TROAS Training - Google Ads - Data & Analytics

Supercharge your marketing with AI
McKinsey: The state of AI in 2022—and a half decade in review, December 2022
2.5X
higher AI adoption over the last five
years
70%
of AI adopters see
revenue increase
28%
of AI adopters see
cost reductions

Proprietary + Conﬁdential
Digital Marketing Transformation for Lead Generation
Not every customer brings the same value to a business
Some conversions do not matter as much to an advertiser’s business goals, while others
are of higher value and should be reported and optimized for accordingly.
Customer 1
Value X
Customer 2
Value Y
Customer 3
Value Z

14%
On average, advertisers that switch their bid strategy
from having a Target CPA to a Target ROAS can see
14% more conversion value at a similar return on ad
spend*
Source: Based on auction simulations, all campaigns using Target CPA with simulation data, validated at 3 different points: using snapshots in January, March, August2020
VBB remains the North Star for most advertisers who seek to
differentiate customer quality in real time
To VBB or not to VBB?

McKinsey: The state of AI in 2022—and a half decade in review, December 2022
Embrace Google’s AI
Account structure Broadmatch Drive creative excellence Grow coverage and
budgets
1 2 3 4

Preparing the field for Value Based
Bidding

Preparing the field for VBB
It is important to define the
business goal and evaluate
success based on that goal.
Example: We may decrease
lead volume but increase the
quality and therefore final
sales
Ensure account and
measurement foundations:
Privacy Centric Measurement
Account Structure: Hagakure
Broad Match
Define the right conversions
for optimization and gather if
the values shared are
correlated with the success
KPI that will be used to
measure the success
Align business goals Account & measurement
foundations
Value definition

How does success look like?
It is important to define the
business goal and evaluate
success based on that goal.
Example: We may decrease
lead volume but increase the
quality and therefore final
sales
Align business goals
● Final Offline Sales and CPA
● Customer LIfetime Value
● Customer profitability
● Customer Risk Scoring
● Lead Volume
We would need to select Business Goals that happen after a long
time and with low volume that we cannot use for bidding
Questions to ask at this time:
- How would you measure the success?
- Is the data shared with Google Ads?
- What is your business objective? Volume or proﬁt?

Privacy centric measurement
Ensure account and
measurement foundations:
Privacy Centric Measurement
Account Structure: Hagakure
Broad Match
Account & measurement
foundations
- What is the conversion delay between the click and the conversion/data
upload? Quality of Conversion vs Conversion lag
- How often can the data be uploaded?
- Are there any processes to check if data has not been uploaded?
Offline
Conversion
tracking
Engaged visitors
Leads
Online
Conversion
tracking
Newsletter sign-ups
Pages visited Brochure downloads
Form submissions
Phone calls
Marketing / Sales qualiﬁed leads
Sale
Qualified leads
Buyers

Adapt measurement and data strategy for a more private
web
Online
tag
only
Offline
import
only
Hybrid
Online tag &
first-party data
Google tag or Floodlight
The foundation for conversion
value measurement. Fully
modeled if CoMo
Offline Conversion Import through gClid
Enhanced Conversions
Durable conversion measurement built on tags & first-party data
EC for Web
Improve accuracy of
your measurement
with first-party data
EC for Leads
Simple and durable
way to measure offline
conversions
Deferred Conversions
Tag measures Online
Conv and the value is
shared offline
Offline Conv Import
SA360 Match Id
Tag captures Id and
matches offline data
with the ID
Measurement Protocol
(GA4)
Tag measures online
interaction and offline
conv is share offline
Offline cOnversions with gclid
Non durable option due to no modelling →
Transition to other measurement solutions

Localized to relevant regions as needed
Example
Redaction
Remove or
anonymize data
as needed
Privacy-Centric
Measurement
Enable PCM
features with
additional control
Routing
Choose where
data is
transmitted
Consent
mode
Enhanced
Conversions
Anonymize
IP
GA4 Tag
Ads Tag
View outgoing
requests to
verify data
privacy
Server-set cookies
Improves durability of
1P measurement
sGTM provides full transparency, control, and access to
the latest privacy-measurement features
ADVERTISER OWNED SERVER

Deferred Offline Conversion Adjustment (DOCA)
User makes
online purchase
Value = $100
$0
Advertiser
calculates $10
proﬁt
User clicks
search ad
Advertiser
restates new
value ($10)
1 5
2 3
Sent via OCA in Ads API
4
Measurement
reﬂects “new”
value
Original value recorded by
Tag
6
Bidding only
trains on
deferred value
To participate, you must send “0” value in Tags so that a subsequent downstream
OCA value will be ingested and treated by bidding as the only conversion value to
train on. We recommend passing the deferred value within 7 days of the original
tag-based conversion.

Google matches the
hashed information
back to the ad that
drove the lead
How EC for Leads works
User clicks on an ad and
arrives on your site
User browses your site
and reads about your
product/service
You store the lead
information in your
CRM/database
When a lead converts (e.g.
becomes a customer),
you upload the hashed
lead information
User ﬁlls in a form on your
site and becomes a lead
for your business
Your website sends us
one piece of hashed
lead information (e.g.
hashed email address)
that you specify

How the Measurement protocol for App + Web works?
iOS App
Android App
Web
● Events collected via Measurement
Protocol are joined with existing
Analytics Data via a join key.
1P Servers
.
● api_secret
● firebase_app_id
● app_instance_id
● events
g
● api_secret
● measurement_id
● client_id
● events
Google Analytics for Firebase SDK (App Data stream) required fields:
HTTP
● Data Exported to Google Ads for
campaign optimisation (when gclid and
Device ID are present)
Google Analytics Backend
Gtag.js (Web Data stream) required fields:

How does Match ID work?
User clicks on ad
to arrive on site
User submits lead form
or places an order.
Match Id identifier is captured
through the floodlight
Match ID allows for advertisers
to pass their own 1P identifier via
a Floodlight tag parameter. This
identifier can then be used to
match offline
Advertiser stores
lead/purchase info +
Match Id in their
CRM system.
conversion data against
using the conversions
API.
Data is uploaded into
Campaign Manager via API.
match between MatchId and CM360
space is made and then sent to
Campaign Manager 360 via API
1 2 3 5
4
DV360 / SA360
reporting & bidding
are updated with
offline matched
Conversion
Integrate

How does Offline Conversion Import (OCI) work?
User clicks on ad
to arrive on site
Google Click ID (GCLID) and/or
Braid is passed to advertiser’s
site from a URL parameter.*
User submits lead form
or places an order.
Invisible field (that customer
can’t see) captures GCLID/Braid.
A code snippet that is added to
advertiser’s site collects
GCLID/Braid when conversion
occurs.
Advertiser stores
lead/purchase info +
GCLID/Braid in their
CRM system.
Data is uploaded into
Google Ads/SA360 via
upload file or API.
Advertiser uploads GCLIDs/Braids and
values via scheduled file upload, API,
or 3P CRM integration (i.e. Salesforce,
Marketo, Zapier, etc.)
1 2 3 5
4
Google Ads / SA360
reporting & bidding
are updated with
OCI data.
*Advertiser must have auto tagging enabled on all landing pages.
Integrate

Once the conversion tracking is in place, there are
different types of conversion values
Adv. Dynamic Values
Transaction specific values,
with adjusted values based
Examples:
● Predicted Lifetime Value
● Profit values
● Store Sales
● Lead Scoring
Static Values
Average value for a conversion
from a single conversion event
Examples:
● Average value per action
● Proxy values
● Use conversion value rules
● Store visits with avg. values
Dynamic Values
Transaction specific values, that
is unique to each sale
Examples:
● Transaction-specific values
● Final sale value
● Online Sales & adjustments
Share data Assign values Value Bidding
Recommended where available
For example the average value of
a phone call to my business
For example the final sale value
or profit of each conversion
For example the estimated value
of a conversion over 1 year
Define the right conversions
for optimization and gather if
the values shared are
correlated with the success
KPI that will be used to
measure the success
Value definition

LeadGen Value Definition Strategies - Rule Based Bidding
Deﬁne Values according to
lead characteristics that can
be easily captured in the lead
form
Value definition
$10
$15
Region A
Region B
Proxy values
Rule-based, Conversion
differentiation based on
lead form characteristics
$7
Region A &
Product B
Region A &
Product A
$13
Region B &
Product A
$10
Region B &
Product B
$20

LeadGen Value Definition Strategies - Funnel Based bidding
the stage of the funnel
Value definition

LeadGen Value Definition Strategies - Lead Scoring
Deﬁne Values according to a
predictive lead scoring
towards the ﬁnal KPI
Value definition

Retail Value definition strategies
+
Value =
Product
Margin
02
Net Product
margin (w/o
returns)
03
CLTV
04
+
Gross
Revenue
01
+
+
+
Internal
factor (i.e
stock)
05
W
e
b
A
p
p
O
m
n
i
Product
Margin
Net Product
margin (w/o
returns)
Gross
Revenue
Internal
factor (i.e
stock)
+
+
+
+
+
CLTV
Product
Margin
Net Product
margin (w/o
returns)
Gross
Revenue
Internal
factor
(reduced
factor)
CLTV
+
+
+
+

Retail Value definition strategies
the business KPI
Value definition

Retail Value definition strategies - Omni bidding towards
Omnichannel correlated Micro-conversions
and aggregated model that
defines micro-conversions
correlated with final offline
sales
Value definition

Online Sales Value definition strategies - Profit Based
Bidding
Share proﬁt data to unlock
Business objective based
conversations
Value definition

Online Sales Value definition strategies - CLTV Based
Bidding
Share predictive CLTV data to
capture high value customers
Value definition

Online Sales Value definition strategies - propensity to
purchase Based Bidding
Share qualiﬁed traﬃc data to
increase conversion value in
low volume campaigns &
upper funnel
Value definition

Travel Value definition strategies
the business KPI
Value definition
Share Lifetime
Value*
Objective:
Optimizing to customer
lifetime value (or margin)
Measurement:
Importing pLTV via
predictive model. Each
conversion associated to a
forecasted lifetime value
KPI: Total net profit
(deducting returns)
Share Profit Data
Objective:
Optimizing and bidding to
profit margins
Measurement:
Tracking & sharing profit
margin data for each
conversion action (sale)
KPI: Total profit
★ Predictive
Share Net Profit
Data
Objective:
Optimizing to net profit
margins (deducting
predictive cancellations)
Measurement:
Tracking & sharing
predictive profit margin
data for each sale
KPI: Total net profit
(deducting returns)
★ Non Predictive
Occupancy based
bidding
Objective:
Optimizing and bidding
towards specific inventory
Measurement:
Tracking & sharing
occupany for identified
inventory
KPI: Total occupancy

Travel Value definition strategies - Occupancy based
bidding
the business KPI
Value definition

Travel Value definition strategies - Predictive Return bidding
the business KPI
Value definition

Setting the right test for Value Based
bidding

Ensuring a successful test
Ensuring there is enough
volume of the ﬁnal KPI
Ensuring we follow the best
practices
Make sure about the
conversion lag for the
success KPI and Ensure all
stakeholders are comfortable
with the results
Prior to switch to a tROAS bid
strategy we need values to be
counted in the conversion
column for 4 weeks
Selecting the right
campaigns
Select the best testing
methodology
Test Duration Monitor test
performance and make
adjustments

Ensuring there is enough
volume of the ﬁnal KPI
Selecting the right
campaigns
- Do we have enough volume to measure the ﬁnal KPI results?
- I the campaign selected inside a portfolio bid strategy?
- Could there be any overlap with other campaigns?
Shared Budgets /
Portfolios
Ensure there is not shared
budget and in case there
are several campaigns in
the portfolio request for the
multi-campaign beta
Final KPI volume
In case there is not enough
volume for any campaigns,
use a multi campaign
experiment or consider if it
could be considered an
intermediate KPI? (Example
Qualified Lead)
Overlap
If no Hagakure is
established analyze
potential similar campaigns
and use a multi-campaign
experiment

Ensuring we follow the best
practices
Select the best testing
methodology
A/B Test Geo Test Pre-post Causal
Impact
- Is the same conversion action used for the test and the control?

Make sure about the
conversion lag for the
success KPI and Ensure all
stakeholders are comfortable
with the results
Test Duration
Statistical
Significance
Conversion Lag to
Final KPI
Consider using
intermediate KPIs
(other than CLTV
mortgages, etc)
Stakeholder
alignment
Make sure decision
makers are onboard
- Are the results statistically signiﬁcant?
- What is the conversion lag to the ﬁnal KPI?
- Could there be any overlap with other campaigns?

Prior to switch to a tROAS bid
strategy we need values to be
counted in the conversion
column for 4 weeks
Monitor test
performance and make
adjustments
Monitor Investment /
Impressions Balance
Make tROAS changes
- If investment is
not balanced
- Using the
portfolio bid
simulator
- If sudden
situations
occur (Conv
Modelling)
Most tests fail due to
this A/B tests do not
ensure that
Impressions /
Investment are
balanced.
- Are the test arms balanced?
- Is the Performance looking good?

TROAS Training - Google Ads - Data & Analytics

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Ähnlich wie TROAS Training - Google Ads - Data & Analytics

Ähnlich wie TROAS Training - Google Ads - Data & Analytics (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

TROAS Training - Google Ads - Data & Analytics