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Transcript of Online Marketing
How web design affects your business?
Your website is the key to success...
Your website must have a high rate of conversion to make any advertising profitable. To better understand this concept, let's take Google Adwords as an example.
Average cost of a top keywords is $5 per click. In a 1% conversion from click into sales your cost per sale is $500.
In another words, if you are not profiting at least $500 per sale you won't be able to continue advertising.
However, if those converts 5 of those same clicks into sales, your cost for advertising has come down from $500 to $100. That means 5 times more sales for the same ad.
CPA (Cost-per-acquisition) means the cost you pay for a lead or a sale, and it’s directly co-related to the amount you pay for traffic.
Let's continue with the same example used in the previous "slide" using the advertising from Google Adwords. (I am only modifing to a higher conversion rate of 10%)
Therefore, if you pay $5 per click with a 10% rate your CPA is $50
Advertising and your website
Advertising and your website should come hand-in-hand to one another.
It's counterproductive to invest in an amazing, well design website and not to spend a dime in advertising your business online.
The advertisement will bring the needed traffic to your website, which in turn needs to capture and engage your audience and turn the online traffic into sales.
A poorly designed website will have a poor conversion rate from click to sales.
How TEMA Digital can help you
Quality vs Quantity
There are many ways you can increase your conversion rate but you want quality over quantity.
What I mean with that is that if you’re advertising on Google Adwords and you’re not in the top 3 positions, you might be getting the price shoppers who go through all of the advertisers to find the best price.
In comparison of if you were in the top 3, you are more likely to get those serious about making a decision now, and have a bigger budget to invest.
Understanding the rate of conversions from clicks to sales
If your website received 1,000 visitors then the converstion rate in sales would be...
1% = 10 sales
5% = 50 sales
2% = 20 sales
10% = 100 sales
32 percent of customers will leave a website if it doesn't load within one to five seconds of landing on the page
Optimize every aspect of you business to drive sales and keep you ahead of the competition.
What CPA means to you?
Facebook advertising costs less than Google but also usually converts at a lower rate than Google.
That means that if Facebook Ads cost $1 per click, you only need a 2% conversion rate to achieve the same CPA as Google Adwords (50 visits x $1 per click). So even though the cost-per-click and conversion rate are both lower, the CPA is the same.
As you increase the number of places you advertise your business, the cost and quality of the traffic changes, but you can always compare ad network performance by comparing your CPA.
Let's us help you with your internet marketing needs and we will help you achieve an online strategy that works FOR YOU!