Thanks to all of you who attended our optimization webinar on April 6! “Get Results: Optimizing Your AdCommerce Campaigns” dug a little deeper into how to use the ROI Reporting feature, and we provided a number of tips and best practices on how to get the best possible return from your advertising investment. If you missed the webinar or would like to take a second look, you can access the presentation here.
A few tips from the webinar:
- Ad campaigns aren’t something you should set and forget. We recommend checking in weekly or biweekly to see how your ads are performing, but monthly will work if you’re short on time.
- When you’re checking on your campaigns, step back and look at the big picture, going back a full 6 months.
- Look at the reporting both by keyword and by campaign to get a complete view of what’s working best.
- Take your best performing keywords and brainstorm 10 more variations for each. For example, “digital camera,” “SLR camera,” etc.
- Check eBay Pulse for daily updates on what people are searching for on eBay.
We realize we covered a lot of ground, so we’ve included a detailed Q&A below to go back over your questions and answer any we missed. If you have additional questions you’re welcome to check out our help page or contact us here.
Questions & Answers
What is ROI?
ROI stands for Return on Investment. It tells you how effective your advertising is by measuring the number of bids or items sold that result from clicks on your AdCommerce ads. ROI information is only available when your ad directs users to an eBay Site.
How can the new ROI reporting help me manage my AdCommerce campaigns?
ROI reporting gives you insight into what’s working for you, and what isn’t. It helps you make decisions about how to most effectively focus your advertising spending. Now you have the insight to expand your efforts and spend more on keywords that work, and cut out the keywords that aren’t profitable for you.
What are the ROI metrics available to me in the portal?
On the Reports tab in AdCommerce, there are 4 measurements captured: # of Bids, Items Sold, Sales Amount, and Sales/Cost. “# of Bids” is the number of Bids that came from users who clicked on your Ad. Similarly, “Items Sold” is the quantity of items sold as a result of clicks on your Ad. “Sales Amount” is the total dollar value of the items sold as a result of clicks your Ad. “Sales/Cost” is the total amount of Sales divided by the total amount spent on advertising. This number tells you how much you made in sales for every dollar you spent in advertising. Use this to help understand the efficiency of your Advertising campaign.
Why does the BID/BIN column matter for ROI?
BID means the number of bids generated on your auctions. BIN means the number of times an ad click led a user to click “Buy It Now” and complete a sale. While BIN activity is easily measured (it’s the sales price received as a result of the ad click), the BID number is not as easily assigned a value. Both BID/BIN together illustrate how effectively your advertising is working for you. Driving ad clicks to your auctions means more bids and a higher closing price. You’re exposing your auctions to users who may not have otherwise found it – thereby driving up demand.
Why can’t I see sales results immediately?
Two reasons. You won’t see anything right away because data reporting lags a few hours. Second, the window of time sales events may be associated to a click is 30 days. For example, if a user clicked on an ad on Tuesday March 9 and then made a purchase from you on April 8, that sale would be counted toward the click on March 9. This is why it’s important to take a 30+ day historical view of your account; all of today’s sales won’t be reported until 30 days from now.
Why do you say that results might not happen until 30 days later?
The window of time sales events may be associated to a click is also referred to as latency. Our ROI latency is the industry standard 30 days.
How do I know if the ROI I have is good?
Each advertiser has to determine this for him or herself. If your ROI (sales/cost ratio) is less than 1.0, you need some optimization within your account because you’re paying more for the ads than they are generating in gross sales. You have to determine whether an ROI of 2.0 or 5.0 or 10.0 is the minimum acceptable ROI for you, based on the advertised product’s costs (the wholesale cost of the product, plus your other seller fees, etc.).
Does the ROI report display which items were sold through AdCommerce?
AdCommerce reporting does not identify specific purchases. Once a user clicks on your ad, a sale is counted when the user buys anything from you – not necessarily the item featured in your ad. For example, if your ad displays on the keyword “watches” and a user clicks, but she ends up buying earrings, a sale is counted and reported for keyword “watches.”
How far does the ROI data go back?
Six months.
I looked at my ROI and it is not meeting my objectives. What should I do?
Don’t panic, it can be fixed. Don’t delete or cancel your campaigns – just pause them (this will preserve the historical data). Review the help section on ROI and implement changes to your campaigns to improve performance. If you need help, you can reach us from within your AdCommerce account: click the “help” tab and click “contact us.”
We hope you found this Webinar and follow-up useful in optimizing your AdCommerce campaigns, look out for our next Webinar next month!
Happy Selling!
eBay AdCommerce team