“Bang for Your Buck” – Efficient Marketing

***This post starts out with a short discussion of Pay-Per-Click advertising market fluctuation and proceeds to efficient marketing (the two aren’t mutually exclusive).

According to Online Media Daily the highest-priced keyword on Google last month sold for $99.44 dollars a click. The word was Mesothelioma and lawyers are purchasing it in the hopes of attracting clients affected by the lung cancer caused by asbestos. It isn’t the only fluctuation in the market right now. Around 2 months ago we were assembling a Food/Beverage Advertising campaign with the estimated bid of $2.50 a click. Now the same campaign runs $7 a click. Getting in ahead of a trend can make a big difference in your PPC campaign both the size of your initial investment, and the level of return you receive from it. In the case of the Food ad, the clicks increased in price after a series of articles were released touting the growth of the companies being advertised to.

For example, if you purchase a keyword at a lower rate you will reduce the number of impressions (viewers of our ad that didn’t click on it) your ad gets. If you increase the amount you bid for a keyword, you get more impressions (free!), but you pay more for each individual click-through.

Over the next few years keywords will experience the same season-based fluctuations other industries do. It is fascinating to watch this market develop, grow, and adapt like the consumers it markets to.

People develop immunity to certain kinds of marketing over time. There was a time when a newspaper ad would make the phones ring off the hook. Now it seems to be a tool primarily for visibility as support for a larger marketing campaign. Other marketing adapts over time, direct mail is in the process of doing this through interaction with sophisticated online-based campaigns working together.

For a traditional direct mail piece the client might get a 2-5% response rate (closer to 5% with a targeted mailing list or if they offered a discount or special), with some of the new sophisticated campaigns that dovetail online advertising a client can get a 10-20% response rate. Now the campaign costs more than 1 direct mailing, but it would take around 8 direct mailings to get the same response level. The best thing about this campaign is after it’s initial setup the individual send-outs are around the same rate as a regular direct mail campaign.

It’s about cost-efficiency over time. We get it. Our clients get it.

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