Friday, February 26, 2016

The value of a click?
How much is a Click in Email Marketing worth? Different models exist in attempting to answer this, each with their own benefits and challenges. In all cases, the ultimate outcome is determining its direct correlation to an increase in revenue. However, increases in revenue are not always simple to calculate, since ad-driven, Omni-channel and BTL/Trade promotions are key revenue drivers which confuse attribution models.

The ultimate goal of the email marketer is to move subscribers down the conversion funnel. To accomplish this, the marketer needs to have a clear understanding of each tier, so they can identify and address the barriers and  generate as many conversions as possible.
To arrive at the value of a click, Email Marketers can borrow from the Display world. Pay Per Click and Email Marketing are different disciplines. Email Marketing is a relationship-based brand building program - long term trust is established, which drives purchases and repurchases. By contrast, Pay Per Click is a lead generation tool, the costs of a Pay Per Click Program scale with success. While transactions are often completed, long-term loyalty is not always built for the brand. Moreover, despite the clear differences between Email and PPC, they often compete for the same budgets.

At AudiencePoint we have asked the question, “What is the value of a Click?” Within the email paradigm, a general rule-of-thumb number is difficult to arrive at, as each marketer is unique in terms of brand voice, industry, language, value prop, promotional philosophy, seasonality, cadence and frequency.

Although the cost of acquisition for a click is different than the brand-building value of a click, an alternate monetary value can be arrived at by asking the question, “What would it cost me to acquire a lead in a different channel?” Here’s what we discovered about Clicks within the PPC channel.

I scanned my inbox for a Subject Line and Preheader that resonated for me:

I looked for keywords that evoke a response.

After I opened the email, I decided that the offer was relevant, and I am now the proud owner of sparkling, new spring jacket that will keep me dry. #email_marketing_win

Like any discerning customer, I visited my search engine and typed “Spring Outerwear”, because I want to see what is new and fresh. Somehow, via marketing magic, the top spot on my search results are from the same brand as the one in my Inbox.

Going through the same motions, I click through, and purchase a second, identical jacket.
When I clicked on the keyword in the search engine, there was an organizational cost associated to the Click paid to the ad network. But for the sake of discussion, both journeys produced a sale. What if I had not purchased a jacket? There was still a cost to move me down the PPC Conversion Funnel.

Keywords within the Subject Line and Preheader would often be the same keywords that would be published within an advertiser’s network and have a cost associated with them.
After the keywords were identified, they were fed into the advertiser network to arrive at the value of a Click. In this case, it was $0.19.

For the purpose of this calculation, Clicks were manufactured and have no reflection on the brand’s actual Click total. But, if this brand wanted to get 84,000 clicks via PPC, the equivalent cost within the network would be $15,960.00.The value your brand is not spending on PPC could be included when determining success and allocating digital marketing budgets.

Although Email and PPC are clearly different disciplines, AudiencePoint is asking the question, “Would this kind of alternative model provide value?” Assigning a value to an Open and a Click instead of just the conversion helps identify how digital budgets are allocated, pain points in the marketing funnel and simple ROI models for Publishers.

Does building a bridge between digital disciplines improve the decisions you are making within digital marketing, or is the linkage between PPC and Email just an interesting distraction from the business of marketing, simply put, contention or harmony?

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