By using display advertising in conjunction with search, advertisers are likely to see a lift in conversions. Many consumers convert on a site where they are familiar with the name of the company.
In addition, if a consumer sees a display ad, they are apt to go to a search engine and research the company; this leads to a higher lift in searches. Since the visitor is already familiar with the company, they are most likely doing a branded search, which tends to be much more qualified traffic. Consumers interested in your products may just want to find out a little bit more.
For example, a person might see a display ad for a new hybrid car. If the person wants know more, they may go to a search engine and look for that specific car to learn more.
Participating in simple search advertising has some limitations because the ads that appear are restricted to just what people are searching for. People on the internet don’t know what they don’t know; so display advertising in conjunction with search engine marketing is a great way to get your name, products and services out across the internet. Running search ads can also lend to the credibility of a company if visitors see a display ad and do a search for it.
Using both display and search engine marketing can help people find businesses, products and services when they may not be searching online and lead to an increase in branded searches as well as an increase in conversions.
Do you know the value of a conversion? It may seem like a basic question, but there are many factors to consider.
For example, ecommerce advertisers may determine the actual value of a conversion as the purchase price of an item. If a person buys a $100 widget from your site, then the value is $100. But in the real world we know there are other expenses incurred including overhead, shipping, etc.
If you are participating in online advertising, a way to calculate a value of a conversion is to look at Return on Ad Spend (ROAS). ROAS is simply dollars sold divided by dollars spent. It means how many dollars you are getting back for every dollar you spend. Going back to our widget example, if an advertiser spent $20 for advertising on that widget, the ROAS would be 5. 100/20 = 5. For every dollar you spend, you are getting $5.
Return on Investment (ROI) is another way to calculate a conversion’s value. The formula for ROI is (Revenue — Spend) divided by spend. This is a way to determine what percentage of spend you are getting back as profit. If you spent $20 on advertising a widget that sold for $100, to calculate ROI take ($100-$20)/20 * 100 = 400%. ROI should be as high above 100% as possible. Also, remember to take the lifetime value of a customer into account when examining the value of a conversion.
Regardless of how you measure your success, the important thing is that you are taking steps to track and improve results. Making sound decisions on what efforts are working and not working will surely help to boost your bottom line.
Foursquare is an application (app) for your iPhone, Android, Blackberry, or Palm that takes social networking to the next level. Users can update their location and send reviews about their favorite hangouts. This app uses a list of restaurants, bars and nightclubs and it integrates with Yelp and Google Maps, making it ideal for quick reviews and directions.
Foursquare lets other users know where you are. You can even “check-in” someplace to let your friends or social contacts know you are there. You can also let them know any specials or other things to do nearby. There is a competitive element to Foursquare that creates engagement. For example, you can earn badges and points for each action you complete, including “checking in” or becoming the “mayor” of a location. As more of your friends use Foursquare, you will learn more and more about the places they frequent and you can discover new places.
Foursquare goes beyond the typical online reviews seen in directories. Got a favorite local hangout? Local businesses that use Foursquare begin to recognize patrons and reward them with special offers, deals and incentives. For example, a restaurant engaged in Foursquare may want to offer a devoted customer free coffee, appetizers, ice cream or otherwise. Businesses should take this and other opportunities like Foursquare and run with them. Reward customer loyalty. It is a great way to get repeat customers and gain their social contacts as customers through word of mouth recommendations.
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