ROI Calculation-Customer from Brand/ Non-Brand Term & Bidding Strategy

 Customer Evolution Understanding the Online Media

Internet Marketing approach has undergone a drastic change in its approach to calculate its customer acquisition and ROI. Couple of year back retailers were scanning their Internet Marketing plans in the means of driving the e-commerce traffic to their product pages and website. The internet was wide distribution sales channel analyzed by its capability to drive online revenues from their website.

Gradually the internet evolved into a broader media platform where customers not only purchase the product online but they spend sufficient time analyzing the products, there reviews, prices, models and other options.

  • Videos
  • Articles
  • Customers Reviews and
  • Online Comparing tools
  • Social Media Engagements

In 2011, the most forward-thinking retailers have started looking at a new measurement to calculate the success of their online campaigns: new customer acquisition and the lifetime value of those new customers.
Now explore your own Search Marketing Strategy where you focus your bidding on as many of your brand keywords that are possible. In this approach you are targeting the customers who are familiar with your brand name and the product you are offering.And thus resulting in higher conversion rate with lower budget.

But what about non-brand terms. The Non-brand terms generally have much more search capacity than the brand-terms. You can find out the differences with the help of Adwords Keywords Tool.

 

 

 

 

 

 

 

 

Above snapshot is the easiest way to realize the huge differences.

On-Contrary to Brand, such customers spends more time in purchasing the product; resulting in lower conversions on higher bid, then Why pay a higher CPC for a lower conversion rate?

Those non-brand terms drive a higher percentage of new customers to your landing page and when you consider the lifetime value of those customers they will pay off! Here are the mass of customers who are looking for products and services you offer, but did not think to type your brand into the search box. And most important at that part they are not the part their top consideration needs. And at that scenario you are taking yourself away from the competitions.

And to know which keyword to capture and to bid on the generic keywords you can visit my previous post Optimize ROI- Identify Your Keywords Buying Cycle.

Only you know your relative new customer acquisition costs and lifetime customer value payouts. Every retailer has different metrics, but here I have outlined the most considerable metrics.
Your brand terms CPC $.50 CPC and payout at an ROI of 10:1 while your non-brand terms ($1.00 CPC) payout at 5:1. But your non-brand terms bring in more new customers who will eventually payout. In year 2, they buy enough to amortize that initial ROI up to 8:1. Then in year 3 they are loyal customers who are paying out at 10:1 (or higher). So that initial $1.00 CPC is now paying out and that new customer you bought three years ago is now a lifetime customer.

ROI With Generic Keywords

When To Bid For Brand Terms

1. In most of the cases it is obvious that you will get eventually good organic ranking and I have also seen many bands who have captured 5-6 pages in Google SERPs
The best and effective way to bid for brand is to trigger the ads for misspelled words. And at that moment there is probability that your rank may descend resulting in the slightly fall in visibility. Thus bidding on such themes will help customers to trust and appreciate your brand approach.

When Brand Didn't Ranked With Misspelled

 

 

2. The other case to bid for Brand is when you don’t rank high in the organic search results. For instance, This is a good idea to buy Adwords Ads for “Buy Sony Tv”, when you don’t rank enough high.

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