Achieving 93% Direct Traffic Boost & 30% Conversion Rate Increase with Google Ads

Rachel: 00:00:11

Hi, everyone.

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Regina here with starter PPC.

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If you recently started Google ads and

you're wondering, is this actually a

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channel I want to continue pursuing?

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We're going to talk about how to analyze

whether or not Google ads is working

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for you and whether it's worth it to

continue investing in for your business.

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So the example that I'm using is a B to C

e commerce company, but it doesn't matter.

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I think that these concepts are universal

and they apply to all industries.

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We're just going to be looking at some

of the numbers and mostly I'm going to

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be focusing on the ways that Google ads

affects your overall business as a whole.

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A lot of times we're working with clients

and the clients are just looking in

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the Google ads dashboard to see what

is the return on my ad spend, right?

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Or what is the cost per conversion?

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I need it to be X number.

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That used to be an acceptable

way of analyzing Google ads.

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It's not anymore.

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If you guys haven't seen my other

video called ROAS is shrinking.

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I would highly encourage

you to check it out.

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And you know what?

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I actually take that back.

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That was never a way to fully

analyze how Google is affecting

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your business the returns that

it's bringing for your business.

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And I'm going to talk to you about why.

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there's two reasons why looking

in the dashboard isn't enough.

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One is according to the row as a

shrinking video you should watch.

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Google's ability to track has been

diminishing and diminishing, and

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it continues to diminish, right?

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Every time somebody.

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Sue's Google for privacy laws.

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Google loses its ability to be able to

track users and it was never perfect.

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Users can be dropped

when they switch devices.

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They might click on an ad and

then a week later they might

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buy on their husband's computer.

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There's all sorts of things that

can go wrong with the tracking and

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it's just getting worse and worse.

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It used to be that if you were a

beta C e commerce company, you could

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say, I want a three X ROAS, right?

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I want to.

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300 percent return, which means I want to

spend 1 on an ad and I want to get 3 back.

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And that's going to cover my costs.

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And I want to be able to see

that three in my dashboard.

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And it's just not acceptable

anymore because what used to look

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like a three in the Google ads

dashboard now looks like a two.

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And it's just getting worse every quarter

that goes by, it seems to just lose

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its ability to track more and more.

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The other reason why it's not okay

to just analyze the numbers in the

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Google ads dashboard to see what

your return is on Google is because

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there's so many other boost effects

that Google ads has on your business.

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And that's what we're

going to go over today.

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So Google ads, it's vast, it's everywhere.

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It can follow people

around the entire internet.

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If you're spending money,

for example, in another.

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platform like being Facebook, Amazon

ads anywhere really, and you're

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sending users to the website, Google

will pick those users up and it will

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blast them with remarketing ads, which

actually increases the conversion

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rate on those other ad channels.

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That's one thing that we're going to look

at, and there's a myriad of other effects.

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that Google has, and that's what

we're gonna explore together.

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So in this example, you'll see the Google

ads account is about three months old.

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So we actually started

cost is in blue here.

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We actually started

spending on September 20th.

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So that's why you see the blue

going up the week of September 18th

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a hundred dollars only that week.

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Cause we started at the end of it.

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And then it goes up and up from there.

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There was a dip here.

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I don't know why and then in December,

we're spending the most ever.

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So we're going to analyze these

three months for this business.

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And we're going to talk about

how the overall business has been

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affected by the Google ads spent.

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So I'm going to start by hopping into the

client's Shopify store where we can see,

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for example, the overall conversion rate.

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Which is what I just mentioned, right?

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So Google is picking up all users

that visited the website, not just

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users that clicked on an ad and

it's remarketing to them, right?

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So it's doing all these reminder.

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Image ads, which are called display ads

YouTube video ads, and it's following

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them around on all different websites

and trying to get them to come back.

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It's not just doing remarketing

that's causing this.

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it also has smart bidding attached to it.

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If that user who is In market to

buy product that you sell, right?

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Which we know because they

were recently on the website.

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Google will bid really

aggressively on that user.

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And when be more likely, at least to

win the click and get a high, good

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placement and spend more on that user

when they're then searching again.

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let's say they clicked on a Facebook

ad two weeks ago, visited the website.

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Google's going to pick them up.

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And try to remarket to them.

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But even if the remarketing has

no effect today when they're like,

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oh, I guess I better finally buy

that gift for my mom, they're doing

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another search like they did two weeks

ago to finally make the purchase.

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Google's gonna go, oh my God, our

guy is now doing a search again.

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Let's win this click and it's

gonna a bit more aggressively

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for that click and try to win.

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That conversion.

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And even if the conversion doesn't show

up in Google because, they clicked on a

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Facebook ad and they Google's tracking

isn't very reliable these days, it's

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going to increase the chance of the

conversion happening and then Facebook.

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From it's click two weeks ago is

going to say got a conversion, right?

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Because it's going to look back 30 days

and it's going to say they interacted

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with a Facebook ad two weeks ago.

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I guess we got a conversion.

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So that conversion rate on

Facebook is going to be boosted.

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That's just one small example, also

we're going to get into this in

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general, but here's the stat, right?

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So right now I'm.

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Comparing the entire date range that

Google was running compared to the

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previous period, and you can see a 30

percent increase in conversion rate.

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That little Green number right there.

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That's huge.

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You guys, 30 percent increase

in conversion rate for the store

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as a whole on average, right?

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That's for all channels on average.

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I guess that's it for this metric.

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So let's turn to the next tab over

where I've gone over to the analytics

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tab in Shopify I'm comparing this state

range to the previous period, right?

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So Google ads versus no

Google ads before it.

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And here we can see that the average

order value has actually gone up by 15%.

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People on average are

spending 15 percent more.

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their purchase than they were

before we were running Google ads.

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How can that happen?

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Google is sending people to the website

who have a higher intent to buy.

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So whereas before a larger percentage

of the stores traffic was just

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people that found you on organic.

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Maybe they were clicking

through your Instagram page.

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They're not on this shopping

network looking for things to buy.

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So this is going to increase

the average order value.

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Google is good at finding cold leads

who are in market to buy your product.

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So what happens is Google

spends more money on people that

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have a higher purchase intent.

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it's able to get those people

at the top of the page that

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have their wallet in hand.

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And they're willing to look through

the shopping ads because they know

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they're going to buy something, right?

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So those people have a

higher purchase intent.

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And the reason why these are

just more dedicated purchasers.

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They know what they want and

they're willing to pay for it.

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So 15 percent average

order value increase.

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Hi there.

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Quick interruption.

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Do you know the main thing that

prevents small business owners from

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getting their Google ads account into

a position to grow and scale budget?

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A lot of businesses, especially

those that are just starting

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out, have limited budgets.

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And so because of this, they're turned

away by most ad agencies because most ad

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agencies have minimum budget thresholds

that they're willing to work with.

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So what happens is the business owners

end up learning Google ads themselves.

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And the problem with that is

that most of the advice online is

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geared towards larger accounts.

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And the advice doesn't have any of those

strategies or tricks that can kickstart

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the algorithm into giving a small

account a leg up over larger competitors.

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So it often just doesn't work

and the business just ends up

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losing money month over month.

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If this sounds familiar,

Starter PPC can help.

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We offer Google Ads management services

that are designed for accounts that

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have between 1, 000 and 5, 000 budgets.

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Because all of our clients are just

starting out, we've come up with ways to

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keep our management fees significantly

lower than most agencies, because

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we know that every dollar saved on

management fees just goes towards

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the ad budget, which is going to help

the algorithm gather speed and power.

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So if you're serious about growing your

business, and you'd like a team of Google

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ads experts to help you without breaking

the bank, check us out at starter PPC.

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com.

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Okay.

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Back to the video.

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Usually we actually usually see a

returning customer rate increase.

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right here.

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In this case, there really isn't any,

there's just a 1 percent increase.

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I suspect we'll start to see this

as time goes on because it takes

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users some time to come back and buy.

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And we've only been running

the ads for 90 days.

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And I also think that this

particular product is not prone

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to repeat orders too much at all.

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So I think that Google doesn't have

a ton of effect on it, but that whole

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targeting cold user is Who are in

market thing is usually what causes

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the returning customer rate to go up.

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So what happens is in your Google

ads, your return on ad spend is

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going to stay consistent while

your MER, your media efficiency

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ratio, is going to go up and up.

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And why does that happen?

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Because your revenue

is going up by getting.

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Repeat purchases from users

that originally interacted with

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an ad made a purchase, right?

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You paid for that.

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Click that's the row as and then they come

back later and buy from your email list

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you didn't have to pay for that click.

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So that's why you're NER, your

media efficiency ratio goes up

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and up while your ROAS is supposed

to stay stagnant while you grow.

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It should not go up.

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If it's going up, that means

you're not growing fast enough.

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If your ROAS is getting higher over time,

that means you can add budget because

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you're leaving conversions on the table,

The market is ripe for you to spend

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more money if your ROAS is going up.

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So again, your MER should go

up with repeat orders going

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up, but your ROAS should not.

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I think this is interesting

sales by source.

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So the Facebook the current time

window is in dark blue and the old

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time window is in light blue and

you can see that there's more sales.

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From Facebook and Instagram than there

were before we were running Google ads.

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I don't know whether this particular

business increased their spend on Facebook

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ads and that could be affecting this.

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But oftentimes we will see boosts in sales

because of that whole conversion rate

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increase phenomenon that I mentioned.

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And by the way, if you're not already

aware of this and you're running

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Facebook ads, I Google's conversion

metric will do the 30 day look back

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based on clicks and attribute the sale.

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If somebody converted 30 days after

they clicked, but it also bundles in

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a second metric that a lot of people

don't know about, which is the 24

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hour view through conversion rate.

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What does that mean?

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That means if you're running Facebook

ads and your ad scrolls past someone

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on their Instagram feed or their

Facebook feed, and they don't.

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Click on it.

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purchase happens within 24 hours, right?

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Without the click, Google will go

ahead and include that conversion and

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attribute it to that ad that scrolled

past them on the feed without a click.

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someone interacting with the Google

ad within 24 hours because they

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never even clicked on Facebook.

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And so Facebook does this and it pumps

up the Facebook numbers a little bit.

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So just something to keep in mind.

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Okay.

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This is huge.

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This next one is huge.

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So direct traffic.

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Direct traffic is up by 93%, you guys.

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Direct traffic has nearly doubled

since we have started Google Ads.

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Now, why does this happen, It doesn't

seem realistic that someone would just

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wake up one day and be like, I'm going

to type in a URL and go directly to this

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URL that I've never been to before and

buy something That's not happening.

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It's just being attributed

as direct traffic.

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Why?

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Because Shopify cannot see

that they interacted with an ad

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because the tracking was dropped.

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The tracking is not very reliable

and probably it was dropped in

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Google ads dashboard as well.

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Although the tracking is slightly

different for Google's algorithm

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versus Shopify's algorithm.

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So I think Google's slightly

better at keeping track of

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those users and tracking them.

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But we will see this in analytics, which

is a whole third type of tracking, right?

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93 percent increase in direct

traffic, a huge percentage of that

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can be attributed to people that

interacted with the Google ads.

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And oftentimes people who see an ad, they

also, they never click sometimes, right?

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They see the ad, they see the ad

again, and then they think, what

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was the name of that product?

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I'm going to go buy it.

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And they type it in and they click on it.

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This also boosts the search.

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Like organic search, right?

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That same phenomenon, they type it

into Google, they open a new tab

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cause they don't want to click on

an ad cause they're in the middle of

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replying to their grandma on Facebook.

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And so they open a new tab

and they just search for it.

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And then Shopify says it's organic search.

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So a 65 percent increase in organic

search is also affected by the fact

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that we're now running Google ads.

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I'm showing the percent increase.

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We've got the total number of engaged

sessions going up by 166 percent and

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not all of that was attributed in paid

page social and paid search, right?

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Some of it was unassigned.

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What is unassigned?

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Where does that come from?

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Why did that go up by 486 percent

487 organic search up by 193 percent

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according to Google Analytics, even

higher than Shopify's attribution direct

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traffic is up by 17 percent organic

social is somehow up referral traffic,

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which I just lump into direct traffic

because Sometimes the Google Analytics

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thinks it's referral if the link has

something attached to the end of it,

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even though it's really just direct

somebody clicked on the link somewhere.

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I consider this part of direct

and that's up by 129 percent

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from the previous period.

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So this is wild.

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You guys there are a lot of.

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Complimentary metrics There

are positive tailwinds that Google

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ads has that affects your sales.

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That affects your overall business

and your overall marketing.

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And this is why we are so focused on the

MER metric to look at your total revenue

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and divide that by your total media spend.

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don't look at just the ROAS inside

of the Google ads dashboard because

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our goal is to grow your business.

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And we know that it's nearly impossible

to tell, Down to a tee, how effective

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Google is over other channels.

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If you want to do that, there are cross

channel attribution tracking softwares

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out there, but the pricing on those right

now are out of reach of small businesses.

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Unfortunately, they tend

to be really pricey.

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And they're complex to get

started with because it's got

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so much analytics in there.

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So what we do at starter PPC to combat

this is we try to help the business

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grow regardless, We track Murr and

we say, okay, if you're Murr is cover

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your overhead and still make a profit,

then you might as well push for growth.

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So we keep track of that every 30 days.

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And if the past 30 days was

enough to justify pushing for

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growth, then we push for growth.

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If it wasn't, then we wait,

we hold off and we optimize.

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And we don't try to grow because

we know that growth is the

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easiest way to gain more profit.

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Because you'll have volume of sales

and each sale has that profit in it.

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So you'll have more profit when

you have more sales in theory.

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that is our focus here at starter PPC.

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And I wanted to show you guys this cause

I think it's also fascinating to see how

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Google ads can have the biggest impact

ever on All businesses really, because

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it's just so vast and it's everywhere.

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Bye.