Every e-commerce entrepreneur invests money in ads to drive potential buyers to the webshop bring. Often this advertising budget divided over several advertising opportunities. Think of Google Ads, social media and ads on marketplaces. To use your budget as efficiently as possible you need insight into the performance per channel and campaign, you can achieve this with Google Analytics.
What is GA4
Google Analytics is a data tool in which you can understand the behavior of your website visitors. The current version of Google Analytics is GA4. This is why these terms are often used interchangeably. This Google tool is free to use and you link it to your website, whereby data can be collected using cookies, among other things.
These data consist, on the one hand, of user characteristics including location, demographic characteristics and device used (mobile, tablet or desktop). On the other hand, user actions on the website are recorded. Here you can think of page visits, clicking on buttons or playing videos. Besides these events, it is most important for an e-commerce entrepreneur to record actions such as purchases.
Insight
Your various advertising campaigns provide insight into costs, impressions and clicks at campaign and product level, among other things. This allows you to see which products are found well and where there is a lot of traffic. You can't make decisions based on this data alone. For this, the connection with a tool like Google Analytics will help you link your costs to achieved sales.
Within GA4, you can see the channel or campaign through which traffic enters your website and the actions that result. By seeing how this group of website visitors behaves, you can determine if your campaign is effective.
Example:
Through Google Ads you have a campaign active in which you advertise a selection of your products. This campaign spends 100 euros per day and this brings 300 users per day to your website.
In Google Analytics you can see that 20% of these 300 users add a product to the shopping cart, so this is 60 users. Of these 60 users you can see that 10% actually proceed to complete the order, so this is 6 orders. Your average order value is 100 euros, so you achieve 600 euros in sales.
The 100 euros you invest yields 600 euros. With this data, you can determine whether your campaign is profitable and whether you can start scaling up.
The above example shows in outline why it is important to have insight into your campaign results. However, instead of looking at the campaign level, you can zoom in on the results further, such as at the product level.
By looking at what the advertising costs are in relation to the revenues, you can make adjustments. You don't want the positive cost to revenue ratio you achieve on product A to be negated by the high advertising costs on product B from which no revenue is generated.
GA4 setting
Before you can start using GA4, you must first set it up. When creating an account via this page enter your details and you will be guided through the process. During the process you need to add a tag to your website. This can be done in several ways, such as through Google Tag Manager. Many e-commerce platforms have the option of implementing via a plug-in.
After you complete these steps, the account begins collecting data and you have the ability to analyze it. You can also link your GA4 account with other tools through which data is shared.
The 100 euros you invest yields 600 euros. With this data, you can determine whether your campaign is profitable and whether you can start scaling up.
The above example shows in outline why it is important to have insight into your campaign results. However, instead of looking at the campaign level, you can zoom in on the results further, such as at the product level.
By looking at what the advertising costs are in relation to the revenues, you can make adjustments. You don't want the positive cost to revenue ratio you achieve on product A to be negated by the high advertising costs on product B from which no revenue is generated.
Summary
In addition to your advertising costs, you must, in order to make good decisions, understand the revenue that from your campaigns from your campaigns. You can do this through Google Analytics. EasyAds can help you set up Google Analytics, so you can keep a good eye on your ad performance.