The Pay-for-Conversions strategy in Yandex.Direct is aimed at attracting the required amount of conversions, and it is for them that the system charges the payment. This approach allows you to invest money in achieving specific goals and more effectively use the advertising budget.
We tested payment for conversions and today we will share our experience – we will tell you about two projects where the strategy has significantly improved performance, and we will also give some practical advice.
Working conditions of the “Pay for conversions” strategy
For the algorithm to work correctly, you need to make sure that three conditions are met:
The Yandex.Metrica counter is configured and every week it records at least 10 conversions on the site for the selected goal.
The weekly budget is enough for 20 conversions.
Minimum account balance – tripled conversion price. The system will warn you if there are not enough funds on the account to receive conversions at a given price.
Objectives for testing a new strategy
It was important for us that there were more purchases or leads, and their cost decreased. More broadly, we wanted to improve the effectiveness of advertising and reduce the cost of it.
In terms of indicators, our goals were:
An increase in the number of transactions (paid orders) and a decrease in CPO (value of a completed order).
Increase in the number of leads with a simultaneous decrease in CPL (price per lead).
Reducing the share of advertising costs in Yandex.Direct.
Case number 1 – selling ready-made food
Sushivesla is a federal network of mobile restaurants serving Japanese and Asian cuisine, operating in more than 20 cities. We set up advertising for them in 17 cities.
Key optimization metrics:
Sushivesla has two types of advertising campaigns in Yandex.Direct:
Brand – keywords are related only to the brand name.
Non-branded – general queries divided into categories, targeting by interests, look-alike, etc.
Also, e-commerce was connected, which made it possible to optimize by the number of transactions (order), as well as by CPO, ROMI and DRR.
Branded campaigns brought a stable number of paid orders at a low cost, so we used Pay Per Conversions in non-branded advertising campaigns.
We switched to a new strategy in July 2020. To assess the effectiveness, we compared the results obtained from August 1 to November 30, 2020, with two similar previous periods, when the campaigns worked with the old strategies:
From August 1 to November 30, 2019 – the same time period for the previous year.
From March 1 to June 31, 2020 – a period of high demand for food delivery due to the self-isolation regime in the COVID-19 pandemic.
We took two periods for a more accurate analysis of the work of advertising campaigns.
The table shows a comparison of the indicators obtained after switching to the “Pay for conversions” strategy with the indicators of the control periods. Data from Yandex.Metrica.
March – June 2020
August – November 2019
We achieved our goals: increased the number of transactions, decreased the cost of orders (CPO) and reduced the share of advertising costs (ADR).
After this test, we conducted many more different experiments, for example, we switched to mixed strategies based on efficiency, but over time we returned back to pay-per-conversion, as it works better.
Case number 2 – real estate sale
The second client is a company that sells apartments in Sochi under construction. We cannot name the brand due to a non-disclosure agreement.
Key optimization metrics:
leads: sending basic forms on the site, initial call, feedback and callback;
Different types of advertising campaigns for search and YAN were set up in Yandex.Direct: branded, look-alike, retargeting, auto-targeting, general queries, and others.
For the transfer to Pay Per Conversions, we chose campaigns that were attracting expensive leads or not bringing in leads in the last three months. In other words, they took a cluster of ineffective campaigns.
As a goal, we chose the frequently performed one – “Submitting forms on the site”. At the same time, they set the conversion price below the set KPI by 30% and gradually increased it, focusing on statistics.
The indicators obtained from September 1 to October 31, 2020 after the transition to the new strategy, we compared with two time periods – the same period last year and two months before the transition. Data from Google Analytics.
June – July 2020
September – October 2019
We increased the number of leads and reduced their cost (CPL), and the conversion rate (CR) increased significantly. There is no advertising at the moment, as the client has sold all the apartments.
Tips from the series “stuffed cones”
- Don’t set low rates. When switching to “Pay for Conversions”, do not significantly lower your bid… The higher it is within the set KPI, the better and faster the system will learn and bring the desired number of leads.
- Think of the drop in traffic and conversions as a signal to check your settings… With each ad impression, the system analyzes the achievement of the goal set in the campaign settings, and if it does not see a significant improvement, it will gradually decrease ad impressions, respectively, traffic and conversions may become less. First of all, it is worth checking whether the selected goal meets the requirements of Yandex.Direct.
- Choose the right target for optimization… Seek help from analytical systems, where you track all actions on the site, analyze all conversion goals and choose the one that is most often performed. This way you can run an advertising campaign as efficiently as possible and not pay for other conversions on the site.
By the way, you can use a composite goal from Metrica for optimization. This method allows you to select a pool of main conversions without analysis if all main conversions are involved in the composite goal, for example, for the Lead goal – submitting a form, making a call, ordering a callback, etc.
- Check analytics settings and data carefully… Different attributions in analytical and advertising systems can be confusing when analyzing the work of advertising campaigns. For example, in Google Analytics or Yandex.Metrica, you can see that a Pay Per Conversion campaign spent money, but no conversions were recorded.
This comes from different attribution models in the ad strategy settings and in the analytics system. For example, if the attribution “First click” is selected in the campaign settings, and “Last significant click” in Analytics, then in Direct you will see the goal fulfillment and the expense, and in Analytics only the expense.
Don’t panic, but analyze the work of advertising campaigns using the Report Wizard in Yandex.Direct.
Also check all the settings, it may well be that you missed the slider that activates Pay Per Conversions within the main Conversion Optimization strategy.
- Use underperforming campaigns as test campaigns to pay for conversions… Without sacrificing anything, you can return campaigns that were stopped due to inefficiency: you will receive several targeted conversions and pay only for them.
The Pay-for-Conversion strategy in Yandex.Direct increases the effectiveness of contextual advertising without increasing your budget. But as in any business, you need to use the new strategy wisely – it is better to start with campaigns whose performance is worse than average in an ad account or which were “written off” as unsuccessful, and carefully check the settings.