3 Paid Marketing Secrets That Companies Don’t Know (this may surprise you)

If you can’t answer 3 essential questions about paid search, stop right now! Do not pass go. Do not collect $200. I wish it were as easy as playing with monopoly money, but the truth is, many companies allocate millions for paid search or paid marketing in general but don’t see earnings that meet their expected return on investment (ROI). The truth is, a lot of money is left on the table. Without knowing the right metrics to track, it’s a roll of the dice.

Time and again, companies ask me to help with their paid marketing campaigns. Over the years, I’ve seen paid search performance reports like the one below where the marketing department launches paid search (PPC) right off the bat to scale revenues. However, what so many companies fail to do is forecast their objectives for outcomes or know how to measure results. 

What jumps out on this table are three key variables:

• Conversion rate
• Cost per Conversion (CPC)
• Customer Acquisition Cost (CAC)

Let’s investigate the ramifications. The first time this marketing department tried a paid search campaign, they invested in excess of $100k for paid ads over a 12-month period. But look at their conversion rates in the first highlighted column. Very low.

The other data that jumps out is their Cost-per-Conversion or Customer Acquisition Cost (CAC) is through the roof.

You’d be surprised at how many companies don’t know how to calculate costs and end up paying too much marketing spend for their paid search campaigns. But that is still the tip of the iceberg as those metrics can always be optimized. The bigger issue that jumps out is this client is missing the 3 key metrics without which they should never have launched this campaign!

Those 3 critical metrics are:

1. How much revenue per customer you are making?
2. What is the break-even cost?
3. What is the Lifetime Value of the Customer (LTV)?

Read my full article by clicking the link below:

https://www.bobtripathi.com/ppc-secrets/