Thứ Sáu, 13 tháng 1, 2017


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Let’s go through a small exercise to exemplify this:
1. Let’s say you are selling product online for $30.
2. Your direct cost to buy or produce for this product is $12.
3. This means that for each sale of this product, you get a “gross margin” of 30 - 12 = $18.
4. You use Google AdWords to get traffic to the soci marketer review where you sell this product and your average cost
per click (CPC) is $0.10. (It does not sound like much, right?)
5. Competition gets harder and you raise the bid to $0.20, still not so much?
6. But if only 1% of the users that click on your ad actually complete the desired action, your cost per
conversion would go from (0,10/ 0,01 = ) $10 to (0,20/0,01=) $20 per conversion.
7. Since your gross margin per product is $18, the conclusion is that instead of making 18 - 10 = $8 per
conversion, you are now losing 18 - 20 = -$2 per conversion.
Tip #7: Track and focus on conversions (not only clicks)
By reversing the example above, you can also calculate your maximum cost per click:
1. Your gross margin per product is $18.
2. Now, the maximum cost per conversion you could accept is $18. (Otherwise, the sale will be negative.)
3. Your conversion rate is 1% (meaning that 1 out of 100 clicks actually buys your product.)
4. This means that your maximum cost per click is 18 x 0.01 = $0.18.
5. Note that this is the maximum. Ideally you want to spend much less so you can get the healthiest margins on each conversion to cover your other costs.
One way to improve the conversion rate is to use ad extensions to guide the user and lead him closer to a desired action. There are five main types of ad extensions:
1. Sitelink extensions - Show additional links to subpages of your website which the user can click directly on, such as “Our products,” “How it works,” and “Contact us.”
2. Location extensions - Show a pin with Google maps where your business is located (especially useful with local mobile searches with a plan to visit you physically.)
3. Call extensions - Enable the user to click a button to give you a phone call directly.
4. App extensions - Show mobile and tablet users a link below your 
soci marketer review that sends them directly to the app store to download your app (if that is what you are selling.)
5. Rating and review extensions - Show the users what quantitative (e.g., 4.5/5) or qualitative testimonials are available such as “great experience, I will be back” from current and previous customers.
Tip #8: Use ad extensions to facilitate conversions
Different ad extensions obviously work best for different types of business models and situations, but most likely at least one of the above will be attractive for you to experiment with.
The goal of using Google AdWords is to maximize the net profit by generating as much “hot traffic” as possible with as little advertising cost and time management as possible. This trade-off can, to a big extent, be affected by external factors, such as bid competition of different search terms, user behavior (if somebody searches for the term or not) and changes made by Google. But there are also several factors you can influence by applying a solid bid strategy and thereby, avoid costly mistakes. One of the most common pitfalls in my experience is when people who are new to AdWords start using both Search and Display network marketing. “Display network” means your ad will show up on various websites that are affiliated with Google AdSense that have a completely different logic (further discussed in chapter 3.) Using combined Search and Display targeting is the default setting in Google AdWords, so you need to actively choose “Search Network only” for each campaign to avoid the
described issue. So what is the problem with Display network marketing? The problem is that if you are not using very specific techniques (further discussed in Tip #37), the Display network will most likely eat up all your daily marketing budget and stop your ads from showing up for real potential customers who search for your services on Google. The reason is that there are lots of scam sites being created solely to drive people to click on Google AdSense links. Further on, if you do actually get a real potential customer to click on a display network ad, they are probably “less hot” than somebody who actively searches for your product or service on Google and you would hence want to pay less per click.
Tip #9: Focus on real Search traffic - avoid Display network marketing in the start-up
Just note that I only recommend you to avoid Display network in the start-up, meaning the first few months when you optimize your Paid search traffic. Once you have this under control, you can experiment with Display Ads in a very cautious way which I explain in detail under 
soci marketer review  in chapter 3. A great feature in Google AdWords (both for Search and Display marketing) is Remarketing campaigns. This means that you make targeted ads to people who have already visited your website and “window shopped.” If you can get them back in the store, they are probably more likely to convert than the
average visitors.
Tip #10: Experiment with Remarketing campaigns
Technically, Remarketing campaigns work just like conversion tracking. You add short snippets of codes on your landing pages, and Google will then know if somebody who searches for your chosen keywords has been on your site before. You can then reach this specific target group with additional keywords, adjusted bids (affecting the position and CTR) and decide to activate the display network only for these users (avoiding the typical pitfalls of Display networks.) You can also adjust the ad design and write a specific message (e.g., special promotions/ “Call to actions”) that is only visible to them. There are many blogs online that explain the mechanics and techniques of remarketing in more detail.
For further reading, please see the footnoteBesides optimizing the financial effect of using Google AdWords, you also have your own time and 
effort to consider. One of the best developments available by Google in my opinion is the “automatic
rules” function. Basically, there are five main automatic rules you can activate:
1. Change daily budget when...
2. Pause campaigns when...
3. Enable campaigns when...
4. Send email when...
5. Create rule for ad groups, keywords or ads

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