Advertisers scrupulously considering the cost of contextual advertising and tracking conversion indicators of advertising campaigns, every day becomes more and more. KPI, DDR, ROI, CPA / CPO control almost everyone who is important to the effectiveness of online campaigns. But to track this one, and to optimize is quite another. Everyone knows how to lower the CPC, but not all work in the direction of reducing CPA / CPO. But CPA / CPO directly affects the cost of sales, and therefore, the cost of the product/service.
How to reduce CPA / CPO?
There are two methods for reducing CPA / CPO, successively leading to the goal:
- empirical, when clear mistakes in advertising campaigns are removed – end-to-end analytics are adjusted, the quality of the RK is improved.
- system, when professional analytical tools are used to achieve the goal – budgeting and Modeling of sales.
Let’s consider more in detail, step by step, the process of reducing CPA / CPO.
Setting up end-to-end analytics
End-to-end analytics should be – everyone knows this, but few adjust it correctly. Therefore, its testing and pre-tuning is the first and important stage of optimization of advertising campaigns. This is necessary in order to achieve full transparency of conversions and their cost for each phrase.
In an ideally-tuned report, end-to-end analysts should see a chain: the cost of an advertising campaign on the site – the number of goals (conversions) on the site – the number
Checklist for checking the configuration of end-to-end analytics:
- check whether all advertising campaigns have UTM-markup, where the following values must be specified:: source, campaign, term, content;
- pr (Yandex.Direct or Google AdWords) and an analytical platform (for example, Google Analytics, where data on conversions and expenses of a specific advertising campaign are reflected);
- make sure that they are installed and working correctly Google Analytics counters on website conversion buttons (“E-commerce” for online stores);
- set up dynamic call tracking (for those advertisers who can order a product/service on the site via a phone call) to send data about call x in Google Analytics;
- and the most recent and difficult step is to bind or verify the correctness of the transmitted data from the CRM system to Google Analytics (for data transmission by revenue and actual sales).
Analytical system can be any, not only Google Analytics. There are other options, but they are mostly paid, for example, Roi stat.
The execution of all items of the above check-list is mandatory for quality-minded end-to-end analytics. If the advertiser has something not configured or does not work correctly, the data obtained will be unreliable or incomplete.
Improving the quality of advertising campaigns
The quality of advertising campaigns should be measured primarily for to remove annoying mistakes that occur due to the fault of the “human factor”: mistakes in words/typos, missing phrase relevance, lack of quick links, etc. Improving the quality of campaigns will inevitably lead to a decrease in CPC, and therefore, as a consequence, to a decrease in CPA / CPO.
You can measure the quality of advertising campaigns using contextual advertising site mechanisms. There, as a rule, the quality assessment takes place for each key phrase, and there is no possibility of bringing a general report for the whole RK that is inconvenient if the campaigns are large.
If the key phrases are many, then you can measure the quality of the advertising campaign with the help of a solution for the automation of contextual advertising – get a summary report on the RC, where all errors will be immediately visible.
Three main points that should show a good tool for measuring the quality of advertising campaigns:
are the and announcements to all strict rules of the site,
– the received report should be able to easily find those very mistakes and quickly eliminate them,
– looking at the results, you understand how much money was lost, placing low-quality advertising campaigns.
After end-to-end analytics is tuned and there is confidence that all mistakes are eliminated and advertising campaigns are most consistent with all site requirements, it’s time to go deeper and move on to systemic methods of reducing CPA / CPO.
Budgeting of advertising campaigns
There is an opinion in the market that the budgeting of contextual advertising, at least minimally accurate, is impossible.
If the advertiser has collected and fixed statistics on the advertising campaign for at least a month of unscrewing, it is possible to predict the number of achievements of the targets depending on the set CPA / CPO.
In order to calculate a more accurate forecast, the following data on phrases should be collected as often as possible (every 15-30 minutes):
- % of shows on the ground,
- the average rate on positions,
- CTR on positions,
- expenditure on items,
- the number of conversions and the achievement of goals for these phrases.
Based on the received data, using mathematical calculations, it is possible to predict how many goals will be achieved with N CPA / CPO: the rate for each phrase is determined, allowing you to take the most advantageous to position to achieve the objectives.
This modeling sale gives maximum results in reducing CPA / CPO. Having the modeling data in hand, the advertiser can vary the promotion channels (in the contextual advertising – rank the occupied ad positions), reaching the lowest possible price of the contact leading to the sale.
Let’s consider several cases
Daily forecast of test drive orders at the Auto Show
Case task: to find out how to create a media plan for contextual advertising in such a way that it corresponds to how many free resources (machines for a test drive, managers working with visitation in the car showroom at certain periods.
Sushi delivery Daily forecast of orders
Case task: to find out the periods of natural decline/increase in demand for compiling media plan of contextual advertising in such a way as to redistribute budgets from periods of naturally high demand for periods of decline, with CPA without loss of traffic.
Fashion store Daily forecast of orders
Case task: to reveal the dependence of the CTR value on the location of the display of ads. The revealed dependence will allow saving the budget for contextual advertising, varying the places of display of advertisements without significant traffic losses.
As can be seen from the presented cases, modeling sales, you can significantly reduce the average CPA / CPO and zar To draw more, attracting potential customers for less money.
Summing up, one more time about what must necessarily be done with contextual advertising campaigns if there is a desire to reduce the sale price:
– to carry out instrumental control the quality of advertisements,
– correctly set up a through analyst,
– carry out the budgeting of advertising campaigns,
– simulate sales.
For those advertisers who are interested in the effectiveness of their advertising campaigns, we are ready to guarantee a CPA reduction of up to 25%. We are absolutely confident in the quality of our solutions and are ready to answer for the effectiveness of advertising our customers. If we do not fulfill the promised, we will pay a fine covering the unfulfilled obligations.