Understanding Ad Spend at a SKU Level
At Conjura, we accurately calculate ad spend at a SKU level, providing granular insights into marketing investments for individual products. Here's how it works and why it's beneficial:
How We Calculate Ad Spend:
We attribute ad spend at the SKU level through the URL of the ad. This method allows us to track ad spend for various campaign types, including Google Shopping, Performance Max, Deep linked Google, and Facebook ads, essentially any ad directing traffic to a product landing page.
Please note, ad spend can't be attributed at a SKU level when ads drive traffic to a generic home page rather than a specific product and instead appears in the Product Table and Deepdive as 'Ad Spend - No Product'.
Benefits of SKU-Level Ad Spend Calculation:
Optimized Marketing Budget Allocation: By knowing the ad spend for each SKU, businesses can identify over- or under-spending on marketing efforts. This insight enables them to optimize their marketing budgets, allocating resources more efficiently across products.
Product Performance Analysis: For buyers, understanding why certain variations of a product sell more than others becomes clearer. They can differentiate between products' popularity and the influence of marketing efforts. Additionally, concerns about low sales for specific SKUs can be addressed by evaluating their ad spend and visibility.
Accurate Contribution Margin Assessment: SKU-level ad spend data contributes to accurate contribution margin calculations. Including all ad spend ensures that every click is accounted for, providing a comprehensive view of profitability at the SKU level.
Identifying Underperforming Ads: Our approach allows businesses to pinpoint instances where ads drive clicks but fail to generate corresponding orders. This insight helps in evaluating the effectiveness of ad campaigns and optimizing them for better performance.
*Coming Soon*
You may be thinking - "OK, so maybe customers aren't buying the advertised product, but what if the ad leads to sales of other products?"
Keep an eye out for our new metric: Cross Sell Conversions.