Blank Truth About Traffic 2

Blank Truth About Traffic 2

Buying Traffic: What Makes Some Traffic More Valuable Than Others?

 

2 Factors combine to determine the value of traffic:

 

1. Volume of traffic

 

2. Quality of traffic

 

Responsiveness: how often the target audience thinks about the particular topic…

 

Past behaviour: buyer vs. non buyers

 

Eg. Groupon – turned down 6.5 billion from Google. Not only do they get volume- but some of the highest quality traffic possible- traffic that is looking to spend money!

 

There‟s an inverse relationship between targeted traffic, and quantity. Eg. Much smaller group of super targeted traffic…then general traffic, which may consist of a lot more ‘tyre kickers’ etc.

 

Less targeted= greater quantity… but less responsive. More work is required to convert this traffic. Therefore not as valuable

 

Buying Traffic = Buying Clicks:

 

Not All Clicks Are Equal

 

Common mistake: Treating all clicks as if they were the same…

In some cases, $2 clicks can be worth more to your business than 10 cent clicks- based on how they convert.

 

THE BUYING CYCLE:

 

This is what you call the buying cycle.

 

And here on the left- this is someone just starting to browse, who is curious.

 

And on the right, is someone who is ready to buy, looking with a credit card in hand.

 

 

Awareness, consideration, interest, preferences, purchase.

 

Example: Buying A Car

 

It’s like when you decide to buy a car. Rarely do you wake up one morning, and say “hey- I think I’m going to go buy a new car today! ”

 

Usually- it’s a process. You start to notice that your current car is getting old… the engine doesn’t sound too healthy… the paint is fading… you start to think how it would be nice to get a new car.

 

The engine breaks down. You get it fixed, costs a lot. It then breaks down again.

 

You start to notice new cars being advertised… you start to pay attention to the prices (Awareness)

 

You wander into a car yard out of curiosity… You start looking at different makes and models (Consideration)

 

You find a make you are set on (Interest)

 

You choose the colour (Preference)

 

You buy (Purchase)

 

Fixed Cost Advertising Vs. Performance Based Advertising:

 

Fixed cost is when you outlay an upfront amount for your advertising, and that amount is fixed… Eg. Banner Ads, news paper ads, ezine solo ads

 

Your only goal with Fixed cost media, is to maximise response.

 

Performance Based Advertising:

 

This is where you pay every time someone takes an action.

Eg. PPC, CPA, PPV

 

You pay based on response- there‟s no upfront investment.

 

Your Goal Is To Get The Most Targeted Response.

 

You want to be getting the people who are right at the end of the buying process- the most targeted clicks your money can buy.

 

PPC ON THE SEARCH ENGINES VS. PPC ON FACEBOOK.COM:

 

Advantage of PPC on the search engines- is that based on the keyword- you can tell where they are up to in their thinking process- or you at least have a very good idea.

 

Why is that important?

 

“Always enter the conversation already taking place in the customer‟s mind.” – Robert Collier

 

With Facebook:

 

Clicking on a ‘Like’ button gives us a clue for where these people could be at… but, it’s not very revealing at all.

 

So what it means is that the clicks you buy on Facebook, are never going to be as responsive as the clicks you would buy on a search engine at this stage.

 

If you gave me a choice between buying a click on Facebook, from someone who ‘liked’ a fan page… and buying a space based on the keyword they typed in- I’d take the keyword every time.

 

So, whats the big deal about Facebook PPC?

 

The two big advantages that Facebook has over all the other traffic sources, is number one, volume.

 

They have more than 680 million users now- and many of them log on every single day.

 

*** The second big opportunity- is that the traffic is still very cheap.

 

The clicks do not yet reflect the market value of what they are worth: but the window of opportunity is closing… fast.

 

The Best Option

 

TURN THE CORNER MARKETING:

 

When marketing on Facebook, you’re marketing must help create the need, by pointing out the problem… and „agiitating‟ (eg. consequences). There are no keyword clues here.

 

Problem > Agitate > Solution

 

the problem that your product can solve- so, before you make a sale, you must first build the case that they have a problem, and need to do something about it.

 

The ability to reach out to and convert those who are actually less targeted. Why? Much more of them.

 

Involves making the prospect aware of a problem they’re not already aware of, and making that problem highly personal. Getting them to realize it has a much bigger impact on their lives than they realize.

 

Think Of Your PPC Ads As Employees…

 

PPC Ads are like your own team of sales agents- who are paid on salary, not commission (not like affiliates, who are paid only on commission).

 

If someone clicks on your ad, and that person does not buy, then you still have to pay that sales agent.

 

You fire your non-performers (stop the ads) and reward the performers (invest more money in them)

 

“Starve the ponies, and feed the stallions…”

 

This is 80/20 at it’s extreme…

 

Most dangerous fallacy in modern business, is the 50/50 fallacy…believing outputs are an equal result of all the inputs…

 

Eg. spend $500 on advertising…and assume all different ads contributed equally.

 

COST PER SALE & TRACKING RIGHT DOWN TO AD:

 

Don‟t judge ads and traffic source only on CPC!

 

You need to be able to track from ad right through to when the sale is made.

 

What‟s Important: It‟s not what you pay for your traffic (eg. Your CPC).

 

It‟s the average Cost Per Sale from that traffic source that‟s important.

 

On average, how much do you have to spend to acquire a customer from that traffic source?

 

Most have no idea, and are only measuring on the „surface‟…

 

To Wrap Things Up…

 

Stop chasing after traffic. Instead, start monitoring Average Visitor Value, and focus most of your attention on improving it… the future of your business depends on it.

 

Track all of your traffic, right down to the ad. Find out which ads are making you money, which are costing you money, and adjust accordingly…

 

Approach Building Your Business Like The Wright Brothers Approached Building A Plane. Don’t Be Langley!

 

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