart vs. Louis Vuitton ClearSaleing Confidential Low Margin / High Volume High Margin / Low Volume

15. What’s in the cart is what matters ClearSaleing Confidential Breakeven CPA = $17.31 Product Revenue Margin CPA Profit Cuisinart A $60 25% $25 ($10) Cuisinart A $60 25% $25 ($10) Camera $95 15% $25 ($10.75) Cuisinart B $100 25% $25 $0 Average $78.75 22.5% $25 ($7.68)

16. Leaving money on the table ClearSaleing Confidential Product Price Conv. Rate 0 Setting a CPA based on assumed profit vs. true profit may cause you to pull the plug early and thus leave money on the table Model Number Sales Price CPC Conv. Rate CPA Cuisinart A $60 $.50 2.5% $20 Cuisinart B $100 $.50 2.0% $25 Cuisinart C $149 $.50 1.5% $33 Cuisinart D $179 $.50 1.0% $50

18. ROAS Myths ClearSaleing Confidential Campaigns ROAS Profit 1-2 87.5% $1000 1-3 75.0% $1500 1-4 62.5% $2000 1-5 54.0% $2500 1-6 47.5% $3000 1-7 42.1% $3500

19. ROAS Myths ClearSaleing Confidential 0 Ad Budget ROAS Ad Budget Profit 0

20. Strategies for different days, times, and geographies ClearSaleing Confidential You should also use Profit/Click to determine if you need a different strategy during different hours of the day or for different geographies Day CPA Conv. Rate Profit Profit/Click Sunday $14 3.0% $500 $1.20 Monday $15 2.0% $2,200 $.90 Tuesday $18 2.0% $1,800 $.90 Wednesday $18 1.7% $2,400 $1.00 Thursday $17 1.6% $1,500 $.75 Friday $20 1.8% $1,000 $.30 Saturday $16 2.9% $450 $1.50 Best Worst

21. The Measure