September 19, 2019
Finch – CPV for eCommerce

Finch – CPV for eCommerce


Today, the paid search industry tracks campaign success using a Cost per Acquisition ‐ or Conversion model, where success is measured when the user takes an action, such as making a purchase, signing up for a newsletter, requesting a sales call, and so on. CPA is a better measurement of success than previous methods that have been used like CPM, or CPC. The PROBLEM IS, unless you sell only a single product on your website, CPA does not work well for ecommerce sites. This is especially true if your company sells hundreds or thousands of products. Cost Per Value, referred to as CPV, is a revolutionary new way to track your success based on the value of the conversions, not just the number of conversions. Here’s how CPV works. You open your browser and search for the keyword “brown shoes”. On the search results you’ll see ads from companies selling brown shoes. When you click one of these ads then you’ll go to a website where you can browse shoes and add items to your cart. After checking out, you’re taken to a confirmation or “Thank You” page. Now, let’s take a look behind the scenes of CPV and why it’s so powerful for ecommerce sites: To make CPV work, Finch taps into a readily available, but rarely used feature from Google AdWords called Value Tracking. The confirmation page contains a Google AdWords tracking script that reports the conversion with a variable containing the value of the sale. This variable is typically revenue, but Finch can also use profit, margin, lead worth, or whatever single metric is most important to your business. Using revenue for this example, we now understand how much we made from this conversion from the “brown shoes” keyword. Over time, Finch learns how much revenue each keyword is worth and bids more for more valuable keywords, and less for less valuable keywords. Makes sense, right? With CPA, your competition will be bidding for the most conversions. Meanwhile you’ll be focused on earning more revenue with every click ‐ focusing on the value of the conversions, not just the quantity of them. In other words, we’ll let your competition waste money on keywords that result in worthless conversions, while we’ll find you the keywords that earn the most. Working with Finch and using CPV to manage your campaigns also makes paid search more predictable and reliable. For example, if you optimize for revenue and choose to spend 20% of your value as a cost target, you know that for every $2,000 you spend you’ll make $10,000 in sales. CPA campaigns can often pay $2,000 for clicks or conversions that may be worthless. Finch has embraced CPV as the revolutionary new way to manage paid search to help you earn more revenue, profit, leads, … or whatever your business values most. Our approach is completely different, which is why our customers see such big results. But don’t take our word for it! Sign up for your complementary audit at finch.com and see for yourself.

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