Is Pay-Per-Click (PPC) Working for Your Houston Business?

native_ad_are_the_buzz_but_what_are_they_and_why-The elusive, yet highly sought-after click is the zenith of digital success. Marketers spend millions trying to get consumers to commit, to show engagement, to click on their ad. Is a click really that important? What is a click worth in general? What is a click worth to you?

To learn the value of a click to you, you must first step back and figure out your value per customer.

Divide your annual revenue by your annual number of different customers. Now, 80% of your income will come from 20% of your customers, but you need to start somewhere, so the average will work just fine for this simple exercise. Let’s say each customer is worth $300 to you – remember that number, it’s an important one!

Let’s say you run a $30,000 online marketing campaign to reach certain Houstonians a given target in the Houston market. You are paying a $10 cost per one thousand impressions (aka: CPM) and therefore receiving 3,000,000 impressions. Wow – three million.

Now, if the average click-thru rate (CTR) is .01%, you can predict about 300 clicks. If 10% of those possible leads (includes unintentional clicks) is an actual lead and 10% of them turn into sales, how many sales will you net? Three. If each customer is worth $300, you made $900 on a $30,000 investment. Oops.

Let’s try this again….

What if you could raise the CTR to .06% and increase your conversion rates to 25%? You would make $33,600 on a $30,000 investment. How can you do this? Here are some suggestions:

  • Optimize your website for increases in organic rank
  • Tweak your online creative to include an aggressive offer in rich media that would run on highly targeted sites
  • Run a cost per click (CPC) search campaign to compliment
  • Drive prospects to a landing page that collects name, email address and zip code for you to use for future campaigns

By making these simple adjustments, Houston businesses can elevate their respective conversion rates and receive valuable data to use on follow up campaigns like remarketing and direct mail to hot zip code areas. Online marketing the right way involves layering well-thought-out details to create attainable goals and the right data needed to reach them in the future.