Have you tried advertising your website or business online in the past and it hasn’t worked? Have you found that you did get new customers but in the end you paid a lot more for advertising than you made in revenue?
Don’t be discouraged! This does not mean that internet advertising is a waste of time or it cannot work for you. Just like for most of our customers, the problem is probably that you’ve been paying too much for your visitors.
As we’ve spoken about in previous articles, the issue tends to be with your cost per visitor. This per-click cost can of course be extrapolated to calculate your total customer acquisition cost. Total number of clicks bought (e.g. 100) times price per click (e.g. $5) divided by new customers acquired (e.g. 5) = total customer acquisition cost. In this case 100 clicks, times $5 = $500 total cost. Total cost, $500 divided by new customers acquired: 5 = cost per new customer $100.
Next, you need to ask yourself “What is each new customer worth to me?” So, let’s say that in the example above your average profit was $50 per customer. Once you determine what that number is, divide it by 100. That number should be the maximum amount you are paying per click.
If you are paying less than that amount you are making a profit. If you are paying more than that you are losing money. For most people, the issue is not that internet advertising does not work. The issue is that they are paying too much for their visitors. This makes their customer acquisition cost higher than their profit per customer leaving them “upside-down”.
This is because the cost of ads with Google, Yahoo!/Bing, Facebook and the like has become too high, which is the main reason we created BlueWing Ads.
We get customers’ messages and brands in front of hyper-targeted prospects just like the big players, but for a fraction of the cost. We’re able to achieve this by identifying Perfect Prospects, and then bidding in real time to show ads to them.
This approach is in stark contrast to the majority of advertisers who are bidding against each other for clicks on Google, Facebook, and Yahoo!/Bing. At Blue Wing Ads we like to adhere to the old adage “Don’t go swimming in shark-infested waters!”, because you won’t catch as many fish and might find yourself missing limb or two!
This combination of creating a custom audience, interactive ads, and real time bidding is how we make advertising profitable even for businesses who have tried unsuccessfully in the past to advertise on places like Yahoo!/Bing, Google, and Facebook. Please feel free to reach out to one of our experienced Account Executives and have a conversation. We’re real people, real internet marketers, and we care about your success.