We’re a newish entrant (under three years old), have low brand recognition, a limited marketing budget and a huge desire to win new clients. Therefore, everything we do needs to be low cost, increase our brand awareness and drive maximum Return on Investment (ROI).
The Cost Per Click (CPC) on Google for keywords such as ‘SEO Agency’ or ‘Digital Marketing Agency in Sydney’ can be as high as approximately $40 (Source; Google Keyword Planner March 2017). For ease of maths, let’s say our conversation rate for that term was 1%. That would mean a Cost Per Lead of $400. Again, for ease of maths, let’s say we converted a lead at a rate of 5% – we would be paying a Cost Per Sale of $8,000.
‘Doesn’t sound too bad’, you might (or might not) be thinking. The issue we (and every agency) have is that these keywords provide no qualification. Indago, like every agency we have targeted, look to work with a certain level of client and with no qualification, many of the leads generated from these keywords are irrelevant and the Cost Per Sale sky-rockets.
Roll on a competitor campaign with relevant creatives and a landing page to boot. Now we have a keyword set that is cheaper, brings higher conversion rates, a lower Cost Per Lead and the cherry on the cake is that leads are highly qualified (except of course for, ‘Mr. You’re Wankers’ at firstname.lastname@example.org, whom we’re struggling to get back in contact with).
Now, consider that the combined monthly search volume on Google for the competitors we are targeting is over 6,000 and one brand has 880 searches alone. And that monthly searches for our brand is minimal. What does that mean? It means as a new player we had little to lose if our competitors decided to target our brand.