Mini Case Study: Reducing cost per lead while increasing traffic Print E-mail
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Written by Daryl Michalik   
Wednesday, 14 January 2009
Reduce Cost Per Lead & Increase TrafficIn the quest for the holy grail of search marketing - more revenue at a higher profit margin - sometimes we get caught up on the details (i.e. the latest search engine wrinkles or capabilities, the newest tactic recommended by an expert, etc.). While knowing these details is certainly important to your success, I thought I’d step back for a moment and review the higher level strategies that are proven to work.


I was recently speaking with a B2B customer who had successfully turned around their search engine marketing program. I asked the customer, "What were the three main things that enabled you to hit your higher lead targets while at the same time getting cost per lead below your company's hurdle?"

Here's what the customer said:

1) "I started using search engines other than Google. Every other search engine we use (i.e. Yahoo, Looksmart, AllBusiness, etc.) they all have better cost per leads than Google. That's because per-click costs are lower, but I also see higher conversion rates from Yahoo than I do from Google."

LESSON: Yes, Google delivers the most traffic. But everyone knows that, so Google's prices per click are very high. If you only use Google you are missing out on a huge opportunity to improve your ROI by using less competitive search engines.

2) "I pruned the deadwood (poorly performing keywords). This was the most time-consuming part."

LESSON: Paid search is like a hydrangea plant: regular pruning helps it grow. One trick you can use to get the most bang for your time spent - start with keywords that cost a lot but have zero conversions.

3) "I optimized our landing page forms. Basically we reduced the number of required fields."

LESSON: Spending money on paid search is wasted money if you do not first optimize your Web site's conversion process. There's a lot of literature out there about how to do so, and the most basic point is: the less effort it takes to complete that process, the more people will actually complete it.

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About The Author

Daryl Michalik is a product manager responsible for Lyris HQ Search Marketing and client services. He has over 6 years of experience in online marketing and Web analytics, plus a background in strategic marketing, financial analysis and product marketing.

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Comments (2)Add Comment
Marketing Director
written by Jan Wagner, January 19, 2009
Daryl,

Article is very interesting. I have about a $12MM online buy and we don't know what we are doing, frankly.

Jan
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Paid Search Marketing - Search Engines
written by Chris Adams, January 15, 2009
Great article Daryl - it's all about optimization, analytics and taking action!

For our international readers, I would like to add a few search engines to consider for your global search engine strategy. MSN has a great relationship with Sympatico.ca in Canada. Sympatico and Rogers (Yahoo!) are two of the most popular portals in Canada.

Also MIVA is a great pay-per-click engine that can be used in North America but it is one of the best ways to get visibility in Europe. With MIVA - you gain access to all of the large European portals.

Cheers, Chris
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