Know How To Test This Is An Essential Step

When a merger of shops takes place, a challenge arises. You remove a competitor from the Google Ads auction. However, if your own campaigns have already been set up optimally, you should not make the calculation error that you add the total SEA traffic of the prey to your traffic. The growth in SEA traffic will be rather marginal. After all, you have significant overlap in assortment. You do take a competitor out of the auction, so your CPCs (Cost Per Click) will likely drop depending on how aggressively the prey advertises. 3. Can you realize 8,496 orders with €75,500? With the purchase of the shop 17,770 visitors per month come in through organic sources. That is 17,770 * 12 * 4 = 849,600 visitors in four years. Suppose the €75,500 is not invested in the acquisition, but in buying relevant traffic, then you should buy this number of visitors via SEA .

How To Test This Is An Essential Step

The question then is: is this feasible in terms of CPC, desired conversion and scaling up of campaigns? If this is considered possible, it is an important factor to be taken into account in the (amount of the bid for the) takeover. Current organic traffic conversion is 1.0%. let’s say that with the expansion of campaigns, we can achieve 3% conversion Bosnia and Herzegovina B2B List from the extra SEA traffic. That means we need 283,200 visitors (over 4 years) to achieve the same number of orders as the organic traffic of the prey. That means that the average maximum CPC (Cost per Click) may be 0.27. That is relatively low, but really feasible in enough niches. Advantages and disadvantages Growth through acquisition Benefits: The acquisition is an investment and may be amortized. In principle, the purchased traffic does not decrease after the takeover. The higher number of visitors is then permanent and so is the increased turnover.

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Test This Is An Essential Step

After the payback period of the investment, the traffic is virtually free. With two sites you can cover two top-3 spots in Google for keywords. Cons: The takeover requires an up front investment. The acquisition requires thorough research ( due diligence ) to ensure what you are buying. Maintenance of two web stores. Growth through SEA Benefits: The time investment to grow your own account is less than negotiating, buying and merging a new shop. You invest in your own channels, build up your own knowledge and become more robust compared to competitors. Less risk. Buying a shop for €50,000 comes with a number of assumptions that must prove themselves. Do you invest in SEO? Then you get an immediate response in the form of ROI on your daily budget. Cons: The purchased traffic will decrease after the budget has been used. Only part of the traffic will generate long-term ( recurring ) revenue . SEA channels have limited scalability.

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