Calculating the Deliverability Cost of PPC Leads - Part 2 Print E-mail
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Written by Josh Aberant   
Friday, 06 June 2008
Calculating Deliverability CostsIn my last post, I discussed how deliverability can be improved by tracking the effects of your Pay Per Click (PPC) generated data on the deliverability of your emails. This is done by attaching a source code to an email address that was generated by a PPC campaign, thus matching the email address to the specific PPC campaign. The next step is to add a deliverability cost into the PPC campaign costs by adjusting the value of the leads.

There are two primary ways online marketers can adjust the value of a lead with deliverability costs - and they really are mathematically equivalent. Many marketers are already assigning a value per PPC lead generated into their cost calculations to track the effectiveness of their PPC campaigns. In this case, a marketer can simply reduce the value of a lead based on the negative deliverability effects - complaints & bounces - measured and attached to the PPC campaign.  In other words, subtract the negative results from the total number of leads generated and calculate the value of a lead based on the NET lead generation number. 

The other way that many marketers are measuring PPC isn’t to attach a value to the individual lead but to attach a revenue number to the overall PPC campaign and then look at the cost of the campaign as a whole. In this case, deliverability costs can be built in by simply increasing the cost of the PPC campaign as a whole based on how many bounces and complaints the PPC data generates. Both of these approaches are mathematically equivalent and which one you use is really a matter of how you currently quantify the success of your own PPC campaigns.

We’ve now covered how to measure and then build deliverability costs into your PPC campaigns where the deliverability cost is based on the complaints and bounces the PPC data generates. Of course, the next logical question is: "What specifically - in dollars – is the cost of a bounce and the cost of a complaint?" And that is the question I’m going to address in my next post.

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