pay-per-click leads what should you pay? - totheweb · 1,000 leads $240,000 cpl= $571 roas = 12.5%...
TRANSCRIPT
![Page 1: Pay-per-click Leads What should you pay? - ToTheWeb · 1,000 leads $240,000 CPL= $571 ROAS = 12.5% Example Formula 1. How many leadscame from paid media last year? 2. How many salescame](https://reader035.vdocument.in/reader035/viewer/2022070711/5ec88779fa146116dd23a31c/html5/thumbnails/1.jpg)
$25$250 $50$10
Pay-per-click LeadsWhat should you pay?
![Page 2: Pay-per-click Leads What should you pay? - ToTheWeb · 1,000 leads $240,000 CPL= $571 ROAS = 12.5% Example Formula 1. How many leadscame from paid media last year? 2. How many salescame](https://reader035.vdocument.in/reader035/viewer/2022070711/5ec88779fa146116dd23a31c/html5/thumbnails/2.jpg)
totheweb.com
Pay-for-click advertising is the fastest way to generate leads for highly competitive keywords
PPC Leads
2
![Page 3: Pay-per-click Leads What should you pay? - ToTheWeb · 1,000 leads $240,000 CPL= $571 ROAS = 12.5% Example Formula 1. How many leadscame from paid media last year? 2. How many salescame](https://reader035.vdocument.in/reader035/viewer/2022070711/5ec88779fa146116dd23a31c/html5/thumbnails/3.jpg)
totheweb.com
What should you pay for a PPC lead?Good, common and tough
question. And there are no
easy answers.
PPC Leads
3
$25$125
![Page 4: Pay-per-click Leads What should you pay? - ToTheWeb · 1,000 leads $240,000 CPL= $571 ROAS = 12.5% Example Formula 1. How many leadscame from paid media last year? 2. How many salescame](https://reader035.vdocument.in/reader035/viewer/2022070711/5ec88779fa146116dd23a31c/html5/thumbnails/4.jpg)
totheweb.com
No benchmark exists for the cost of a lead• No standard PPC conversion rate or cost
• Advertisers can measure a variety of actions
as a conversion further complicating
measurement, and
• Baseline conversion rates are different for
every industry and even across products.
PPC Leads
4
![Page 5: Pay-per-click Leads What should you pay? - ToTheWeb · 1,000 leads $240,000 CPL= $571 ROAS = 12.5% Example Formula 1. How many leadscame from paid media last year? 2. How many salescame](https://reader035.vdocument.in/reader035/viewer/2022070711/5ec88779fa146116dd23a31c/html5/thumbnails/5.jpg)
totheweb.com
What do your competitors pay?• Ad networks don’t divulge competitor
data; and
• You cannot know what keywords your
competitors bid on (despite what
shady tool vendors may say).
PPC Leads
5
![Page 6: Pay-per-click Leads What should you pay? - ToTheWeb · 1,000 leads $240,000 CPL= $571 ROAS = 12.5% Example Formula 1. How many leadscame from paid media last year? 2. How many salescame](https://reader035.vdocument.in/reader035/viewer/2022070711/5ec88779fa146116dd23a31c/html5/thumbnails/6.jpg)
totheweb.com
What actions do you want to measure?CPAs vary…
• Request for a demo
• Lead form completion
• Download
• Online chat
• Video view; and so on…
PPC Leads
6
![Page 7: Pay-per-click Leads What should you pay? - ToTheWeb · 1,000 leads $240,000 CPL= $571 ROAS = 12.5% Example Formula 1. How many leadscame from paid media last year? 2. How many salescame](https://reader035.vdocument.in/reader035/viewer/2022070711/5ec88779fa146116dd23a31c/html5/thumbnails/7.jpg)
7Factors for Calculating CPA
![Page 8: Pay-per-click Leads What should you pay? - ToTheWeb · 1,000 leads $240,000 CPL= $571 ROAS = 12.5% Example Formula 1. How many leadscame from paid media last year? 2. How many salescame](https://reader035.vdocument.in/reader035/viewer/2022070711/5ec88779fa146116dd23a31c/html5/thumbnails/8.jpg)
totheweb.com
Keyword Mix• May or may not include your
brand name (Brand keywords
are generally inexpensive); and
• Short tail versus long tail
keywords impact CPC.
PPC Leads
18
![Page 9: Pay-per-click Leads What should you pay? - ToTheWeb · 1,000 leads $240,000 CPL= $571 ROAS = 12.5% Example Formula 1. How many leadscame from paid media last year? 2. How many salescame](https://reader035.vdocument.in/reader035/viewer/2022070711/5ec88779fa146116dd23a31c/html5/thumbnails/9.jpg)
totheweb.com
Ad NetworksConversion costs differ by
media platform:
• Search
• Display Networks; and
• Retargeting.
PPC Leads
29
![Page 10: Pay-per-click Leads What should you pay? - ToTheWeb · 1,000 leads $240,000 CPL= $571 ROAS = 12.5% Example Formula 1. How many leadscame from paid media last year? 2. How many salescame](https://reader035.vdocument.in/reader035/viewer/2022070711/5ec88779fa146116dd23a31c/html5/thumbnails/10.jpg)
totheweb.com
Geographic LocationsCosts differ by country,
region and city targeting.
PPC Leads
310
![Page 11: Pay-per-click Leads What should you pay? - ToTheWeb · 1,000 leads $240,000 CPL= $571 ROAS = 12.5% Example Formula 1. How many leadscame from paid media last year? 2. How many salescame](https://reader035.vdocument.in/reader035/viewer/2022070711/5ec88779fa146116dd23a31c/html5/thumbnails/11.jpg)
totheweb.com
Offer TypesYour campaign landing page may
feature a variety of offers:
• For example, a product demo vs. a
white paper download = much
different values
• Consider propensity to buy in
assigning values to actions; and
• Weigh CPA against lead value.
PPC Leads
411
![Page 12: Pay-per-click Leads What should you pay? - ToTheWeb · 1,000 leads $240,000 CPL= $571 ROAS = 12.5% Example Formula 1. How many leadscame from paid media last year? 2. How many salescame](https://reader035.vdocument.in/reader035/viewer/2022070711/5ec88779fa146116dd23a31c/html5/thumbnails/12.jpg)
totheweb.com
Competitive Campaigns• A common strategy is to bid on
searches for the names of your
competitors and/or their
products; and
• A costly CPA strategy, but could
deliver very valuable results.
PPC Leads
512
![Page 13: Pay-per-click Leads What should you pay? - ToTheWeb · 1,000 leads $240,000 CPL= $571 ROAS = 12.5% Example Formula 1. How many leadscame from paid media last year? 2. How many salescame](https://reader035.vdocument.in/reader035/viewer/2022070711/5ec88779fa146116dd23a31c/html5/thumbnails/13.jpg)
totheweb.com
Quality Score• A measurement of how relevant an
ad is to the keyword and landing
page
• Maintaining good quality scores
allows for full ad delivery and lower
CPCs; and
• Measured based on the likelihood
of a click-through.
PPC Leads
613
![Page 14: Pay-per-click Leads What should you pay? - ToTheWeb · 1,000 leads $240,000 CPL= $571 ROAS = 12.5% Example Formula 1. How many leadscame from paid media last year? 2. How many salescame](https://reader035.vdocument.in/reader035/viewer/2022070711/5ec88779fa146116dd23a31c/html5/thumbnails/14.jpg)
totheweb.com
Timing• CPAs fluctuate by seasons
• During periods of heavy ad testing; and
• Holidays
PPC Leads
714
![Page 15: Pay-per-click Leads What should you pay? - ToTheWeb · 1,000 leads $240,000 CPL= $571 ROAS = 12.5% Example Formula 1. How many leadscame from paid media last year? 2. How many salescame](https://reader035.vdocument.in/reader035/viewer/2022070711/5ec88779fa146116dd23a31c/html5/thumbnails/15.jpg)
3Additional Considerations
![Page 16: Pay-per-click Leads What should you pay? - ToTheWeb · 1,000 leads $240,000 CPL= $571 ROAS = 12.5% Example Formula 1. How many leadscame from paid media last year? 2. How many salescame](https://reader035.vdocument.in/reader035/viewer/2022070711/5ec88779fa146116dd23a31c/html5/thumbnails/16.jpg)
totheweb.com
Length of Sales Cycle• Numerous people may be involved in the
decision
• Leads can take a long time to surface
and qualify; and
• A buyer may initially see an ad on a
mobile device and convert on the
desktop (difficult to attribute to PPC).
PPC Leads
116
![Page 17: Pay-per-click Leads What should you pay? - ToTheWeb · 1,000 leads $240,000 CPL= $571 ROAS = 12.5% Example Formula 1. How many leadscame from paid media last year? 2. How many salescame](https://reader035.vdocument.in/reader035/viewer/2022070711/5ec88779fa146116dd23a31c/html5/thumbnails/17.jpg)
totheweb.com
Product Cost Matters• A $10K product vs. a $100K
product; and
• Expect lower CPAs for lower
priced products.
PPC Leads
217
![Page 18: Pay-per-click Leads What should you pay? - ToTheWeb · 1,000 leads $240,000 CPL= $571 ROAS = 12.5% Example Formula 1. How many leadscame from paid media last year? 2. How many salescame](https://reader035.vdocument.in/reader035/viewer/2022070711/5ec88779fa146116dd23a31c/html5/thumbnails/18.jpg)
totheweb.com
Lead Actions• Campaigns may have
multiple CPAs; and
• Values differ by action.
PPC Leads
318
![Page 19: Pay-per-click Leads What should you pay? - ToTheWeb · 1,000 leads $240,000 CPL= $571 ROAS = 12.5% Example Formula 1. How many leadscame from paid media last year? 2. How many salescame](https://reader035.vdocument.in/reader035/viewer/2022070711/5ec88779fa146116dd23a31c/html5/thumbnails/19.jpg)
totheweb.com
Run your conversion ratios
through the sales funnel.
Leads
Sales is a Numbers Game
19
![Page 20: Pay-per-click Leads What should you pay? - ToTheWeb · 1,000 leads $240,000 CPL= $571 ROAS = 12.5% Example Formula 1. How many leadscame from paid media last year? 2. How many salescame](https://reader035.vdocument.in/reader035/viewer/2022070711/5ec88779fa146116dd23a31c/html5/thumbnails/20.jpg)
totheweb.com
PPC Leads
PPC is top of the
funnel marketing
to build awareness
and your
remarketing list.
How many visitors
will it take to close
one sale?
3,000
600
150
50
10
Visitors coming to the website
Lead clicks on ‘Call to Action’
Lead interacts with company
Company pre-qualifies lead
Sale is closed
20
![Page 21: Pay-per-click Leads What should you pay? - ToTheWeb · 1,000 leads $240,000 CPL= $571 ROAS = 12.5% Example Formula 1. How many leadscame from paid media last year? 2. How many salescame](https://reader035.vdocument.in/reader035/viewer/2022070711/5ec88779fa146116dd23a31c/html5/thumbnails/21.jpg)
totheweb.com
Technique for formulating lead costsWhat you need to know to make this calculation.
PPC Leads
21
Leads SalesRevenue
Generated
Paid
Media
Cost
![Page 22: Pay-per-click Leads What should you pay? - ToTheWeb · 1,000 leads $240,000 CPL= $571 ROAS = 12.5% Example Formula 1. How many leadscame from paid media last year? 2. How many salescame](https://reader035.vdocument.in/reader035/viewer/2022070711/5ec88779fa146116dd23a31c/html5/thumbnails/22.jpg)
totheweb.com
420 Sales
$270,000 ($99/sale)
1,000 leads
$240,000
CPL = $571
ROAS = 12.5%
Example Formula1. How many leads came from paid media last
year?
2. How many sales came from paid media last
year?
3. How much revenue did those sales generate?
4. How much was the total paid media cost?
PPC Leads
22CPA = Cost Per Action
ROAS = Return on Ad Spend
![Page 23: Pay-per-click Leads What should you pay? - ToTheWeb · 1,000 leads $240,000 CPL= $571 ROAS = 12.5% Example Formula 1. How many leadscame from paid media last year? 2. How many salescame](https://reader035.vdocument.in/reader035/viewer/2022070711/5ec88779fa146116dd23a31c/html5/thumbnails/23.jpg)
totheweb.com
PPC Platforms
PPC Leads
23
![Page 24: Pay-per-click Leads What should you pay? - ToTheWeb · 1,000 leads $240,000 CPL= $571 ROAS = 12.5% Example Formula 1. How many leadscame from paid media last year? 2. How many salescame](https://reader035.vdocument.in/reader035/viewer/2022070711/5ec88779fa146116dd23a31c/html5/thumbnails/24.jpg)
totheweb.com
Convert your visitors into leadsWe work with B2B companies with lead
generation challenges. Our search programs
drive visitors to your site – but we don’t stop there
– we make sure your visitors convert into leads.
CALL 650.627.8800
24
![Page 26: Pay-per-click Leads What should you pay? - ToTheWeb · 1,000 leads $240,000 CPL= $571 ROAS = 12.5% Example Formula 1. How many leadscame from paid media last year? 2. How many salescame](https://reader035.vdocument.in/reader035/viewer/2022070711/5ec88779fa146116dd23a31c/html5/thumbnails/26.jpg)
totheweb.com
B2B Learning Center | Blog
Free B2B Tools + Articles
Tap into B2B Resources @
26
Visit totheweb.com