There are areas in which contextual advertising is unprofitable
It would seem unrealistic to have an area in which contextual advertising is not able to bring customers, but in reality, under certain conditions and the size of your business, such areas exist. One of such examples is dentistry in big cities, provided that you have only 1 clinic. First, we look at what the Yandex Yandex budget forecast tells us.
Yes, the tweeter used in the forecast, but the woofers are not far away at the cost of a click.
The average CTR here is 4%, you can try to swing up to 8% (which is unlikely) and get the average cost of a click at $ 2.5 = 75 rubles. A person who does not know the local business will quickly calculate that if the cost of a click is 75 rubles, then even with a 2-3% conversion, the cost of attracting one client is at the level of 2-3 thousand rubles, which, in principle, is payable, taking into account the cost of dental services and average check.
However, in the calculation lies a very serious mistake - the conversion will not be 2-3%, but rather 0.3-0.5% and the average cost of attracting a client will be about 15-25 thousand rubles!
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Everything is very simple: the fact is that in large cities, as a rule, with all equal people, they are looking for a service provider who is located next to it. Offer the lowest price, with the biggest guarantee or something unique that is interesting to every potential client, for which he will be ready to spend an hour on the way to you - you can hardly, and that means if your clinic is at one end of the city then even from the center of the city it is unlikely that someone will go to treat your teeth (as you can open a clinic in the center of the city, but this is not the best option, since the clients of such clinics are, to a large extent, only those who suddenly have sick tooth.
A more complete and comprehensive treatment, as a rule, people spend in clinics, which is located next to the house, as it is convenient: you can early get off from work to go to the dentist and walk from the dentist to the house, rather than dragging from the city center in half frostbitten face).
And here, apart from competitors who advertise near you, the struggle for geographic location also begins, and here you lose conversion 10 or more times! That is why we get a very high cost of attracting a client, which is 15-25 thousand!
However, contextual advertising works great for dental networks: there is no geographical loss, and if the network has, say, 10-20 clinics, then there is a high chance that a person will find a network clinic next to him. Therefore, in this case, the cost of attracting a client drops from 15-25 thousand to 3-10 thousand.
But besides the cost of attracting a client, there is another - the level of marketing of your competitors.
For example, the network of clinics "**** ****" (I do not specifically indicate the name of this network).
Many residents and guests of the capital heard about it on the radio, saw advertisements in social networks, etc. So, the point is that when you come to this clinic, first the dentist looks at your teeth, and after that, the manager will begin to talk to you - a specially trained doctor for you. And then the situation happens approximately, as in one of the reviews on the Internet, of which the sea.
By the way, a similar story was told about them by my friend, who has his own dental clinic in one of the regions of Russia and who went to them purely out of interest.
Naturally, with this approach, the average check they will have is much higher than in any normal clinic, with a good dentist who sets himself the goal of curing the client's teeth, and not dissolve it for money. Here such advertising works fine.
Let's add to marketing also aggressive advertising in social networks, on the radio, which in turn can increase the conversion by about 2 times, due to brand awareness: a person clicked on an advertisement, went to the dentistry website “**** ****” and I immediately remembered that somewhere I had already heard about this clinic, that they have “good prices and only satisfied customers” and as a result, the cost of attracting customers drops to 1.5–3 thousand rubles, and due to the very high average bill due to their managers - they are fine. That's just the question is, how long will they be all right?
But the fact remains: if you have a single dental clinic, then Yandex.Direct or Google Adwords will be unprofitable for you.
Questions?
Yes, the tweeter used in the forecast, but the woofers are not far away at the cost of a click.
The average CTR here is 4%, you can try to swing up to 8% (which is unlikely) and get the average cost of a click at $ 2.5 = 75 rubles. A person who does not know the local business will quickly calculate that if the cost of a click is 75 rubles, then even with a 2-3% conversion, the cost of attracting one client is at the level of 2-3 thousand rubles, which, in principle, is payable, taking into account the cost of dental services and average check.
However, in the calculation lies a very serious mistake - the conversion will not be 2-3%, but rather 0.3-0.5% and the average cost of attracting a client will be about 15-25 thousand rubles!
')
Everything is very simple: the fact is that in large cities, as a rule, with all equal people, they are looking for a service provider who is located next to it. Offer the lowest price, with the biggest guarantee or something unique that is interesting to every potential client, for which he will be ready to spend an hour on the way to you - you can hardly, and that means if your clinic is at one end of the city then even from the center of the city it is unlikely that someone will go to treat your teeth (as you can open a clinic in the center of the city, but this is not the best option, since the clients of such clinics are, to a large extent, only those who suddenly have sick tooth.
A more complete and comprehensive treatment, as a rule, people spend in clinics, which is located next to the house, as it is convenient: you can early get off from work to go to the dentist and walk from the dentist to the house, rather than dragging from the city center in half frostbitten face).
And here, apart from competitors who advertise near you, the struggle for geographic location also begins, and here you lose conversion 10 or more times! That is why we get a very high cost of attracting a client, which is 15-25 thousand!
However, contextual advertising works great for dental networks: there is no geographical loss, and if the network has, say, 10-20 clinics, then there is a high chance that a person will find a network clinic next to him. Therefore, in this case, the cost of attracting a client drops from 15-25 thousand to 3-10 thousand.
But besides the cost of attracting a client, there is another - the level of marketing of your competitors.
For example, the network of clinics "**** ****" (I do not specifically indicate the name of this network).
Many residents and guests of the capital heard about it on the radio, saw advertisements in social networks, etc. So, the point is that when you come to this clinic, first the dentist looks at your teeth, and after that, the manager will begin to talk to you - a specially trained doctor for you. And then the situation happens approximately, as in one of the reviews on the Internet, of which the sea.
By the way, a similar story was told about them by my friend, who has his own dental clinic in one of the regions of Russia and who went to them purely out of interest.
Naturally, with this approach, the average check they will have is much higher than in any normal clinic, with a good dentist who sets himself the goal of curing the client's teeth, and not dissolve it for money. Here such advertising works fine.
Let's add to marketing also aggressive advertising in social networks, on the radio, which in turn can increase the conversion by about 2 times, due to brand awareness: a person clicked on an advertisement, went to the dentistry website “**** ****” and I immediately remembered that somewhere I had already heard about this clinic, that they have “good prices and only satisfied customers” and as a result, the cost of attracting customers drops to 1.5–3 thousand rubles, and due to the very high average bill due to their managers - they are fine. That's just the question is, how long will they be all right?
But the fact remains: if you have a single dental clinic, then Yandex.Direct or Google Adwords will be unprofitable for you.
Questions?
Source: https://habr.com/ru/post/289854/
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