Deciphering traffic 2: You only know how to buy traffic, but you don’t know how to use it!
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Wherever the user's attention is, there the advertisement is. The essence of buying traffic is to buy user attention. But why is it that with the same traffic, others’ ROI is so high, while yours is so low? Because you only know how to buy traffic, but you don’t know how to use it. Instead of wondering every day which channels are effective, it is better to figure out how to use the traffic. 1. CAC and LTV When doing traffic, you must know what your CAC is and what your LTV is approximately. CAC represents the customer acquisition cost you can afford, and LTV represents your profitability. CAC (effective customer acquisition cost) must be much smaller than LTV (customer lifetime value). Let’s take a dating website as an example. After users register, they will purchase membership, which also includes various virtual props and services, and they may even renew their membership fees in the second year. If a paying user pays an average of 3K throughout the entire process, then we believe that the CAC limit is 1K. That is, CAC=LTV/3. (This algorithm uses a formula commonly used by some foreign technology companies, but the company's profit margin also needs to be considered in actual calculations.) Why remove 3? Because the profits contributed by users are not the final profits of the enterprise, there are also a lot of labor and operating costs. Of course, in order to expand rapidly, some companies have a CAC higher than LTV in the short term. For example, the current used car market, including the P2P industry. For some P2P companies, the cost of acquiring an effective investment user is as high as RMB 2,000. Assuming that the ARPU value of a single user's investment is RMB 50,000, which is converted into an annualized value of RMB 30,000 and the interest rate spread is 5%, the acquisition cost of RMB 2,000 is higher than the profit value of RMB 1,500 contributed by the user. The size of CAC is often determined by the business model. For example, a video software is free for users to use. After it has a certain number of users, it will often adopt a membership system or sell advertisements to monetize, such as Tencent Video. But obviously, its CAC is small, less than 100, or even 50. From click to registration to purchase, comparing with iQiyi's data, with 280 million monthly active users and 10 million paying members, the registration-to-purchase rate is less than 5%, so the cost of acquiring a registered user (CPA) is at most 5 yuan. If the CPA is very low, then you must be very cautious in choosing traffic. For some free products, such as social, tools, news and other products, it is not suitable to purchase more expensive traffic. For B2C products such as finance, education, healthcare, tourism, and e-commerce, since the profit contribution of a single user is very high, as long as the final CAC does not exceed the budget, they can purchase traffic to maximize it, such as Vipshop, JD.com, and Taobao. LTV constrains CAC, and CAC constrains CPA. If a company buys traffic randomly and the final CAC is greater than the LTV, it is actually losing money and the loss outweighs the gain. In addition, by calculating CAC and LTV, companies can evaluate the advantages and disadvantages of traffic introduction and user commercialization mechanisms. For some products with lower CAC and higher conversion rate, try to use viral marketing and use social and word-of-mouth communication to acquire users. For products with higher CAC, the user entry threshold is higher and the conversion rate is lower. Try to maximize the accurate traffic first, and then gradually expand the exposure and brand building. CAC and LTV complement each other. While controlling CAC, companies should try to increase LTV and maximize the commercial value of individual users in depth and breadth, including adding new products and services and introducing third-party cooperation. In summary, it is important to calculate CAC and LTV so that you know how to acquire users. 2. Conversion rate Different traffic has different conversion rates. The search traffic is very accurate and the conversion rate is good, but the click price of the search is very expensive, as high as 999. The funnel law shows that users are constantly losing users from click to registration to purchase. There are many factors that affect conversion rate, and there are various opinions on the Internet, but I believe that as long as these three aspects are done well, the conversion rate can be greatly improved. The three key points to improve conversion rate: traffic introduction, language page optimization, and brand building. The key to attracting traffic is to lock in target users. Whether it is a search engine, APPSTORE, or Tencent News, there is a relevant user positioning. Take search as an example. After the user makes a keyword request, Baidu presents the results. Then we can use keywords to clearly identify our target users. Therefore, word selection is the key to introducing search traffic. The rhythm of traffic introduction also needs to be controlled. For example, during promotion or branding periods, the conversion rate is better, and at this time, you should increase the amount of traffic introduced. For example, during Taobao's Double 11 period, the traffic introduced was unprecedented, with opening screen ads of major super apps, the first position of search engine keywords, popular navigation ad positions, and headline ads in major application markets all being launched simultaneously. Due to competition, in order to attract more users’ clicks, it is often necessary to work on the materials. For example, enhancing the visual impact of images and the appeal of text can increase traffic. The optimization of the landing page lies in the insight into user needs and differentiated marketing. After users enter the page and see the product introduction, if they are not interested, they will close it directly. The visited pages usually consist of pictures and text, and sometimes videos. The first principle of making a language page is to understand user needs. When users access a page through keywords or image materials, they have certain needs. Then the language page needs to design content around user needs, and explain it from the aspects of unique selling points, product advantages, cases, brands, etc. In order to improve the conversion rate of the langdingpage, A/B testing is often required. By testing the conversion effects of two different pages, a decision can be made on which page to use for delivery. Another more detailed approach is to perform heat map analysis to find out which content users are more interested in, including content they are not interested in. Google once found that users' page visits are in an "F-shaped" pattern. Based on this, the key content of the page should be distributed in area F as much as possible. Since user access is a dynamic and continuous process, many users will open multiple competing product pages at the same time, so differentiated marketing is also a key factor in improving the ranking page. According to my experience, for products with lower price thresholds, users are more concerned about the uniqueness of the products, so we need to focus on differentiation. However, for some products with higher price thresholds, there is often distrust, and users are very concerned about the content of the brand. By observing the homepage of the website through the heat map, you will find that most users will click on About Us, hoping to learn about the company's qualifications. The last point is to be concise, with clear registration and purchase guidance buttons, as users do not have much patience. Brand building does not mean spending money, but doing some content-related brand building. For some new products, users don’t know about them, and even if they see your ads, they won’t register or buy. A good brand story and company introduction are the first step in brand building. Make good layout on Baidu Encyclopedia, Baidu Knows, news media, official website, etc. The second is credibility building, including corporate honors, participation in large-scale conferences, capital endorsement, etc. In addition, some real user stories are packaged and covered throughout the entire network in the form of pictures, videos, etc. If you have the ability, it is best to do it continuously. The key to brand building is that after users visit your website, they will often get to know you through encyclopedias, news, knowledge, official websites, forums, etc., deepen their understanding of you, and then decide whether to choose your products and services. Therefore, it is very necessary to do a good job in brand building, and it does not require too much investment. Past experience has shown that CCTV's full network endorsement is a good way. Generally speaking, CCTV advertising is very expensive, but there are also some columns and junk time slots where the prices are relatively cheap. By logging into CCTV advertisements, the relevant pictures, texts and videos are processed and organized, and covered across the entire network, thereby greatly enhancing the credibility of the company and its products. (It’s useless for scammers to do this, a good product is the prerequisite.) In general, without considering strong brands, due to the hidden nature of online advertising, as long as the above three key factors are grasped, the conversion rate can be guaranteed to be good. Also remember to grasp the rhythm of traffic introduction, that is, when the conversion rate is good, try to maximize the traffic. 3. Refined management Some channels have high costs and high ROI; some channels have low costs and low ROI. For example, Baidu’s CAC may be 500, but its ROI is 50; while Guangdiantong’s CAC is 200, but its ROI is 30. Some business owners only look at ROI and may say, I just want to invest in Baidu, or do application market keywords. However, the number of search users is limited. To attract more users, we have to make good traffic matching. The key to good traffic matching lies in refined management. According to the overall budget and combined with CAC, estimate the total clicks, registration rate, and purchase rate, and then break them down into various channels. Then, based on the goals, each channel is managed in a refined manner. For most companies, the first traffic introduced should be accurate traffic, such as search and application market keywords. After the product and operation system are gradually improved, some general traffic can be introduced, such as GuangDianTong, where the click price is cheap. If the product has a competitive advantage over its peers, the effect will be good. Large-scale events and brand nodes can fully release traffic and achieve scale. For channel management, it is necessary to achieve data refinement, so as to find problems through data and continuously improve the results. Internet traffic is becoming more and more transparent and digitalized. If we say which company has better traffic results, apart from brand factors, it is more because it has done a good job of fine-grained channel management, driven by data, optimized with data, and let data speak for itself. However, for more small and medium-sized enterprises, especially entrepreneurs, they have learned how to use traffic, but what should they do if they don’t have marketing expenses? If you can’t afford traffic, then create it. Decrypting traffic 1: You only know how to post soft articles, but you don’t know how to buy traffic ASO optimization service click link: ASO optimization service introduction IOS accelerated review click link: //www.opp2.com/8854.html APP Top Promotion (www.opp2.com) is the top mobile APP promotion platform in China. Welcome to follow our official WeChat public account: appganhuo [Scan the top APP promotion WeChat QR code to get more dry goods and explosive materials] |
![[Case] How did her community achieve 40 million users in a year?](/upload/images/67cc3ee1dae46.webp)
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