Increasing Your Media Spend Efficiency by 1 Million % (give or take)
Wednesday, May 7, 2008
Conversion rates, click through %, visitor to lead, lead to sale…all very important stats when looking at an Internet marketing campaign. Conversion rates can sometime be confusing, but are very very important and can make or break campaigns.
In this post we will look at how we can dramatically increase the efficiency of your ad spend with a few steps.
Lets break this down – the stats we need to look at are:
1) Click through rate from your add and CPC (cost per click)
2) Conversion rate of your visitor to a lead
Click through rate from add or link and CPC (cost per click)
This stat is important in that it determines your cost per visitor and contributes to your cost per lead. The efficiency of your cost per click campaign can dramatically affect your return on investment.
Lets say you are spending $1000/month in cost per click funds and receiving 1000 visitors and getting 10 leads.
After tweaking the campaign by lowering the cost per click, and increasing click through of the ads by adjusting your ad copy you are able to achieve 2000 visitors and 20 leads – not bad!
Well lets say now we look at the conversion rate of the ads, remove non-performing keyphrases and ads, and focus only on campaigns and keyphrases that are converting into leads.
If we are able to improve the efficiency of the campaign by 30% - we are spending $1000/month, and we are now getting 2000 visitors, and receiving 30 leads – 20 more leads than the original - again not bad!
So... onto the next conversion rate...
Conversion rate of your visitor to a lead
So we are now getting 2000 visitors to the site and we are getting 30 leads – or a conversion rate of 1.5%. Not a bad conversion rate but as the marketing manager I think I can do better - so I set-up an A/B test via Google Website Optimizer.
After a few experiments I am able to increase my conversion rate from 1.5% to 3.0%. So now I am getting 2000 visitors to the site with a 3.0% conversion rate or 60 leads.
So – by doubling my traffic via adjusting the CPC spend and ads, increasing the efficiency of my ad campaign by 30% via concentrating on converting terms, and by doubling the conversion rate via A/B tests, we ended up with a net increase in leads of 600% from our original – and we are still spending the same amount in ad spend.
Nice work! Your company makes more money, you get a raise, and you get to go on a nice all inclusive vacation!
This example shows the power of conversion rates and the fact that by making relatively small adjustments throughout the campaign you can end up with a much larger net result.
Posted by John Blown on 05/07 at 08:50 AM(0) Comments • (0) Trackbacks • Permalink
6S In The City
Monday, May 5, 2008
The team at 6S Marketing has been busy as ever, both in and out of their bustling Yaletown office location. Just back from the 2008 Massive Technology show in Toronto, they now have internet marketing events booked into their busy schedule here in Vancouver and Calgary.
Online Revealed – May 13th – 14th, Calgary
Online Revealed, the Canadian Online Travel Conference, is taking the 3rd annual conference event to Calgary this year and will be a benefit to both beginners and experts alike as leading online marketing professionals discuss Online Marketing.
Chris Breikss, President of 6S Marketing, will be moderating the Search Engine Panel Discussion where attendees are invited to come hear the top three search engines talk about what is happening with travel in Canada. Chris will also be presenting a workshop titled “Analyze This!” which will cover how to measure online advertising campaigns using analytics tools and conversion tracking. 6S is a sponsor of Online Revealed, Calgary.
Facebook Your Business Now – May 14th, Vancouver
6S Marketing is sponsoring the International Internet Marketing Association (IIMA) event titled “Facebook Your Business Now” at the Vancouver YWCA. This fast-moving and informative Facebook workshop is intended to help you determine how you can take advantage of Facebook to generate interest and sales for your business.
Techvibes Start-Up Career Fair – May 21st, Vancouver
In partnership with Launch Party Vancouver 4, Techvibes is hosting a career fair dedicated to the unique opportunities available at technology Start-Ups in Vancouver. The event will merge the “unconference” format of DemoCamp with a traditional Career Fair. 6S Marketing will be there, and will highlight some of the cool opportunities of working at 6S.
Convergence – May 22nd , Vancouver
Cossette Communication Group invites editorial media, bloggers and podcaster types to attend Convergence 2008. This exciting and informative day will provide participants with the opportunity to listen to world-class business leaders and industry experts, participate in practical easy-to-apply workshops, and define the best digital strategies for the coming year. 6S Marketing President, Chris Breikss, will also be speaking at this digital and online focused event.
Vidfest 2008 – May 21st - May24th , Vancouver
Vidfest is an event for the top creative minds working in digital media. Attracting visionaries from games, web 2.0, interactive design, animation and mobile applications, it is an annual ‘Must-Attend’ in Vancouver, Canada. As one of the sponsors, you can expect to see some of the 6S Marketing team there! Register here.
Be sure to come out for one of these informative events and learn from an internet marketing industry leader! Not coming out? Don’t worry! You can still stay tuned-in on upcoming 6S Marketing events by signing up for our newsletter.
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How Well Do You Know Your Site Visitors?
Thursday, May 1, 2008
Do your website visitors know how to easily navigate your website?
Are potential customers dropping off and going elsewhere because your site is confusing?
Our Website Usability Services will give you these answers and more about what visitors are actually doing, or not doing, on your website.
A Website Usability project focuses on two factors:
• The actual audience of who is using your site and how they are interacting with it;
• And how user friendly your site is for your audience.
Focusing on these two factors helps us to better understand, or help you develop, clear and measurable goals for your site, undercover what challenges users are facing, and find ways to optimize your site’s design, interface, and architecture.
Many of our clients have been working on their website long before we come on board. They know every link and every page of their website. They think their website is perfect and users should be able to find exactly what they need easily. However, sometimes they forget that the users of their website do not know the website inside-out like they do, and may have difficulty navigating the site. This can result in potential customers leaving the site before making a purchase.
This is where website usability with our client’s is important. We can use it to uncover which parts of the site are most/least used pages of the site, where users have trouble with navigation, and any design flaws that may have been overlooked. It’s cheaper to correct these problems earlier rather than later.
After we know who the site’s audience is, we can begin looking at the best ways to target them. There are so many ways to market your business online, including pay-per-click services, Google AdWords campaigns, and viral marketing sites like Facebook or YouTube, to name a few. Not every online marketing strategy will work for every business, so it’s our job to determine which techniques will effectively engage your website users and convert them into customers.
Visit our website usability services page to find out more about how we can help your website convert more customers.
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- Increasing Your Media Spend Efficiency by 1 Million % (give or take)
- 6S In The City
- How Well Do You Know Your Site Visitors?
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