Posts
Before You Start
PPC search engines provide a highly track able marketing medium. Frequently
people begin marketing without any idea as to the approximate value of a click. If
you do not set up a value range and track the results you have no way to distinguish
good marketing from bad marketing.
To know the value of a click you need to decide what the goal of your marketing is.
Typical Conversion Rates:
Lead generation sites typically have a conversion rate around 10 to 12%, but can go
as high as 30% + if they are properly targeted and exceptionally appealing to
visitors. Since little investment is needed to arrive at your website and so many
others are just a click away selling stuff the web has a conversion rate similar to
direct mail advertising. High ticket items have a lower conversion rate and unique
cheap items tend to have higher conversion rates. Many stores find typical
conversion rates might be anywhere from .3 to 4%.
Doing the Math:
There are a ton of factors that go into click price. It is somewhat hard to measure
branding, but ad distribution can help with that. Most other things are tangible.
If you know your average order size, profit per order, and estimated conversion rate
you can get a good idea what clicks are worth. Some people also factor in lifetime
cost of a customer, but it is harder to measure and there is still enough opportunity
in many markets to do your math primarily based on direct return.
PPC search engines provide a highly track able marketing medium. Frequently
people begin marketing without any idea as to the approximate value of a click. If
you do not set up a value range and track the results you have no way to distinguish
good marketing from bad marketing.
To know the value of a click you need to decide what the goal of your marketing is.
Typical Conversion Rates:
Lead generation sites typically have a conversion rate around 10 to 12%, but can go
as high as 30% + if they are properly targeted and exceptionally appealing to
visitors. Since little investment is needed to arrive at your website and so many
others are just a click away selling stuff the web has a conversion rate similar to
direct mail advertising. High ticket items have a lower conversion rate and unique
cheap items tend to have higher conversion rates. Many stores find typical
conversion rates might be anywhere from .3 to 4%.
Doing the Math:
There are a ton of factors that go into click price. It is somewhat hard to measure
branding, but ad distribution can help with that. Most other things are tangible.
If you know your average order size, profit per order, and estimated conversion rate
you can get a good idea what clicks are worth. Some people also factor in lifetime
cost of a customer, but it is harder to measure and there is still enough opportunity
in many markets to do your math primarily based on direct return.
0 comments:
Post a Comment