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You are here: Home / Blog / How​ ​Much​ ​is​ ​Too​ ​Much​ ​for​ ​a​ ​Click? 

How​ ​Much​ ​is​ ​Too​ ​Much​ ​for​ ​a​ ​Click? 

October 23, 2017 by Louise Scanlan

It​ ​is​ ​true​ ​that​ ​some​ ​industries​ ​are​ ​forced​ ​to​ ​pay​ ​sky​ ​high​ ​prices​ ​to​ ​advertise​ ​on​ ​Google​ ​Search​ ​–​ ​the​ ​financial​ ​and​ ​business​ ​services​ ​industries​ ​are  known​ ​for​ ​this​ ​phenomenon​ ​with​ ​click​ ​prices​ ​reaching​ ​as​ ​high​ ​as​ ​$250​ ​plus​ ​dollars​ ​(yes​ ​that’s​ ​per​ ​click). 

So​ ​at​ ​what​ ​point​ ​should​ ​advertisers​ ​throw​ ​in​ ​the​ ​towel​ ​in​ ​a​ ​high​ ​click​ ​price​ ​environment?​ ​According​ ​to​ ​my​ ​cost​ ​accounting​ ​classes​ ​way​ ​back​ ​when,  the​ ​real​ ​issue​ ​is​ ​not​ ​how​ ​much​ ​a​ ​click​ ​costs​ ​but​ ​rather​ ​your​ ​net​ ​profit​ ​on​ ​a​ ​sale!​ ​So​ ​forget​ ​the​ ​cost​ ​of​ ​a​ ​click​ ​but​ ​rather​ ​think​ ​Return​ ​On​ ​Adspend 
(ROAS).​ ​If​ ​your​ ​return​ ​on​ ​adspend​ ​is​ ​greater​ ​than​ ​your​ ​cost​ ​of​ ​sale​ ​than​ ​you​ ​are​ ​in​ ​the​ ​green​ ​zone.​ ​You​ ​may​ ​even​ ​be​ ​willing​ ​to​ ​accept​ ​a​ ​lower​ ​ROAS  when​ ​you​ ​factor​ ​in​ ​the​ ​lifetime​ ​value​ ​of​ ​customer​ ​who​ ​may​ ​make​ ​repeat​ ​purchases. 

Evaluating​ ​ROAS​ ​requires​ ​tracking​ ​of​ ​all​ ​conversions​ ​and​ ​quantifying​ ​how​ ​much​ ​an​ ​average​ ​conversion​ ​costs​ ​and​ ​how​ ​much​ ​the​ ​revenue​ ​from​ ​it  contributes​ ​to​ ​your​ ​bottom​ ​line.​ ​In​ ​the​ ​real​ ​world​ ​this​ ​is​ ​often​ ​not​ ​an​ ​easy​ ​task​ ​nor​ ​even​ ​an​ ​accurate​ ​process,​ ​especially​ ​if​ ​you​ ​are​ ​a​ ​retailer​ ​with  several​ ​product​ ​lines,​ ​but​ ​even​ ​an​ ​imperfect​ ​analysis​ ​is​ ​far​ ​better​ ​than​ ​none. 

When​ ​you​ ​are​ ​comfortable​ ​that​ ​your​ ​ROAS​ ​is​ ​acceptable​ ​it’s​ ​time​ ​to​ ​chip​ ​away​ ​at​ ​that​ ​cost​ ​per​ ​click​ ​price.​ ​The​ ​following​ ​are​ ​only​ ​some​ ​of​ ​the  strategies​ ​we​ ​use​ ​at​ ​20/eight​ ​Digital​ ​to​ ​ensure​ ​your​ ​CPC’s​ ​are​ ​as​ ​low​ ​as​ ​possible​ ​–​ ​especially​ ​in​ ​high​ ​click​ ​price​ ​markets:

  • We​ ​dig​ ​deep​ ​to​ ​find​ ​opportunities​ ​that​ ​your​ ​deep​ ​pocket​ ​competitors​ ​may​ ​not​ ​have​ ​looked​ ​at.
  • In​ ​high​ ​competition​ ​markets​ ​exact​ ​match​ ​and​ ​phrase​ ​match​ ​keywords​ ​are​ ​usually​ ​most​ ​competitive.​ ​​We​ ​look​ ​for​ ​opportunities​ ​in​ ​short​ ​tail broad​ ​match​ ​keywords​ ​at​ ​lower​ ​prices​ ​that​ ​can​ ​catch​ ​variants​ ​that​ ​competitors​ ​are​ ​not​ ​targeting.
  • We​ ​pay​ ​very​ ​close​ ​attention​ ​to​ ​geographic​ ​and​ ​demographic​ ​settings.
  • We​ ​segment​ ​audiences​ ​to​ ​show​ ​more​ ​relevant​ ​ads​ ​when​ ​applicable.
  • We​ ​Keep​ ​working​ ​quality​ ​scores​ ​both​ ​through​ ​keyword​ ​relevancy​ ​and​ ​landing​ ​page​ ​quality​ ​–​ ​every​ ​little​ ​bit​ ​counts.
  • Incoming​ ​search​ ​terms​ ​that​ ​triggered​ ​your​ ​ads​ ​are​ ​monitored​ ​to​ ​weed​ ​out​ ​any​ ​unwanted​ ​searches.
  • We​ ​support​ ​your​ ​search​ ​campaigns​ ​with​ ​remarketing​ ​on​ ​other​ ​devices​ ​and​ ​programmatic​ ​platforms​ ​to​ ​keep​ ​your​ ​search​ ​visitor​ ​engaged.

At​ ​20/eight​ ​Digital​ ​we​ ​put​ ​the​ ​time​ ​in​ ​the​ ​details.​ ​While​ ​it​ ​is​ ​impossible​ ​to​ ​alter​ ​market​ ​conditions​ ​it​ ​is​ ​possible​ ​to​ ​reduce​ ​costs​ ​to​ ​the​ ​maximum​ ​the  system​ ​allows!​ ​Think​ ​of​ ​it​ ​like​ ​a​ ​tax​ ​return… 

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