As you probably know by now, each of your potential customers is absolutely unique… just like everybody else! Before you come along with your online ad, they will each have their own particular awareness of your field, and existing level of demand (which may be nil) for your service.
This can make budgeting for digital advertising an extra tricky process. There are potential weightings across all the main platforms, and the measurements involved can seem complex to start with. For example, perhaps somewhat counter-intuitively, working towards affording a higher cost per click is desirable. (See our earlier post, which explains this in more detail.)
Fortunately, ARK Advance has developed visual tools to help apply your own business parameters, and guide you to a sound, logic-based decision.
The ARK cone
The first tool is the ARK cone, which breaks down your audience into segments that you can target specifically using ad platform metrics. The amount of traffic within each segment increases as you work down.
At the top are those potential customers classified as highest in intent through their prior website behaviour. They have visited your website and taken steps to indicate that they are ready to make a purchase.
Next down the list is those who have engaged in actual search activity for your service recently, and then those who have prior search behaviour on the same or a similar topic in the past.
Further down again, we have the “look alike” or people similar to the customer contacts you have already, and then those you can target by their demographic details (age group, sex, location and so forth). The bottom segment is “interest targeting”, where the audience just has to have shown interest, however passive, in your field at some point.
Each of these segments can be found across the main advertising platforms available.
These classifications are important not only from a targeting perspective but also from a conversion rate and cost basis. For instance the average conversion rate for each segment is likely to be higher the more “intent” they have displayed. This means that in theory you can afford to spend more per click on some groups than others..
It also means that when reaching out to the lower intent levels like “interest targeting”, you’ll want to keep your cost per click low – but also get smart about your messaging. This group can’t be relied upon to already know the benefits of what you’re selling, so you’ll be looking to set the stage for them by capturing their imagination and piquing further interest.
The ARK slider
The companion to the ARK cone, the ARK slider is graded similarly to indicate how much you should spend per click at each level.
Let’s say you’re a service business hiring out golf equipment. If you are able to remarket to past visitors to your site, who partially filled out their order form, those clicks are worth most to you in their conversion potential. That would take our slider up into the top deep blue zone.
By contrast, if you’re reaching out to both men and women aged 18-75 around New Zealand who have at some stage indicated, say, an interest in golf – this is a wide net and you will not be expecting the same conversion rate per click.
This takes our slider down into the white zone, so you’ll be looking to minimise your spend while making your message as intriguing as possible. (More on targeted messaging in our next issue!)
When you have a good grip on your marketing fundamentals, these tools can be your guide to forming an integrated digital marketing strategy to enable you to buy clicks with confidence to enable you to profitably grow your company.
We at ARK Advance are here to help. Call us today if you would like more help with the Cone or Slider and how it relates to your business. This is what we do, it is our passion and we can be your extra pair of expert hands – giving you more time to do what you do best.