A recent study by Econsultancy revealed
– 24% is invested on Paid Search
– 18% is invested on SEO
- Total value
- Other marketing
- The life cycle
- The potential
- Cheap/ Expensive
- Aggressive/ Weak
- Range of products
- Selling mechanism
Maybe, an investment model will help. Ex
Total Break Even Value =
Fixed Costs/[Unit Selling Price – Unit Variable Cost]
Fixed cost (rent, fees) – 1000 Euro
Unit selling – 100 Euro
Unit variable cost (cost in PPC) – 50Euro
TBEV = 1000/[100-50]; TBEV = 20
You need to make 20 sales in order to break even.
Other 20 sales will get you 1000 Euro. Now try to scale. And get your
Don’t get stuck in one figure. Try and than scale.
Do I have a conversion mechanism?
(Discussion: Car seller. Owns a site. Tries to convert)
Do I have traffic converters?
(call-to-action, landing pages, content, lead
A sales channel with:
- Predictive fixed and variable costs
- Predictive results
- Improvable performance
- Immediate results with paid search/ long
term results with SEO
A calculation model, based on attribution:
- Each channel in your marketing strategy has a contribution for
delivering a lead/ sale
- Depending on the participation, each channel receives a
score. (ex: if PPC and Social Media delivered 1 lead, each
one receives 5 points out of maximum 10. if only PPC
delivered 1 lead, it receives 10 points).
- Add all points for each channel and dividing it by total no. of
- You get the share of importance for each channel.
Try more than one model. Usually helps to check
your mix vs real world.
1st Web Analytics Tracking
2nd Define KPIs
Based on your web analytics, you will only get
a set of figures (goals).
In order to understand the business
meaning, these goals will be the base for KPI
2nd Define KPIs
- Behaviour KPI
- Visits, Interactivity (no of visitors that take an action/ total no of
- Attitude KPI
- Favorability, loyalty
- Cost KPI
- Cost per lead, cost per action, cost per lead in SEO, cost per
lead in paid search
Don’t get stuck in tones of data. Ask/ create reports
that are useful.