We’ve been monitoring the performance of our outbound marketing campaigns and I wanted to share some of the results (take a look at the previous post that details which message, “customization” or “security”, performed best this time around).
Over the past few months we’ve seen an especially sharp decline in our CPC (cost per click – the amount we pay per click on search advertising) and our CPA (cost per acquisition, or in Firefox’s case, cost per download — one of the better measures for measuring effectiveness). While our spend has remained relatively flat over the past few months, our efficiency has greatly increased. In other words, we are spending more than we used to, but we are becoming better at encouraging viewers of our online marketing to give Firefox a try (see chart below).
Why has this happened?
A few possible explanations:
The recent performance probably won’t continue forever (there’s getting less room to make improvements as the lines plunge toward the x-axis). And as spend continues to increase, inefficiency will likely creep in. We’ll be monitoring this closely as time goes on. In the next few weeks we’ll be running a few other experiments to try and determine the effectiveness of our paid search program versus organic search engine results. Ken will have more info about this soon.
What’s our CPA now? And what would you estimate our marginal CPA to be? It sounds like the latter is low enough that you’ve decided it’s worth it to spend more, e.g. by advertising on additional (less efficient) keywords, which is great.
[...] the past couple of months, I’ve been collaborating with David on some different ways to optimize our online advertising efforts. The goal includes improving the downloading path/experience of new Firefox users, as well as [...]
[...] paid search marketing. And the cost effectiveness of these downloads through paid search has been steadily, if not dramatically, improving during the [...]