When carrying out a paid media project (or any other project in general), it is important to keep in mind that the ultimate goal is profitability. In other words, the reason for the activity is to obtain a return, usually financial.
Table of Contents
Automation and challenges
Maximize the number of conversions
Maximize conversion value
Business approach and key questions
7 recommendations before starting an e-commerce campaign
Free marketinginhouse pricing calculator for our services
Automation and challenges
In this field, this is much easier to capture in an e-commerce case, since we have i n our hands Hungary Mobile Number List data with real values of the actions that are carried out. The main problem that we can face is that many times the actions that we carry out can become automated, taking as a reference metrics and KPIs that, depending on the moment, can give us a reality somewhat different from what we are really facing.
A very simple example of this is sales campaigns on Google Ads (although there are many other similar cases).
Whether it is search, display, shopping, maximum performance… When we create a campaign with the objective of selling a product or service, we will have a certain control over the fulfillment of the objective by giving two possible orders that can define the project:
Maximize the number of conversions.
Maximize conversion value.
Maximize the number of conversions
For the first case, it would be advisable to establish a cost per acquisition objective . That is, how much money will it cost us in advertising for a user to purchase one of the products we are offering. If I had to invest €10 to obtain 2 conversions, the average cost per acquisition will be €5.
Maximize conversion value
In the second case, we can establish objectives related to profitability between the value of the conversion (that is, the money we get from the sale) versus what the sale cost us in advertising. If with €10 invested, we obtain sales valued at €20, our return on investment (called ROAS) will be 2.
Once this is understood, it is time to put it in the most business-like perspective possible.
Business approach and key questions
As we have said, the ultimate goal of hiring your services will mainly be Vietnam Phone Number List economic profitability and increased profits. Therefore, it is necessary to ask a very important number of questions to address the objectives in the most coherent way possible. Such questions as:
Average catalog price.
Purchase and sale margin.
If there is seasonality….
Let’s say, for example, that we choose to maximize conversions. After a week we look at the data and see a 30% increase in sales and that our CPA has decreased considerably (from €10 to €6). Great! Right?
Let’s see what we have sold. Most of the sales come from products with a low conversion value, with an average value of €5.
