Measure the Offline Value of Your Online Ads – Google Best Practices Video

Hi everyone and welcome to our video series
on driving store sales with AdWords. My name's
Antony Ho, and I'm a product marketing manager
at Google focusing on AdWords best practices.
In this video, we'll cover how to start measuring
the offline value that's driven by your online
ads. First, we'll lay out a formula to help
you get started. Then, we'll work our way through
each input of the formula to figure out or
approximate its value.
At the end of this exercise, you'll get a
more accurate picture of all the different
types of conversions that your ads are delivering.
This will help you to optimize for performance
for the overall business, rather than any
specific channel. If you haven't already done
so, be sure to check out our video on how
to optimize your campaigns for more in-store
sales. Before we begin, it's important to
remember that you may not be working with
perfect numbers here, and that's okay. Don't
let that stop you from at least starting with
a good guess, which you can always refine
later.
All right. The number we're trying to figure
out here is the attributable store sales that
are driven from clicks on your search ads.
First, we'll want to figure out how many folks
visited your business after they've clicked.
This is what's called the store visit rate.
A neat trick to estimate this number is to
look at the clicks on the "get directions" part
of your location extensions, and divide that
by the total number of clicks on your ad.
Clicks on that part of your ad could be interpreted
as interest in visiting one of your business
locations. You can see this number by breaking
out traffic in the ad extensions tab by click
type. Another way to do this is to use a feature
in AdWords that's called "Store Visits Reporting".
It estimates the number of users who visited
a store up to 30 days after they've clicked
on a search ad. Check with your Google account
rep to see if you're eligible for this feature.
Now back to our formula. We now have to figure
out how many of those store visitors ended
up buying or completing a transaction. That's
our store conversion rate. Finally, we need
what's called an average order size or conversion
value. Multiplying everything together helps
us to estimate the total offline sales amount
that's attributable to our online ads.
Now to recap what we've talked about. Start
with a formula to measure the offline value
of your online ads. Multiply your online ad
clicks by a store visit rate, a store conversion
rate, and an average conversion value. Be
comfortable using estimates for each of these
variables so that you can get the conversation
started. Thanks for watching and tune in to
the rest of our video series on how to drive
store sales with AdWords.