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November 28, 2015 at 4:42 am #1183119bb1Participant
Aidan, post: 224882, member: 2298 wrote:Lets not make this any more complicated or drawn out, the thread has surely had its run and it’s beer o clock, enjoy the rest of the weekend
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Bourbon actuallyNovember 28, 2015 at 8:01 am #1183120JohnWMember
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This is the busiest thread in a long while.
I go to look up some stats for a small bus example and 11 posts have been added while I’m away.
To hell with it. I’m posting this example for the small bus FSs not you knarly old argumentative marketers and web developers… o_O“Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”
This is not a new question. John Wanamaker reputedly said it over 100 years ago.
I can look up a client’s Adwords results, Analytics figures and number of email enquiries but I can’t work out an exact ROI and neither can he/she (usually).
I am not advocating no performance measurements but there is such a thing as analysis paralysis.
There can be all sorts of ways to measure things and they don’t have to be that complex…One of my clients will look out the window at the weather, check the temperature and wonder why there were few email enquiries overnight.
He used this diagnostic method successfully a week ago – his Adword credit card had expired over the weekend. (This KPI has worked on several occasions.)
I find a lot of small/micro businesses only need/want some basic KPIs.
What they value most is someone who can answer the performance expectations questions and the remedial tactics/strategies that might be tried/tested to improve results.
FYI, here is the micro/small business example I went to look up. It shows the Adword cost/click changes over a few years. The CPC is the average for the month of November.2015 = $0.40
2014 = $0.34
2013 = $0.35
2012 = $0.36
2011 = $0.77
2010 = $0.60
2009 = $0.24
2008 = $0.26
2007 = $0.18
This client was managing his own Adwords campaign from 2004 to 2011. It seems he could live with relatively inefficient Adword campaigns until bidding pressure pushed the average click up to $0.77. What he really noticed was that his fixed ad budget generated 77% fewer enquiries over a 4 year period.
In this specific example, the client incurred a single Adword consultancy cost to remedy the problems and this cost was repaid in the equivalent of less than one month’s saved ad costs. (Not any particular brilliance on my part.)
Problems for Adword newbies can include:
- A monthly budget that may be too small to make meaningfull diagnoses
- Lack of history to assess what has / is happening to click costs
- Not enough click throughs to assess conversion issues
- Lack of knowledge to be able to reduce costs or improve conversions.
Every online marketing situation is unique. Even for companies in the same markets there will be huge differences that will require different marketing communication solutions.
The whole area of Internet marketing is driven by one issue…How to get potential or existing clients to click a hypertext link.
It is becoming incredibly complex and expensive to achieve this simple first step in the world of online communications.
PS. Mines a McGuigan Black Label red…
JohnWNovember 28, 2015 at 7:26 pm #1183121MD CleanParticipant
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Great story John and it illustrates that if your offering does not change over time, eg, you have a list of services to sell, the initial structure and set up of your account is the critical moment.
The other great benefit of PPC – and it is huge – is that you can test out content for your site for relatively low $. This allows you to work out what works and what doesn’t work – include and tweak for the content that works and drop the stuff that doesn’t work.
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