Picking up the discussion where we left off…
The fastest way to start would be to buy traffic from (for example) the Google Adwords program, provided there is relevant traffic available for the keywords in your target market, in sufficient volume and at a cost which you find viable.
A high value side benefit of this approach is… that it provides the fastest available means of either validating, refining, or indeed eliminating the Theme keyword set you have selected to define your online niche.
So we need answers to 2 questions:
- is there sufficient paid traffic available for your target market?
- how much will it cost to run a test campaign?
To answer this, I’ve taken our Case Study website – BradYourCarGuy.com – and run the next phase of niche research with the help of ThemeZoom Krakken (restricted availability… by referral only – for qualified candidates)
With our niche research findings, we’ll have the data to make informed decisions regarding
- the viability of this strategy, and
- the skills, resources, or services required to make it effective.
So, to the 1st question:
Is there PPC traffic available for your target market?
As a reminder, we’ve defined the “target market” for this case study with the top-level Theme Keywords listed below.
The chart headings:
- PPC Traffic = estimated daily number of visitors you can expect from your Adwords ad in one of the top 3 positions in the Google results page for that keyword.
- Searches = estimated daily number of visitors clicking on searches for that keyword
- Yearly ORV(max) = a measure of the maximum annualized monetary value of a top position (rank) in the search engine results page for that keyword
- ORV = Organic Rank Value
This chart indicates:
- available traffic of 10 visitors / day
- at a maximum cost of about $30, or 300 visitors / month at a cost of $900.
Then provided we get >10% conversion to leads, the cost per lead becomes <$30.
We need at least 30 conversions to leads to get statistically valid results with a high enough confidence level to accept as the basis of a plan. 50 would be better.
So we need to run a test with 500 visitors . With the above keyword set, a test with 500 visitors could cost $1500 or more campaign management costs, and take 10 weeks or more. Hardly a “fast start”!!
However, since there is very little Adwords competition for the localized keywords targeted, we should be able to gain a top 3 position at much lower cost.
Also, by expanding the keyword set, we can increase the potential visitor volume to cut the required test duration in half, or more.
So this is good enough to indicate it is probably very worth while to run a limited test campaign using Google Ads, even if the results are negative, because of what can be learned from the campaign.
On to the 2nd question:
What skills, resources, or services would an auto dealer require to make this strategy effective?
Health warning! Google Adwords is an easy way for Google to suck money fast out of your bank, with little benefit to you – unless you know what you are doing!
- It is not something an Auto Dealer should undertake for themselves, unless they are already well experienced in setting up and managing PPC campaigns.
- It also requires a significant capability in keyword research, understanding the Google Adwords system, and writing Google Adwords ad copy, to design and set up an effective test campaign.
- Finally, it requires the time and skill to monitor the campaign, and refine it to be as effective as possible in a short time, without costing the earth!
So, if a dealer shows interest in using Google Adwords, we must either confirm they already have access to the required skills and experience, or offer to provide it for them.
For an investment of $2.5k – $5k**, a dealer may learn, probably within 3-6 weeks:
- conversion rate of one or more of his on-line offers
- the localized keyword set that converts to leads for his offers
- whether Google Adwords is likely to provide a long-term viable source of leads
- which are the converting keywords to transfer to organic search campaigns to further increase ROI
Also, it is often possible to reduce costs and improve the click-through rate for a Google Adwords campaign by refining keyword set, structure, and ad copy. Thereby, a campaign which is marginally profitable, can provide a high return.
** Google Adwords costs: $1000 – $2000 (estimate)
Campaign design & set up: $350 – $1250
Campaign Management: $750 – $2500
(Actual campaign costs will depend on the project scope, and the market niche.)