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SEM: $300,000 Difference Per Year to the Bottom Line

SEM: $300,000 Difference Per Year to the Bottom Line. “Learn to Keep Score in order to Change the Score”. 1. -SEM Fun Facts -Ad Words key metrics -Ad Words Campaigns -Ad Words vs. Lead/Media Providers -How can impressions be tangible? . Agenda. SEM Fun Facts:.

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SEM: $300,000 Difference Per Year to the Bottom Line

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  1. SEM: $300,000 Difference Per Year to the Bottom Line “Learn to Keep Score in order to Change the Score” 1

  2. -SEM Fun Facts • -Ad Words key metrics • -Ad Words Campaigns • -Ad Words vs. Lead/Media Providers • -How can impressions be tangible? Agenda

  3. SEM Fun Facts:

  4. The Zero Moment of TruthEngaging the Right Customer at the Right Moment with the Right Message The Internet’s influence on the purchase decision is second only to the in-store experience! Source: Shopper Sciences Zero Moment of Truth

  5. Internet’s Effect on Dealership Visits Source: JD Power Automotive Internet Roundtable

  6. Source: Search data comScore & Sales data JD Power (6.2 years) Historical Search Engine Use Since the last time today’s average customer purchased a vehicle: The use of search engines has grownby 5200%. Facebook, the most visited site on the Internet, wasn’t open to the public.

  7. Google Marketshare Source: comScore Aug 2011 search rankings; MSA Aug 2011 analytic report

  8. Source: Forbes Digital Marketing Landscape Despite all the conversation surrounding new technologies 91% of All Internet marketing dollars go to search, display and mobile.

  9. Google Advertising Revenue Google Market Cap: $197 Billion

  10. Ad Word Key Metrics

  11. SEM Importance -Targeted Visibility, Free Advertising (Impressions)-Only Pay for Performance (clicks) -Complete control of your budget (CPC: Cost-per-click + Total Budget)-Only advertise towards people who are looking for you-Target only your market (Geography) -Trackable and Tangible ROI!

  12. Key Metrics

  13. Impressions: a delivered basic advertising unit from an ad distribution point. “This is a FREE AD that doesn’t cost a dime!”

  14. CPC: $2.00 average. Pay for Performance

  15. CTR: Click-Through RateTotal Clicks divided by Impressions. CTR is variable! -I.E. Expand a keyword strategy or geographical radius. *Impressions go up and CTR goes down.

  16. Google Ad Words PlatformHow many of you have seen this before?

  17. Learn to Keep Score Let’s dive in…

  18. Key Metric Goals!DO NOT set it and forget it! -You need to hold your SEM provider accountable! If you do not have a strategy, you need to get these metrics from your provider and schedule a weekly call.

  19. What metric needs focus? • * Impression Share 33%

  20. Solutions Example 1: Solutions • Increase Budget • Decrease Geographical Radius/Zip Codes • Increase Budget = CTR will drop

  21. What metric needs focus?

  22. Example 2: Solutions • Solutions • Expand Keywords Strategy • Expand Geographical Radius/Zip Codes • Increase Budget

  23. What metric needs focus?

  24. Solutions Example 3: Solutions • Review Max Bidding Strategy (position / max amount per bid) • Review Geographical Radius/Zip Codes/Geo-targets (supply versus demand) • Regional strategy: Exact match keywords: Less competition: More Targeted

  25. What metric needs focus?

  26. Solutions What metric needs focus? • 100 impression time-out strategy • Eliminate Keyword Phrases that have a quality score of less than 3. Googles score card. (CTR, landing pages, loading time, keyword/landing page relevancy, bounce rate). • Quality score accountability • Impressions will decrease

  27. Website Strategy vs. Lead/Media Providers

  28. Lead/Media Provider ComparisonCPI= Cost Per Impression, CPL= Cost Per Lead , CPS= Cost Per SaleCPI Formula: Impression/Spend= $ NO!

  29. Website vs. Lead/Media Providers

  30. Website vs. Media Providers

  31. Change the ScoreHow can Impressions be Tangible?

  32. Mid-funnel Impression to SoldHow can impressions be tangible?

  33. Impression to Sold Conversion$15,000 Budget or $500/day • 4% Lead Conversion = • 280 Leads • $2000 / copy

  34. Impression to Sold: $15,000 Budget ($500/day) Example #1 • 4% Lead Conversion = • 280 Leads • 4% Lead Conversion = • 210 Leads(-70) • $2000/ copy = • $2000/ copy = • $70,000/mo or $840,000/yr • $-24,000/mo or $-288,000/yr

  35. Example 2: $15,000 Budget ($500/day) • 4% Lead Conversion = • 280 Leads • 4% Lead Conversion • = 187 Leads(-93) • $2000/ copy = • $62,000/mo or $744,000/yr • $-32000/mo or $-384,000/yr (-192 Cars/year) • $2000/ copy =

  36. Questions? Contact Information:Michael Grovese-Commerce DirectorApple Auto Groupwww.appleautos.commgroves@appleautos.com@michaelgrovesmn

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