Based on our experience, the article “budget for contextual advertising” for many companies in total expenses hangs on the list somewhere between the points “annual expenses for coffee” and “again these damn presents for the new year”. And this, gentlemen entrepreneurs, is sad.
For many, advertising costs are expenses that do not fit into the logic of high authorities (read - secondary), respectively - not something that makes a profit and provides employees with work and certainly not what gives the company hope for a stable future. Such a bosses hovers in the clouds and does not want or cannot see the obvious, at first glance, things.
Advertising in an era of fierce competition is that without which the development of any commercial organization is simply impossible.
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In some cases, this is facilitated by the bitter experience of working with modern “budget masters” and newfangled aggregators of context systems, which, frankly, abound. In others, people themselves do not want to figure out what and how an advertising agency does with their money, which only contribute to the further prosperity of such companies. Thirdly, only a tiny part of companies takes the issue of sufficiency of the advertising budget seriously (perhaps for this reason there are only a few leaders in any segment).
But the most numerous part approaches the question even more strangely. The client understands that without advertising anywhere, but at the same time wants to get the maximum return for the minimum money. From the point of view of psychology (alas, the fruits of the context cannot be touched, because it is not a thing) - it is logical, from the point of view of running an effective business - it is stupid.
This is how it happens. A potential client requests a media plan, indicating a priori a ridiculous amount that he is willing to spend on advertising. To our reasonable question, “how are you going to outrun competitors who spend 10 times more with a meager budget?”, He answers: “you will first bring clients with this money, we will earn money and in the future we will increase the budget”. Sorry, how miraculously will we bring clients if you are not ready to allocate at least the minimum sufficient budget? The circle closes. The result is a polite refusal to work on our part.
Therefore, before a new advertiser goes to Yandex.Direct, read our considerations and think again about your future actions.
About strategy
To understand the optimal size of the advertising budget and choose the right promotion strategy, we divide advertiser’s sites into three classes.
Upper class
Top Sites. If your site is such, do not be greedy, the savings on advertising will not give you anything good, because in Yandex.Direct, competitors from similar and adjacent segments closely monitor your site. If you have something to offer to the market, you must beat it right away and in such a way as not to leave a stone unturned in the business of competitors.
Otherwise, make sure rich competitors instantly copy your benefits and turn them in their favor. Therefore, we once again advise those who have a top-quality website and related products - do not save on advertising. Your position is special placement. Your strategy is scorched earth. The more you invest in advertising, the higher the chances of becoming a leader in the segment. Taking one special placement - do not hesitate, immediately enter the second site in second place. Yes, there is a risk of splicing domains, but you also know the aphorism about champagne and the risk? Ideal alignment - at least 4 sites in the issuance of Direct (we did not tell you that).
Brief characteristics:
- Clear and distinct positioning;
- Professional design;
- Sophisticated navigation.
- Sufficient, for bringing to the buyers of all the advantages, the advertising budget.
Conclusion: with a great site you can not spare money for advertising. The advertising budget must be sufficient to achieve maximum goals. The strategy of the shows is the best places in the sun with the extrusion of competitors everywhere and always.
Middle class
Your site is a middling one with good prospects. What should be the budget for advertising? The answer is simple: sufficient to ensure this development. If you feel strong and have enough resources for development, go ahead. Your direct competitors are high-quality websites from special placement. Recommended display positions - not less than guaranteed impressions. Ideal - the third special placement.
The first profit immediately invest in improving the quality of your site. Do not get involved with a limited budget in a price war with sites from the highest class. Show ads when there are no competitors (weekend, after 18-00 or early in the morning).
Squeeze out of the budget maximum transitions from the best positions. If you don’t have enough money to run throughout the day, feel free to limit your impressions to the most “running” time of the day. The middle class must be more dynamic and look for weak points in the positions of leaders, showing them in their texts.
Brief characteristics:
- Smeared positioning;
- Failure to understand the objectives and goals of the company, often the lack of goals as such;
- Template or amateur design that does not provide sales;
- Lack of intelligible content;
- Lack of thoughtful navigation.
Conclusion: the middle class must be smarter and work on the field of better sites, based on a limited budget. Impression strategy: no lower guarantee.
Lower class
It's all clear. In this form, you should not even try to show ads above the guaranteed impressions on the right. If you risk to go to special placement, then your site will work great for competitors. People who have come to your site will immediately realize that “you definitely cannot order anything here,” accordingly, having entered any normal site after your soviet site, they will become customers.
Brief characteristics:
- Lack of positioning in principle;
- "No" design;
- Lack of usability;
- Numerous spelling errors.
Conclusion Restrict a small budget and hope "at random" or rummage through the pockets and find funding to create a high-quality website with the appropriate budget.
Of course, we have resulted only a part of site attributes. All sorts of combinations are possible, like “good design - lack of positioning”, “correct idea - no visual realization” and so on. Thus, we just want to lead the reader to the idea that the owner of the resource should strive to properly design all the components of the selling site.
About budget allocation
Another subtlety - the distribution of the budget. If you sell one or several similar products from one segment, then the whole problem boils down to “where the hell do you find money?”. Simple, trite, solved.
And what about those who have 500 items of goods in the price list? For example, what about online stores with large, as usual, ambitions, but small budgets, as a rule? Smear the advertising budget across the range or focus on the shock position? Our experience shows that the second statement is true.
Correctly rank the price list. You need to be able to overcome the temptation to immediately start selling the entire product price list. Choose from the range the most profitable positions for which there is demand in the market and for which you have an advantage over competitors. Current sales and competitive analysis will tell you which direction to go. These can be diverse and, at first glance, unobvious advantages, for example: a better price (respectively, a high margin in the transaction), improved service, additional warranty, faster delivery, constant availability in stock, etc.
Believe me, the sale of 10 shock positions in large quantities will bring you disproportionately large profits (and respect in the market) compared to the sales of the entire list of products that are on sale at the same price and under the same conditions in any, even left, shop. What is important, the greater the focus on certain positions, the less time it will take to collect and analyze sales and transaction statistics.
Working on a small number of requests, we thereby optimize the number of ads. Accordingly, adjust the neck of the passage of the target audience to the site. For example, your budget is only 30 thousand rubles a month, and the goods are steel doors. Buying ~ 150 requests with such a budget will result in several dozen clicks (from dynamics or YAN) per month with a meager conversion (note this will happen regardless of the quality of the site).
What to do? Buy 5 most convertible (the brains of specialists from the RA to help you) requests and show them in the best position of the second and third special placement. It can be narrow mid-frequency requests: “installation of steel doors is cheap”, “steel doors with installation in Moscow”, “steel doors of economy class”. Simply put - "refined three terms."
If you perfectly understand how your product is being searched for, the quotation operator will turn out to be a real magic wand. Narrowing the neck, you bring to the site only the target audience that you have chosen.
We summarize
At the heart of a successful promotion in Yandex.Direct is a triangle, the corners of which symbolize the “quality of the site”, the “budget for advertising” and the “strategy of impressions”. Only the optimal ratio of the three ingredients gives maximum results.