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Speaker: Brandon Bateman
Achieving success in paid search campaigns can be a daunting task. However, with the right tools and strategies, businesses and marketers can significantly enhance their chances of reaching their goals. In this article, we will delve into a valuable presentation by Brandon Bateman, CEO of Bateman Collective and Lever Levin, where he shares his insights on data-driven digital marketing. We'll explore key takeaways and strategies to improve paid search execution.
A Case Study: "Dumb Ways to Die"
Brandon Bateman kicks off his presentation with a compelling case study, "Dumb Ways to Die," which highlights the power of digital marketing. This campaign aimed to raise awareness about train safety in Melbourne, Australia, and it quickly became a global sensation. Key metrics from the campaign include:
100-150 million video views.
46% awareness among the target audience.
Over 90 million people pledged to stay safe around trains.
128 ad awards, making it the most awarded ad campaign in history.
More than $16 million worth of earned media.
However, the campaign's success wasn't without controversy, as it resulted in a 13% increase in train-related accidents after its release. Brandon emphasizes the importance of measuring the end results to avoid setting your business up for failure.
Key Metrics for Customer Acquisition
Brandon underlines the significance of two core metrics in customer acquisition: Customer Acquisition Cost (CAC) and Customer Acquisition Value (CAV). These metrics play a pivotal role in determining the success of any customer acquisition strategy.
Customer Acquisition Cost (CAC): This metric represents the cost of acquiring one new customer. It is crucial to track and manage CAC effectively as it determines how efficiently you can acquire customers. Brandon suggests using estimates for this number as it's challenging to predict it accurately before execution.
Customer Acquisition Value (CAV): CAV represents the value a customer provides to your business. It's essential to consider the long-term value of a customer, including potential referrals, cross-sells, and upsells. Brandon emphasizes that CAV must be higher than CAC to ensure a profitable business.
Balancing B2B and B2C Strategies
Brandon highlights the pros and cons of pursuing Business-to-Business (B2B) and Business-to-Consumer (B2C) strategies. He discusses the advantages of a B2B approach, where you can target specific decision-makers and institutions. B2B allows for long-term relationships and tailored offerings but often involves longer sales cycles.
On the other hand, a B2C strategy can yield quick results by capturing a broader audience. Brandon suggests that a lower-touch approach, combined with effective paid advertising, could work well in the B2C space.
Pricing Strategies and Customer Lifetime Value
When it comes to pricing your product or course, Brandon advises considering factors like customer acquisition cost (CAC) and customer lifetime value (CLV). He recommends experimenting with different price points to determine the most effective strategy for your business.
He explains that sometimes, a higher price point can attract a more committed and valuable customer base. However, you should always analyze your competitive landscape and customer segments to make informed pricing decisions.
Increasing Customer Lifetime Value (CLV)
Brandon introduces the ARM (Acquisition, Retention, Monetization) framework as a way to boost customer lifetime value. Here's a breakdown of each component:
Acquisition: Focus on acquiring the right kind of customers who are likely to have a higher lifetime value. Tailor your acquisition strategy to attract these valuable customers.
Retention: Enhance customer retention by offering additional products or services, cross-selling, and ensuring a positive customer experience.
Monetization: Explore various monetization strategies, such as affiliate programs, selling advertising, or partnerships to extract additional value from your customer base.
Conclusion
Brandon Bateman's presentation offers valuable insights into the world of paid search execution and digital marketing. By emphasizing the importance of metrics like CAC and CAV, understanding the dynamics of B2B and B2C strategies, and exploring pricing and customer lifetime value strategies, businesses and marketers can leverage tools and techniques to improve their paid search campaigns and drive success in the digital landscape.
Q&A
Q1: How can I understand my competitors' strategies for Facebook and Google ads?
You can use free tools like Facebook Ads Library and Google's Keyword Planner to gain insights into your competitors' strategies. Facebook Ads Library allows you to see what ads your competitors are running on Facebook. Although you can't access detailed targeting information or their ad spend, you can gain insights into their ad creatives and landing pages. Google's Keyword Planner helps you identify relevant keywords and their search volumes, which can be crucial for search-based products or services.
Q2: Can you explain how to use Facebook Ads Library?
Facebook Ads Library lets you view your competitors' Facebook ads. To access it, go to Facebook Ads Library and enter the name of the competitor whose ads you want to examine. You can see the ads they are currently running and ads they've run in the past, along with the dates they launched. While you won't get all the details, this can give you a good idea of their strategies.
Q3: Is it advisable to copy a competitor's ad strategy?
It's not recommended to copy a competitor's ad strategy directly. Instead, use their strategies as inspiration. Analyze what they are doing, understand their strengths and weaknesses, and think about how you can differentiate your approach. Your ads should reflect your unique value proposition and brand identity.
Q4: What is the significance of using keywords with purchase intention?
Keywords with purchase intention are crucial for paid search advertising. When users search with these keywords, they are closer to making a purchase decision. These keywords are more likely to lead to conversions. It's essential to target keywords that align with your product or service and resonate with users at different stages of the buying process.
Q5: How do I find high-value keywords using Google's Keyword Planner?
In Google's Keyword Planner, you can find high-value keywords by filtering based on criteria such as average monthly searches. Set a minimum number that aligns with your goals. Additionally, you can assess the "Top of Page Bid" to understand the competitiveness of these keywords. High bids usually indicate keywords with strong commercial intent.
Q6: Is there a tool to help me analyze the value of search queries for my product or service?
Google's Keyword Planner is an excellent tool to assess the value of search queries for your product or service. It provides insights into search volume and keyword competitiveness, helping you gauge the demand for specific keywords related to your business.
Q7: How can I create a customer acquisition strategy based on search marketing?
To create a customer acquisition strategy based on search marketing, you need to:
Identify keywords with purchase intent.
Estimate the cost per click (CPC) for these keywords.
Calculate the expected conversion rate from clicks to actual customers.
Determine the revenue generated from each customer.
Calculate your return on ad spend (ROAS) to ensure your strategy is profitable.
Continuously optimize your ads and landing pages for better results.
Remember that every business is unique, so tailor your strategy to your specific goals and circumstances.
Q8: What should I do if my product is unique and doesn't have direct competitors?
If your product or service is unique and doesn't have direct competitors, you'll likely need to focus on creating demand and educating potential customers. This might involve content marketing, influencer partnerships, or creating a need for your product in the market. It can be more challenging than competing in established markets, but it also offers opportunities for innovation and differentiation.
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