Set Goal Values

Introduction to the “Set Goal Values” wizard
While many of the recommendations generated by Clickable's Act Engine involve best practices that can improve any search marketing campaign, our most precise actions and alerts are customized to your business goals. In order to generate these recommendations, we need to learn more about the strategy behind each of your accounts. You can give us this information by using the "Set Goal Values" wizard.

The Business Goal Questionnaire
When you launch the wizard for the first time, you will be asked a few simple questions about your business that will help us determine which search marketing strategy you should pursue. After you complete the questionnaire, the wizard will direct you to set a monetary goal that will drive many of the Act Engine's recommendations. The type of value you set will depend on your business.

Setting Conversion Based Goals
If your goal is to drive a specific kind of action (i.e., conversion) on your site, the “Set Goal Values” wizard will ask you how much you are willing to pay, on average, to produce that action. These actions could range from getting visitors to sign up for a newsletter, fill out a form or view a particular page of your site.
You can set these values however you like, but the industry standard is to use the following equation, (known as “Cost Per Conversion” or “Cost Per Action”, “CPA” for short):



That is, how much are you spending for each time a visitor performs the action you are aiming for? Let’s say that your trying to generate leads by having visitors to your site fill out a basic information form. If you are comfortable spending $500 on a search marketing campaign that generates 100 leads, the amount you are paying for each “Visitor Action” is $5. Using this calculation, you can determine a value that makes sense for your business.

Setting ROAS Goals    
If you have monetary transactions on your site, you may be asked to set a "Return on Ad Spend," or ROAS, which represents the profit generated by ad campaign conversions per dollar spent on advertising expenses. Your ROAS is calculated by dividing advertising-driven profit by ad spending. If, for example, you want to make one dollar for every dollar that you spend on advertising, your ROAS will be 1. Or, if you want to make three dollars for every dollar that you spend, your ROAS will be 3.
 
When you enter your ROAS goal, be sure to enter a multiple rather than a percentage. So if you want a 300% return on your ad spend, enter “3” rather than “300.” (Entering “300” would mean that you wanted a 30,000% return on ad spend—not a very realistic goal.)

Implementing Dynamic Conversion Tracking
If the value of the transactions on your site depends on what visitors purchase, you will need to set up your site to pass the value of these transactions to AdWords. On the page where you have Google AdWords set up (usually the confirmation page following a purchase) you will need to pass the variable with the transaction amount (Total_cost or SaleValue, etc.) to the conversion value field.

For more information on how to do so, click on the following link:

https://adwords.google.com/support/bin/answer.py?answer=73882