Understand the numbers
Written by Chris Barling
Tuesday, 19 July 2011 00:00
Hitwise provides ’Share of search‘,’Gap analysis’ etc. Instructions on using the Report Centre to show Impression Share are here: https://adwords.google.com/support/bin/answer.py?answer=52760. Where possible, measure results dividing the cost of a click by the average sales achieved providing a cost per pound or dollar of sales.
Google Analytics, integrated with your ecommerce package, should be able to help here. If this isn’t possible, then cost per acquisition (CPA) i.e. cost to make each sale, or at worst cost per click (CPC) can be used. Try to get the best figures by including an estimate of telephone sales influenced by the website and if possible also take into account lifetime customer value and customer returns. All of this helps you to understand which of your activities are profitable.