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Managing PPC - Visitor Value?

Apr 22, 2008
In internet marketing, the ones who make real money are the ones who have websites that have the highest visitor value. Visitor value is the average sales value of the clicks they get.

Seeing growth in your visitor value means several things. The most obvious is that more money is being put in your bank account, but a desirable bonus is that you will have affiliates and joint-venture partners lining up to do business with you. And this is why; aggressive advertising and more payouts for all.

Every business and every industry has a basic measure of success. Retail is real estate, and the real estate in your local mall is leased on a square-footage basis, so in retail sales the measure of the store's success is sales per square foot.

Google traffic is charged for on a dollars per visitor basis. Success on Google is also measured in dollars/visitor. Say 100 people visit your site and you make $200 in sales. Then you have a visitor value of $2. This is the most basic success measure you site has.

Your mission in life is to have a high visitor value, or high value per visitor.

Having a higher visitor value, you will be up there with the likes of Nordstrom, Lord & Taylor, Starbucks, Saks Fifth Avenue, and Macy's.

With a low value per visitor, you will be akin to retail stores such as the Dollar General, TJ Maxx, Piercing Pagoda and Wal-Mart.

With a per visitor value below that you are living a miserly existence selling at flea-markets and pitching your stock on E bay.

Profit is your goal. That's why you're in business in the first place. But your profit alone doesn't tell you how sleek and effective your sales process is. You might just be getting lucky with unusually cheap click prices.

Visitor value is actual, boiled down, value of your clicks. It is the appraisal of how effective your website is, how effectual your copy is, and the impact of your offer.

You want to compute your visitor value? Here is how:

Visitor Value = (Your Total Sales Value) / (Your Number of Clicks)

Say you are making a 50 percent profit margin on your $1000 item and one in a hundred visitors will buy from you. Then your visitor value is 10 dollars. The theory is that you can then spend as much as 5 dollars per visitor for traffic and still break even, and if 1 out of every 1000 visitors makes a purchase then you have a visitor value of 1 dollar and you can spend as much as 50 cents each to buy clicks.

Of course this is an oversimplified explanation of how this works. But this part is definite: visitor value helps you know the value of your clicks and what you can do about them.
About the Author
Need to optimize or "fix" your Adwords & PPC campaigns? Kirt Christensen manages over $600k in PPC spending & knows what it takes to make your account hum! When it comes to adwords management company, he's the man!
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