The warmest customers with a ready need
Customers are attracted through contextual advertising via carefully set up advertising campaigns that display relevant ads to the target audience. This is achieved by using keywords, targeting by interests, demographics, and user behavior, as well as adjusting the advertising to the content of web pages. Thus, users see ads that match their needs and interests, increasing the likelihood of clicking on the ad and going to the advertiser's site.
You pay the search engine for each click on your ad, but only 1 out of 100 may become a customer
The percentage of clicks from contextual advertising that become customers can vary greatly depending on the industry, specific business, quality of the advertising campaign, and sales funnel. On average, the conversion from clicks in contextual advertising to purchases or leads is between 1% and 5%. However, successful campaigns with optimized ads and a sales funnel can achieve significantly higher conversion rates. It's important to note that results can vary greatly, and each business requires an individual approach and optimization.
If someone promises you a much higher conversion rate, they are likely scammers. Be careful.
The cost of acquiring a customer depends on the level of competition and the quality of your website
The cost per click (CPC) in search advertising depends on a number of factors, such as:
Competition:
- The presence of many advertisers competing for the same keywords can increase the cost per click.
- Ad Quality and Relevance: Contextual advertising platforms, such as Google Ads, assess the quality of ads and their relevance to users. The higher the quality score, the lower the cost per click may be.
- Maximum Bid: Advertisers set a maximum bid they are willing to pay per click. The higher the maximum bid, the more likely you are to win the auction and have your ad displayed, but this can increase the cost per click.
- Geography and Time: The cost per click can vary depending on geography and time of day. In some regions or at certain times, the cost may be higher due to greater demand or competition.
The cost per click can vary greatly depending on these factors and the specifics of a particular industry. In some niches where competition is low, CPC can be just a few cents, while in highly competitive industries such as insurance, finance, or legal services, the cost per click can reach tens of dollars. Optimizing advertising campaigns and improving ad quality can help reduce the cost per click and increase the effectiveness of search advertising.