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Why Monetizing Every Success Event Is Key To PPC Performance

The typical performance metric that is used to quantify a successful Paid Search Campaign is ROAS%, ROI% or Lead Generation with a defined CPL or CPA. Sounds straightforward and fair right? NOPE! Suppose you have a PPC campaign that has an actual ROAS of 100%, but the benchmark is 500%. Plus, the client (with the intent to improve overall conversions) decides to throw in an #800 on the site, extend and complicate the online form and/or increase the price or shipping of products without telling you the PPC Marketer. Guess what happens to the ROAS%? Guess who get’s the call at 3am in the morning (I know a little over-dramatic for those political types, but can you say Roto-Rooter??)

Everything mentioned above will affect your PPC Performance. Ever notice that the more you spend in PPC, the Bookmark/Type-ins and the Brand Campaigns keeps getting stronger and better while the others barely keep themselves afloat? All of these scenarios are taking away from all of the keyword research, conversion analysis and Ad testing that you have done and sold the client on. So, you need to protect your efforts and find a way to set the expectation with the client from the beginning and find ways to monetize all of the consumer interacted events on the website which can lead to some sort of a conversion.

Other KPIs that deserve more attention:
Other Success Events traditionally not a part of the typical KPI mix that clients rarely want to include in the PPC efforts are (1) Email subscriptions, (2)
Newsletter Subscriptions, (3)
Live Chats, (4)
Telephone Sales, (5)
Bookmark Type-ins and (6)
SEO traffic. Forgive me if I left anything out.

So how do you monetize these events?
Well, it may not be as simple as you would expect and everything is riding on the participation by the client to provide you an average monthly rate of these events. For example, if the avg monthly email sign-up=25, or # of live chats is 100/month, then you need let the campaign run for the first month, collect the data from the client and start the predictive process. Also, you will need collaborate with the client on how much each of the success events are worth to them. Is an email worth $1.00, Chat worth $2.00, telephone order AOV (Average over value)… you get my drift.

Why does monetizing these events matter?
Depending on your original discussion with the client during the scoping and proposal phase of the process, you need set the "reality" of the online world to them and explain that in paid search they are getting much more that an ROAS% metric. They are getting traditional increases in all success events and that there is a lifetime value associated with every impression or click of a paid search ad (textual or display).

Difficult Argument for Retail or Finance, but not for Political, Non-Profits and Charities:
When dealing with retail, there are so many factors that come into play, the biggest being competition. You have to deal with shipping rates, inventory issues, and simply complexities of the shopping experience. However, when dealing with 501c3 Charities and Politics, the conversion metrics are simple to identify yet difficult to monetize efficiently, such as :

  • Donations
  • Volunteer Sign-ups
  • Email Newsletters
  • Campaign Update emails
  • Impressions per thousand (eyeballs)
  • Bookmark Type-ins
  • Returning Visitors
  • New Visitors
  • Viral participation (linking, etc…)

Plus, in order to capitalize on everything that your online marketing efforts are doing, I am seeing a trend where in order to communicate "online marketing" to political campaign managers and/or charity fundraising directors it needs to be compared Print and TV. The reason is obvious. They have been comfortable for so long with traditional advertising, it’s imperative to to compare online metrics such as impressions to basic local and national circulation data (ie. eyeballs), demographics, messaging and expected response rates based upon the advertising spend.

In our online world, this is actually a very significant opportunity, yet still no one gets it. So to counteract this behavior, putting a price on impressions, emails, volunteers, donations, newsletter sign-ups, organic traffic, Viral marketing, etc… is a must part of the negation (aka. proposal).

Once you can get past the hours of discussions and persuasion to put more money online, their ability to see the big picture and have web analytics available for every metric they need, the strategy that was very recently seen as an unrealized Pewter statue is now golden.

Filed under: Web Analytics

One Response to "Why Monetizing Every Success Event Is Key To PPC Performance"

  1. SearchCap: The Day In Search, March 14, 2008

    Below is what happened in search today, as reported on Search Engine Land and from other places across the web….

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