For each business in an unstable economic and political situation, the priority is to maintain its market position.
To do so, it is necessary that:
- Your offer is competitive in price;
- Your offer is competitive in terms of service. It is important not to lose loyal customers;
Your advertising must be effective. Making it effective does not mean cutting budgets at all. Simply cutting your budget means you lose even less orders, less money, which leads to a new round of cuts and budgets. And so until budgets and sales go down to zero. How to reduce advertising costs wisely, see below.
The funnel of buying and what is model advertising
Everyone, I think, knows the sales funnel – the path your website visitor takes and becomes (or does not become) a buyer. Let’s try to look at the funnel a little differently: the path an Internet user takes from the moment they decide to buy something to the moment they reach your site (or not yours).
Let’s say some hypothetical user (let’s call him Jack) decided to buy a bike by spring. Initially, he will make the primary choice of bicycle – to study what kind of bicycles are or, for example, look for pictures (such as the neighbor Bob).
At this point, as an advertiser, we can show the bike ad and bring Jack to the store’s homepage or the bike category page if it’s a multi-market. The intention to buy from Jack is still very unformed, the conversion rate in this case is very low, below average and is about 0.2-0.4%, depending on the subject, the quality of the site itself and other factors.
When Jack has already decided on the type of bike, he will ask in the search bar something like “Buy a mountain bike. In this case, we advertise the category page.
The next level of detail on the search is product category and brand. For example, “Buy a Bicycle Author”. The conversion rate in this part of the funnel is average – up to 1%.
And when Jack has made his final decision about the product, he is looking for a store to spend his money in. He asks for a product by a specific name, for example, “The Author Vectra II 18” bicycle is black.
The conversion rate for such exact requests is 6%, which is 20 times higher than at the initial stage of the funnel, but you definitely need a good free web hosting for your website to be available 24/7. The user involvement at the bottom of the funnel is therefore more efficient. The more efficient the announcement is, the more accurately it meets the user’s needs and expectations. This is called a model ad.
Model advertisement possibilities
Let’s imagine an average store with 10,000 items. Model advertising means that you will have 10 thousand ads – for each individual product in your store shows its unique ad.
In this ad specifies the exact name of the product, the price of the product (the same as on the site), the ad leads the user to the page of the product, which is written about in the ad and which the user was looking for.
If a product at some point disappears from the range – an ad for this product automatically stops and no longer spend the advertising budget.
All the advantages of model advertising require a huge expenditure of resources to maintain the relevance of advertising. Automation is needed.
Automatic update of ads for a store with an assortment of 1.2 thousand products takes 30-40 seconds, while scripts need up to 20 minutes for data processing. If the volume is more than 30 thousand items, then manual handling is out of the question, and scripts need to be technically sophisticated. Whereas full automation takes from 3 minutes to several hours with large data volumes.
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