Nowadays, there are too many marketers who are not analytical enough and do not make decisions based on the data we have available in digital. They act as if they are participating in traditional media, where things are much less tangible due to the lack of transparency and data. This is no longer an excuse. This does not mean that you should always let cost efficiency dictate your budget allocation – for some brands, it is absolutely necessary to get visibility bid for unprofitable keywords (regardless of your attribution model). However, the determination of a correct CPC is something that most PPC books do not address and on the other hand Google, Facebook, etc. They have little interest in helping you (they will be happy to suggest an increase in bids though).

Leaving branding aside, many marketers are running their campaigns on a very tight budget, where the cost of acquisition (CPA) defines the success or failure of the company – at least in the short term.

In these cases, it is surprising that we still find marketers who look at irrelevant metrics as if an ad is displayed in a particular position in the SERP (front page vs. second page or the top of the fourth), or if the target audience a graphic ad (display) works or not. In the world of Performance Marketing, for the purposes of user acquisition, none of those things matters. What matters is the cost of acquisition.

Focusing on this metric does not have to be complicated. A good analysis in Excel is enough. For example, if you are an e-commerce company and know that you can afford a CPA of a certain amount, then it is easy to find out how much you can afford to pay for each click. Your cost per visitor should not exceed your gross profit per user. Depending on your business, you can even set the lowest goal. In that case, it’s simple. First, a couple of definitions for the calculations:

• Cost per visitor = CPC / (1 – abandonment rate)

The abandonment rate is the percentage of people who click on an ad, but for various reasons do not end up on your website. This is a particularly frequent scenario in certain platforms, for example, Facebook.

• Gross profit per visitor = Gross profit per order * Conversion rate

Now, the real calculation. Remember that the highest cost that we can afford per visitor is in the scenario in which the cost of a visitor is equivalent to the gross profit that the visitor entails.

• Cost per visitor = Gross profit per visitor
• CPC / (1 – abandonment rate) = Gross profit per order * Conversion rate

As the gross profit per order in an equilibrium scenario equals the highest cost per order (CPO), the highest CPC we can afford is therefore:

Maximum CPC bid / (1 – abandonment rate) = Gross profit per order * Conversion rate

You obviously will not know your expected conversion rate for a brand new marketing campaign, so you’ll have to make a guess and take the hit if it’s too high in the beginning, and you can optimize later.

Remember, this calculation gives you a ceiling for your expenses, not necessarily a level to aspire to. It is expected to help avoid stupid mistakes like overpaying to stay on the first page of a search engine or show a certain audience on Facebook. You may have other reasons to bid for a different maximum CPC than previously calculated. Such reasons include, for example, lack of budget / financing or if the conditions of the auction indicate that you can obtain the same or almost the same traffic at a much lower price (ie, optimize your profit).

La entrada What is the maximum CPC that I should set in my Adwords campaigns? se publicó primero en The Centria Group.

But what is virtual reality? is the use of computer technology to create an accessible environment from anywhere in the world with the use of a VR device (glasses, smart phones, headphones, gloves or controllers, which will be necessary to help bring this virtual world to the lifetime). It allows the user to be transported, interact and explore any environment imaginable in 3D and with a 360 degree view.

The VR audience extends beyond children and adults who just want to play. With the number of users already active VR, is expected to increase almost six times between 2016 and 2018, to more than 170 million people, it would be appropriate to say that VR devices are on track to become an element of the house. The technology can be used to create comprehensive films, give life to spaces to give the bride a preview of what will be the day of their wedding, try a new car before reaching the showroom or even be the basis for a new form of interactive social networks The possibilities are vast, and we will discover more of it as this progresses.

But, why is VR a good tool for marketing?

The nature of VR allows unequaled levels of commitment between its content and the viewer, why?

VR is immersive – Eliminates distractions from the environment

VR is shocking – It’s an intense experience.

VR is memorable – Create a lasting experience in our brain.

VR is a novelty – As a novelty, it could offer or lead surprising levels of exposure to experience and the potential to want to share it.

Now, how can I incorporate VR into my marketing campaigns?

Definitely would have to take into account certain factors:

1-Is your customer base receptive to new technologies? (Take into account things like age range, income, location and technology)

2-Is the VR technology available to you, and your company is ready to invest a large budget in a VR campaign?

3-Is your technology team capable of handling a VR campaign? Or will you have to hire outsiders to help?

If the case is that virtual reality definitely goes with you and your company, then this will be part of what you could do:

Campaigns 360 videos

https://youtu.be/aC-88blEz6s

Create apps VR

Transform your product packaging into VR technology

https://youtu.be/Wuln2bJkp1k

Create VR experience

La entrada Virtual Reality (VR) and Marketing in 2017 se publicó primero en The Centria Group.

1- Generate traffic on the web

In Inbound Marketing we apply an effective natural positioning strategy in the webs (corporate website, blog, social networks …) The relevant keywords, associated with well-referenced contents are fundamental for a better global visibility. In this way, the audience, interested in your area of ​​expertise, will be able to access your websites more easily thanks to a relevant positioning at SERPs level.

In an Inbound Marketing strategy, social networks also play a key role in attracting traffic. It is important to use them to promote your content and strengthen or build a stakeholder.

2- Transform traffic into leads (leads)

In an Inbound Marketing strategy, this transformation is a key step.

How to seduce your customers and your potential customers and therefore develop your own database? The principle of «Call to Action» will be decisive.

When visitors arrive to your website, do not hesitate to offer them several fields of action (without losing them): games, registration to newsletters, Premium content … They are simple and help to create enthusiasm for your content. By filling out a form, the client obtains quality content, and you get a contact that will allow you to build a quality database thanks to the secrets of Inbound Marketing.

3- Transform a lead into a client

This last stage of Inbound Marketing is based on the set of media that allowed you to reach your marketing objectives. Objectives in which the most important thing is brand recognition. With the help of Marketing Automation techniques such as emailing campaigns, sms, or geofencing, the client will be informed about the service offered. In this stage, the quality of communication actions must match the quality of the potential client.

Inbound Marketing: «More like seducing, not imposing»

It is important to remember that unlike Outbound Marketing that tends to be too «aggressive» with potential customers, Inbound Marketing encourages you to be curious creating relevant content for the client. You have to seduce, not impose. The results will come naturally and customers will be more open to your proposals. Inbound Marketing easily meets the qualitative objectives of the audience thanks to the quality content. Unlike Outbound Marketing, which prioritizes quantitative objectives, by wanting to reach a greater number of potential clients.

La entrada The 3 key stages of an Inbound Marketing strategy se publicó primero en The Centria Group.