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When I started investing the US advertising market was $300 billion with only 10% of it ($30 billion) of it being online and measurable. One recession later and the US advertising market is about $245 billion – but still only 10-12% is online and measurable. This form of advertising is know at CPA (cost per action).
Probably every one of you who has a business and a website have been approached through email or personal contact, and asked to spend money on Search Engine Marketing (SEM). Search engine marketing is simply buying advertising for your business from Google or another search engine company. Cost per action (CPA).
Enterprise SEM. Overview: What Is SEM? SEM Columns. Our SEM Events. How To: SEM / Paid Search. We’re testing television advertising to evaluate our ability to extend our brand from a directory to a reservations destination. Search Week Newsletter. Search Month Newsletter. News & Features. All Columns.
Paid search engine ranking (PPC) is buying advertising for your business from Google or another search engine company. In this context, there are many parameters and concepts you need to understand before you buy advertising: Cost per impression (CPI). Cost per action (CPA). Cost per click (CPC).
Your tech needs to add value to content producers, the audience and advertisers. But you don’t need to spend money on SEM. And given that Facebook and Twitter currently pay you zero for content marketing and Google SEM charges you for customer acquisition – what exactly are you b g about?
In this model, you take some fraction of the lifetime value of each customer and plow that back into paid acquisition through SEM, banner ads, PR, affiliates, etc. The spread between your LTV and blended CPA determines either your profitability or your rate of growth, and a high valuation depends on balancing these two factors.
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