Measuring The Lifetime Value Of Customers Acquired From Google Search Advertising
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Publicado: 16 de enero de 2013
Measuring the Lifetime Value of Customers Acquired from Google Search Advertising
Is it convenient to invest in Google Search Advertising for the companies? That’s the question this research triesto discover. Sometimes is really hard for the marketing departments decide where they have to invest their budget; nowadays online shopping is part of our life, but how many times we discover newoptions while we are doing a research online?
The study was made to measure the value of customers acquired from Google search advertising using two different factors that normally have been overlookedin the conventional methods used in the industry: the spillover effect of search advertising on customer acquisition and sales in off-line channels and the lifetime value of acquired customers.
Theinformation used to make the analysis was taken from a small size American company that specializes in providing biomedical and lab supplies to the science community primarily inside the United States;they divided the customers in two big groups the research customer and labs, and the second group were the commercial labs.
They made a huge research about the most common methods the companies areusing to decide if they should invest money in this kind of advertising, and once they decide they will do it how much of their budget will go to this area. One of the first things they discover isthat the cost of this kind of marketing has been increasing in the last few years and the forecast indicates that this behavior will continue.
The data came from 3 different sources: keywordperformance records from Google, log files from the firm´s website and customer transaction records. They follow the Pareto model to determine customer lifetime and transaction rate.
Once the data was totallymerge and the CLV determine, they discover that: the customers acquired from the browser have a higher transaction rate, customers who used the online channel for the first time transaction have a...
Is it convenient to invest in Google Search Advertising for the companies? That’s the question this research triesto discover. Sometimes is really hard for the marketing departments decide where they have to invest their budget; nowadays online shopping is part of our life, but how many times we discover newoptions while we are doing a research online?
The study was made to measure the value of customers acquired from Google search advertising using two different factors that normally have been overlookedin the conventional methods used in the industry: the spillover effect of search advertising on customer acquisition and sales in off-line channels and the lifetime value of acquired customers.
Theinformation used to make the analysis was taken from a small size American company that specializes in providing biomedical and lab supplies to the science community primarily inside the United States;they divided the customers in two big groups the research customer and labs, and the second group were the commercial labs.
They made a huge research about the most common methods the companies areusing to decide if they should invest money in this kind of advertising, and once they decide they will do it how much of their budget will go to this area. One of the first things they discover isthat the cost of this kind of marketing has been increasing in the last few years and the forecast indicates that this behavior will continue.
The data came from 3 different sources: keywordperformance records from Google, log files from the firm´s website and customer transaction records. They follow the Pareto model to determine customer lifetime and transaction rate.
Once the data was totallymerge and the CLV determine, they discover that: the customers acquired from the browser have a higher transaction rate, customers who used the online channel for the first time transaction have a...
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