Some traffic sources allow you to reach users who are in a more advanced stage of the AIDA process related to our product or service.
An example of the above is the traffic coming from search engines like Google. Advertising in Adwords is more expensive than other sources of traffic, but it can be also much more effective. Why? Let’s take a look at the process a user experiences when entering Google:
- The typical user, has already passed through a stage of attention and interest in his head
- When they type the search phrase/word in Google, they are telling the search engine what they are interested in
- When we set up our ads to show to users who have searched for a word or phrase that reflects an interest we can address, we can link our product to that interest, using the header and ad text.
- The user clicks on it and Google charges us for each click / interest confirmed
- From here, we only have to work on that interest with a good funnel, pre-sales page or sales page to facilitate the decision making (Action)
- Google allows us to go even one step further, being able to target our ads to people who also show a desire and, therefore, are one step closer to our goal.
- We have to keep in mind that in Google, we compete in an auction format with other advertisers for the same keywords (or interest), so the more effective our sales page, the more we can bid for each visit
- Most advertisers compete for keywords that show a specific desire and are oriented towards your product or service. Hence the advertising cost bidding for these words is high it can be much cheaper to bid for keywords of interest, making a creative use of the interest shown to lead the visit to the stage of desire and then to action.
The most important components that we must know and monitor regarding the traffic coming from search are:
- Each one of the ads we use to attract traffic – composed of a title and a brief description
- The keyword that generated each click visit
- The cost per click or CPC, normally broken down by keyword
- The CTR of each advertisement (click-through rate) or percentage of visitors that click on the advertisement among all those who are shown
- The actions (sales, records), also called conversions, generated by each keyword and ad
- The income we get for each conversion
Using the data above, we can calculate at all times the return that our search traffic campaign is having using the following formula:
ROI = (Total revenue generated by the campaign / Total cost of all campaign clicks)
In the next posts I’ll write about some of my successful campaigns in Search Traffic and how you can use it for your business.