• davidquaid

    Excellent Post David, Hubspot would do well to take note!

  • Keith James

    Great article. I work with a lot of small businesses and they basically want me to write one copy and run it forever. Of course I would never do that. The key to paid acquisition is testing.
    CTR is meaningless unless it also converts. Too many marketers choose to add a percentage to manage an ad campaign. We’ve always used a flat rate with at least a 6 month commitment. This strategy allows us to better utilize the budget by creating more landing pages and constantly adjusting the offer. If you charge a client a flat 30% management fee, your goals just don’t align. There is no incentive to spend time and money on offers and copy.

  • Alan Mitchell

    Some excellent points. I agree that ROI is often a much better measurement of true value than CPA, although for products or services which have a lengthy research and consideration cycle (e.g. luxury real estate), sometimes attributing ROI to the correct sources can be challenging. In these cases, CPA is unfortunately often the best metric for optimisation.

    I think it’s also important to look beyond ROI, and consider more softer engagement metrics to help build up a better picture of how different keywords and ads are performing (http://www.calculatemarketing.com/blog/techniques/intelligent-analytics-for-intelligent-adwords-management/). Now that Google Analytics data can be imported into Google AdWords, it’s easier than ever to also take into consideration metrics such as page views and time on site when carrying out comparative analysis. Tagging up goals such as ‘view of the contact page’ can also help to measure which areas of the campaign are creating value.

    @keithjamesdesigns:disqus

    I agree, percentage of spend arrangements often provide the misaligned incentives for both client and agency: http://www.calculatemarketing.com/blog/techniques/economics-of-ppc-pricing-why-the-markup-model-is-flawed/. Flat rate models tend to work best from my experience.