Med izvajanjem oglaševalske akcije smo opazili, da je precej visok strošek na klik, ko smo za strategijo plačevanja uporabili predlagano varianto s strani algoritma.
During the advertising camoaign, we noticed a relatively high cost per click when we applied the billing method recommended by the algorithm. The system suggested the CPMAV model (Cost Per Mille Active View), which charges per 1000 impressions where at least 50% of the ad is visible for at least one second.
This resulted in a high number of impressions, but very few clicks, ultimately leading to a high cost per click.
After switching to the CPC (Cost Per Click) method and setting the target cost at €0.08 per click, we achieved three times more ad clicks for the same overall budget. In other words, we generated three times more direct visits to the website.
Does more traffic mean more sales?
Marketing follows business strategies and goals, which means every metric we track ultimately serves one keey question: will it help improve the overall sucess of our organization?
An increase in traffic does not necessarily translate to greater success, as it also increases the likelihood of attracting visitors who come to the online store for other reasons and do not make a purchase.
Should e change the billing model in digital marketing and advertising?
In our case, all other paramenters of the advertising campaign remained the same. We are still targetng the same audience with the same content and the same offe.
If simply changing the billing model leads to more visitors to the online store, the answer is of course affirmative - it's worth changing the billing model. This, in turn, results in more sales, as reflected in our client's business data.
The effectiveness of algorithms in digital advertising
Algorithms are particularly successful in the area of marketing known as creativity. By combining various texts and media materials (such as images and videos) un countless ways, and sidplaying these as different ads to an incredibly large audience, it is statistically possible to determine which combination works best in driving clicks.
However, algorithms often lack data (due to GDPR and other regulations) regarding which of these clicks eventually lead to purchases. As a result, the reliability of audience targeting optimization is somewhat lower that what would be ideal under perfect conditions.
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