Tag Archives: Amazon

Performance Metrics: PPC vs. PPCall

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For ecommerce and direct-to-consumer advertisers and marketing managers, we know there’s no shortage of metrics or Key Performance Indicators (KPIs) to ponder and occupy our time.

Close or Conversion Rate

Cost Per Click (CPC)

Click Thru Rate (CTR)

Cost Per Acquisition (CPA)

Abandonment Rate

Cost Per Thousand (CPM)

Ad Cost/Conversion (ACoS)

Lifetime Value (LTV)

Pay Per Click (PPC)

The majority of these metrics or KPIs are online or ecommerce focused, of course. As we all know, marketing dollars have increasingly gravitated toward digital media in large part due to its measurability. But at Mediabids we specialize in lead generation via print publications and platforms. In other words, we bring ecommerce-like metrics to offline commerce.

Several of the KPIs in our industry -performance-based print advertising- are just like those in digital marketing; namely LTV, CPA and conversion rate to name a few. But our ”click” is an actual customer call and our ”conversion” refers to a customer call being long enough to be a ”qualified call” – meaning the customer is normally speaking with the advertiser’s call center for one-minute or longer. We use unique phone numbers and URLs to track response to our client’s advertising. Whereas the heart of digital media is pay per click (PPC), the core of our industry is pay per call (PPCall.)
amazon ppc

Many may be surprised (or not) to know that Amazon has emerged as one of the largest pay per click platforms in digital advertising. Amazon.com adds campaigns and new consumers every day. In fact, Amazon merchants currently enjoy a 10% average conversion rate -the highest in PPC advertising, so more and more advertisers are moving budget from Google and Facebook to Amazon PPC.

This got us thinking. How does Mediabids’ pay per call advertising compare with the industry leading pay per click platform? How does PPC compare to PPCall?

The following Amazon stats come from a recent PPC Den Podcast [”Amazon PPC Advertising Stats”] done by the guys at Adbadger.com. Click the link to check it out. The Mediabids PPCall stats are directly from our platform.

 

amazon ppc vs mediabids ppcall

  • Amazon’s global reach is well over 2 billion site visitors per month. At Mediabids our affiliate publications total in the hundreds of millions of print circulation per month. It goes without saying that on any given day our advertisers are reaching far fewer potential customers than sellers on Amazon. Nevertheless, the average campaign on Amazon generates 185 clicks a day while we generate an average of 48 gross calls per day. So on a per thousand basis, Mediabids’ performance-based print advertising is far more effective at generating response than even the best digital PPC platform.
  • Conversions per day, per campaign are very similar – 18 on Amazon and 17 for Mediabids. Admittedly this isn’t a true apples-to-apples comparison but the similarity is notable.
  • As you can see our average conversion to a qualified call (42%) is 4x higher than the average conversion rate of a campaign on Amazon (10%.) Alternatively, the average cost per call ($13.60) is significantly higher than the average cost per click ($1.01.) Important to note here that this relatively low average cost per click for Amazon does mask the much higher PPC rates in the more popular categories. But pay per call rates, given the higher operating costs, simply demands higher advertiser payouts per call. Also, again, the comparison of cost per click and cost per call isn’t a pure comparison. But the purchase intent and value of a customer actually picking-up the phone to call about a product or service is very high. It demands much more of the customer than a simple click on a digital button. A phone call also gives the advertiser an enormous opportunity to leave a lasting good impression on customers in a way that just isn’t possible through a site experience.
  • The average daily spend per campaign is also not that far off – $186 on Amazon vs. $231 for PPCall. Given the disparity in the per click and per call costs one might expect the difference in the average daily spend per campaign to be greater.
  • Lastly the advertising cost of sale (ACoS) is also more competitive than one might imagine. Our $13.60 ACoS would go up some with the inclusion of sales data from our advertisers but given the benefits to the advertiser of direct interaction with customers, the marginally higher ACoS is justifiable.

So there you have it – PPC vs. PPCall. PPClick will generate a higher volume of activity (though less efficient) but the conversion and cost metrics are more similar with PPCall than not.

Contributor: Jim Jinks

It’s gonna be big! Because it’s like the classified section (sorta.)

Amazon

I don’t know about you but Amazon is far more a part of my life than I care to admit. Amazon is on my TV. It’s on my phone. It’s often on my doorstep..at least a couple times a week. In other words, I’m at peak Amazon! So to my surprise I’m here writing about the company….in my defense, at least I’m somewhat reluctant about it.

As we all know Amazon is big, really big. In terms of market value, Amazon is the second largest company in the world and it’ll likely hit $1 trillion soon. Given that Amazon is already so much a part of my life, I actually don’t pay that close attention to all the news about the company. I mean it is endless. But despite this my eye did catch a surprising headline- ‘Amazon Sets It’s Sights on the $88 billion Online Ad Market” -from Monday’s New York Times.

Google and Facebook dominate the nearly $100 billion online ad market. But ad dollars are starting to be diverted from these giants of the digital ad market to the giant of online shopping, Amazon. The reason why I’m saying that Amazon is likely going to play well in online ad buying (in the title of this post), is due to the fact that Amazon.com is kinda, sorta like a classified ad section of your local paper. I can imagine everyone doing a big eye roll at that last statement but bare with me.

Years ago, as many of you likely remember, the classified ad section was a huge source of revenue for newspapers. But even today, at Mediabids, we have print advertisers that generate tens of thousands of calls a year from classified liner ads alone. The reason is because the classified section is still where people go to shop.

Now consider this quote in reference to why Verizon sees Amazon as a good place to advertise (even though Verizon doesn’t sell anything on the Amazon site):

”It’s where the shoppers are. They have people who are in a shopping mind-set, so that’s valuable for Verizon to be seen as a resource within that mind-set,” said John Nitti, the chief media officer at Verizon.

Amazon has 100 million Prime members and judging by how often I see Amazon boxes on my doorstep (and Amazon’s market value) there’s a lot of shopping going on.

This is a long way of saying that publishers need to be thinking in terms of being places ”where people shop.” Brands are increasingly becoming performance marketers and performance marketers are migrating to the publications and platforms that offer the best places to reach people in the ”shopping mind-set.”