Are you interested in a technical solution for managing PPC ads on margin? Would you like to see for yourself how the implementation of this solution could help you? Then this article is right for you! We have prepared for you a demonstration of how and what results can the implementation of Magic Margin brings. 

The following table shows the values ​​of individual indicators of our anonymized customer before and after the implementation of our controller of the click prices (so-called CPC bidding) on the web Heureka. The first five months reflect the situation before the implementation of the Magic Script Algorithm. In the sixth month, our collaboration and the automated control of Magic Script bidding has begun. But the controlling of the campaign click´s price (bidding) wasn´t done traditionally, by the TCS metrics (Turnover Cost Share) which aims to increase turnover, but with the goal of increasing the overall margin of the e-shop. This upgrade of price management from the SOT (Share of Turnover) logic to the SIM (Share in Margin) logic which we internally call “Magic Margin”.

As can be seen from the table, our customer’s margin increased by 108.44% in the first month. Another very important indicator that is important to note in the table is the margin cost ratio (MCR). Already in the first month, we see a decrease from 21.09% to 8.90%, which represents a decrease of 57.80%. The monthly change in the ROI indicator increased by 126.70% in the first month of cooperation. The satisfied customer decided to continue the collaboration and the second month confirmed the uniqueness of the solution on the market. As with the first inter-monthly margin change, we see an increase, namely by 77.30%. For a better graphic display, we enclose the following graphs:

For a better graphic display, we also attach a graph of the development of ROAS and ROI indicators:

Did these results interest you? Would you like to try what it’s like to switch to managing PPC ads on a margin with the help of Magic Margin? Feel free to contact us via start@magicscript.co.uk

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During the communication with our clients, we constantly face a particular problem. The client is aware that in the current competitive environment it would be a great advantage to establish the management of the PPC advertisement not on the basis of turnover (overall value of orders), but on the profit margin of orders. This necessity is of the utmost importance to businesses, which have great differences between the profit margins of their individual products. In most firms, the transition to this sort of management of advertisement is being slowed down by the complexity of the implementation of tracking the profit margin orders in Google Analytics. A great obstacle is also the absence of historical data. The data, in fact, start to be collected in G Analytics or Google Ads only from the point of implementation of tracking. A considerable investment needed for this effort won’t be repaid until after several months. In order to make decisions from the collected data, a middle-sized e-shop needs to collect stats for about 3-6 months. Only after that, it has enough data for it to evaluate anything on its grounds.

Why else isn’t it possible?

A lot of e-shops also have a problem with the fact that at the time of carrying out the order = at the time of clicking on “finish order”, they don’t even know what profit margin has the order generated. They know the turnover = final price of purchase, but they don’t know exactly how much money did they make. We are not talking about fixed costs and things alike diluted to a volume of one order. That is the college of financial management of profitability, which is handled by the number one e-shops in the region. We’re talking about segments, for example, pharma, where pharmacies know only approximately what profit margin they have at the time of executing the order, because it is calculated later. For example by ever-changing purchase price, or by the amount of products they have sold. It’s a classic, the more the pharmacies sell a specific brand, the better the purchase price, or the better the reverse bonus they get.

Anything is possible if you put your mind to it.

Or how we found a way to jump over any IT and process obstacles.

We have come up with a solution for you, which gets around all these complications and has several other benefits. Our solution will allow you to proceed to manage your Google ads by profit margin, without you having to apply any complex changes to your web or your information system. The only thing that we need from you is to consistently update (at least on a daily basis) the export of orders with margin and the access to Google analytics. It is good to update the export of orders daily for managing to be the most accurate. We can also apply the managing by margin using our Magic Script Algorithm to the adverts on Heureka.sk or Heureka.cz.

Basic features of the solution:

1. The algorithm will use an attribute model, which we will agree upon, for managing. In principle, we are able to use models offered by the GA Multi-channel funnels comparison tool. If necessary, some attribute models offered by Google ads for conversion: Linear, position-based, time decay, except of driven model. We can also create a custom model if there was any rational business reason for it. The benefit of our solution is the cross-channel attribution, which you can see in Google analytics. In contrast, the attribution of conversion is not cross-channeled. The attribution in Google ads distributes only between clicks from Google ads, it doesn’t take into consideration other traffic sources (channels).

2. If the margin entry of the order in export changes, it also changes the ground of our management. It is also not a problem if our client writes entries with a delay (of course, with a reasonable one, let’s say 48 hours) to the export. Therefore, this type of management takes the cancellation of orders into account. This feature doesn’t require the client to have any margin entries right from the order creation on the web.

3. We can evaluate our management very well. Right at the start of the management, we will give you access to the interface, in which we will be able to compare the results of the advertisement before and during our management. It is important to look at the results according to the attribute model, which we have chosen for management together. It is also important to look at margin instead of turnover, since we manage by the margin.

4. The algorithm is usable and works well for Heureka bidding too. Since we offer cross-channel attribution, this sort of management greatly increases the accuracy of Heureka bidding. Here, in contrast to Google, we face a problem with identifying the click (which product did it specifically come from). To solve this, there are two possible scenarios:
   

• • One option is to have a good system of UTM parameters in the feed of every URL. We can work specifically with utm_term and utm_campaign parameters. For example, in the parameter utm_term, there could be a number of the product
  • A more accurate solution is to have a list of sold products with their individual margin in the export of orders. Of course, the ID of products has to correspond with the ID of products in the Heureka feed.

Technical notes:

• the attribution will be using a 30-day “lookback window”
• we will need access to Google analytics
• for the management of Google ads, we will need access to Google ads, the google ads account connected with the google analytics account, auto-tagging turned on on the Google ads account
• we will need the export of orders with margin ideally for the last 365 days. If this sort of export is too big (or its regular updating is difficult), we can also do two things. We can generate the export for the last 365 days once and then maintain the current export for a period, in which cancellation of order could happen (for example last 30 days)

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do NOT waste your money algorithm

Every click on Google is piece of data you can collect. Putting these pieces together and into context has tremendous value. But are you aware of how much does your AdWords data cost? Are you getting out of it as much as you can for your business growth?

Especially big eCommerce companies with 1000s products are spending thousands on clicks per day. They are generating data that over time can become priceless.

Did you know for instance that restructuring your campaigns (moving ad-groups to different campaigns) deletes your conversion history data? #watchout

Within Magic Script bidding algorithms we use statistical data of past 360 days or more to get the maximum possible of your priceless history data. We use this information to overcome seasonality changes and keep your AdWords performance steady and growing!

Well, but what if the data is not available in the campaign’s history?

We’ve started PPC bidding automation for eyewear client Eyerim.com in October 2016. Since then they’ve expanded into 13 new markets. In other words, they’ve opened 13 new PPC accounts in 14 months mostly without any historical data.

In order to not burn loads of cash on testing new keywords our technical architect had created an additional algorithm. How it works? To keep ROAS (ROI) targets per market in order and total costs for all accounts under control we bid with target to get the lowest position above the “organic” and more data we gather with more confidence we bid higher towards the top position.

What is your experience with new-KW introduction in your PPC campaigns? How much did that cost you?

For Eyerim.com we already optimized ad spend of 6-digit figures (Eur), in all their 15 markets.

In the autumn of 2017, we conducted A/B testing between Magic and Google’s Smart Bidding. The testing lasted over one month.

Magic brought to the Eyerim +35,9% bigger revenue than the revenue brought by Google Smart bidding. The Cost-per-Revenue rate or ROAS on the side of Magic was 13,6% better!

Keywords: #PPCautomation #PPC #Adwords #OnlineMarketing #Ecommerce

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Complete reconstruction of the AdWords account structure? Use Magic!

Clients often think that in order for an account to be managed by MagicScript, it is necessary that the account’s structure is already well-developed and stable; however, it is an unnecessary concern. MagicScript works well, even when the account is going under structural changes, be it minor or dramatic. Even when these changes are being made, MagicScript is an exceptional tool, because it controls costs and bids rationally.

Here are a few insights:

• Keyword history is paired. This means, that even when you move a keyword e.g. from one adgroup to another, its history is preserved, so the keyword still has enough data for the algorithm, so it can properly bid.
• MagicScript has an algorithm for rational and balanced testing of brand new keywords and adgroups (without history), that eliminates any possible risks from incorrect initial setups, which can often create large and gratuitous losses.
• MagicScript is also effective in that it saves a lot of time, that would be spent on manual bidding, while the account is being rebuilt to spend on manual biding. This valuable time can be turned towards perfecting the structure itself.
• Even during remodeling, an account can perform well, so it's needless to postpone the positive effects of reshaping an account.

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What is Magic Script?

Increase your revenue

by 24-65%

Realtime algorithmic bidding optimisation that sets exactly the right CPC bids for Google Ads, Shopping, Heureka, Favi campaigns.

What do you get with Magic Script Algorithm?

significant reduction of PPC specialist time costs

interesting increase in turnover (better investment performance)

24-65% cost improvement

immediate improvement of returns

How is it possible?

We’ll link Google Analytics and Ads (Heureka) to the MagicScriptBidding algorithm.
Then we’ll calculate the ideal real-time click price based on thousands of statistics.

Results

Revenue

+131,7%

PNO

-67,3%

58 000 bid changes / 3 months

periods compared 02-04/2018 vs. 02-04/2019

Cooperation with MagicScript was one of the best decisions of 2018.

Pavol Kiss

eCommerce specialist, ajprodukty.sk

The post Ajprodukty casestudy appeared first on MagicScript.

Beware of UTM parameters when importing costs from Heureka to Google Analytics

Sometimes, even if you import costs from Heureka into AdWords, they may not be well matched if you don’t have UTM parameters. 

In the example below, we see that an import with “lower case” utm parameters did not match the “upper case” utm parameters that the client has historically sent to Analytics.

The client has everything set in mergade or directly in the XML feed to a large Heureka / CPC, which is not correct, but if you want to recoup costs for historical numbers, you have no choice, you must adapt with UTM.

Most of the time it’s all in lower case, I don’t know why they’re capitalized, and I don’t know why GA didn’t put it into one anyway since they shouldn’t consider capitalization. (comparator specialist note)

Why import costs from Heureka into Analytics?

If you have properly tagged traffic from Heureka to your site, you can compare the performance of different marketing channels in Google Analytics (e.g., Google Ads vs. Heureka). However, if you do not import the costs there, the missing PNO / ROAS / ROI puzzles are missing the mentioned costs. How do you then invest correctly in Google vs. Heureka anything else if you have no revenue and costs in one place and you can’t compare it?

Cost, PNO, Margin, Profit, all together in Google Analytics

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Eyerim casestudy

Increase your revenue from PPC advertising by 24-65% month-on-month!

Permanent bidding optimization using an algorithm that can deliver the best cost-per-click for Google Ads, Shopping, Heureka, Goods and Sklik.

Why use Magic Script?

• significant reduction of PPC specialist time costs
• interesting increase in revenue, better investment performance
• 24-65% cost improvement
• immediate improvement of returns (ROI)

How is it possible?

We’ll link Google Analytics and Ads (Heureka) to the MagicScriptBidding algorithm.

Then we’ll calculate the ideal real-time click price based on thousands of statistics.

Results

Revenue +65%

PNO -44%

Revenue+24%

PNO -42%

The post Case study eyerim.com appeared first on MagicScript.

Pavol Adamčák: 3 tips for success that were heard at Agency Day 2017

Last month, a Google Agency Day 2017 took place in the beautiful surroundings of Prague Castle. Our CEO Pavol Adamčák was given the opportunity to 

present the success story of his ui42 digital as the only speaker from cz / sk agencies. Among other cool agencies from around the world, such as Jellyfish and Finch, he explained how ui42 digital managed to grow 5x faster year-on-year by focusing on their clients’ exporting efforts. I am very interested in his view of online marketing, so I made an interview with Paul, which you can enjoy now. 

I drew a lot of inspiration during it. You will learn a little about me at the end of the article, but now enjoy the conversation and lots of ideas.

Pali, you were given the opportunity to present yourself as the only speaker from Czech and Slovak agencies at Agency Day 2017. How did it feel when they offered you this?

So, the first feeling was such a “WOW”. I was very pleased because I have been a part of Agency Day since the beginning. It has been 5 years 

since it started in Warsaw, continued in Budapest, another year was in Prague and last year in Athens, it was TOP. And this year again in Prague at Prague Castle. So, I’ve always seen it from the perspective of being a guest, but when I got the chance to be a speaker, I was excited of course. I knew there would always be people from the biggest agencies, or those who had something to say, so I was very enthusiastic. The second feeling, since this is not the first time I have been speaking, was that again a big audience and a lot 

of stress await me before the show.

"It makes you feel pleased, when being part of Agency Day since the beginning. It's been 5 years already."

Was this event somehow different? For example, when compared to the Marketing Festival, where you spoke last year?

So I was at Marketing Festival twice and it’s a bit different but also similar at the same time. Basically, I presented a case study at the Marketing Festival and it was similar in that I had to concentrate the highest quality content within 10 minutes. I had 15 minutes on Agency 

Day and comparable amount of content. Stress was similar, the audience relatively quite demanding. The marketing festival is also popular among marketing specialists, it attracts mostly pretty clever people from top agencies. They are either their founders or at leading positions. On Agency Day, the speaker is mostly the person who has built the company and worked on it for years and really knows what he’s talking about. Very rarely it is just some manager who runs certain specific things in the enterprise, mostly they are people who are really experts. The audience was therefore challenging in both cases. I lectured at Agency 

Day for approximately 600 people and at the Marketing Festival for up to 1,500 people. But whether it’s 600 or 1,500 people, it doesn’t reduce stress.

And what did you present about?

You don’t know what I was presenting about? 🙂 They asked me to speak about how we can grow so fast and how to make such a grow sustainable. It was such a challenge for me to think about what’s the reason we are doing so well. Basically, this was a question from Google’s perspective, as we are one of the premium partners and grow with them 200% year-over-year. That’s five times faster than the average, so when they saw the numbers, the idea came up that they should take a closer look. They know us and know that we are focused on export, on e-commerce, that we are rapidly adapting marketing technologies. They reckoned there was a great potential to motivate others a bit, so after one meeting with Juraj Felix from Google, we created framework for presentation where we showed the numbers. And we had content too, whether we talked about the technologies we use, or about how we approach people, the team, how we focus on a certain type of client that is e-commerce export-oriented and so on. The whole lecture was about facilitating the essence of what we are special in and giving some tips.

“As one of the premium partners, we grow 200% year-over-year with Google, five times faster than the average."

So what are the tips or a recipe for growth and success?

I had 3 specific tips in the presentation. The first focus is on people. Trying to find great people and try to find their strengths and focus them well. So not only finding the talented, but also focus on leading and teaching them. I also lectured about a specific system we have, a system that is not  focused primarily on hours, but rather on how much you want to earn for a given task or project. For example, you can make 5 Facebook posts, let’s say each post for 20 Euros, and you don’t have to be stressed about time tracking. You will deliver 5 things for a certain amount of money. 

 

That’s the model I try to popularise among my colleagues. The model that talks about giving people mathematics to be a separate business unit that doesn’t have to work for hours, but can rather work as a specific  input / output unit. That’s the essence I tried to find. When people are motivated this way, they themselves consider how to improve the output of the unit. For example, Adwords specialist is considering how to efficiently deliver results, turnover, and hence he is being evaluated. If he only tracks time, his motivation to deliver results is lower and his primary focus is to record working hours. 

 

In our model, the motivation is this: delivering quality results and spending as little hours delivering them as possible.This is one of the unique things I have realized, that few people are motivating their colleagues to get results. Most deal with it by a fixed reward. So one focus was 

on talented people, and on giving them a simple math to develop themselves, so they think about results and improvement of their skills, and not about time tracking.

I understand, I am also a fan of f this motivation 🙂. And what was the next tip?

There were 2 more tips. The first was to encourage people to play with technology. Because people are rewarded for results, it often connects with technology, because when you want to optimize your time and spend as little time as possible, using technology will save you that time. For example, you 

can use a tool to make it easier for you to manage your PPC campaigns, use another tool to make it easier for you to manage Facebook and edit graphics. You see, suddenly you’re wondering what technology to use to do something more efficiently, and that has not only 

benefits for you, but for the entire company. The company is then not based on invoicing hours, but rather on being able to be more efficient than the competition, because people find new technology, literally new toys that they both enjoy and use to improve their work and cut their time.

Thanks to them you can do things better than everyone else, because technology will give you tools and means to do it so.  

 

It’s like cutting trees with a hand saw and suddenly someone comes with a chainsaw. They paid a handsaw lumberjack by an hour so he just worked for hours. But when they switched to pay him by how many trees he cuts down, he purchased a chainsaw himself:) You need to look for those lumberjacks realizing they need to look for  chainsaws all the time.

Do you understand the logic from the lumberjack to marketing? 🙂It is important to educate talented people in this way and to help them with those technologies. That’s how Magic Script Algorithm for automated real time bidding in AdWords was developed.  It was created because we needed to optimize projects based on their performance. Pay by the hours on such a level wasn’t possible, as somebody would permanently be needed to adjust the bids for clicks, 24/7, and that’s something nobody can pay, and frankly speaking, nobody can work as well. Cause people need their sleep and weekend and holiday too. Algorithms don’t.

"Technology will give you a tool. It's like cutting trees with a hand saw and suddenly someone comes up with a chainsaw."

Sure, I also find new tools to avoid spending a lot of time on trivial things. And the third tip was what?

Furthermore, in the presentation I moved to the third pillar, which is the focus – meaning pick for whom to work. It’s not just about the results. It is necessary to work with good people, but also for good people (customers). Those great clients probably do great things as well. We also need to grow together. We need to grow with people who intend to build something. That growth means export, all of which is underlined in our e-commerce export vision, a growth acceleration vision. It’s not just rolled out of our sleeves, it’s years of such awareness. And when you’re working for a client who doesn’t want to grow and doesn’t respond to our call for growth, don’t even expect you to build something great on it. Of course, we also have such clients, we must say goodbye to. But when you find such a person, who has the vision, who has the plan and wants to grow, it’s very important to focus on him, to give him attention.  It’s not just about focusing on exports, but explicitly on people who are basically good partners, trust, treat, honest, and so on.

Did you meet someone interesting for you, whose thoughts remained in your head?

The great thing was that I had the opportunity to meet the investment director of Rockaway Capital. It’s an investment company. We talked a bit, and I was quite pleased that the director, who manages Mall, Heureka, or their investment fund, wanted my business card to meet and talk about the topic I was talking about. That really pleased me. But from other lectures I was interested in a lecture by Anders Hvid at Singular University. This university teaches you to think exponentially. This reasoning on the graph looks like a stick that gradually grows and then suddenly fires to the sky and linear reasoning goes evenly up. And he said that when you think linearly, you improve step by step, there are some kind of stairs. So you won’t notice that, for example, a competitor or a technology can completely overtake you or sometimes completely destroy you. And exponential growth is by its nature such, that when you put a 

linear and exponential curve on top of one another, it looks like the exponential one is long below the linear one. In practice, this means that you are going in that linear direction and watching and seeing that competitor, but you feel that he is small, uninteresting and that his technology has no future or is very uncertain. You think it’s just a small business. Over time, your little competitor will gradually grow. According to the curve, they start as if they are below you, gradually grow and you watch them as if they are still below you, but at one point you two will meet. But – you go further linearly, while they are already soaring. He said such an example that we may not notice the exponential technologies and, secondly, when we notice them, it is too late. At that point of notice, it is the intersection of the two curves, when you notice it there, it is already too late, because you continue only linearly, but they grow so much that they will overtake you several times afterwards. 

I’m very interested in this change of thinking. How to start thinking that I’m doing something linearly now and how to do something that I’m going to invest for a long time, but if I project far into the future, it will really be worthy of the time.

How to understand which technologies are going to be here in the future, how to understand where it is going and how to project it not in a linear curve, but rather on an exponential one. How to really find, which currently starting technology will be big in five years. 

This is the thought that shakes my head. If I start now, I can be someone in five years, but in ten years, it can be huge. And these are things that are related to some companies today.

Can you give some local specific example?

For example, LinkedIn, networks that had no value in the past, but probably most of their value will come in ten years. 

It will be the only professional platform, no one will have a CV, there will be no local job portals, but everyone will be on Linkedin. Maybe not now, but if it goes at this pace, it’s very probable in the future. And the other competitors think they are the biggest, that they are growing and that LinkedIn is somewhere below them. I can give you this example, but maybe it won’t happen.For example Profesia, will keep looking at LinkedIn as a small competitor for a few years and then will suddenly wake up and maybe at that point it will be too late. LinkedIn will grow so that even painters will be there in a few years. This idea stuck in my head, this 

exponential reasoning, where I tried to find some practical examples for myself.

"LinkedIn will grow so that all painters will be there in a few years."

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