• http://www.rimmkaufman.com George Michie

    Wow, where to begin. Let’s start with the choice of conversions rather than revenue. If in aggregate the ROAS is 4, then the average ROAS of both keywords is…4. Using your example, from last click analysis Keyword X has $100 in sales on $10 in cost, keyword Y ‘upstream’ has $0 in sales and $15 in cost. In aggregate a 4/1 ROAS. If you spread the credit evenly, you get Keyword X has $50 in rev and $10 in cost; keyword Y has $50 in rev and $15 in cost…averaging out to….an ROAS of 4.

    Average touches to conversion = 1.8. If you look at the data and take out the instances of multiple clicks on THE SAME AD, you’ll see that number drop significantly, as that accounts for the majority of multiple click orders.

    I’ll leave the rest for someone else.

  • http://searchengineland.com Siddharth Shah

    Like George, I dont know where to start. Several statements are made without data backing them up. Upper funnel vs lower funnel words for instance. Is there any proof that upper funnel generics are assisters ? My analysis with real data sets has not revealed such a pattern. Keywords like “shoes” which are considered generic and upper funnel attracts consumers both earlier and later down the funnel. As a result , you will on average not see much of an assisting effect. (The story is different when looking at multi channel data).

    Since Search is lower down the funnel with the result (A) a good fraction (over 60% at least) of conversions are single click and even among the multi click transactions you will see a 50-80% self assist effect.

    Like George,I dont agree that you look at conversions for attribution and revenue for measuring performance. Doesn’t make any sense mathematically.

    I have several other problems with the assertions made but I think the readers get my overall point; Before making an assertion please back it up with data. This is Analyze This after all !