LEAD YOUR PAID MEDIA PLANNING WITH COST PER LEAD

Here’s the story of the ultimate chicken and egg in the world of paid media lead generation: how do you forecast your cost per lead (CPL) when you don’t have any historical account data as a benchmark?

Let’s establish why it’s important to set firm cost per lead targets in the first place, even where no prior data exists. First, a concrete plan to achieve expected revenue or profit goals will focus everyone’s mind and provide a tangible target to work towards. Including a cost per lead target is an integral part of this plan – after all, if you don’t have this defined there is very little basis determining the level of budget you should be using to achieve your business targets.

Planning any paid media campaign without a cost per lead target is like driving blind (and without any sat nav to guide you).

There are numerous blog posts and other sources on the internet which will at least give you a rough idea of a typical cost per lead benchmark for your vertical, or tap into your LinkedIn network or peer groups to get hold of this information.

A second important aspect to note here is that cost per lead varies considerably by channel for instance, across AdWords, Bing Ads, LinkedIn or Twitter advertising, so don’t assume one size CPL fits all. Thirdly, consider the type of brief your paid media campaign is working to – prospecting will require a much bigger investment per lead than remarketing. And fourth and finally, do make sure your conversion tracking is set up correctly before your campaign launches.

Once you have worked out this detail it is critical to devise a good strategy for how you are actually going to achieve your CPL target – for example by continuously adjusting your bids based on campaign performance, so that you are not paying top dollar for traffic which doesn’t deliver on efficient conversion.

Fast forward a week or two: you’ve written your battle plan including a cost per lead target; you have launched your campaign – now you can use the data that is streaming in to resolve initial challenges, helping you to troubleshoot and fix them early on in the campaign cycle. For example, is your cost per lead a lot higher than you had anticipated? Is this driven by a particularly costly but under-performing keyword? Are you using engaging and relevant ad copy? Are you making it as easy as possible for your potential customers to turn into a lead?

Based on the performance data the forecasting should be adjusted on a quarterly or ideally monthly basis. There will be external factors such as advertiser competition which will affect your cost per click and ultimately your cost per lead, so it is, therefore, important to tweak your targets and be as relevant and realistic with it.

It’s a simple story, in the end, to plan based on CPL. But don’t just make yours a work of fiction – bear in mind that an ambitious CPL target can spur you on, but an unrealistic is more often counterproductive for you and the business in the end.

3 IMPORTANT CONSIDERATIONS FOR YOUR FIRST PPC CAMPAIGN

While Paid Per Click (PPC) might be sounding more fantastic by the minute — not so fast! If you think you’re ready to dive into the world of PPC, here are a few considerations to explore before you start:

1 – You need to know your product
To sell a product successfully you should know it well. Your landing page needs to reflect that knowledge. Your goal is to build trust with potential customers. If you don’t know your product well then how can you sell that product to others?

2 – Harvest local keywords
Keyword research should reflect the local culture of your target market. It is important to understand which words have the most positive association and are the most “clickable” in the given context and location. The best way is to capture actual search queries and turn those into effective keywords.

3 – Focus on the right metrics.
Lack of tracking or focusing on the wrong metrics can be detrimental to any campaign. Regardless of industry and business type, tracking, analysis and testing should always form a big part of the equation. Without these components, a PPC campaign can easily fail.

So, are you beginning to see how PPC is a viable marketing channel for your brand? Even if you’ve never done it before, throw caution to the wind and test it out in 2017.

If you are thinking about implementing a PPC campaign and aren’t sure of the best way to do so, drop us a line at hello@hitfirstbase.com and we’ll be happy to have a chat with you.