Pay per click marketing requires a return on investment like any other promotional channel. But what is the right ROI?
A report from The Nielsen Company indicates that online advertising has the highest ROI of any medium. To cut to the chase, it says that the short term ROI on all channels is 109 percent and for online it is 218 percent.
Although some may argue that the online number is questionable, there is no question that online marketing is more cost efficient. It doesn’t require a broadcast TV station, a newspaper circulation department, cable TV fiberoptics or a printing plant to produce a magazine.
In other words, it comes with an immediate cost efficiency that gives the marketer room to experience, fail, try again and succeed at an online campaign without bankrupting the budget.
Let’s define our terms and explore “return on investment” and “return on advertising spend”. (more…)
Even better, the discipline of tracking results and improving a campaign’s effectiveness and efficiency will often lower the cost per click. Higher conversion rates with lower costs result in a much better return on investment for the advertiser.
Consider it Google’s reward for using less of its inventory for your campaign and leaving more for someone else to spend money with Google.
Best practices start with dedicating time to campaigns at least weekly. Several times a week if not daily are even better. Why? Campaign results vary based on:
Many Web sites don’t spend a dime to market themselves. A small percentage grow large audiences if they have been around for many years, have a unique attraction or just work extremely hard at building eyeballs.
But even a small marketing budget can make a difference if it is developed carefully.
First, it is important to distinguish between a launch budget and a maintenance budget.
A launch budget is a separate amount of money dedicated to making the public or target audience aware of the new site. The marketing campaign usually begins on the day of the launch and continues for a matter of days or weeks.
The maintenance budget takes over after the end of the launch budget. Its goals include creating awareness for the site with audiences that weren’t reached with the launch campaign. More advanced elements of the budget target specific sections, features or audiences.
Second, we have to note the difference between discretionary versus non-discretionary expenses.
Marketing people would love to see the promotional budget treated as a necessary or non-discretionary expense. In reality, the promotional budget is one of the first items to be cut when profit and revenue misses start to loom.
A site’s pay per click budget should be the second most important marketing priority after search engine optimization in part because it is the second biggest opportunity to gain audience.
Search engine traffic usually is and should be the largest source of audience for a site. It makes perfect sense to spend the largest amount of marketing time on search engine optimization to make sure those numbers are strong and keep growing.
Many sites don’t spend any money on pay per click marketing. They miss an opportunity to gain additional audience from niches that SEO doesn’t deliver. Others spend too much on their PPC budget.
What is the right amount? (more…)
Mapping starts with creating a spreadsheet that links the three most important elements of the campaign.
Those three elements are the keywords being sponsored, the ads that target those keywords and the landing pages that are linked within the ads.
The reason why this is so important is because you can tell at a glance if the keyword being sponsored is represented by the ad and the landing page.
If it does show up in the ad and landing page, it is much more likely to result in a click on the ad and less likely to result in a bounce when the visitor reaches the landing page.
(The bounce rate is defined as a visitor who comes to one page on the site and leave again, probably because the landing page isn’t relevant or doesn’t have prominent links that invite the next click.) (more…)