Driving Revenue and Expanding Reach
NYC SEM helps clients create pay-per-click advertising programs with measurable marketing success. We drive revenue-generating traffic to their websites and expand their brand reach across the web. Google AdWords is ad platform where we start due to it encompassing over 70% of search traffic and 91% of banner ads.
Search First, Display Later
AdWords has two ad types, Search and Display. Search ads give the best direct return. Search ads are text ads that appear at the top and bottom of google.com and other google domains and search partners, like AOL and Amazon. Google orders ads based on the queries visitors type into Google and the bids that advertisers make on those queries. New advertisers tend to have to bid higher to get ads to show. Once Google knows that your ads get clicked as often or more often than competitors, Google rewards you with lower costs per click and access to more ad impressions. For many companies, Search impressions may max out.
Display ads are the same as banner ads shown on other individuals’ or brands’ websites. The banners can be text, image, or video ads. The goal of Display ads is to expand brand reach and create awareness. In general, Display ads are something to start after success with Search. The direct measurable return is much lower, if any. However, the reach of Display is large. You reach people as they spend time on the Internet. The traffic is inexpensive, often 1/20 the cost of search clicks, and introduces your brand to new potential clients or customers.
Facebook advertising falls in between AdWords Search and Display. While the audience targeting is much more refined, the cost per click is higher and the advertising is still branding and awareness, not direct response.
Remarketing Reaches Prior Site Visitors
AdWords advertising requires ongoing testing, landing page optimization, and audience development for good remarketing efforts. Remarketing shows Display ads to people who showed engagement on your site but did not complete a desired conversion, like contacting you.
Measurable Marketing Success: Return on Ad Spend
One goal of marketing is to attribute each sale to its source. Then advertisers can calculate a return on spend based on the average lifetime value of these clients. For example, the usual conversion rate for lead generating websites is 2-5%. If the average cost per click is $15, and it takes 35 clicks to get a lead (3.5% conversion rate), the cost per lead acquisition is $525. If it takes 10 leads to get one client, the total ad spend would be $5250 (plus NYC SEM fees). If the lifetime value of a usual client is greater than this, the advertising is profitable. Services businesses need to include referrals that new clients may make as part of the lifetime value calculation.
Ecommerce clients can directly calculate the return on ad spend. However, if there are other ways customers place orders than a shopping cart, advertisers need to deploy other tracking methods to capture sales from the advertising.