Getting high-value customers online is a challenge. Buying media in almost every category is intensely competitive. Search engine marketing (SEM) is an efficient marketplace where keywords and ad placement are sold to the highest bidder. As more and more customers continue to use search to shop for products and services they need, SEM has fundamentally changed the marketing landscape. What used to be driven by mass media and TV ads, is not driven by data, personalization, advanced targeting and sophisticated pricing algorithms.
The problem is, many marketers have not caught up to the realities of the new marketing landscape.
In e-commerce markets, SEM advertisers and their agencies optimize keyword bids based on first transaction only. This is enabled, and limited by, Google advanced tracking which places a tracking pixel on the advertisers order confirmation page. While this technology is helpful in optimizing click-to-first-purchase, it does not account for differences in customer lifetime value (LTV). When LTV is not considered in keyword bid prices, SEM advertisers are paying too much for low-value customers (LVC's), and not paying enough for high-value customers (HVC's).
Failure to properly account for LTV in search marketing has several damaging effects.
- Under-bidding for high-value customers (HVC's) which significantly hampers penetration and market share with the advertisers most valuable customers
- Slower growth, lower revenue & lower profits due to low penetration levels within HVC segments
- Increasing customer acquisition costs (CAC) and lower customer profitability
- Over-bidding for low-value customers (LVC's) which floods the business with customers that are often too costly to serve, spend little and are not profitable
- Slower growth, lover revenue & lower profits due to less spending and usage by customers due to higher penetration within LVC segments
- Downward death spiral where lower customer profitability leads to reduced marketing budgets, reduced bid prices and even more LVC's that decrease customer profitability even further
- Eventual inability for advertiser to compete in the SEM market, the market place where HVC customers reside
A16E Predictive Search Technology
We solve the problem of suboptimal keyword bids by accurately predicting customer lifetime value (LTV) in real-time.
A16E Predictive Search is for SEM advertisers to must get better performance out of their online campaigns. Our platform is a breakthrough in big data predictive analytics that provides a meaningful increase in customer profitability. Unlike old school scoring companies, our platform includes a massive, proprietary database that actually improves LTV results and technology that automates the entire process. Our technology allows advertisers to achieve levels of precision and performance in their SEM campaigns that just wasn't possible before.
- Largest 100% online originated, multi-channel consumer database containing 250 million unique individuals, representing 98% of all adults in the US
- Family of known fraud scores and indicators to help identify fraud, identity theft and low-value customers
- Full arsenal of demographics, lifestyle, behavioral and transactional data for every consumer in the US
- Advanced machine learning software and algorithms that automatically get smarter over time
- Sophisticated customer lifetime value (LTV) predictions that accurately predict future customer behavior based on historical data, pattern recognition and validated algorithms
- Real-time technology platform that enables real-time decisioning in online marketing campaigns
- Automated cost-per-click (CPC) bid changes pushed out to Google SEM that incorporates LTV differences between individual customers
Is This Solution For Me?
A16E Predictive Search Technology is a fit for you if you meet any of the following criteria.
- You advertise on Google SEM Adwords platform
- You are in the e-commerce market, selling products and services to consumers
- You are in the online lead generation market and are trying to convert consumer leads into paying customers
- You don't currently have an accurate, automated way to measure and predict customer lifetime value (LTV) and integrate those predictions into your keyword bids
- You want increased customer revenue, usage and profitability
- You want to perform better as a marketer and get promoted at your company