Posts Tagged ‘Adwords’
Robert B. Gelman
Here at BGAmedia, we talk a lot about “Return on Investment” for you marketing dollars. From our standpoint, it’s the only way marketing or any aspect of doing business makes sense. But since marketing and sales are a moving target for every business, it is most important that they be tracked and evaluated on an ongoing basis. Change happens too fast these days for there to be gaps in your feedback loop.
One of the key metrics to track is your conversion rate. And what is a conversion? It could be many different things, depending upon what and how you sell. For example, if you are using pay-per-click advertising, it could be the number of clicks on your ad after viewing a search page. Or more relevant might be whether they looked at specific additional pages on your website, or actually bought something.
Google Adwords (and now Facebook advertising) allow you to track conversions to keep an eye on whether you are getting enough return on what you are spending. Determining this is of course different for every business, but here are some factors you might want to consider.
- Not all conversions are worth the same to you. A visit to a page on your website may not have a value, but a sale there might be worth $100. Identifying the value of conversions lets you track your ROI on specific keywords
- Example:A keyword may cost $1 per click, but a conversion from that keyword is worth $100. If you’re getting a conversion out of every 10 clicks, that’s an ROI of $90. A good investment. If you’re only getting a conversion for every 75 clicks, it’s marginal, and maybe not worth the money.
- Cost-per-click is critical too and needs to be a part of the equation
We counsel our clients to start their campaigns with a brief, low-budget test period to get a sense for both how much traffic is generated by their keywords, and the bid cost for those words. You have the option to give a value to any one of your conversions during the set up process. And, if you’re selling multiple products with different prices, you’ll need a single conversion page that has variable conversion values.
If you are interested in this type of activity to enhance your business (or the less costly Search Engine Optimization process), we encourage you to call us for a no-cost and no-obligation conversation about how a Search Marketing Campaign might work for you.
The logical extension of our conversation about ROI for Search Marketing Campaigns is a discussion of what it takes to create more customers (or conversions) out of the traffic you are already getting.The answer involves testing and modifying your web site or other online tools to become more effective.
We’ll address this in an upcoming post.
Just how big is Facebook, really?
According to TechCrunch, big enough to encroach on Yahoo’s position of “third largest Web property in the world”, trailing none other than Google (#1) & Microsoft (#2).
In the U.S., Facebook already has the second highest number of unique visitors per month – surpassing Yahoo for the first time in January. Compete.com also reports that of all time spent online in January, 11.6% was on Facebook, compared to less than 5% on Yahoo and Google each.
What does this mean to you?
Well, I don’t have the answer to that question, but I can tell you what it now means to some of our clients for whom we’ve recently started advertising on Facebook –> more qualified customer leads + a desirable cost = more $$$ for them.
The following story is about a lead generation client (Client A, for anonymity), but Facebook would certainly be worth testing if you’re in an e-commerce space too.
We created Client A’s Facebook account back on January 26. He’s a local advertiser, only seeking clients within a close radius of a heavily populated metro, so we set the Facebook geo-targeting to just 10 miles around his city.
Within 18 days his campaign spent just over $500, generating almost 600 clicks, but these numbers don’t tell the whole story yet:
When we dig into our Google Analytics reporting for Client A’s Facebook PPC traffic, we can see that his $500 in spend produced 11 highly valuable customer leads:
By highly valuable, I mean that Client A knows his customer lifetime value and has been able to determine that each new customer lead is worth $600 to him.
So for a ~$500 cost, with 11 new customer leads worth $6,600 (11 x $600), we’re talking about a superior ROI from Facebook in just 18 days!
It’s important to note here that Facebook is only producing 5.5% of the overall leads from our top 5 traffic sources, so it’s not going to replace Google AdWords anytime soon. Facebook is however, turning out to be a solid supplemental lead source for Client A.
1. Track your conversions with a reporting service like Google Analytics.
2. Utilize Facebook’s demo/geographic targeting to focus on a niche audience.
3. Set your bid price within Facebook’s suggested CPC bid range.
4. Use a captivating image in your ad (you can combine an image with text).
5. If you generate a strong impression share initially, but then it trends downward over time, you should rotate new ad creatives to keep a fresh message in front of your audience’s eyes.
6. If you are unable to generate any substantial impression share at all, then try experimenting with different or fewer demographic segments. You can also try targeting a larger geographic area to boost your ads’ reach.