Online marketing - what are you finding works these days?

Discussion in 'Starting & Running a Business' started by Biz, 30th Oct, 2015.

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  1. Ace in the Hole

    Ace in the Hole Well-Known Member

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    ****, 25% of gross profit on Adwords?
    Sounds a lot if selling physical products, but can understand service providers spending big percentages of profits.

    We are predominantly an online store and bumped up Adwords and SEO budget to 5k/month and sales have exploded.
    All marketing budget is less than 1% though.
    We used to only spend 1-2k month up until about 1 year ago.
     
    Ace in the Hole, 6th Dec, 2015
    #41
  2. Simon Hampel

    Simon Hampel Founder Staff Member

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    Do you have full analytics tracking which ties sales back to advertising spending?

    If you can show that you consistently generate more than a dollar of revenue in sales for every dollar spent in advertising - then surely you can just keep ramping your spending up indefinitely? Or at least until you reach saturation point??

    If (for example) you're making something like $8K/month from spending $5K/month on advertising - will you make $16K/month from spending $10K/month? How about $32K/month from spending $20K/month ??

    Obviously, you need to be sure there is sufficient market for that volume of sales, and you need the capital to be able to spend too.
     
    Simon Hampel, 6th Dec, 2015
    #42
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  3. Biz

    Biz Well-Known Member

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    Actually it is around 15%, made a mistake there... Would like to get it back down to around 5% which I had a few years back. The trend just seems up up up when it comes to online advertising spend.
     
    Biz, 6th Dec, 2015
    #43
  4. Biz

    Biz Well-Known Member

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    You tend to drop conversion rate the more broader the terms you chase. Ideally you want to rank organically for those.
     
    Biz, 6th Dec, 2015
    #44
  5. Simon Hampel

    Simon Hampel Founder Staff Member

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    Of course.

    I was more referring to the situation where you have a good set of targeted keywords which are showing good positive returns on investment for spending $X and was suggesting that perhaps spending $2*X or even $3*X or more may be able to ramp up those returns - simply increasing monthly spend (for same click cost and keywords) as opposed to broadening your terms or changing other parameters.
     
    Simon Hampel, 6th Dec, 2015
    #45
  6. Biz

    Biz Well-Known Member

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    You have to experiment with positions. Yes you can spend more to get the top spots, you will get more traffic but more people just browsing too. Traffic might be 20-30% more but conversion rate drops. Depends on what you are selling. If its a physical product it might not be worth it to target those spots but if I was a tow truck driver targetting break downs you would want to be right up there because people are not going to bother looking at spot 6.
     
    Biz, 6th Dec, 2015
    #46
  7. Ace in the Hole

    Ace in the Hole Well-Known Member

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    For us it's really difficult to measure accurately, as web sales are not the only method of sale offered.
    Less than 1/2 our revenue comes via website sales, even though we are predominantly an internet business.
    The rest comes from phone orders, walk in sales, email enquiries, etc.
    Also, there comes a point where you current structure simply can't handle any more workload, so no need to advertise more than required.
     
    Ace in the Hole, 7th Dec, 2015
    #47
    Simon Hampel likes this.
  8. Matthe_w

    Matthe_w Active Member

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    Hey guys I came across a guy called Gary Vaynerchuck CEO of wine library and Vaynermedia. He is a guru on marketing amongst other things and would probably bring a lot of value to the people reading this thread.

    He has a YouTube channel, podcast, very, very active on Twitter, Instagram, Snapchat, Medium etc etc. Check him out let me know what you think


    Cheers.
     
    Matthe_w, 7th Jan, 2016
    #48
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