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Before a campaign is constructed we work with our clients to define the objective of the campaign. For example the objective may be to drive sales, generate leads or deliver registrations. This objective is then referred to as the 'acquisition' and we agree with the client what they will pay Jellyfish for each new acquisition delivered via the Pay per Click campaign.
This figure is then set as the 'Cost per Acquisition' (CPA) and is used to formulate a campaign which guarantees to deliver acquisitions at this agreed CPA.
The CPA model is still considered an extremely rare pricing model as it offers a risk free, self financing and high volume solution to generating incremental acquisitions, through online marketing.
We offer three commercial models, so there is no set fee structure. Our preferred model is only to charge our clients for results, our Risk-Free CPA model. However, for clients for whom this is not appropriate we offer a management fee model. The minimum monthly spend on this is 15% of your PPC marketing spend, or £5,000, whichever is the greater.
Some may want to start by paying the management fee, but then transition to a CPA model. Once we have ascertained the Cost per Acquisition we use the revenue generated by the campaign wherever it will have the biggest impact on improving the campaign's performance.
This may include, but is not exclusive to, more media spend with the search engines, website alterations, more advanced tracking and analytics, account management resource, new industry tools and internal technology development.
By offering a guaranteed fixed Cost Per Acquisition (CPA), we are not just incentivised to increase media spend; we also will do everything we can to increase the efficiency of the campaign. The higher the conversion rate of the campaign, the more money we can spend on media, thus allowing us to compete in the more competitive and expensive arenas. This ultimately results in much higher exposure and subsequent acquisitions for you.
We found that with a standard, consultative approach, it takes more time to communicate the campaign strategy and justify the resources required, than it takes to acquire the resources and facilitate the running of the campaign. By introducing the CPA model we have the flexibility and autonomy to apply the required resource, take calculated risks and experiment with different techniques essential to enhancing a campaign's performance; all at no risk to our clients.
We always aim, in everything, to make our clients' experience as smooth and hassle free as possible. Conceptually the service we offer is very simple, but every campaign we launch requires us to follow extremely intricate and stringent processes.
We have spent 9 years perfecting the finely-tuned methodology used to deliver our CPA campaigns. There are 7 steps to creating our campaigns, whether we are transferring over a previously run campaign, or building one from scratch.
The number of acquisitions that can be achieved with a Jellyfish campaign is directly proportional to the CPA. The higher the CPA, the higher the number of sales or leads the campaign will generate.
See typical CPA vs. Acquisition curve
We recommend that for a successful campaign, aimed at generating volume, you attribute the maximum amount you can afford for each acquisition.
Here is an example of how to determine your CPA:
We aim to construct and maintain a campaign which can generate the maximum number of acquisitions possible at a cost which is less than the agreed Cost per Acquisition (CPA).
Like most business models, the economy of scale means that the more volume we can generate, the more cost effective the campaign becomes. The CPA model therefore benefits both parties as the core objective for the campaign will always be continued growth in the form of more acquisitions.
The campaign sites we build for our PPC campaigns are specifically designed to convert visitors. These sites do not contain the distractions and exit points found on most websites today. Whilst these exit points (banner ads, Google ads, and reciprocal links) are often necessary to help monetise a website and improve SEO, they can have a negative effect on delivering acquisitions in the form of sales or leads, for example.
The campaign site is extremely effective as it provides a focused sales environment which links relevant content to the millions of searchers using search engines to acquire information on a daily basis. Having linked a searcher with relevant content the campaign site leads them down a 'primrose path' to the sale or lead.
In our experience there is no negative effect of running both a main website which concentrates on organic listings, with its own commercial goals; and a campaign site which concentrates on Pay Per Click (PPC) traffic and has a very specific focus: converting traffic. In fact, many of our clients who have introduced a campaign site found that it actually enhanced the performance of their main site.
The benefits of using a Jellyfish campaign sites are:
Once a signed CPA agreement is received, it takes 4 - 6 weeks for a campaign to go live. In the event that a campaign site is not required the process can be as little as 2 weeks.
It is possible to have a scenario where a generic keyword such as 'cabinet' could result in the sale of 3 very different products, with 3 very different CPAs. We deal with this situation by attributing a conversion value proportional to the CPA.
For example: If this campaign was managed to a fixed £10 CPA, conversions would be attributed as a proportion of the £10 CPA.
Don't confuse Jellyfish's unique CPA (Cost Per Acquisition) model with that of an affiliate. We are both paid entirely on results, but the similarities end there.
Affiliates will typically bid on "low hanging fruit" where they know easy conversions are achievable. This approach can actually have a detrimental effect on the growth of a campaign due to lack of reinvestment into the more expensive generic keywords.
Jellyfish PPC campaigns create a much broader and targeted reach driving relevant traffic to bespoke landing environments that provide quality content specific to the product offering. This enables us to deliver high quality conversions that improve our clients' retention figures as well as increase volumes.
We also work directly with our clients ensuring they have a full understanding of how the campaign is performing and which areas are converting well so that this information can be channelled into other marketing avenues.
Not all acquisitions are generated with one visit. Because our campaigns focus on the site's content and not the brand itself; we are often introducing searchers to our client's offering for the first time, even though they may be familiar with the brand.
Potential customers are not always willing to commit at this point. However, having been exposed to the campaign site and client's offering, when searching in the future, it is more likely that they would search for the brand out of prefernce to non-branded information.
So the eventual acquisition, albeit from a brand term, must be attributed to our campaign in order to fund the media spend on all those search terms responsible for the initial introductions.
Also, if generating acquisitions is the main objective, the best place to deliver search traffic is to a sales focused campaign site. Therefore, as a campaign site is included with a Jellyfish campaign, the best results will be achieved by directing traffic to an environment which is specifically designed to convert.
Jellyfish campaigns are specifically designed to achieve aggressive, self financing and sustained growth. They are therefore catering for companies who are looking to maximise the number of sales or leads achievable through paid search.
Clients who have benefited most from our campaigns have taken the approach that the Cost per Acquisition (CPA) is a cost of sale as opposed to a marketing expenditure; therefore the demand for a product dictates the budget.
Provided the CPA delivers an adequate gross margin (i.e. lifetime revenue generated by an average customer minus any associated costs) having budgetary constraints can only suppress the performance and potential of the campaign. if budgetary constraints are unavoidable for cash flow reasons, Jellyfish requires monthly budget commitment of £5,000 to justify the initial investment required to set up and run the campaign through the initial 3 month proof of concept period.
Jellyfish manage numerous lead generation campaigns that involve phone numbers. Usually phone calls can't be tracked to keyword level and in order to gain some degree of trackability we hide the phone number behind a Call to Action (CTA) button.
By inducing an action from the visitor to reveal a number this provides the tracking required to identify and reward keywords, based on their performance.
Jellyfish also implement call tracking through our proprietory JUMP platform, which involves the next generation of call tracking, supporting an infinite number of search keywords.
Yes, in fact there is a distinct benefit to such a scenario:
There is very limited real estate on the major search engines for sponsored links. As a rule, for high traffic generating search terms, there will always be stiff competition for a listing on the first page. It is unrealistic to think that competitor's ads would not appear alongside yours in these listings.
It is therefore important to avoid bidding wars with competitors; in situations like that the only winner is the search engine (i.e. Google, Yahoo, MSN etc). The end result is that you continuously tussle for a higher position subsequently raising your Cost per Click (CPC) with no real increased exposure.
In a situation like this, if Jellyfish is running both campaigns, each individual search term will be assessed and their position in the listings will be determined by merit according to its relevancy, conversion and the overall campaign CPA. This will avoid blind bidding and rankings that do not achieve the required Return on Investment (ROI).
Also, due to the fact that it is in our best interest to make both campaigns as efficient as possible, whilst concurrently increasing the number of acquisitions, we work particularly hard to promote all the unique selling points of each product or service thus differentiating one offering from the other.
