You can’t achieve a good ROI if a large portion of your budget is spent on the wrong users. And let’s be honest, no one has an unlimited sales and marketing budget. Unless you have an unlimited budget, your spending is something to keep an eye on. What is the problem with the Iceberg effect?Ĭustomer acquisition costs (CAC) are rising. Below the surface are the terms your prospects use to search for your product or service - alongside words that people who are not interested in your product will input. Above the water are the keywords you’re bidding on. And that means you’ll miss out on people who will convert but just don’t use that exact keyword.Īnd this is the iceberg. However, going down that route means you will only get clicks for the precise term. So, you might think that the solution is only to bid for exact keywords. However, unless you choose EXACT search term matches, you risk paying for ads that won’t convert. One of the most important goals is alignment between what users input and what terms you use. When you’re bidding for keywords, you have a few goals. Therefore, you’re wasting money and driving down your ROI. However, when they’re not, you’re paying for traffic that won’t convert into sales or leads. When these terms are reflective of your product, that’s great. Often, what you are paying for isn’t just the keyword but other associated terms.
Sure, they generate sales revenue from the ad, but the customer is frustrated because they’ve been served an irrelevant item.Īd platforms like Google and Bing Ads target search terms in a particular way. This situation is unsatisfactory for both parties.Įven the sales platform (e.g., Google Ads) doesn’t exactly win. The customer is given an ad that is not relevant to them.You pay for the ad with zero chances of a conversion.
#ICEBERG EFFECT FOR MAC#
When they click your ad, but they aren’t looking for Mac repair service, two things will happen: However, the Iceberg Effect can happen when users search for the term “computer repair,” but they intend to find a store that will fix, for example, a Dell PC. Some keywords you might bid on will be things like “computer repair” or “hard drive repair,” etc. Let’s say you run a Mac computer repair service. The Iceberg Effect happens when the keyword terms you bid on target too many searches. One of the reasons your campaigns can fail is called “The Iceberg Effect.” We’ll explain the phenomenon below and what you can do about it. Get them wrong, and your ads won’t deliver a return on investment (ROI). However, picking the right keywords is the difference between success and failure. Pay-per-click (PPC) ads are excellent tools for generating growth.
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