Posts Tagged ‘PPC’

29
Sep

CPA and PPC Buying Cycles

Written by smmarketingpros. Posted in PPC (Pay-Per-Click)

I have recently been working some pay-per-click campaigns and have noticed a trend in CPA cycles over time. It seems that there is a cycle that takes place with each new project. First the project takes off…and at about the 30/day mark the project really takes off and becomes very expensive.  Customers (and we) always get a little nervous, and rightly so.  The customer has yet to see many conversions, and they have spent considerable money.  This is where experience plays a critical role. The natural question in their mind is “is this working?”  However, over time this drops way down once we have a chance to collect enough data to optimize the ads. Then it drops down. See the image below as an illustration:

CPA and PPC Buying Cycle

 

The Problem is the client initially only sees this:

ppc customer view

This is why it is important to commit to at least 90 days to let this process play out.

Hire a Qualified Team

Initial PPC campaigns are truly an investment in both time and dollars, but the payoff can be excellent with the proper optimization of both keywords and ad copy.  The best way to ensure this is by hiring a team of experts to all work together and compete for the best PPC optimization.  Our team acts as individuals behind the scenes, but all promote the campaigns as a team.  This allows us to see which one of the team members is optimizing the best, and getting the best conversions.  Then we step back and see what they are doing right…and do more of that.   This is also a great way to make sure we are on track with the campaign.

Teams of one do not have the ability to catch themselves if they start to go off track.

With most companies, the buying time is not instant.  Many times the products and services offered require the customer to either research, or shop around to make sure where they want to buy.  For instance, a hot tub company that sells $4,000 hot tubs usually takes about 2-6 weeks and several phone calls to finally make a purchase.  Other companies have a faster buying cycle in which customers fill out a form, or buy a product on their first visit.  With this lag time, it is important to give sufficient time to monitor the campaign for conversions.

The process of pay-per-click is a process of collecting potential buyers.  Typically conversion rates are about 1%-2% for pay-per-click visitors.  This can be increased if you use a process to incentivize them to give you their name and email.  Offering a free e-book on solving their problem, or a new marketing technique or whatever applies to your industry can allow you to collect emails of the visitors so you can do follow-up campaigns and bring them back to your website more often.   This can add additional value to your pay-per-click efforts.

So the bottom line is … stick with it for at least 90 days.  Ride the wave, and you will be surfing your way into great PPC conversions.

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