3 Reasons We Focus on Online Advertising
Here's why we love online advertising:
It scales - FAST!
With online advertising traffic, you can tap into existing demand in the marketplace right away if you have the budget for paying for the traffic. And once you're in the market, getting traffic, and generating profitable revenue from that traffic (we'll talk about knowing your numbers in a second), the name of the game is to scale as quickly as possible while (a) maintaining your numbers (b) and maintaining the quality of product / service obviously.
But it's extremely important to know the numbers of the marketplace, or you'll loose a ton of money faster than you ever have before by jumping straight into an online advertising based growth model...it's a fast model, but that means you can scale profitably quickly or you can loose money quickly...
It is all about data - know your numbers, and you win
Before you launch, it's all about data:
- You can see how many people are looking for your products and services, before even starting
- You can estimate the cost of getting those people to your website
- You can estimate the % of those people that will buy, thus knowing your cost per sale
Granted, all of these numbers are predictions before you launch, but there are tools out there you can use to get a pretty darn good estimate.
- SpyFu.com or Ispionage.com are tools (paid) that show you competitors' entire search engine advertising campaigns (i.e. Google Adwords pay per click campaigns). For example, you can see all of the keywords they're bidding on through search engine advertising, their ad copy, their landing pages connected with each ad, and much more. There's a few ninja tactics you can use to know for a fact which keywords in the marketplace are profitable for them, but that's a post for another day ; )
- WhatRunsWhere.com and MixRank.com allow you to see where your competitors are advertising across the internet and various metrics to know what's profitable for them. These are similar to SpyFu and Ispionage, but they're focused on online display / banner advertising rather than search engine advertising.
- How much traffic are you getting and what is the cost of this traffic on a per visit basis?
- What % of visits are converting to leads and sales which tells you the cost per sale
- Are you profitable based on all your numbers? Which parts of the process (# of visits, cost per visit, conversion rate, etc. etc. etc.) can you impact to gradually optimze your business over time.
Every time we launch a new project, I monitor these numbers religiously until I know the ins and the outs of every single part of the campaign.
you can win - and win big!
These are the exact types of markets we look for, although there's other metrics we look at.
My goal is always to go into markets where we can apply all the lessons we've learned in client work over the past 7 years to decimate competitors through cut throat online advertising techniques. Knowing the data, living and dying by this data, and being able to make decisions and changes quickly based on this data allows us to do that - everyone loves a great battle.
This level of competition is common in some hyper-competitive industries, but there are plenty of industries out there where that level of competition hasn't been needed...when we go into those markets with advanced tactics, an OCD-level focus on our campaign data, and the internal skills and infrastructure to execute faster than competitors, we win. It's extremely exciting and fun!