NJ: How important is cost per click? RW: Search is direct response and some of things that you’ve learnt from direct response press, or direct TV - can be applied in the channel. Cost per click actually isn’t important and people attach a huge amount of value to the cost per click (‘What’s my cost per click?’) and it really doesn’t matter. What matters is your cost per acquisition, return on advertising spend and whether you’re meeting your targets.
Making sure that cost bracket is actually delivering the right return on advertising spend (ROAS). I’ve seen that a lot as well where people will kind of go off and run on a cost per acquisition, they’ll spend a lot of money and then realise actually it doesn’t deliver the return that they need it to in the first place.
NJ: You mentioned testing before, can you offer any tips? RW: You do need to make sure that you’re testing stuff out, whether it’s new keywords, whether it’s different bid levels. Test them out. You can do it quite quickly and you can kind of learn in relatively short time periods. But don’t over-optimise; make sure you’ve got enough data to actually make it a valid test. Again it’s something that I see quite a lot where someone will test it out, they’ll let it run for a few hours, they’ll let it run for a day and they’ve made a decision. And you kind of think ‘hold on, you need to look at that over a week – maybe over a month’.
Think about the actual conversion time window for the product that you’re selling. A good example could be whether I’m selling a mortgage; I’m going to say people aren’t going to click on your keyword and convert in a single session. Different maybe if you’re selling a mobile phone. Again, you need to think about that.
NJ: What issues have you encountered in the search marketplace? RW: People tend to forget it’s an auction. You are bidding against your competitors. You need to make sure that you take account of
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