what according to you can be the expected number of clicks if we plan to do CPA(cost per action) for some security solutions with the target audience of CIO'S and CXO level.
Location specific: Mahoba Area, India
Answers (4)
The number of clicks you can afford will depend on your target CPA.
You'll need to set up a simple model.
1) Total search volume of the keywords you're targeting (find using Google's keyword research tool).
2) Make an assumption about your expected click through rate. This will depend on keyword relevancy to the ad copy, your offer, etc.
3) Expected number of clicks (Impressions/CTR)
4) The average cost per click of your keywords. Estimate using Google's keyword research tool.
5) Calculate your cost for those keywords (Clicks* Avg. CPC)
6) Make an assumption about your expected conversion rate. This will depend on your on page offer, etc.
7) Calculate the number of conversions you might get (Clicks* Conv Rate)
8) Calculate your expected CPA (Cost / Expected Conversions).
Adjust your assumptions to match your target CPA and you'll get the number of required number of clicks. Oh, and keep your assumptions realistic! Much better to be conservative :)
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CPA will not help much and its costly. Use Internet and social media marketing for lesser. Social media and article marketing has the power to target the required people.
Asad Zeeshan
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I think that there are so many variables that will effect your response rates. The quality of your offering, effectiveness of your marketing message, equity of your brand, existing marketing efforts outside of this area, social, keyword and blended search. Combine marketing efforts in a way that web, social and other efforts support each other in a strategic integrated approach that makes every part of a marketing campaign more consistent effective and memorable.
CPA can be great because there will be a broader delivery of impressions of your brand message that you don't pay for. These potential customers may not be ready to buy now, but may remember you at a later date. I prefer CPM. Lower overall costs.
Regarding calculating expectations, Jesse's model below is excellent and I will be trying it out the next chance I get.
Benny R.
Managing Partner at Armonix Digital, Inc. --- Email: ben [at] armonixdigital [dot] com
Best Answers in: Internet Marketing (12), Advertising (7), Viral Marketing (2), Business Development (2), Branding (1), Positioning (1), Software Development (1)
Himanshu, let me clarify your question, if you are to engage in a CPA campaign with a marketing company how many clicks will you be able to generate from such campaign? The real answer is, no one will know with such a few variable inputs.
The factors / variable involved includes: the volume of impressions you will received for the lifetime of the CPA campaign (this one will almost always be unknown die to the nature of CPA campaign), the creative you use, the publishers you use, the creative you use, the click through rate or open rate, the length of the campaign, the type of ads you use (which IAB standard ad sizes, emails, co-reg, or SEM and etc). Parameters involved here are just some that will affect the campaign and there are more, it is almost always impossible to find out. This is really more like an art than a science. There is one way to figure it out, you can do it if you have enough historical data to project. How to project? That itself is another can of worm for another conversation.
By the way just so you know the number of clicks or click through rate absolutely have no correlation with your conversion rate. Granted that most banner campaign will need to have click tough in order to get conversions with very few exceptions of high ticket items product like cars, vacations, and etc.
Not sure what your metric of success is, this is extremely important to know, if it is click trough rate, or let say a CIO downloading a white paper for the security solution. You will need to know this first. If you metric of success is number of clicks, then you can hedge the risk by conducting a CPC campaign instead, ad you know your budget and you know the amount of clicks you need to get, thus you know what you can pay per click. It does not mean that you will get much clicks at all if you price is too low. CPA campaign usually eats up the most margin in order to incentivize marketers or publisher to take the risk. On the opposite end if you have good intelligence and historical data, smart media buyers will often use this pricing method to get the best ROI for their campaign.
