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Becoming a Profit Driven Marketer

Becoming a Profit-Driven Marketer

 

As AdWords just wrapped up it’s 15th birthday we can all look back and see just how much the platform has evolved.  Some of us can remember when our reports revolved around impressions, clicks and website visitors. Clients were amazed at the traffic they were able to purchase and it stopped there. These days have come and gone! AdWords has grown and continues to improve its ad platform quality for the user and the advertiser’s benefits.

 

Google quickly put together the tools so advertisers could measure their return on investment, offering Advertisers call-tracking numbers and event tracking to monitor AdWords investments. Then Google came out with attribution modeling and advertisers were able to assign credit for sales and conversions to touch points in conversion paths.

 

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Moving into a constantly connected world

How many of you have ever heard your client say ‘’How much did my campaigns cost?’’ or ‘’ How much will it cost?’’ This is where you come in, the profit-driven marketer. This is where you bring it alive and turn this conversation into ‘’How much profit your investment will deliver’’. Of course, this will require your agency to get their ducks in a row. Let’s say your agency is doing a great job at delivering value for the client’s investment while offering clear reports and transparency, it is time to have the profit conversation with your client. This is how your renewals and budget increases are won by showing the client an ROI.

 

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So how do I prepare for the profit conversation? Attribution!

As marketers, it is 100% our responsibility to provide transparency to our clients and by transparency I mean the WHOLE customer journey. This is done through attribution and attribution is everything! It allows us to have that more detailed conversation with our clients. The profit-driven marketer covers all aspects of understanding the full customer journey.

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Now, since we are all allowing our clients to measure all digital assets and have all placed a value on different conversion types we are ready to move forward. Placing a value to different conversion is a 2-way street, your client must help fill those blanks and be able to say ‘’x conversion’’ has a 10$ value and ‘’y conversion’’ is worth 20$ then you are on the right track.

 

Turning sales into simple mathematics

Let's say that they will make 1 sale every 10 leads. If each sale amounts to 100$ profit and it costs 5$ per lead it cost them 50$ to make a 100$!  100% ROI is hard to beat! At this point the conversation should be on campaign saturation and how many sales they would like to accomplish. Of course, there is a lot of work to be done to achieve this relationship, yet this is how it is done. You got the idea, right?

Seo & AdWords services are all about perception, make sure to set proper expectations from the get-go.

Good luck!

 

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about Trevor Stewart

Here to improve user experience through Google products! Helping Businesses achieve a positive R.O.I in their Marketing efforts. Google Adwords Certified, Google Analytics Certified.

Comments
RobertCoats Top Contributor
July 2016

Nice post Trevor!

MartinSherv Google Small Business Advisor
July 2016

Nice work Trevor! I agree totally with the model you present.
Changing from 'budget' to 'value' is part of the story people need to hear.

Garrett S
July 2016

Very interesting... attribution is tough to measure when starting at a smaller scale, but certainly important! I plan on approaching my strategy with the idea that attribution will have to be a built-in way of viewing my KPIs as I go along. The Last Click style certainly doesn't cut it in a multi media world.

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