When it comes to running your Google Ads campaigns, it’s important to optimise your campaigns for maximum return to your business as a whole. And whether that return is from an online or offline channel, it’s all part of the same pie. That’s why ad measurement and tracking the full impact of your campaigns is so important. It can help to start conversations or planning sessions by getting you to think about how best to connect with today’s 'omnichannel' consumers who move seamlessly between channels depending on their needs in the moment.
We’ll get you started on a simple ad measurement model that you can bring to the boardroom (or water cooler) that gets everyone thinking about the full impact that digital is contributing. Then we’ll go over how you can potentially get even better data to work with.
Calculate the value of offline conversions driven by your online ads
Let’s start with a simple model for calculating the value of an offline conversion for your online ads. You can partner with your offline shop marketing team to help you get started on some of the basic assumptions.
Step 1: Let’s gather some data about your offline conversion rates and order values.
Data point 1: Number of store visit conversions = 7,500
This is the number of people who visit your business after seeing an online ad.
Store visit conversions for Shopping, Google Display Network, YouTube and search campaigns is a feature available in Google Ads for eligible advertisers. The metric provides insight into the number of users who visited a shop up to 30 days after they clicked on your search or display ad, or watched or engaged with your YouTube ad. Contact a Google Account manager and see if you’re eligible for this feature.
If you aren't eligible for shop visit reporting, you can make some assumptions about the number of shop visits that you've received by reviewing clicks on the 'Get Directions' or 'Get Location Details' links in your location extensions. You can make some assumptions about how many people visited your shop who expressed interest by clicking on those links.
Data point 2: Visit-to-sale conversion rate = 30%
How many of those who visited your location after seeing an ad are likely to make a purchase?
Data point 3: Average order value at your location = $50
What is the average order size of an offline purchase?
If you have limited data to calculate these figures, reach out to your shop or local marketing teams.
Step 2: Use this formula to figure out the offline return from your search ads:
For search, YouTube and display ads:
Attributable shop sales = Total shop visits x Store conversion rate x Average conversion value
Business visits driven by your ads = 7,500
Attributable OFFLINE transactions = 2,250 (or 7,500 * 30%)
Shop Sales Measurement is available for Google Ads for eligible search and Shopping advertisers. Say that a user clicks on a search ad and then visits the advertiser’s shop nearby to complete the purchase. Using shop sales (direct upload), you can tie online clicks to offline conversions by uploading transaction data from the point of sale into Google Ads (e.g. from your loyalty programme or customer database). You can also categorise different types and sources of shop sales to get deeper insights into your offline performance.
Tracked ONLINE sales in Google Ads = $87,500
Google Ads spend = $20,000
Using this simple model, you can estimate that for every $1 invested, you’re making $5.63 in offline sales and $10 in total sales. Now you can optimise your bids using a more accurate measure of return from your ad dollars. In this case, you can bid up until your CPA is about 130% higher and still achieve the same return on ad spend.
Case study (search)
Matalan, a leading retailer in the UK, used shop visit reporting to discover that for every one website transaction driven by its online ads, an additional six customers visit a shop. By measuring offline purchases with shop sales (direct upload), the brand also found that it generated £46 for every £1 spent on mobile ads, £31 of which came in-store.
Case study (YouTube)
Through Google's shop visit solution, IHOP gained useful consumer insights that helped them drive visits from YouTube for less than $1 per guest.
Case study (search, YouTube)
Elgiganten, a Swedish electronics retailer, found that its video campaigns brought 6%–10% of users who viewed its ad on YouTube to its shops. Overall, the brand has seen an 8.8% increase in its sales and learned that its search traffic delivers a 21% higher return on ad spend on mobile phones versus desktop.
Case study (GDN)
Lawson, a convenience store chain, was the first advertiser in Japan to use shop visits. With a richer view of its offline performance, the brand learned that mobile ads were more effective and cost-efficient at driving foot traffic to its stores, saving them 45% more in costs per visit compared to desktop and tablet ads.
Understanding total omnichannel ROAS used to require a number of broad assumptions. As new tools have become available, though, you can now rely more and more on actionable data that removes the need for estimates.
Here are some options to consider:
|Measurement to use...||If you want to...|
|Shop visit reporting*||Estimate the number of visits to a business location driven by Google search and display ads.|
|Shop sales (direct upload)*||Attribute offline shop sales that are driven by Google search and Shopping ads. This can also be used with data in your CRM or loyalty system.|
|Conversion import||Supplement shop visits and shop sales reporting in Google Ads with imported data from your CRM.|
|Search Ads 360*||Report in-store conversions for all search networks compatible with Google Marketing Platform.|
Brand marketers, such as consumer packaged goods (CPG) advertisers or electronics manufacturers, are often asked to prove how their online ads drive offline conversions. To learn more about how to run these sales lift experiments and measure the incremental impact of your marketing, contact your Google Account manager for more information and download our latest guide called Proving Marketing Impact: 3 Keys to Doing It Right. If you want to start thinking about how to attribute sales across all marketing channels, consider upgrading to the Google Marketing Platform.