Measuring RoI on Sponsored Search Ads

Summary:

The case is about a company that is trying to measure the Return on Investment (ROI) of their
sponsored search ads. They are running these ads on Google and Bing and are trying to determine if
they are generating a positive return on investment. The company is facing several challenges,
including difficulty in tracking the sales generated from these ads, difficulty in measuring the impact
of these ads on offline sales, and difficulty in determining the appropriate attribution model.

Problems:

 Difficulty in tracking sales generated from sponsored search ads.

 Difficulty in measuring the impact of these ads on offline sales.
 Difficulty in determining the appropriate attribution model for these ads.

Problem Statement:

The company needs to determine if their sponsored search ads are generating a positive return on
investment. They need to overcome the challenges of tracking sales generated from these ads,
measuring the impact of these ads on offline sales, and determining the appropriate attribution model
for these ads.

Criteria:

 Accuracy of ROI measurement

 Ability to track offline sales
 Ease of implementation
 Cost-effectiveness
 Compatibility with current systems
Alternatives:

 Use conversion tracking to measure sales generated from sponsored search ads.
 Use customer surveys to measure the impact of sponsored search ads on offline sales.
 Use a multi-touch attribution model to determine the impact of sponsored search ads on overall
sales.
 Hire a third-party agency to manage the sponsored search ads and measure ROI.

Evaluation of Alternatives:

 Using conversion tracking to measure sales generated from sponsored search ads is a cost-
effective and easy-to-implement solution. However, it may not accurately measure the impact of
these ads on offline sales.
 Using customer surveys to measure the impact of sponsored search ads on offline sales is a
reliable solution, but it can be costly and time-consuming to implement.
 Using a multi-touch attribution model can provide a more comprehensive understanding of the
impact of sponsored search ads on overall sales, but it can be complex and difficult to
implement.
 Hiring a third-party agency to manage the sponsored search ads and measure ROI can provide
expertise and resources, but it can be expensive.

Decision:

Based on the evaluation of alternatives, the company should consider using a multi-touch attribution
model to measure the ROI of their sponsored search ads. This solution can provide a more
comprehensive understanding of the impact of these ads on overall sales and can be customized to fit
the company's specific needs. The company should carefully evaluate different models and work
with experts to ensure the accuracy of the results. Additionally, the company may want to consider
using customer surveys or hiring a third-party agency to supplement the results from the attribution
model.