What do you mean by Effective?
I was asked the other day by a client “ What do consider effective
Google Advertising?
” The answer is fairly simple if we can break it down to simple math and I’ll answer this by example. First, let’s make some assumptions:
- Let’s assume your business has an average profit per customer of $500.
- Let’s assume you want to be profitable and only want to pay $250 in advertising for each new customer.
- On average, for every 5 phone calls (or emails) you get turns into a customer (Let’s call this the Phone Call to Customer Conversion Rate ).
- Let’s assume our Google Advertising and your website generate 1 phone call (or email) for every 20 visitors to your website (Let’s call this the Visitor to Phone Call Conversion Rate ).
Doing the math, the maximum cost per customer is $250 and 1 in every 5 phone calls yields a new customer, so each phone call needs to cost less than $50. To get a phone call, we need to drive 20 visitors to your website, so the most you would want to pay for a visitor to your website is $2.50. So for this particular business example, for every $100 you spend with Third Marble Marketing, as long as you get about 40 visitors, you should be making money with our Google Advertising Service.
(By the way, you should apply this logic to all your advertising efforts to make sure you’re not losing money.)
“So how can you claim that your Google Advertising Service is Effective ?”
At Third Marble Marketing, we do things a little differently. Instead of setting-up very broad keywords for our clients, we set-up keywords that are more likely to generate a phone call. As we collect more data about what your website visitors are entering into Google, we react to that data and adjust the keywords to generate more phone calls and fewer visitors. How? By asking the simple question “If I wanted to buy from your company, would I have entered this into Google?” If not, then we try to eliminate that keyword phrase from your campaign. Not only does this help eliminate searches that are unrelated to your business, it also help pre-qualify the searcher as a person that is more likely to become a customer.
Using some of the terms we created above, our philosophies on managing your Google Advertising campaign help ensure a highly relevant visitor to your website, which helps:
- Increase the “Visitor to Phone Call Rate”.
- Increase the “Phone Call to Customer Rate”
- By reducing these very broad keywords, we also decrease your over all advertising costs.
- Increase your profit.
We’ve seen it from others in the past. A company will charge you to set-up a campaign in Google and they only set-up a few very broad keywords. Let’s say you’re a Car insurance Agent. If your Google Pay-per-Click company sets-up the keyword “insurance”, you’ll get clicks from people looking for “home insurance”, “life insurance”, “business insurance”, “insurance adjusters”, “auto body shops that take my insurance”, etc… What happens? You get irrelevant / ineffective traffic to your website and you just paid for nothing. We work hard to try to eliminate this ineffective advertising.
If you’re shopping around for a Google Pay-per-Click management company, make sure you ask them how many keywords phrases they plan to set-up for you. If the answer is less than 100, hang-up the phone. They are going to set-up a very broad campaign that will most likely waste your money.
I hope this helps.
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