In the short term – it is therefore a negative factor that affects the financial condition of the business, and thus affects the strategy of operations. Possible scenarios of action and the role of the agency Actions in the short term The very moment of introducing an additional fee (tax) is tantamount to increasing the cost of each click on the ad. ” from day to day, so by % of the tax. This moment requires special attention from the Specialist running the advertising campaign. He can take two actions: 1. Lower the bids by the same %, which will keep the cost per click at the current level. The advantage of this solution is maintaining the current level of costs.
Unfortunately this is the only
Advantage of this solution, and it is possible that it is only apparent. Why? Because as a result of lowering CPC rates (with added tax – keeping them unchanged), we can expect: – less traffic on the website (fewer clicks, resulting from Saint Vincent and the Grenadines Business Email List worse ad positions), – loss of position or views for the most competitive keywords, – decrease in impression shares (giving the position to the competition), – lowering the quality score on the ad account, which results in higher bids in the future, – decrease in revenue (lower website traffic.
Maintain the existing rates
Which will reduce the profitability of the campaign. The natural downside of this solution is the increase in the cost of the campaign, and thus the deterioration of its profitability. Pluses, on the other hand, are the lack of threats described Bab Directory above. As the vice-president of the board of a digital agency that runs international campaigns, I can say that both options have their pros and cons. In fact, specialists should take actions that will be a combination of these strategies. Much depends on the market, industry, specificity of a particular case.