INTHEBLACK Summer Edition - Magazine - Page 22
P L AY S M A R T // D ATA M A N A G E M E N T
FINDING THE RIGHT DATA AND MAKING
SENSE OF IT
A 2019 report by MIT Sloan Management Review and
SAS, titled Data, Analytics, & AI: How Trust Delivers
Value, notes a persistent gap in terms of analytics
usage. The majority of the 2400 respondents
have reported increased access to data, but only a
minority have reported being confident that they
had the “right” data to make sound decisions.
Sabri Suby, founder and head of growth for direct
marketing agency King Kong, says when people look
at analytics data, they only look at top-line numbers,
not tangible metrics.
“When you’re looking at your business, you need to
fundamentally understand what people are engaging
with,” he says. “How much traffic are you getting?
How many leads are you getting for each service?
“You also need to look further to see behavioural
data. For example, how much is your time on-site
changing? How much traffic are you getting from
mobile versus desktop?
“What is the conversion rate of each page on your
website, and what is the trend? Is that conversion
rate going up, or is it going down, and what is
happening as a result of that?” he says.
To mine analytics data to guide business growth,
businesses need a culture of analytics from the top
down. In analytically mature organisations, senior
management, including members of the C-suite,
use data analytics to provide strategic direction to
the organisation, and the middle management use
it to improve day-to-day operations, according to
the MIT report.
Unfortunately, not everyone fully understands
the core metrics and terminology, and there is
uncertainty as to how to decipher them. Unless you
are a data scientist, it can be daunting to interpret
the sheer volume of data, especially when there are
so many metrics available and when they can often
be very similar to each other.
One of the most commonly misunderstood metrics
is the bounce rate.
Google defines a bounce as “a single page session
on your site, which means a user opens a single page
on your site and then exits”.
Generally, a high bounce rate on landing pages
is bad and a low rate is good, but there are
exceptions. For instance, if you have a singlepage website or a blog, then a high bounce rate
is expected. Therefore, a high bounce rate is not
always an indication of a problem, and the context
22 ITB January 2021
HOW WELL DO YOU
KNOW GOOGLE ANALYTICS
AND GOOGLE ADS?
and purpose of pages, and the business’s marketing
goals, need to be taken into consideration.
Google Ads can also be tricky to understand,
because of the speed at which the technology
develops. Google’s algorithm for deciding how much
you’ll pay and how many clicks or conversions you’ll
get can be hard to grasp. Some of the terminology
can also be confusing. For example:
Cost-per-acquisition (CPA): the average amount
you have been charged for a conversion from your
ad. CPA is calculated by dividing the total cost of
conversions by the total number of conversions.
Cost-per-click (CPC): the amount you pay for each
click on your ads. Google Ads uses an auction system
to display ads, and you are only charged the amount
necessary for the click.
Cost-per-thousand-impressions (CPM): a bidding
option where an advertiser pays for 1000 impressions
of their ad, regardless of the number of clicks.
Cost-per-view (CPV): a bidding option, where you
pay for each video view.
A. Your click-through rate (CTR)
B. Your competitor’s ad rank
C. Your ad rank
D. Your bid amount
What are Google’s
main algorithms called?
A. Penguin, Hummingbird, Pigeon,
Mobilegeddon, Possum, Sandpiper
A session in Google Analytics
times out after how many
minutes of user inactivity?
Which of these is an
example of Google Ads
A. Showing ads to users who
previously interacted with a
site or app
B. Showing ads to users coming to
a site from social media platforms
C. Showing ads to new users
coming to a site
D. Showing social media ads
to users who visited your site
What is classified as an
assisted conversion in
A. When a user completes
B. Fred, Albatross, Hummingbird,
Pigeon, Panda, Pie, Possum
C. Panda, Penguin, Hummingbird,
Pigeon, Fred, Possum, Mobilegeddon,
D. Panda, Pigeon, Mobilegeddon,
Penguin, Parrot, Hummingbird, Falcon
FROM NUMBERS TO REVENUE
With gaps in understanding, decision-makers can
inadvertently make wrong decisions that can damage
a business’s profitability.
Suby says it is straightforward for an e-commerce
business to measure how much revenue it makes
by adding e-commerce tracking using Google Tag
Manager (a system created by Google to add analytics
to websites). However, e-commerce doesn’t work
easily for professional services, and he recommends
taking the following approach instead:
Assess how many clients you have won over the
past six to 12 months, and how many leads you
needed to generate to achieve those leads.
Take the number of leads and divide it by the
number of clients and divide again by the amount
of revenue they brought into your business – this
is your estimated Earnings Per Lead (EPL) in dollar
terms. You can now put a value on each lead.
Set up basic e-commerce tracking using your
EPL as the value of each lead.
Once you start tracking your EPL in Google
Analytics, it becomes much easier to calculate how
much potential revenue is being generated through
your online marketing efforts.
This insight, combined with all the information you
can see in the ABC reports, can give you a 360-degree
view of your business – but only if you really
understand the metrics and terminology.
How does Google
determine which ad
is shown where?
B. When an interaction appears
on the conversion path, but is
not the final conversion
C. When a user completes a
specified action on a website
D. When a user buys an available
product or service
What is an exit rate for a
A. The percentage of users who landed
on that page and immediately left
B. The percentage of users who did
not interact on that page
C. The percentage of users who
completed a transaction on that page
D. The percentage of users who left
your site from that page
Where can you collect
and analyse purchase
and transaction data
in Google Analytics?
A. Behaviour report
B. Audience report
C. E-commerce report
D. Acquisition report
A. Under 7 seconds
If you want to compare your
ad performance with other
advertisers who are
participating in the same auctions,
which report will you look at?
B. Under 5 seconds
A. Audience performance
C. Under 3 seconds
B. Ad performance
D. Under 1 second
C. Automatic placements
What is the best practice for
average Speed Index,
according to Google?
Which of these factors does
Google consider when
D. Auction insights
C. Length of page
D. All of the above
If a user comes to your site
through a third-party traffic
source, it is reported as:
A. Organic traffic
B. Referral traffic
C. Channel traffic
D. Direct traffic
TO CHECK OUT
TO THIS QUIZ
Score one point for every
< 5: Data novice
intheblack.com January 2021 23