You’ve established your online presence. You have a great website, several social media pages and a well positioned digital brand. Now it’s time to set some goals and layout a plan to achieve them.
Your goal is going to change depending on the nature of your business. For example, if you are a blog that specializes in news the goal is going to be driving page views, maybe subscriptions, etc. The end game in this situation is developing a large audience that will facilitate advertising dollars. On the other hand, if you’re trying to sell handmade jewelry through an e-commerce site your goal is not sheer volume of audience but audience that’s looking to buy handmade jewelry. As you can see the nature of your goals are variable based on what you want to accomplish.
We borrowed this graphic from a Google training deck because it’s the perfect summation of most online business models. Take a look at this chart and find the one that most closely matches what you are doing.
One of the things we run into quite frequently is unrealistic CPA goals. As an example, if you’re a doctor or a lawyer the price of clicks and leads is going to be higher for your service than say, someone selling a toaster. The reason for this is that the cost of the product or service is so much different and the pay off for converting a legal lead is much higher than it is for selling a $20 dollar toaster.
Still a lot of people will come to us and say “Hey I want to get leads for less than $1.00!” – And while this is possible, the old addage: “you get what you pay” for holds true in digital advertising. I would seriously question the quality of leads for under $1.00.
So how can you vet the price of leads? Well Google AdWords is a great start and there are plenty of documented benchmarks for different industries. You can even use Google’s pricing to keep other vendors honest. The industry averages in Google should be relatively similar for most, if they are not I would do some digging.
One of my favorite sources of industry benchmark information is WordStream. Here are their benchmarks on Cost Per Action:
So how do you calculate your ad budget or your “Cost Per Acquisition” using this information? In order to keep it neat – We’ve put the steps into a numbered list for you, this is the step by step process we would use to find a good starting CPA goal.
Google offers everyone it’s basic analytics service for free. Attached to that is Google Search Console (formerly Webmaster Tools). Search console shows you first hand what keywords you’re ranking for in organic search as well as which ones are getting you traffic. The value of this tool cannot be overstated and it’s not incredibly difficult to set up and manage.
Analytics goes incredibly deep as well allowing you to create conversion events on your website and track users paths to those events. This can show you where you’re getting the most and best performing traffic from so that you can focus on developing those sources further. It has several other invaluable features as well, the ability to release site maps being an example.
If you build a solid plan with realistic goals and follow through with it you will see results. The quality and magnitude of those results depend on a multitude of variables, but that’s the fun part. Once you have the goals in place you can begin to look at data and make adjustments that will help you to yield the most from your efforts.
There’s been a lot of buzz around programmatic advertising over the past 3 – 4 years. But what exactly is programmatic advertising? The simple definition is that it is an automated method of buying, selling or fulfilling advertising. Apparently it’s caught on because it already makes up more than half of US digital display advertising spend.
Aside from just simple banner advertising, programmatic has begun to rapidly expand in areas such as video and mobile.
A few years ago if a digital media buyer wanted to run a branded display campaign they would go to an ad network that had tags running on a long list of websites. The buyer would usually procure a list of these sites and pay a CPM (Cost Per Mille or Cost Per 1,000 views to be accurate) to run their advertising on these sites.
But nowadays buyers are purchasing by the impression. What this means is that CPM’s have increased but rather than buying bulk page views, advertisers are now able to buy large targeted data-sets through programmatic exchanges.
It’s quite simple, many ad networks already run tags on thousands of publisher exchanges. These ad networks sell this inventory through programmatic vendors that in turn buy and sell these impressions in a real time auction to the highest bidder. It sounds complicated, but it’s a simple auction just like one you would go to in order to get art or antiques. The difference is that these auctions happen in fractions of a second via programmatic DSP’s or Demand Side Platforms. Just like at a regular auction the winner of these light speed auctions gets their ad shown to the user.
Based on recent data compiled by AdRoll. Last year, the bulk of US marketers, (62%), automated 10% to 50% of their digital advertising budget. Just about one third of those marketers also said they invested 50% or more of their digital ad budgets programmatically, up from 7% in 2013.
Programmatic is visibly efficient. All data points to this fact. This method of advertising has an unmatched ability to pair audience data with digital content to target the right users with the right message at the right time. This has made digital media buying more cost effective and improved the amount of spend for web publishers.
While programmatic advertising still has issues related to fraud and viewability (cross-device visibility has been an issue) there is a healthy conversation being had about them. The current benefits of these ad buys also far outweigh the risks if you’re a brand or business looking to really get yourself in front of a highly targeted audience demographic online.
Whatever the case, keep an eye on programmatic to keep evolving and improving in the weeks and months to come.