PNO

How? Explain to me what a PNO is.

A PNO is a formula, for starters. It's a formula that tells us how effective an ad is in terms of money spent.

The formula for calculating PNO:

To simplify:

You have a product in the e-shop for 8.000, you invest 1.000 in advertising and its management.

The ROI is therefore 12.5%.

What is a good PNO formula for?

In practice, the PNO shows us how expensive advertising is for us. Everyone probably thinks that the lower the PNO, the cheaper, and that's what we want to achieve.

But this is not always the case. You can sell products in your e-shop that people buy on a regular basis, here you will only recoup your investment over time, with repeat purchases.

Why should I need this?

A longer tracking of your PNO can tell you a lot. If your PNO is greater than 100%, you are in the red.

You are also in the red if your PNO is more than a percentage of your margin, but in this case there may be a long-term plan, or the PNO may fall later.

I see, so how to do it?

First and foremost, think about what all you will count as advertising costs, or whether you will count campaign management costs here.

The PNO is automatically shown to you in Sklik. Unfortunately, in Google Ads and Google Analytics, this metric is not in the baseline, but you can add it by adding a column that you create yourself.

It's always a good idea to evaluate PPC campaigns in the same metrics, so if you work with both Sklik and Google apps, it's a good idea to unify this measurement.