Tag: Google Ad

  • Pay Per Click (PPC) – What Is It, Important Metrics, and Benefits

    Pay-per-click (PPC) marketing is a form of online advertising in which advertisers pay publishers a fee every time their ad is clicked. It is a common way of driving traffic to your websites.

    Search Engine Marketing is the most essential and popular form of PPC marketing. Search engines allow advertisers to link their ads when a keyword relevant to their product is searched by a user. For instance, if we search, “black watches,” ads from different online shopping stores might show up on the top of your results page.

    What is (PPC)?
    Important PPC Metrics
    Benefits Of PPC Advertising

    What is (PPC)?

    Pay-per-click is most commonly associated with search engines like Google Ads, Microsoft Advertising, Amazon Advertising etc. Advertisers have to bid for keywords relevant to their target audience to secure a position to display their advertisements, search offerings or product listings on these engines. All these services are managed under a PPC pricing model. PPC is used to lessen the costs of digital advertising while retaining profitability and setting goals.

    Google PPC Search Ad
    Google PPC Search Ad

    Social networking sites like Facebook, Twitter, Linkedin and Pinterest have also adopted the PPC form of advertising known as Social PPC. These ads target groups on the basis of demographics, interest or other information gathered by a particular platform.

    In social PPC, the advertiser determines the viewership of the ads, in contrast to it being led according to the user’s search terms. These ads appear on the user’s feed or timeline. The advertisers usually pay through two bidding systems: CPC (Cost Per Click) or CPM (Cost Per Thousand Impressions).

    Important PPC Metrics

    The success of a PPC campaign is essential to the success of a company. Thus, the metrics used to determine the effectiveness of a PPC campaign are:

    Conversion Marketing

    Conversions are the crux of the deal i.e. how often does a click result in a sale, it is what you are ultimately concerned about. Cost Per Acquisition (CPA) is a specific type of conversion measure and usually refers to the cost of getting a customer.

    Quality Score

    It is a number that Google assigns to the quality and relevance of your ads, keywords and landing pages. A quality score is essential in determining the position of your ad in the search engine.

    Impression Share

    It measures the rate of potential impressions that your ads are getting. For example, if there are 1000 searches for a keyword and your ad shows up 750 times of those 1000, then your impression share would be 75%.

    Click-Through Rate

    It is the measure of people who actually click on your ad to the number of people who see the ad. A low CTR might indicate that an ad is either irrelevant or isn’t compelling enough. Calculating and comparing CTR is a quick way to determine whether an ad is under or overperforming.

    Benefits Of PPC Advertising

    There are multiple benefits of using the method and strategy of PPC when it comes to advertising.

    Ads Cater to People Who Look For Them

    Ads are only displayed for potential clients who search for relevant keywords and look for particular results. This gives an advertiser more control over when, where and how an ad can be displayed.

    Easily Accessible

    Anyone, be it a startup with limited resources or just a company looking for an entry into the world of digital marketing can quickly catch up and even get a head start with the help of the PPC marketing method.

    Measurable Tactics

    PPC advertising campaigns can be strategically set up and designed to measure accurate effectiveness. You can calculate and even determine the exact amount of profit return on your investment.

    You Pay When Someone Clicks

    With most advertising methods, you have to pay a hefty cost just for securing a position for your ad. It does not ensure any visits or sales to your business. One of the most essential benefits of PPC is that you only pay when someone interacts with your ad, ensuring a chance for profit.

    Reduces Inequalities and Widens Opportunities

    With PPC you can compete with mega giants of the business who have been around for a while even if you are a website or a startup in its very initial stages, it lets you compete for customers and provides you with an edge in the world of marketing.

    Budget Friendly

    In most types of advertising, with rudimentary standards, you are stuck with a particular pricing method. PPC allows you to set your own budget and work according to it. It does not discriminate between an MNC or a small-town startup.

    Helps in Achieving Brand goals

    It offers your company brand exposure and directs traffic to your website, helping in increasing sales and profits. It can introduce your brand to people who haven’t heard of it before, thus, it creates a name for the company in the market.


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    FAQs

    What is PPC?

    PPC also known as Pay-per-click advertising is an advertising method where advertisers pay a small fee if a user interacts with their ad.

    What is an example of PPC?

    If an advertiser sets up an ad, and when a user searches for the keyword, for example, ‘best digital marketing course’, Google will position your website on the top search results.

  • Customer Acquisition Cost By Industry | How to Calculate CAC?

    I’m sure you know that your customer acquisition cost (CAC) is the price you pay to convert a lead into a customer. And for most companies, that’s a pretty huge expense. According to a 2017 CMO survey, businesses spend over 11% of their total company revenue on marketing. The CAC metric is important to two parties: companies and investors. The first party includes outside, early-stage investors who use it to analyse the scalability of new Internet technology companies. They can determine a company’s profitability by looking at the difference between how much money can be extracted from customers and the costs of extracting it.

    The other party interested in the metric is an internal operations or marketing specialist. They use it to optimize the return on their advertising investments. In other words, if the costs to extract money from customers can be reduced, the company’s profit margin improves and it makes a larger profit. In this article, you will get to know about some CAC benchmarks for different industries.

    How to Calculate your Customer Acquisition Cost?
    Customer Acquisition Costs by Industry
    Cost per Acquisition on Google ads
    Cost per Acquisition for Facebook Marketing
    Cost per Lead for B2B Marketing Channels

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    How to Calculate your Customer Acquisition Cost?

    LTV should be 3x CAC
    LTV should be 3x CAC

    Basically, the CAC can be calculated by simply dividing all the costs spent on acquiring more customers (marketing expenses) by the number of customers acquired in the period the money was spent. Consider a SaaS company that spent $125,000 on sales and marketing in a month, including salaries, commissions, ad spend and trial support. 50 new customers were signed up during the same month. In this case: CAC = $125,000/50 = $2,500.
    Congratulations! You’ve calculated your CAC.

    But here’s the thing: knowing your customer acquisition cost is fairly meaningless if you’re not comparing it to the lifetime value. You want to see a LTV three times higher than your CAC.

    Balance between CAC and LTV
    Balance between CAC and LTV

    A higher ratio than 3x means you could actually be growing faster if you invested in the right channels. Anything lower than 3x means you need to be exploring these options for either growing your LTV or lowering your CAC.

    How to calculate & Track Customer Acquisition Cost

    Customer Acquisition Costs by Industry

    Customer Acquisition Cost by Industries
    Customer Acquisition Cost by Industries

    Customer acquisition cost varies across industries due to a number of different factors — including, but not limited, to: Length of sales cycle, Purchase value, Purchase frequency, Customer lifespan, and Company maturity.
    Here’s a rundown of average customer acquisition cost by industry:

    • Travel: $7
    • Retail: $10
    • Consumer Goods: $22
    • Manufacturing: $83
    • Transportation: $98
    • Marketing Agency: $141
    • Financial: $175
    • Technology (Hardware): $182
    • Real Estate: $213
    • Banking/Insurance: $303
    • Telecom: $315
    • Technology (Software): $395.

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    Cost per Acquisition on Google ads

    CPA on Google ads
    CPA on Google ads

    To many, Google Ads is still the most effective ingredients in their digital marketing mix, allowing you to widen your reach and promote your product to millions of users. In terms of averages, CPA is lowest in the auto industry, which acquires new customers at only $33.52 a head, while the tech industry spends a whopping average of $133.52.

    Cost per Acquisition for Facebook Marketing

    CPA for Facebook Marketing
    CPA for Facebook Marketing

    In marketing circles, Facebook is considered the most important platform for both B2C and B2B businesses. In fact, the social platform already has 80 million business pages online – and numbers don’t seem to be slowing down. There are more stats, of course. 78% of Americans discover new products through Facebook and 30% of marketers believe it has the highest ROI of all digital ads. As for average cost per acquisition numbers, education gets a big bang for its buck by paying only $7.85 per customer, in contrast, of course with tech’s $55.21.


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    Cost per Lead for B2B Marketing Channels

    CPA for b2b channels
    CPA for b2b channels

    One of the most common B2B lead generation channels is email marketing. On average, a lead from email marketing costs $53. On the high end, a lead can cost around $72, and on the low end, around $33.

    If you’re a B2B business that targets medium to enterprise-level clients, LinkedIn advertising can be incredibly effective. On average, a lead from paid LinkedIn advertisements costs $75. On the high end, a lead can cost around $99, and on the low end, around $51.


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    Conclusion

    A Good Customer Acquisition Cost varies by the industry and tactics used. But a good way to benchmark your CAC is by comparing it to Customer Lifetime Value (also known as LTV). It is said that an ideal LTV to CAC ratio is 3:1. We hope these cost per acquisition averages assist you in making better marketing decisions in 2020.

    FAQs

    What CAC means?

    Customer acquisition cost (CAC) is the cost incurred to acquire a new customer.

    What is considered a good CAC?

    A ratio of LTV/CAC greater than 3 is considered good.

    How do you predict CAC?

    CAC is calculated by dividing marketing expenses by the number of customers acquired in the period the money was spent.

    What is average customer acquisition cost by industry?

    Average customer acquisition based on industries are:

    • Travel: $7
    • Retail: $10
    • Consumer Goods: $22
    • Manufacturing: $83
    • Transportation: $98
    • Marketing Agency: $141
    • Financial: $175
    • Technology (Hardware): $182
    • Real Estate: $213
    • Banking/Insurance: $303
    • Telecom: $315
    • Technology (Software): $395
  • Best Platform To Market your Fashion Startup this Diwali

    "Fashion is part of the daily air and it changes all the time, with all the events. You can even see the approaching of a revolution in clothes. You can see and feel everything in clothes." —Diana Vreeland

    Fashion is a form of self-expression, through apparel, shoes, and accessories. Your style and fashion make you stand out and highlight your individuality. It expresses your personality to the world, everyone has their own style and based on that they create their own fashion statement. Generation Z is very conscious about their Fashion game; there is hardly anyone who is not interested to make their own fashion statement and stand out.

    Fashion startups are taking this matter into their hand and trying to turn it in their favor. Especially during the festive season, it is a great time to market their brand. What can be better than digital media platforms to do that, when almost everyone is in the grasp of the internet! Marketing especially at the time of the festive season can be an advantage for your brands and for startups, it is even more huge. So getting noticed by the consumers in the digital platform is a big benefit for them.

    Therefore, running ads is a very significant part of marketing businesses. In this article we will talk about the best platforms to market fashion startups especially in this Diwali.

    Best Platforms to Market Fashion Startups

    Conclusion
    FAQs

    Facebook

    Facebook ads - Platforms To Market Fashion Startup
    Facebook ads – Platforms To Market Fashion Startup

    This is one of the biggest and most popular social media platforms in the whole world. There is hardly anyone, who is not on Facebook. So it will definitely benefit a fashion startup to run ads on this platform. Its market share for digital advertising is 20% making it one of the largest options for advertising, just behind Google.

    Benefits Of Running Ads In Facebook

    There are so many advantages of running ads on one of the biggest social media platforms. Some of them are:

    • Facebook gives you an option to micro-target your audience, who are actually interested and are best for the business. Market segmentation can be done in a detailed way and separated into different groups for gender, age, location, interest, income, job title, recent purchases, and others.
    • Reports claimed that Facebook ads are best for E-commerce and give out the best ROAs also known as Return On Assets.
    • You can choose from multiple types of advertisement and are not only limited to simple text ads. There are options of photos, videos, stories, messenger, slideshow, collection, and games.
    • Results are quick to visible and it is good for short term digital marketing strategies as well as long term
    • Facebook is used by over 2.7 billion people, so this platform has one of the largest audience bases in the world. Therefore, conversion is higher than any other platform here.
    • Facebook Ads are much more cheaper than other platforms.
    • The company got an option to filter the ads that mean you get to choose the audience to whom you want to showcase your products.

    With just a minimum of Rs. 40 one can run advertisements for their startup.

    “Facebook ads help us target audience more than any other platform. We run ads around three to four days a week and this platform provides us with great conversion.” – Abhinav Ojha, The Founder and CEO of StyleOFF

    Facebook Ads Campaign to market your Fashion Startup

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    Google ads - Platforms To Market Fashion Startup
    Google ads – Platforms To Market Fashion Startup

    The biggest search engine in the world with an 86% market share gives you an option to create an online advertisements. When we want to search about anything, we turn to google for our answers, if you use this platform to market your fashion startup, this is definitely will be a good decision.

    Google ads To Market Fashion Startup
    Google ads To Market Fashion Startup

    Benefits Of Running Ads In Google

    Some of the benefits that made Google one of the best digital platforms to market your business are:

    • This search engine is used by over 4 billion people, so undoubtedly it has a huge reach. It doesn’t matter what question one has in their mind, they immediately google it. So if your startup is related to something they have searched, with the help of Google ads your products will be visible to them.
    • Google ads don’t interrupt people like ads on any other social media platform. Here, they get to see your ads, when they search for something related to that. Therefore, people don’t get irritated and think seriously about the ads shown on Google.
    • The analytics of your ads are given in a simple and easy language, so, it gives out every information about clicks, budget, keywords, and the behavior of visitors that are available there.
    • Google Ads builds brand awareness, through the ad display; people become aware of the existence of your brand and the products that you offer.

    Google’s charge is Rs. 20 per click for the advertisement.

    Create Google ads to market your fashion brand

    Instagram

    Instagram - Platforms To Market Fashion Startup
    Instagram – Platforms To Market Fashion Startup

    It is one of the most entertaining platforms for generation Z to connect with friends, celebrities and show their talents on Reels and all. Instagram as a platform for marketing your business is a great option as it is used by over 1 billion people in just a month.

    Benefits Of Running Ads In Instagram

    • This hot favorite platform provides lots of advantages to startups who are interested to market their business here. Some of the advantages are:
    • One of the best benefits is that you get to create a great number of followers for your brand. Reports also claim that over 81% of users use the platform Instagram to search for products and services. This helps in building followers of the said brand and it’ll help them to increase their sales.
    • It is very easy to create ads for Instagram. The features like stories, post,s and the explore tab can be used for the placement of the ads.
    • Stories are used by brands to showcase their product to the users of Instagram. More than 500 million people watch Instagram Stories every day and the shop now button is a cherry on top of the cake.
    • Engagement rates are much higher than any other social media, and photo posts bring more engagement.

    An average Instagram Ad cost Rs. 36 to Rs. 146 per click.

    “Instagram is currently the best platform to reach the audience at the cheapest cost.” – Rakesh Raushan, The senior digital marketing executive of Hats Off Accessories, a Fashion startup

    Instagram ads to market your fashion brand

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    YouTube

    YouTube- Platforms To Market Fashion Startup
    YouTube- Platforms To Market Fashion Startup

    The online video sharing platform is one of the popular platforms in the world. Through YouTube people can learn new things, food recipes, create blogs, and keep themselves entertained. Another thing that can be done through YouTube is advertising.

    Benefits Of Running Ads In YouTube

    There are some benefits of using the largest video sharing platform for running ads and they are:

    • It is extremely cost-effective as it follows the Pay-per-click thing, here you get to pay and also choose the amount only if someone clicks on your ad.
    • YouTube ads target the audience very precisely based on their location, interests, online and offline data, and their life events.
    • Advertising through videos helps in connecting with the audience faster and if the ad is interesting enough, then conversion is almost guaranteed.
    • YouTube analytics are easy to measure so you can understand if the ad is performing well.
    • Your ad is viewed by billions of people so they provide fast conversions as well.

    The marketing packages for YouTube are Rs. 8000 to Rs. 25000.

    Youtube ads campaign to market your fashion startup

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    Conclusion

    With Diwali around the corner, several fashion startups have a got great opportunity to market their brand in the top digital media platform. Marketing can turn a business into a huge success and especially in the digital world doing that on a platform that is visited by billions of people daily is one of the best ideas.

    FAQs

    Which platform is best for fashion industry to use?

    Instagram is an obvious choice for fashion brands to promote their work.

    How to make my fashion startup famous?

    Using social media platforms for marketing will help you reach a large audience and will also give you an option of connecting with them.

    What are the top fashion startups in India?

    Some of the top fashion startups in India are:

    • BlissClub
    • Flatheads
    • KalpTree Fashion And Lifestyle
    • Fashinza
    • Custkart- Merchandise Store
    • Binks
    • Nyva Store
    • Alippo
    • StyleOFF
    • Peppymode