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Paid search cannibalization, PPC cannibalization | Radium

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Calculate your break even cannibalization percentage For whatever reason testing may not be an option for you. If this is the case I suggest you perform a rough calculation to determine the level of cannibalization you can stand before net profit decreases. While this isn?t as good as the actual test, it will give you the degree to which cannibalization will effect your campaigns. To simplify the process we?ve built an Excel spreadsheet that will compute organic search cannibalization break even percentage by keyword based on your campaign results.
Paid search cannibalization, PPC cannibalization | Radium - radiumlabs.com - Your Highlight Location 59-63 | Added on Monday, 19 August 13 15:20:15
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Conversion attribution We often credit the sale to the last source the customer touched; however, an experienced marketer will tell you the customer conversion cycle is not a simple 1 to 1 relationship. Often it takes multiple sources to convert a prospective customer into a sale. If you dig a little bit deeper, you may find that some of your sales come from customers that have clicked on both your organic listing and your sponsored ad. You need to be careful that you don?t attribute the entire sale to one medium when it should be partially attributed to both.
Paid search cannibalization, PPC cannibalization | Radium - radiumlabs.com - Your Highlight Location 32-36 | Added on Sunday, 18 August 13 00:46:09
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The key is to measure the conversion rate of both organic and paid search. If your paid search campaigns have a higher conversion rate you will be able to tolerate a higher percentage of cannibalization.
Paid search cannibalization, PPC cannibalization | Radium - radiumlabs.com - Your Highlight Location 21-22 | Added on Sunday, 18 August 13 00:04:19
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On the surface, paying for free clicks seems like a dumb thing to do, something that was once free now costs me money. However, the degree to which paid search is stealing sales from organic search isn?t the only metric you need to measure. Below are 6 factors you should consider before pausing your paid search campaign. - Conversion rate differences - Average sales price differences - Cost per click (media spend) - Conversion attribution - Lifetime value of a customer - Competition
Paid search cannibalization, PPC cannibalization | Radium - radiumlabs.com - Your Highlight Location 12-15 | Added on Sunday, 18 August 13 00:01:03
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2. Average sales price differences Similar to conversion rates, you may discover that the average sale price for organic and paid search traffic differs. Again, because you choose what page to direct a visitor to, you also select what products/services to highlight. If paid search has a higher average sales price, you can tolerate a higher cannibalization percentage.
Paid search cannibalization, PPC cannibalization | Radium - radiumlabs.com - Your Highlight Location 25-28 | Added on Sunday, 18 August 13 11:08:26
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The most accurate way to determine cannibalization levels is to compare organic search sales with your paid search campaigns turned on and turned off. If you compare two like periods (i.e. no seasonality, promotion or advertisement differences exist) a loss in organic sales can be attributed to paid search cannibalization. Don?t be alarmed if some degree of cannibalization is occurring. If your keywords rank organically in the top 5 positions most likely you?ll experience some level of cannibalization. But keep in mind, the key factor is not the cannibalization percentage itself but your overall net sales. If net sales are higher in the period with paid search turned on, then even with cannibalization you are better off employing both paid and organic search. Please note when you compare differences in paid and organic search, you should do it at the individual keyword level, not the overall campaign. This will account for keywords differences.
Paid search cannibalization, PPC cannibalization | Radium - radiumlabs.com - Your Highlight Location 52-59 | Added on Sunday, 18 August 13 11:07:44
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How to determine cannibalization levels
Paid search cannibalization, PPC cannibalization | Radium - radiumlabs.com - Your Highlight Location 52-52 | Added on Sunday, 18 August 13 11:07:29
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5. Lifetime value of a customer When analyzing your search marketing efforts, consider the lifetime value of the customer not just the initial sale. At Radium, we have numerous clients that generate the bulk of their sales from direct traffic from existing customers. Even if they pay a little more initially to capture the sale, over time the ROI for this lead will increase because the customer purchases additional goods with no (or very little) additional marketing dollars.
Paid search cannibalization, PPC cannibalization | Radium - radiumlabs.com - Your Highlight Location 38-42 | Added on Sunday, 18 August 13 11:04:24
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