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I am here at the Pay Per Conversion panel at Search Engine Strategies. Bret Crosby at Google is discussing the conversion process and the many mistakes web site owners make. From a marketing perspective we want to provide the products and/or services which our customers want. The search engine are no different, they want to provide the most relevant search results to the searcher. The issue comes into play where website owners and webmasters fail to optimize their marketing efforts to ensure the potential customer really finds what their looking for.

One thing that webmasters and business owners can do to help optimize their site is to have someone else, a third party really go through the website and surf through it. You are really able to understand potential issues, where they surf through, and where they don’t by conducting this test.

The panel starts to talk about the importance of having some type of analytics on your website to have the ability to understand where your visitors come from(Geographically), what the bounce rate is, where they surf to,  what keywords were searched to find you.

They really want to stress the importance of landing page optimization. The landing page is the first page visitors come to when they access your website. If the landing page is not optimized to reflect the topic in which the searcher was looking for they will most likely leave the website. You can use your analytic data to better understand what searchers are doing once they arrive at your landing pages and understand which ones are preforming better. You can also use a feature called site overlay to really understand what sections of your web page have the most activity, and what sections are not really seen at all.

You should also have some type of site search function on your site which will allow your visitors to search for what they really want to find. This function will also allow you to see what the visitors that come to your site are looking for. Maybe there is a product, service, or informational piece that your not providing but your visitors really want to see. Using the site search feature will allow you to uncover this information.

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Creating Compelling Ads At Ses Ny

If you are using paid search as one of your online marketing strategies (who isn’t, if you’re not, get with the program,) this was one of the most important sessions I have ever attended and paid very close attention to.

(1) Mona Elesseily- Director of Marketing Strategy- Page Zero Media

-Research and understand your market

-Understand your market: “Free Shipping” example. “MP3 players”

-Differentiate between you and your competitors.

Tools to understand your market:

Example: Test Order now vs. Order Today

Order today in first line converted better than second line.

Elements to test:

Headlines, Offers, “buy” words like try, get, etc.

FREE TOOL: chúng tôi

(2) Patricia Hursh – Smart Search Marketing

5 TIPS:

Define Success Metrics

Use unique, specific calls-to-action

Ask a compelling question (lots of success)

-Don’t ignore the power of non-branded keywords.

Ask Questions.

(3) Misty Locke, President of Range

-Convert at the ad not landing page. Include keyword in title and desc. Capitalize display url for more visibility, clear call to action.

-Deliver a clear message. Make sure your creative defines what you are selling. Be clear of who you are and what you want them to know about you.

-Provide consumer the right information. Price and a bit more description converted by about 8-10% higher than broad ad.

Description Check point: B (brand) + O (offer) + C (call-to-action) = client brand exposure

Ad with price point had lower conversions, much higher ROI.

(4) Jason Dorn -Senior Director at Yahoo!

-Ad group structure is foundation of success (tight ad groups…huge for quality score)

-Creating a valuable first impression is critical (be clear, be relevant, call out a competitive edge)

-ad testing is a means to an end

(5) Jason Miller – Engine Ready, Inc.- CTO

–DON’T BE ALL THINGS TO ALL PEOPLE.

Utility vs. Emotional: Getting a great CTR is a mindset.

When everyone else is competing on utility, go emotional and the other way around.

**Your Ad is a window to your site.

Let your winners run and cut your losers quickly.

-Headline

-Swap ad copy line 1 with line 2

-Including www

Search Relationship Organization (new concept?)– contact competitors to lower bids if you constantly can locate a competitor and hiking up each others bids.

Conversion Rate Optimisation : A 9 Step Process

But when I recently met Ben Jesson and Karl Blanks from Conversion Rate Experts their background didn’t fit the norm. Their company was founded when a real-life rocket scientist teamed up with a internet marketing specialist to look at websites through unconventional eyes.

This unusual perspective has turned out to be highly profitable for their clientele, which includes firms like Google, Vodafone, and Sony.

In this interview we explore how Conversion Rate Experts approaches optimisation since I think companies, agencies and consultants can learn a lot to their approach to returning the commercial returns from websites of all types.

2012 update:

When I completed the original interview with Ben and Karl back in 2010, I asked whether they had a summary of their process to share. We did cover this in Question 3, but recently Karl has been in touch to say they now have an infographic to show this process. I thought I’d share it so you can review your processes against it. You can read more about their process on their blog where they expand upon each step.

What is Conversion rate optimisation?

Q1. We’re seeing a lot more companies working now on CRO. What is it? Is it more than landing page optimisation?

Yes, it should be. Landing page optimisation focuses on one page. We coined the term Conversion Rate Optimisation (“CRO”) in 2007 to describe the process of optimizing the business itself. It’s really commercial optimization

A proper job of CRO includes the review of the entire process from the initial lead-generation ad, all the way through to the post-sale follow-up. The real goal is to identify which parts of the sales funnel will yield the greatest wins with the least work.

That means it’s necessary to bring a lot of disciplines to the party, including understanding traffic sources, visitor psychology, and the company’s position in the marketplace, including its core strengths and weaknesses. On top of that there’s usability testing, copywriting, and web design factors to look at.

All these elements go into creating hypotheses for testing. We’re maniacal about testing, because we’ve seen too many businesses merely throw a series of “best practices” against the wall to see if anything sticks. Best practices should not be the answer to optimizing a website, but merely one starting point for formulating a test strategy.

Once we determine what truly works for a particular website, then we examine how our findings might be used in other media channels. For instance a better series of benefit statements might be transferrable to direct mail or email autoresponder campaigns””subject to testing in those media, of course.

The business case

Q2. How do you help companies persuade colleagues of the returns from CRO, the business case?

Unlike certain industries like public relations, the entire foundation of CRO is based on data, measurement, and testing. You don’t need to present arguments when the data can do the talking for you. Once you measure the value of visitors, conversions, and sales, then it’s simple arithmetic to show how, say, a 10% boost in conversions would help the bottom line.

Identifying the biggest opportunities

Q3. What approaches do you use to decide which part of a site needs most urgent attention?

FORTUNE magazine called what we do “a combination of multivariate statistical analysis and good old-fashioned detective work” and that pretty well describes our approach.

It’s often very useful to map out your entire sales/conversion funnel and make sure it’s being comprehensively measured in whatever web analytics package you prefer.

What mistakes limit conversion?

Q4. Give some examples of the most common “conversion rate killers” you see.

Killer #1: Not split testing. Many people think they’re done if they take action to make changes to their site. In reality they’re only “done” when tests show that the changes in fact improved conversions. Installing a “best practice” magic button that another site swears by might actually lower conversions. Despite the popularity of video, Google once discovered through tests that video reduced conversions on one of its pages. You simply must test to find out.

Not long ago, multivariate testing software cost more than £5,000 per month. Now you can use Google Website Optimizer and other software packages for free, so there’s really no excuse. We created a tool, called Which Multivariate, which helps you to select the best software for multivariate testing.

Killer #2 is “meek tweaking”””in other words, making changes that are never likely to have a significant effect.

Killer #3 is asking for the sale on the first visit. It’s often a good idea to test the creation of a multi-step conversion funnel, in which you provide great value before you ask for the order. Comparison charts, forums, special reports, and email marketing are examples of elements that allow you to provide good information, ask for names, cultivate a relationship and thereby improve the chances of a sale.

We recently gave a talk on 15 Common Causes of Conversion Death

What are the latest approaches?

Q5. Are you seeing any innovative design techniques that are helping conversions?

Excellent design is a prerequisite for conversion, but the biggest breakthroughs tend to be the new tools and techniques for gathering insights into the visitor’s mindset.

KISSInsights and Ethnio are both good for asking your visitors to give you immediate feedback on your site. GazeHawk enables you to conduct an eye-tracking study on your site for a tiny fraction of the traditional cost.

Many of your readers will already know about how wireframing is important in order to get agreement on functional aspects before you take the time to make a site look good. We like Balsamiq for that purpose. [Editor – I use that too – a great simple wireframing tool for consultants and agencies]

Finally, your readers may want to get our free newsletter to see what a million-dollar landing page looks like, along with a graphical analysis. We call it that because it generated over a million dollars for one of our clients.

If you want even more examples of what’s possible with conversion improvement, watch the video in the header of our website.

Conversion Rate Optimization: Marketing’s Most Underused Weapon

CRO is an underrepresented specialty in today’s marketing industry and because of a general lack of understanding about the field of work, it often loses out

I attend and speak at some of the best digital marketing conferences all over the world and I can count on one hand, the number of sessions I’ve seen that offered quality content about Conversion Rate Optimization (CRO). This marketing specialization always seems to fly under the radar in marketing circles.

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Yes, there are a number of great websites and resources dedicated to CRO. There are also some excellent CRO-specific conferences out there and I’ve attended most of them – but the real problem is this: The only people talking about conversion rate optimization are CRO experts at CRO conferences and CRO bloggers on CRO-specific websites. Digital marketing generalists and marketing departments don’t pay a whole lot of attention to it and they certainly don’t give it the respect it deserves

And believe me, it deserves more respect.

I’ve personally seen CRO campaigns contribute millions in revenue to online brands, for pennies-on-the-dollar compared to costs of other marketing channels. In fact, at the software company Project Manager (where I lead the marketing teams), one recent iteration of A/B testing lead to a 49% increase in conversions. Gains that big are rare, so when you find a marketing channel yielding such positive returns, you can’t afford to ignore it.

I’ve made it my personal mission to help expand the reach of conversion rate marketing. This starts with us talking more about what CRO is and how it can help other marketing teams.

Understanding the ways in which users navigate your site and become customers is what CRO is all about and improving that process means more sales. A good, basic understanding of key terms and metrics is important to understand the necessity of CRO.

Here’s a quick CRO crash course in case you need a little refresher:

Key terms and metrics

Conversion is the term for what happens when an online visitor becomes a paying customer. Conversions take many forms: buying an item, subscribing to an email, requesting a quote, or creating a user account.

Your conversion rate is the total number of conversions divided by the total number of user sessions. If your website has 20,000 user sessions a month and you receive 500 orders in that month, your conversion rate is 500/20,000 = 2.5%.

Bounce Rate

Your bounce rate is the rate at which a visitor arrives at your website and leaves without taking any actions. If your website is providing information (say, ‘how to increase CRO’), then a high bounce rate isn’t inherently bad – it means the visitor received the information and left. If you’re in the business of selling products or services online, you want visitors to take on-page actions.

Call To Action Shopping Cart Abandonment

Shopping cart abandonment by customers is frustrating and rightfully so. Losing out on the potential sale at this final stage means missing out on significant revenue. Tracking abandonment rate is part and parcel of successful CRO implementation.

These metrics are at the core of any website analysis for improvements that could come from a successfully implemented CRO campaign.

Analyzing your website for CRO improvements

To determine how to most efficiently implement CRO, it’s a valuable exercise to analyze your current website and identify any obvious areas that need improvement. Colour contrast levels, CTA location and video inclusion are just a few areas worth exploring.

Unclear value propositions, weakly worded or misplaced calls-to-action and difficult checkout procedures are some of the big red flags for companies with lower conversion rates.

Most of all, be sure to bring as much data as possible.

Your Google Analytics dashboard is positively loaded with conversion rate metrics, including:

Traffic from target market (traffic sources)

Return visitor conversion

Interactions per visit

Traffic from target market is of particular importance, as narrowing down your dataset to your specific target market is how you separate potential customer traffic from overall visitor metrics.

Doing the work to analyze your website, where CRO can best provide an impact and fully implementing CRO is only part the battle.

The challenges of CRO

The actual functional work of implementing CRO isn’t overwhelming, but there are some common hurdles that get in the way when teams try to roll out their first conversion marketing program:

Challenge 1: CRO is resource intensive

Marketing staff: to analyze website usage data, form the hypotheses and set up the test in the split testing software.

Design staff/front-end developers: to design page variants and turn the hypothesis into working web pages.

Content writers: to craft new messaging for page variants.

SEO staff: to ensure testing does not cause any organic problems (duplicate content or similar pages can create issues for Google).

Data scientist or experienced CRO practitioner: to ensure testing is statistically sound and to interpret the results.

Challenge 2: CRO is complex

Conversion optimization requires a general grasp of statistics, some of which can become confusing pretty quickly. At the very least you will need to understand P-values and statistical significance. In fact, A/B testing done wrong – results without statistical significance – can lead to false interpretations of data and cause misguided marketing decisions to be made.

As the saying goes: “The data will confess to anything if you torture it long enough.”

Here’s an illustration of why statistics matter:

Say you take the homepage of your e-commerce website and make an identical copy of it. You now have two pages that are exactly the same. Next, you run 50% of your web traffic to the original version (page A) and 50% to the identical copy (page B). You begin to run your A/B test, and you record which page generates more purchases.

After the first hour of testing, you notice page version B generated five purchases, while Page A generated only one, so you stop the test. Without an understanding of statistical significance, you could conclude that Version B is the winner. After all, it’s a better page as it has 400% more sales.

However, the two pages are identical. If you would have let the test run longer (like statistical mathematics dictate) then over time the numbers would have equalized and you would have seen that one page does not actually perform better than the other.

Statistics and timing are crucial when it comes to getting CRO right.

Challenge 3: Getting leadership buy-in is difficult

No matter how well prepared you may be to deliver a CRO campaign, it’s all pointless if you don’t have leadership buy-in, particularly from the C-Suite.

If the technical challenges weren’t enough, It can be unbelievably difficult to convince C-suite leaders in an organization to put precious marketing resources towards Conversion Rate Optimization.

The scenario goes something like this:

Marketing Director: “I need extra marketing resources to implement a CRO program.”

CEO: “We don’t have the budget to work on the website right now, we just need to focus on bringing in new business instead. Let’s revisit this next year…”

It can be hard for company leaders to understand how CRO could be as valuable to the bottom line as lead generation marketing that brings in new revenue. Luckily, the golden rule of C-suite persuasion applies nicely here: Tie it back to money. Convincing management to implement CRO doesn’t require technical language. Speak in terms C-suite executives understand – profit, cost and sales.

Sell CRO by selling results and back those results up with proof. Few people have the time or willingness to understand what boosting a conversion rate from 2.5% to 5.0% means in technical terms but saying you can double sales with a proper CRO campaign is something no one can ignore.

CRO is a process and it takes quality data to sell long-term improvements to management. Look for case studies and examples from your specific industry. After all, it’s hard to deny the value in CRO if your competitors are embracing it.

Frame the discussion in terms that non-technical or traditional-minded executives understand. If a visitor walks into your brick-and-mortar store, you need to get them to spend money. Hiding the checkout queue, greeting customers or offering finance are all ways stores try to convert their customers. Portray CRO as the digital equivalent of organizing a store and even the most ardent C-suite executive is sure to see the value.

Need a little additional ammunition to convince your CEO? Quote some of these case studies:

Moz

It would stand to reason Moz, one of the premier online marketing providers, would be a case study for effective CRO implementation. When Moz tweaked its approach towards CRO, it registered over $1 million/year in new subscribers.

On its landing page, Moz changed its marketing and sales language from ‘buy’ to ‘why’. This new marketing approach demonstrated value (e.g. ‘here’s who eBay, Disney, and Marriott turn to…’) instead of trying to sell a product or service. Moz also clarified what customers would get with their subscriptions. Charts and images perform well with users and create interest in viewers. This reduced bounce rate and kept visitors engaged.

The company also emphasized video marketing content in lieu of pure written text – something viewers love to see. With Moz drawing in larger crowds with its improved landing page, the company tweaked its sales funnel by making it easier for customers to try their service. Revamped CTAs ($1 for 30 days of paid membership) and no-obligation product trial periods lowered the shopping cart abandonment rate and prompted more conversions.

Hubspot and 37Signals

The lesson is clear: find areas to improve on, and run A/B tests to get quality data on what works. Often, the simplest changes lead to the best results.

Moving forward with CRO

At its core, CRO is about making it easier for customers to spend their money.

Help them do it!

Book Profit As Per Income Tax Act

Definition of Book Profit

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Explanation

ABC Bank invested in the Bonds of Crayon International on 02 Jan 2023. The Bonds were bought at @1200 USD. On 31st March 2023, the Market price of Bonds stood @ 1240 USD. The number of Bonds purchased by ABC Bank is 20000 units. Based on the above:

Particulars

Amount in USD

Purchase Price 1200

No of Bonds purchased 20000

Total Book Price 24,000,000

Market Price on 31st March 2023 1240

Book Profit per unit of Bond 40

Total Book Profit as on 31st March 2023 800,000

 Further Book Profit is not confined to just investments but also to normal business revenues as well however the methodology to compute Book Profit differs in the case of business form as per Income Tax rules prevalent in the country to which the business belongs.

Book Profit in Share Market

Book Profit in Share Market implies the timely booking of profits else it remains as Mark to Market (MTM) Notional profit. The value of securities in the share market keeps on fluctuating resulting in notional gains/losses on the securities held. When securities are held in the books of the business with gains it is called Book profits, however, this profit can’t be accounted for by the business as it is not realized.

Let’s understand this with the help of another example:

Ram bought the following shares on varying dates in the month of January 2023 namely;

Share Name

Price ( in USD) Quantity

Total (in USD)

Reliance 34 1000 34000

HDFC 20 400 8000

Google 100 700 70000

Total

112000

On 31st March it was informed that Ram has the following position:

Market Price ( in USD) Quantity

Total (in USD)

Reliance 70 700* 49000

HDFC 30 400 12000

Google 400 700 280000

Total

341000

*300 shares of Reliance sold @$70 per share.

Now we can see Ram will report a Net profit on the shares sold and Book profit on the shares which are still held by him as under:

Realized Profit which will form part of Net Profit as it is realized:

(300 * {36}) =$10800

Book Profit for Ram as on 31st March 2023 will be as follows:

Market Price ( in USD) Book Price ( in USD) Quantity

Book Profit (in USD)

Reliance 70 34 700 25200

HDFC 30 20 400 4000

Google 400 100 700 210000

Total

239200

Book Profit as per Income Tax Act

As per Income Tax Act guidelines, it is derived from Net profit after adjusting for the following items:

Addition of Income-tax payable/paid by the business which is included in the computation of Net Profit.

Addition of amount transferred to any reserves and amount provision for contingent liabilities.

Addition of provision for losses set aside for subsidiaries of the business and any dividend paid or proposed to be paid.

Addition of certain expenses related to incomes that aren’t permission as per the provision of the Income Tax Act for the purpose of computation of Book Profit.

Reduction by any amount added to derive Net Profit such as Long term capital gains, royalty, etc.

Reduction of Non-cash expenses such as Depreciation if debited to P&L account for computation of Net Profit.

Reduction of the amount of any brought forward unabsorbed depreciation use for computation of Net Profit.

Book Profit vs Net Profit

The two terms are used frequently in accounting parlance; however, differ a lot. Key differences are enumerated below:

Basis

Book Profit

Net Profit

Taxability Book Profit is not used for determining tax in the case of Business forms such as Company etc. Net profit is derived after adjusting for the tax liability of the business.

Meaning Book Profit refers to the profit computed as per the Income Tax Act relevant to the business. Net profit refers to the profit computed as per the Book of Accounts of the company in accordance with the Companies Act relevant to the business.

Analyst Focus It is not tracked by the Analysts and stakeholders but is used more for taxation purposes only. It is closely tracked by Analysts and stakeholders and is an important number used for various financial ratios purposes.

Importance of Book Profit

Every legal entity is liable to pay income taxes in the country in which it operates and in order to pay its tax liability it is required to determine its tax liability which the first and foremost step in tax management. Determination of Book Profit is necessary for the purpose of calculating the Tax liability.

Conclusion

It is an accounting term which implies profits which are notional in nature and not realized by the business. Due to the notional nature, these profits are contingent and can change over time and maybe even wipe out completely as well in case of a drop in prices. In other words, we can say that Book Profits are paper profits and as such, they are not taxable in nature unlike Realized Net profits of the business.

Recommended Articles

This is a guide to Book Profit. Here we also discuss the definition and book profit in share marketing along with example and importance. You may also have a look at the following articles to learn more –

Should You Pay Or Not? – Webnots

WordPress is the most used free and open-source content management systems (CMS) in the world. WordPress powers more than 40% of all sites available on the web. This is quite natural because creating and maintain a website is quite easy with WordPress. There is no need for website owners to learn HTML or programming and the platform has a user-friendly interface.

One of the most important elements of WordPress CMS is the WordPress theme. This is the element of the WordPress website that provides all of the front end stylings. They include a folder of template data which takes care of specific parts of the website. These themes are multi-purpose by nature allowing users to use them on different type of sites. Downloading and installing these WordPress themes is very easy and fast. Today, there are hundreds of WordPress themes available for website owners and some of them are free while you have to pay for others.

In the recent period, many people are wondering whether they should opt for paid or free WordPress themes. If you are in a situation like this, it is the best idea to learn more about the difference between these two types of themes.

Free WordPress Theme: An Overview

There are literally thousands of free WordPress themes available in the market. In fact, most websites use or start with free themes. One of the main reasons why they are so popular is the fact that they are free – you don’t have to pay a dime for them. This also means that you should feel free to try different themes until you find the one that suits your site the best.

Next, when we compare free WordPress themes with the paid ones, we will notice that most of them are compatible with almost all plugins. This is not true for paid themes. When creators of Free WP themes make them they have functionality in mind and that’s why they are creating a product that will be useful to most users. Of course, finding a way to make them compatible with plugins is one way to achieve this goal. The plugins are very important, so you should keep this fact in mind when making your final decision.

Contrary to popular belief, free WP themes provide excellent customer support. The vast majority of developers will be glad to answer all your questions and help you in case you get stuck. In fact, many of the developers are creating both free and paid themes, so they definitely want to keep their reputation. If you are concerned about support, you should also remember that since there are more users of free WordPress themes, there are more people that have experience with any theme you choose. So, you can ask questions on forums, websites, discussion boards and you’ll probably get an answer fast.

The only downside is that they might not be so unique, but as we said before, there are thousands of free themes and their number is increasing so if you are worried about uniqueness – do some research. We are sure that you will find a theme that is not overused.

Paid WordPress Theme: An Overview

Paid WP themes are obviously themes that you must purchase. Their typical price usually starts at $25, but they can cost a few hundred dollars too. This is a huge no-no for many website owners especially the ones that are just starting their online ventures.

They definitely have a unique design than most free themes, but it all depends on the theme you have selected. There is no doubt that there are some unique free themes too. When we say paid themes, this doesn’t mean that we are talking about limited products. In other words, hundreds of people can pay for the same theme and use it on their website.

Paid WordPress themes promise enhanced security. This is especially important for online shops where paid transactions are in play. Once again, this doesn’t make paid themes better than free themes, at least not in general. Namely, there are many free themes that are offering great security options too.

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Should You Pay or Not?

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