Joshua:
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I've never heard a business say, I don't want any more money.
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the higher, this is the bigger, this,
the more money you're going to get.
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So how do we get that or those
eggs, a lot bigger or more often?
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we take a look at the chicken.
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Hey, how's it going everyone?
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This is Josh with
another Google ads video.
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And today we're gonna be
talking about a chicken.
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But not just any chicken, this chicken
is very business and puts his business
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head on and gets to work at trying
to make as much money as possible.
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But with all jokes aside, this is
a, metaphor, for business metrics.
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You have your blended numbers slash
backend for the chicken itself.
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Then you have the in app numbers, which
could be meta Amazon or Google ads
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platform, what you see inside there.
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That's the in app numbers here.
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Then you have the golden standard
of revenue, that golden egg.
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I've never had a farmer say,
Hey, I got too many eggs, or
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I got, too many large eggs.
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I've never heard a business say,
I don't want any more money.
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the higher this is, the bigger this
the more money you're gonna get.
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So how do we get that or those eggs?
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a lot bigger or more often.
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we take a look at the chicken.
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And basically how business started
out is you start feeding the chicken.
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New customers goes into new
orders, goes in, new cost required.
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New customer goes in a
burr, AOV, total orders.
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Then you start getting into kind of
repeat customer rates, open email
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rate, customer lists, and LTV.
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these are all interconnected
to each other.
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They all share the same blood of,
All the stuff that's digested kind
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of spreads across the chicken.
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And if you take one of these
away, let's say opening, right?
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You don't know what's going on there.
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maybe it's really poor and you can be
missing out on making this egg slightly
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bigger than, it could have been.
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And same goes with me or
nac, we take away nac.
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Then how much are you spinning
on a new client to come in
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or a new customer to come in?
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Which could affect
overall numbers as well.
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It starts to dwin it down
into all these other areas.
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'cause it could be the heart
line or the heart of the chicken.
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And if it's not pumping out, enough
blood to all these other horses.
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I could start taking a dive, that's
how the revenue or the golden standard
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works is the health of the chicken.
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Let's take these in app numbers.
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And I consider these like
the droppings of, numbers.
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Like you have CPA clicks,
CPC rows, conversion rate.
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So it's not saying that
these numbers are bad.
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you could definitely use these
numbers for trends and saying, okay,
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like our rows dropped by a lot.
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What happened there?
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did we make any changes?
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but we want to make sure that we're
not using these as a standard for
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any one platform in particular.
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let's take, for instance,
let's do some tests here.
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We have Meta Amazon Google and
think of these as food sources
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for this chicken right here.
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let's say we want to scale up Meta,
it's getting really good ROAS.
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So let's throw ROAS on there.
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this is the formula for basically
ROAS, we scaled it up and
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we got some unknowns there.
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we know that we are getting some new
customers, but if we just take a look at
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ROAS, it could be a lot of remarketing.
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It could be a lot of repeat customers
that's scooping up and we're feeding
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that chicken that type of, mix.
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are we looking at the backend?
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Are we taking a look at new
orders or new costs required?
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Customer, might drop, if we're
just looking at ROAS because
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it's so heavily in marketing and
then LTV might jump up slightly.
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but in the long run, if this is not
being fed, then it's going to start
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going and messing with everything else.
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And then your revenue is going to
start dying off, and the eggs are
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going to get smaller and smaller.
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we don't want to do that, but the
good thing about that is we did an
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isolated test with that just now.
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We know that if we scaled up meta,
So let's say, okay, we know that,
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maybe Google ads pushing a lot
of cold traffic, cause we have
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a lot of good terms in there.
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We're using some shopping campaign
and whatnot to just push cold
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alone, but it doesn't look like it's
getting a lot of roads, but we want
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to go ahead and test and see if we
scale it up or if we make a change.
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what will it affect the chicken versus
just looking at these, droppings here
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and saying, that's it, that's, that
CPA, that row is decreased by a lot.
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We don't want to do that.
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We want to feed the chicken, let
it go through its process and say,
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okay, is INCAC up, the new orders
come in, is the MRR stabilized?
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and then you can start looking at LTV.
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Sometimes how did that
change when we did this?
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more of an isolated test of that.
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But if we start going and saying,
okay, we're going to increase
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Google ads at the same time, we're
going to throw an Amazon ads.
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We're going to chop that.
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And then we're going to
increase, meta ads as well.
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now you have all of this type of
food source going into the chicken.
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And all these numbers start changing.
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if revenue goes up, okay.
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what actually affected the chicken?
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Was it the Amazon blend?
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was it Google then was it both of them
or if it dropped, what made it worse?
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Was it Meta?
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Was it Google?
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So you really want to focus on
isolated tasks and not just throw in
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a bunch of things because we can make
changes and say, Hey, maybe we're
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impressed on a certain type of outcome.
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We need this right away.
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it's more of the long game of saying,
Hey, we need to really make sure that
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these that chicken's being fed properly.
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And saying, okay, that revenue is coming
out, solid gold versus like this murky
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stuff right here where it says, okay,
click CPA, CPC went down or up, versus
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what's actually going on in the back end.
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So that's my little spiel, on the chicken
strategy, but, I'll probably start diving
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into these a little bit more in depth.
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I know this is like a general video
of kind of how things are set up.
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And the, process of making sure
that we do isolated tests to make
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sure that these numbers are nice and
healthy to get that revenue going.
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so that, yeah, that's what I got.
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Have a good one.
