There are areas in which contextual advertising is unprofitable

It would seem unrealistic that there was a sphere in which contextual advertising is not able to bring customers, but in reality, under certain conditions and the size of your business, there are such areas. One such example is dentistry in big cities, provided that you have only 1 clinic. First, look what the Yandex Direct budget forecast tells us.

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Yes, the forecast used high-frequency, but low-frequency and not far gone at the cost of a click.
The average CTR here is at 4%, you can try to swing up to 8% (which is unlikely) and we get the average cost per click at 2.5 $ = 75 rubles. A person who does not know the local business will quickly calculate that if the cost of a click is 75 rubles, then even with 2-3% conversion, the cost of attracting one client goes at the level of 2-3 thousand rubles, which, in principle, pays off, taking into account the cost of dental services and average check.

However, a very serious mistake lies in the calculation - the conversion will not be 2-3%, but rather 0.3-0.5% and the average cost of attracting a client will be about 15-25 thousand rubles!

Everything is very simple: the fact is that in large cities, as a rule, with all things being equal, people are looking for a service provider that is located next to it. It’s unlikely that you can offer the lowest price, with the biggest guarantee or something unique that is interesting for every potential client, for which he’s ready to spend an hour on the way to your place, which means if your clinic is located at one end of the city , then it’s unlikely that someone will go to you to treat your teeth even from the city center (it’s possible to open a clinic in the city center, but this is not the best option, since the clients of such clinics are, by and large, only those who suddenly have the tooth got sick.

As a rule, people carry out more complete and complex treatment in clinics, which is located near the house, as it’s convenient: you can take time off from work to go to the dentist early and go to the house from the dentist on foot, rather than halfway from the city center frostbitten face).

And here, in addition to competitors who place ads near you, the struggle for a geographical position begins, and here you lose the conversion by 10, or even more times! That is why we get a very high cost of attracting a client, amounting to 15-25 thousand!

However, contextual advertising works great for dental networks: there are no geographical losses, and if the network, say, has 10-20 clinics, then the chance that a person will find a network clinic next to him is very high. Therefore, in this case, the cost of attracting a client falls from 15-25 thousand to 3-10 thousand.

But, in addition to the cost of attracting a client, there is another - the level of marketing of your competitors.
For example, a network of clinics “**** ****” (I do not specifically indicate the name of this network).

Many residents and guests of the capital heard about it on the radio, saw ads on social networks, etc. So, the bottom line is that when you come to this clinic, the dentist first looks at your teeth, and after that, the manager begins to communicate with you - he specially trained the headstock. And then the situation happens approximately, as in one of the reviews on the Internet, of which the sea.

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By the way, a similar story was told about them by a friend of mine, who has his own dental clinic in one of the regions of Russia and who came to them purely out of interest.

Naturally, with this approach, their average check will be much higher than in any normal clinic, with a good dentist who sets himself the goal of curing the client’s teeth, and not bred him for money. Here, such advertising works fine.

Let’s add aggressive marketing in social networks, on the radio, which, in turn, can increase conversion by about 2 times due to brand recognition: a person clicked on an ad, got to the **** **** website and I immediately remembered that I had already heard about this clinic somewhere, that they had “good prices and only satisfied customers,” and as a result, the cost of attracting customers drops to 1.5-3 thousand rubles, and due to their very high average check managers - they are doing well. The only question is, how long will they be fine?

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But the fact remains: if you have a single dental clinic, then Yandex.Direct or Google Adwords will be unprofitable for you.

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