Product Landing Pages & Ad Spend πΈ
A product page in your ecommerce store is any page that is specific to a certain product, where that product can be added to a consumer's cart.
Customers may navigate to these pages themselves as they shop, but they can also be landed on these pages directly by clicking on certain ads.
Why is this important?
The case where customers land on product pages directly is key to us at Conjura. This is because when someone clicks on an ad and lands on a product page, we attribute the cost of that click to that product.
Product Gross Revenue ποΈπ°
Gross Revenue at a product level is usually defined as the revenue associated with the units sold of that product. While this is the obvious and sensible definition, it doesn't tell the whole story.
Products that drive traffic to your store via ad clicks but have a low sales volume look like poor performers, even when the traffic they drive makes a purchase.
This is where landing-page and cross-product metrics come in!
Landing-Page Revenue ‡οΈπ°
Within Conjura, we define a product's Landing-Page Revenue as the gross revenue from transactions that had that product's page as their last click landing page.
This includes revenue for the product itself, as well as revenue from other products.
Cross-Product Revenue ππ°
Cross-Product Revenue is similar to Landing-Page Revenue, however it excludes sales of the product itself.
In other words, cross-product revenue represents sales of other products driven by a certain product's landing page.
In Pictures π¨
Sales of any one product are represented by the Gross Revenue KPI:
Sales driven by any one product's landing page are represented by the Landing-Page Revenue KPI:
Depending on the scenario, these KPIs could be exactly equal to each other, they could overlap by a little, overlap by a lot, or not overlap at all:
No matter the size of this overlap, Cross-Product Revenue excludes it, meaning it can be analysed alongside Gross Revenue without worrying about double counting any sales.
Example Scenario π
Transaction #1: The consumer clicks on an ad for Product A, and is brought to Product A's landing page. They add Product A to their cart and check out.
Transaction #2: The consumer clicks on an ad for Product A, and is brought to Product A's landing page. They add Product A to their cart, continue browsing the site and add Products B and C to their cart before checking out.
Transaction #3: The consumer clicks on an ad for Product A, and is brought to Product A's landing page. They navigate away from this page, but continue to browse the site. Eventually they add 3 units of Product D to their cart and check out.
Transaction #4: The consumer clicks on an ad for Product D, and is brought to Product D's landing page. They add Product D to their cart and check out.
To keep things simple, let's say each click cost β¬1, and each unit sells for β¬20. Without tracking landing-page and cross-product revenue, the above three transactions look like this at a product level:
| Ad Spend | Units Sold | Gross Revenue | ROAS |
Product A | β¬3 | 2 | β¬40 | 13.3x |
Product B | β¬0 | 1 | β¬20 | - |
Product C | β¬0 | 1 | β¬20 | - |
Product D | β¬1 | 4 | β¬80 | 80.0x |
Product D looks like the superstar here: it's got high revenue and high ROAS. But we know from looking at the individual consumer journeys that Product A is doing the heavy lifting, driving converting traffic to the store.
Adding Landing-Page and Cross-Product KPIs to the mix ensures we give more credit to Product A. These metrics give a more nuanced view of product performance, without needing to analyse individual transactions:
| Landing Page Units Sold | Landing Page Gross Revenue | Cross-Product Units Sold | Cross-Product Gross Revenue |
Product A | 7 | β¬140 | 5 | β¬100 |
Product B | 0 | β¬0 | 0 | β¬0 |
Product C | 0 | β¬0 | 0 | β¬0 |
Product D | 1 | β¬20 | 0 | β¬0 |