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*This is a repost from one of our industry-leading Send TIme Optimization partners, AudiencePoint. Through our Partner POV series, we will highlight the great work and thought leadership presented by our partners. Enjoy.
How much is a Click in Email Marketing worth? Different models exist in attempting to answer this, each with their own benefits and challenges. In all cases, the ultimate outcome is showcasing its direct correlation to an increase in revenue. Though, the increase in revenue isn’t always simple to calculate. Ad-driven, Omnichannel, and BTL/Trade promotions confuse revenue and attribution models.
The ultimate goal of the email marketer is to move subscribers down the conversion funnel. To accomplish this, the marketer needs to have a deep understanding of each tier. Once there is an understanding, then, they can identify the blocks and streamline as many conversions as possible.
To arrive at the value of a click, Email Marketers can borrow from the Display world. Clearly Pay Per Click and Email Marketing are different disciplines. Email Marketing is a relationship-based program. Costs of the Email Program are fixed, and the audience has a long term trust established that drive purchases and repurchases from a brand. Pay Per Click is a lead generation tool. The costs of a Pay Per Click Program can scale with success. Transactions are completed, but there is not always long-term loyalty to the brand. Despite the clear differences between Email and PPC, they often compete for the same budgets.
At AudiencePoint we have asked the question, “What is the value of a Click?” And, within the email paradigm, that number is difficult to arrive at as each marketer has a different program – unique voice, industry, language, value prop, cadence, and frequency.
Although the cost of acquisition for a click is different than the organizational value of a click, a substitute monetary value can also be arrived at by asking the question, “What would it cost me to acquire a lead in a different channel?” This is what we discovered about Clicks within the PPC channel.
I scanned my inbox for a Subject Line and Preheader that resonate to my opening and clicking pleasure.
I looked for keywords that evoke a response.
After I opened the email, I decided that the offer was relevant, and I am the proud owner of sparkling, new spring jacket that will keep me dry. #email_marketing_win
Like any discerning customer, I visited my search engine and typed “Spring Outerwear”, because I want to see what is new and fresh. Somehow, via marketing magic, the top spot on my search results are from the same brand as the one in my Inbox.
Going through the same motions, I click through and purchase a second, identical jacket.
When I clicked on the keyword in the search engine, there was an organizational cost associated to the Click paid to the ad network. But for the sake of discussion, both journeys produced a sale. What if I had not purchased a jacket? There was still a cost to move me down the PPC Conversion Funnel.
Keywords within the Subject Line and Preheader would often be the same keywords that would be published within an advertiser’s network and have a cost associated with them.
After the keywords were identified, they were fed into the advertiser network to arrive at the value of a Click. In this case, it was $0.19.
For the purpose of this calculation, Clicks were manufactured and have no reflection on the brand’s actual Click total. But, if this brand wanted to get 84,000 clicks via PPC, the equivalent cost within the network would be $15,960.00
Although Email and PPC are clearly different disciplines, AudiencePoint is asking the question, “Would this kind of alternative model provide value?” Assigning a value to an Open and a Click instead of just the conversion helps identify how digital budgets are allocated, pain points in the marketing funnel and simple ROI models for Publishers.
Does building a bridge between digital disciplines improve your decisions you are making within digital marketing, or is the linkage between PPC and Email just an interesting distraction from the business of marketing?
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*Author Paul Shriner is the Co-Founder of AudiencePoint. With 7 years of email marketing under his belt as a Chief Technologist, Founder, Inventor, Programmer, and Creative. His company focuses on improving deliverability, open and click-through rates, and conversions with their proprietary algorithms, and robust database.