If you follow me on Twitter, you are already aware of my severe criticism of the New York Jets and my uninvited commentary on everything Real Housewives.
You may have also noticed that I am a tenacious advocate for SEM asset and audience segmentation.
Brand vs. non-brand, new vs. frequent customers, women with high HHI (high household income) between the ages of 25 and 35 vs. people over the age of 65 who use coupons, etc. Each component and target audience differs.
Holding everything to the same measurement standard is absurd.
I have an overall objective, one would say to Jon. I hope every attempt will succeed. Otherwise, it just isn’t worthwhile to operate them.
I then respond, “Well, tell me this riddle. “Google Ads Consultant” how much less expensive is your brand’s CPC compared to your non-brand, or how much greater is the conversion rate for returning customers compared to new ones?
You should be aware that each component will behave differently even if you have an overall purpose.
Additionally, a single performance KPI must be created by combining the various performance levels (Key Performance Indicator).
If you proceeded with eliminating any effort that didn’t reach the overall aggregate KPI you set, you won’t be able to attract new clients, and your traffic will soon start to decline.
Want Proof? Well, “client N” is what we see here.
They are an online retailer that offers bacon and other smoked foods directly to consumers (yes, it is delicious).
We divide our target audiences into basic brand vs. non-brand, as well as NTF (first-time buyers) vs. repeat buyers.
First-time buyers (NTF) versus returning customers
Literally how bacon is manufactured, according to a search.
We prioritize optimizing conversion over ROAS because our AOV (Average Order Value) is pricing sensitive, which is market price dependent (Return On Ad Spend).
We anticipate getting two to three purchases from a single consumer every year for five years.
Therefore, even while obtaining recurring business on Google Ads Consultant our brand is very cost-effective and helps us pay the bills, we understand that it is now a depreciating asset.
Do you, as a marketer, focus mostly on depreciating assets since they are less expensive, or do you spend top dollar for a new customer up front knowing they would be extremely cost-effective on the second purchase?
Spoiler alert: Always be there for your loyal customers, but work extra hard to win over new ones.
As a result, we have six distinct KPIs (and their justifications):
Brand Repeat CPC KPI at a low level.
Why? Because they have a high likelihood of making a purchase and are brand loyal, we want to lower the CPC (Cost per Click) as much as we can to steer them toward the merchandise we want to promote.
Mid-level CPC KPI and high traffic KPI.
Why? Because they are brand-aware, frequently receive gifts or other forms of marketing, and have a high likelihood of conversion, and because CPC is more expensive, if we can manage it, the LTV ROAS will be greater.
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CPA (Cost per Action) KPI for non-brand repeat.
It is more sensible to concentrate on a certain CPA target because another Google Ads Consultant after this is considerably less likely because they have no loyalty and have already made a purchase from us without mentioning us by name.
It is significant to notice that this consumer is the least valuable and has a lack of brand loyalty.
High Impression Share and Traffic KPI.
You want as many of these as you can, and in a competitive market, you frequently have to sacrifice cost (as this won’t be cheap) for visibility (so make sure your ad is excellent).
For a conversion, you’ll make up for it afterwards.
Shopping Conversion Volume & ROAS KPI (We Don’t Separate NTF from Repeat).
This is our second-most lucrative brand. As much as you can, maximize your sales volume. Given the ad unit, clicks are less expensive. Just watch that your ROAS doesn’t fall below 110 percent.
Video/Display Brand Awareness KPI.
We are not getting direct sales from this. We test it locally to find out the percentage of incoming first-time brand visitors to the site by using the lowest CPV on our 30-second videos and CPM (Cost per 1,000 Impressions) on our display. This increases brand awareness.
We gather them for retargeting purposes.
The following case is “client S.”
They are a nationwide chain of senior living facilities.
Their primary goal is to generate leads through the use of forms or brief phone conversations.
As usual, we group Google ads consultant and services by brand and non-brand. As recurring revenue, each service has a unique lifetime value.
Higher volume, longer LTV length, and lower revenue per resident are all characteristics of independent living.
On the other hand, Memory Care has the highest initial revenue during the first three years despite having the lowest volume and shortest LTV duration.
Knowing how senior living services are valued via SEM
Knowing how senior living services are valued via SEM
In this case, since each location has a different name, we establish the KPI based on the service line (ignore the low brand traffic).
Three different KPIs are used in our business:
High traffic and a CPC KPI of about 0.
There is a ton of competition, therefore the objective is pure volume if you have a decent price and a good position. However, because there is no additional money, there is a quick probability that clicks will drop off a cliff if the CPC (from the competition) increases above $11.
Alzheimer’s CPA KPI.
There is little competition, but there are many researchers, which lowers the click through rate and raises the cost per click. With the knowledge that the LTV length is 25% of Independent Living, the objective is to concentrate on the CPA itself. The revenue from memory care is greater in three years than it is in eight years from independent living.
Low KPI for CPC.
Everyone is visible since there is fierce competition and extensive study involved. With set budgets, a CPC swing of $0.50 can reduce your traffic, so you should be visible and try to attract the traffic for the lowest price feasible. This is because ranking in position 1 is not necessary.
I’ve seen your proof, all right. Next, what?
We establish the target figures for each KPI after determining the ones that are necessary.
Consequently, phrases like “Brand Repeat CPC cannot exceed $0.50” or “Non-Brand NTF needs to drive at least 250 clicks per week with an impression share of 15% and a CPC not exceeding $0.75” are now acceptable.
In order to distribute the budget, we start with what is most valuable to us and work our way down.
After that, we may decide if the budget allocation would achieve the overall ROAS goals.
Each account is unique (to say otherwise would be like saying the Jets and the Giants are the same NFL team).
Having said that, not all of an account’s assets are the same.
Comparing apples to oranges would be equivalent to subjecting a non-brand first-time searcher for Cherrywood Bacon to the same CTR, CPC, CVR (Conversion Rate), and ROAS as a repeat buy on brand terms purchasing corned beef hash.
A more precise and predictable performance outcome will result from maintaining distinct KPI targets, strategies, and components.
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