CPC is no KPI

Source: https://www.kaushik.net/avinash/ 

Someone asked, why are advertisers obsessed about Cost Per Click?

The postulation was that at best CPCs could indicate high or low competition in the auction. It could possibly indicate the influence of a poor quality score (keyword, ad content, landing page relevance).

I agree that CPCs could possibly help with the above elements. CPC is, even in the best case scenarios, a diagnostic metric (for any marketing strategy).

CPC is not a Key Performance Indicator.

Sadly, many companies/agencies use CPCs as a KPI.

This results in narrowing the vision of the company. It almost always set’s the company on a wrong path (to becoming less glorious than they deserve to be!).

Here’s one corrosive manifestation: I only want to pay $2 max CPC.

Or: We have to reduce our CPCs by 15% this quarter.

Both lead to the same outcome: You cut off your legs to try to run faster.

An obsession with CPCs ignores important considerations like the hundreds of thousands of customers you will leave for your (delighted) competition.

Here’s what you should actually care about: Profit Per Click.

Even if all you can muster up is the supremely easy to compute Gross Profit Per Click.

If you are making a profit, why do you care if the CPC is $40 or $4?

Let’s say you are paying Bing $40 per click. This delivers a revenue of $200 and a profit of $50. That is a win.

If there are any more clicks left to get from Bing, go all the way to $49 per click to get even more customers. You are still making money.

Instead, let’s say you decide to pay Bing $20 per click. Sure, your CPC looks better. Maybe your boss loves you for 24 hours. After that period your profit reports will come in and show that company profit dropped massively. Less love from your boss. Maybe even the opposite of love.

That’s what I mean by cutting your legs off to try to run faster.

Oh, and when you disappear are all the customers going stop running queries? Of course not, they’ll simply click and convert with your competitors.

An even smarter strategy.

Once you know your profit by silo (Search/Bing above), the next level smart thing is to consider this question: Can I invest that $40 anywhere else (billboards, television, AOL) and make more than $50 in profit ?

If the answer is yes, with that $40 you can make $60 with billboards strategy. Shift money from Bing PPC strategy to billboards.

If the answer is no, keep spending it on Bing.

Classic portfolio management.

Bottom-line: Let the profit you make drive your marketing investment strategy. It seems hard to get to real profit, but see the post I’ve linked to above to compute Gross Profit. It is a simple stepping stone. If your boss insists on CPC as a KPI, you know it is time to refresh your resume for how long can a company focused on CPCs survive? :)

.#givemeprofitorgivemedeath

-Avinash.

PS: You’ll understand now why CPA is also a terrible KPI. You want PPA. Or, even better, its sexier cousin PPH.

Empathy for content

How can we use empathy as a business advantage?

“Use empathy to power action. To go make things. Things that serve people’s needs. Things that brighten people’s days. Things that add value. Things that make people love your brand, because your brand is thinking about them.”

Yes, sure, embrace your big data; you need it in order to compete. But also hug your customers; you need them in order to win.

The One Marketing Buzzword You Should Actually Care About

3 tips for email subscriptions

Social media advertising
1. Drive users to a newsletter subscription page with a strong CTA
2. Drive users to the landing page of a premium gated piece of content
3. Drive users to a post optimized for email acquisition
Content marketing
What’s going to get someone to sign up for your email list? The promise of value. That could mean coupons and free offers, but even more so, it means amazing content that’ll help people do their jobs better or live a more fulfilling life.Great content is now table stakes, and there’s little chance a reader will press “Subscribe” unless they just read or watched something amazing.
Search engine optimization
One trend we see across Contently clients is readers who come from search are the most engaged compared to other channels. Our clients index heavily in B2B and finance, so this makes sense. People who come from search are usually looking to solve a problem, and they’re happy to sign up for a free resource that provides them with a solution. This is why you have to ensure your article pages and subscription pages are optimized for your target keywords.

The 3 Most Effective Ways to Grow Your Email List

 

Editorial content +7% in sales

Wallmart on their content, webinar by Contently. wallmart.com tips & ideas

– serving inspiring customers to do something and show them how to do it
– serving the business
– focus on how to use the products, not on the products itself
– sound like a helpful person, not the worlds largest retailer
– not speaking about wall marts low prices, talking about what customers need, not about wall mart

Customers who engaged with editorial content had an average order size 7% larger than customers who went straight to shopping. Over time, they were able to use that data to generate internal support, collaborate with other departments, and drive even bigger results.

Mission Walmart: “”The secret of successful retailing is to give your customers what they want. And really, if you think about it from your point of view as a customer, you want everything: a wide assortment of good-quality merchandise; the lowest possible prices; guaranteed satisfaction with what you buy; friendly, knowledgeable service; convenient hours; free parking; a pleasant shopping experience.” – Sam Walton (1918-1992)

source: http://help.walmart.com/app/answers/detail/a_id/6/~/walmart.coms-history-and-mission

https://www.walmart.com/ideas/baking-center/easy-easier-easiest-its-a-gingerbread-house-party/222723″/

https://www.walmart.com/ideas/living/easy-easier-easiest-festive-fall-wreaths-diy/218013

The blog URL is walmart.com/ideas

with thanks to Contently

Webinar: How to Prove the Value of Content Marketing

Fashion and content

  • In the past year, 40 percent of YouTube users turned to the platform to learn more about a product before they bought it. – Google
  • 52 percent of consumers are likely to switch brands if a company doesn’t make an effort to personalize communications to them. – Salesforce
  • Within six months after an omnichannel shopping experience, customers logged 23 percent more repeat shopping trips to the retailer’s stores and were more likely to recommend the brand to family and friends more so than those who used a single channel. – Harvard Business Review
  • In 2021, 53.9 percent of all retail e-commerce is expected to be generated via m-commerce (i.e., on mobile devices). – Statista

And when interacting with brands in between purchases, they’re looking to be inspired, entertained, and informed.

Fashion Content Marketing 2018: Top Trends + Leading Brands

Heineken on social


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HEINEKEN: FANS OF THE WORLD

Heineken has a huge online presence. But the truth was, it hasn’t always behaved on social media quite like the premium, cosmopolitan brand it was in real life. So a planner, an art director and a writer sat down with a bunch of blank cards. Which turned into content formats. Which turned into a global production machine that helped make the brand a little more relevant to the everyday (social) lives of its drinkers.