One of the most widely known benefits of PPC for e-commerce is that you can get a direct return on investment Digital Marketing Company Newcastle almost immediately. However, as is becoming increasingly competitive PPC, rising costs can be greater than even the most lucrative profit margins.
For this reason, in order to gain advantage in the competition, e-commerce advertisers should consider placing a customer’s lifetime value at the center of their PPC strategy.
In this blog, I will walk through why and how you should use a lifetime-based approach PPC value for e-commerce, so you can get ahead of the curve and gain valuable market share to growth in the future.
Using Smart Offer to achieve the objectives of e-commerce
PPC by nature is a competitive business, so as to achieve the success that you need to focus on being competitive in intent auction as high as possible. One of the most important aspect of this is how much you are willing to bid. If you are not familiar with the competitive advantage and cost-saving use of Machine Learning to adjust your bids, check your blog on Google’s offerings Ads Byron automatically.
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However, one thing that needs to be reiterated is the importance of having Smart Deals PPC strategy centers e-commerce to gain a competitive advantage.
When the audit of the accounts, we often find that many e-commerce advertisers have not adapted their strategies to use Smart Deals. The main advantage of Smart offer is that you’re able to use Machine Learning adjust bids based on the intent of the user in real-time, which means that you will be more competitive for users of higher intentions, and do not spend much on lowering user intent. This presents an excellent opportunity for forward-thinking advertisers to get ahead of their competitors by adopting Intelligent Offer based approach, which is in line with Moore’s law, which exponentially increases.
When it comes to deciding the strategy Intelligent Offer there are two things to consider. First, do you have immediate conversion (ie revenue)? And secondly, your search volume or efficiency (ie profitability)? The following shows the strategy to be used in each scenario:
The value of non Jump + Volume = Maximize Conversions
The value of non Jump + Efficiency = Target CPA (Cost Per Acquisition)
Direct Value + Volume = Maximize Conversion Value
Direct Value + Efficiency = Target ROAS (Return On Ad Spending)
The main thing to consider is that the strategy of ‘Maximize’, the algorithm looks to get as much volume as possible to your monthly budget. With the strategy of ‘Goal’, the algorithm looks to get as much volume as possible in your target.
When it comes to e-commerce, advertisers will usually use direct value based bidding strategy and are looking to get as much as possible ROAS of their campaign. However, by setting a target ROAS, the algorithm will begin bid cap and potentially into the auction in which the probability of achieving the target ROAS you from directly in income is too low.
Beating the competition by shifting the focus to the customer lifetime value
Knowing what you’re willing to pay to acquire a new customer vs. what you’re willing to pay to acquire the sales people make you instantly more competitive in the auction, and here’s why: with ROAS bidding strategy based on, you just think about the direct value of the customer and will not enter into the auction in which the return is not favorable. By bidding strategy based on lifetime value, you are willing to pay more for the customer to know that it will benefit your business over time.
LTV barite possibility that your e-commerce business will have a lifetime customer value on average higher than the average order value. By taking this approach is a loss leader for the initial auction, you’ll be many steps ahead of your competition for the Digital Marketing Companies Newcastle acquisition of new customers, while they are still deals to the value of direct and often.