The cost of a click is the total value that will be debited from the customer’s account each time a visitor clicks on the link from the Yandex search engine to his site. Those who encounter the system for the first time, out of inexperience, set the cost of the Yandex.Direct click blindly.
This categorically should not be followed for two reasons:
- In the best case, this step can underestimate the position of the site.
- In the worst case scenario, you can "merge" the entire advertising budget.
Next, you'll learn how to correctly calculate the cost of a click.
Methodology
In order to correctly set the cost of a Yandex.Direct click, you need to take into account several key factors:
- Average bill (SR) - this is the income that the customer receives from one client for the purchased product or service.
- Average Margin (CM) - the difference between earnings and costs.
- The interest rate on the margin that the customer is willing to spend to attract a new visitor (%).
- Portal Conversion (K1) - the ratio of the total number of visitors to those who performed any action (purchase, registration, request for a call back, etc.).
- Sales Department Conversion (K2) - an indicator characterizing the quality of the sales department’s activity, calculated as the ratio of all applications received to the number of users who made a purchase.
CPC Formula
The average cost per click in Yandex.Direct can be calculated using the following formula: cost per click = CP * SM *% * K1 * K2. It is this result that should be guided in the process of setting up contextual advertising on the Yandex.Direct website. Competitors can bid much higher, but do not be equal to them. High cost may indicate increased site conversion and more productive sales team. Accordingly, pulling up these indicators, you can also increase the price to the maximum mark.
Calculation sample
Suppose you have an online cosmetics store, the conversion rate from advertising is 1.5%, for each new client you are ready to pay up to 150 rubles. How is the click cost calculated in Yandex.Direct in this case?
- Conversion = number of motivated actions / number of clicks * 100%.
- 100 clicks on site conversion 1% - 1 purchase.
- 100 clicks with a conversion of 1.5% - 1.5 purchases. In other words, three out of 200 website visitors make a purchase.
It follows that if the store owner is ready to give a maximum of 150 rubles for each new customer, then he will spend 450 rubles for three people, that is, 200 clicks cannot be more expensive than 450 rubles. As a result, the average cost per click is 2.25 rubles.
Let's take a look at how we got this figure.
Payment
If we transfer all operations (sales, applications, leads) to pure arithmetic, then the following will turn out:
- Goal cost = advertising budget / number of motivated actions, i.e., number of clicks * average cost of a click / number of motivated actions, where average cost = price of a target * number of motivated actions / number of clicks.
- Conversion = number of motivated actions / number of clicks * 100%, where number of motivated actions = site conversion * number of clicks / 100%.
It follows that the optimal cost per click is as follows:
- Average cost per click = (cost per goal * site conversion * number of clicks) / (number of clicks * 100%) = CP * conversion / 100%, that is, the average cost per click "Yandex.Direct" = 150 * 1.5 / 100 = 2, 25.
If we take this formula as a basis, it will become clearer what to proceed from, however, there are topics in which this indicator is much higher than what is beneficial to the advertiser, and no matter how you try, you cannot jump above your head. In this case, a competent advertising strategy is required, where there will be no restrictions on calculating the profitable cost of a click. So first of all, rationality, and only then arithmetic.
How to reduce the cost of clicks in Yandex.Direct
In addition, it should be borne in mind that the rates for clicks determined by the Yandex system are different for everyone. Since contextual advertising operates on the basis of auctions, the search engine itself distributes priorities between advertisers. For some, the price is less, for the second a little more expensive. So, let's figure out how to reduce the cost of a click in Yandex.Direct. To do this, work in three key areas:
- Increase CRT.
- Keyword Bid Reduction.
- The increase in the quality indicator.
- CRT boost
You can increase this indicator in several ways, however, in most cases, working with texts and headings of ads, as well as using the list of Yandex.Direct system features and its additional options, gives a good result. Factors affecting the increase in CRT:
- Rule fulfillment: 1 key phrase = 1 announcement.
- Repeat key in description and title.
- Reminder in the announcement of deadlines, promotional offers, calls for action and more.
- Competitive ad.
- Insert quick links into the text (click-through rate increases by 25-30%).
- Filling in the location of the institution.
- Detailing keywords with negative keywords.
- Embedding images in texts for campaigns in the Yandex Advertising Network (YAN).
- Disabling inefficient sites on the YAN.
CRT significantly affects the reduction in the cost of the Yandex.Direct click, but not in proportion. That is, raising this indicator by three points does not guarantee a second price reduction. The higher the CRT, the better the ad will work, and the more effective it is, the cheaper the advertisement for it.
Lower bids
A standard lowering of the bids will not lead to anything good, because due to crowding out the ad impressions, a significant part of the target audience will leave. To avoid this, use the following methods:
- Breakdown of requests into high-frequency, mid-frequency and low-frequency. The cost of clicks on Yandex.Direct on them is significantly lower.
- Use of word forms, typos and synonyms. Only a few use this method, respectively, for these requests the cost of clicks is much lower.
- Using technical and jargon keywords is the most profitable and narrowly targeted traffic.
- Setting up a separate campaign for the Yandex advertising network - the cost of requests directed to a specific topic is always lower compared to search ones.
- Campaign breakdown by region. Each region has its own click rate.
- Use impressions in the evening and at night. Most organizations turn off impressions in the options after 8 pm. Consequently, the competition during these hours and the cost of clicks are reduced.
There is still a little trick: if you select the checkbox next to “In the block at the lowest price” and select the option “Enter special placement” in the campaign settings, then after a certain time of ad impressions the cost of clicks will creep down. When launched, such placement will come out more expensive due to the fact that ads located in a special block are more popular, but over time, their CTR will increase and the transition price will become lower.
Quality Score Increase
Quality factor is a complex quantity that includes: correspondence of texts and headings of ads to a keyword, setting up a campaign and additional functions.This metric is taken into account for each ad and creates the overall value of the account and the campaign as a whole. Therefore, the correct configuration and study of all the details will significantly increase the quality indicator.
Conclusion
Now you understand how to find out the cost of a click in Yandex.Direct, but do not forget that the result will be only with complex application, since all parameters are interconnected. Increasing the relevance of ads or connecting quick links increase the clickability of ads, which leads to an increase in CRT and quality indicators, as well as a decrease in the cost of clicks.
Work on advertising comprehensively, increasing CRT and lowering rates will significantly reduce the cost of clicks, while maintaining and exaggerating their number.
The cost per click is used both for the campaign as a whole and for an individual product in particular. In addition, the conversion of one word can differ significantly from the general, the purchase of a certain product can be much more profitable for the advertiser than another. No matter how you seek to establish the average value of a click, it is better to work individually.