Most businesses use Google AdWords to drive traffic to their website. To get clicks from Google AdWords, you create an account with them and set up the keywords you want to trigger your ad, and you create the ad copy to go with it.
If I sell phone accessories and someone searches for iPhone 5 cover (my keyword), I choose the ad text that will show and the page on my site that the click will land on. Granted, given today’s announcement, there will be many like you who want to bid on the clicks triggered by iPhone 5 cover. Every time there is a search for iPhone 5 cover, Google runs an auction among everyone who has an account with that keyword, and based on how much you are willing to pay for the click and on your quality score (calculated mostly by how often people click on your ad), the top 8 or so ads get ranked and displayed on the search results page on Google.
Now comes the question: When you bid on that click, what are you bidding for? Some people will bid for the click (CPC), some will bid to make a conversion (CPA), and some will bid for revenues (CPV). Which of these are you bidding for?
Finch pioneered the method for advertisers to bid on revenues. There are two main reasons you want to do this:
- It gives you total cost to revenue control of your advertising budget
- It increases your revenues AND increases your profits
Once you know what you are bidding for, your online advertising strategy becomes easy to execute. In one way or another you are trying to grow market share, grow revenues, grow profits, or another financial goal. Knowing what you are bidding for is where it all starts, and once you know where you are going, it is a lot easier to get there.
Find out what bidding for revenues can do for your business by visiting www.finch.com.