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Paid Vs Owned Channels Performance

One of the most frequently asked questions about eCommerce is how owned channels perform compared to paid channels. Owned channels incorporate media that a business has complete ownership whereas paid channels include all paid marketing activities.

Owned media include the following channels:

  • Direct: users who type your domain into the address bar to visit your website

  • Email: engaged users with your email marketing campaigns

  • Organic Search (brand/generic): users who find your site through Google search, either brand or generic

  • Organic Social Media: including non-promoted content from all social media a business owns, such as Facebook, Instagram and Youtube

Some of the most preferable paid media include:

  • Paid Search: users who find your website through Google Ads

  • Paid Social: traffic generated from social media paid campaigns such as Facebook or Instagram ads

  • Display Advertising: contains traffic reaching your online business from display ads

  • Price Aggregators: users who are looking to find your website through price comparison websites

What is the breakdown between Owned Vs Paid Channels?

Monitoring channel performance helps to identify gaps and opportunities between channels. Several business questions arise when it comes to channel performance. For example, as a business owner, you need to understand what is the conversion rate for all marketing activities. Also, it is crucial to know the revenue or transactions contribution for all owned channels.

Grouping channels to owned and paid, allow you to have a clear overview of your business activities. Analysing channel performance on such way will enable you to generate insights about traffic, revenue and transactions percentage of each group. Also, it is helpful to monitor the conversion rate per channel type to understand how likely are users from each group to complete a transaction or a goal.

With the Paid vs Owned Channels Overview of MyDigitaLab Dashboards, you can have a graph view of your paid & owned channel performance for any given period. Also, you can have the overview of your channels in terms of sessions, revenue, transactions and conversion rate.

Extra tip: You can use multiple filters (device, country, user type) to generate more insights about your users. For example, applying the user type filtering (new/returning) allow you to have a quick view of how much of your traffic and revenue generated from each segment.

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How do the Owned Channels perform?

As mentioned, owned channels include users who visit the website through non-promoted content. Several questions need an answer when it comes to owned channels. Does organic traffic generate more revenue than email traffic? Which owned channel has the highest conversion rate? How direct channel contributes to your business in terms of transactions?

Use the second section of the Paid vs Owned Channels Overview in your MyDigitaLab account to answer the above question. There, you can evaluate the performance of all owned media. To do that, we are using four main metrics (sessions, conversion rate, revenue and transactions). You can choose one (or more) metrics from above, and also you can have a single view for all available sources of each channel.

Extra tip: Do you still measure branded search queries as organic traffic? Go on step further your channel breakdown and split your traffic to Branded and Generic Organic. Then, you will have a clear image of how many people search for your business and how closer to transaction or goal completion are they, compared to users who visit your business through generic queries.

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How do Paid Channels perform?

One of the most critical parts of your online business is paid performance. When it comes to marketing campaigns, many business questions arises. For example, what is the contribution of each paid channel? Do Google ads possess a higher conversion rate than Facebook ads? Which channel has the highest Avg. Order Value?

With the last section, you can quickly have a snapshot of all your paid channels. You can understand which is the best or worst in terms of conversion rate, revenue and transaction contribution to your business.

Extra tip: Since you measure brand and generic organic traffic separately, why don't you apply the same logic on your Google Ad account? Easily, breakdown Mysite campaign to those who only type your brand name and those who combine it with a specific product or service. This split will give you extra insights about your brand awareness.

You have a question? Let us know.