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…