28 Jun '14, 4pm

The Single Metric Every SEM Acquisition Marketer Should Be Tracking

Self-Selection. As a thought experiment, consider two customers: one who clicks on your paid search ad in a top position, and one who seeks you out on page three of search results. Which customer is more likely to have a strong affinity for your brand and products? Probably the customer who was willing to wade through all those pages of search results! In contrast, the customer who clicks on your paid search ad shows less self-selection toward your site — they may simply be curious but ultimately have a lower level of brand attachment, resulting in a lower CLV. The same principle is true across all paid acquisition channels. Gaining a wider reach often comes at the expense of acquiring just high-value customers. The consequence? “Acquisition double jeopardy.” Customer acquisition shows increasing marginal cost (it costs more to acquire each new customer than the customer b...

Full article: http://searchengineland.com/single-metric-every-sem-acqui...

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