Flipkart is the Indian version of Amazon.com. Flexible payment system, great collections and huge user base (more than 600k Facebook fans) makes it a hit.
OK, so come to the point. How flipkart can save money? The answer is:
“Stop displaying sponsored ads on the pure Branded keywords!”.
When you google ‘flipkart’, the result comes like it.
See that the paid list is same as the first organic result. It applies for all regions. So, it doesn’t make the sense to display the ad for the keyword ‘Flipkart’. They’ll receive the visitors anyway.
The same condition applies to most of the keywords like ‘flipkart.com’, ‘www.flipkart.com’, ‘flipkart india’ and other major branded keywords.
So, let’s get an idea how much it is costing them. For this, use Google AdWords Keyword Tool.
Look at the green bars. The keywords are far less competitive. It means very few people bid for these keywords in Google Adwords. So, Flipkart also don’t have to worry about losing the visitors with these keywords.
Again the term ‘Flipkart’ is being searched for around 60,500 times, ‘flipkart.com’ for 12,100, ‘www.flipkart.com’ for 5400 and ‘flipkart india’ for 480 times. The total becomes 78480 times for pure branded keywords.
Even with 10% CTR on Ads (I am sure the CTR is even higher in India) it becomes around 8,00o Ads/clicks per month. Avg. CPC (cost per click) is around $0.05. So, the amount spent on these keywords is 8000*0.05=$400 or 18,000 INR.
So, $400 being wasted (in my terms) every month because of the current PPC Strategy. Even if $400/month is not a big amount but it’s greater than monthly salary of most Indians.
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{ 6 comments }
You are missing a point. If Flipkart does not advertise for their own keyboard, the competition would. Just imagine, infibeam appearing in the place of the cpc ad for the search keyword ‘flipkart’. This is a necessary expense to avoid competition taking away your customers!
Thanks Bharanidharan for commenting.
I’ve already included in the post about Green Bars. The competition is almost equivalent to none.
Well, The CTR in case of pure branded keywords is slightly different than other long tail keywords. Searcher already knows about the site and all he is missing the exact URL or need some information about the specific website.
Even if, the competitor bids for these keywords, it is going to affect their ‘Quality Score’ in future.
I agree with Ankit Kumar on this one, when the user already is searching for Flipkart, he will click on Flipkart, because he has heard about it and there is no way he would click on any other link.
Thank Ankit.
It feels very good to say thanks to ‘Ankit’.
Hy, ankit. First time in your blog. really like your post.
thanks
Thanks Alamin!
I’m glad you liked it!
Stay tuned for more!