Effective Bidding Strategies for Tracy’s Pizzeria to Increase Calls

Q1. What bidding strategy should Tracy, a pizzeria owner, use to get more people to call her business?

Option 1: Cost Per Acquisition

Option 2: Cost Per View

Option 3: Cost Per Click

Option 4: Cost-per-thousand-impressions

The correct answer to the question is option 1 – Cost Per Acquisition

Running a pizzeria is not at all easy. You need to put a lot of effort into developing business strategies so that people call you to place orders. All these things are not enough, and you still may face difficulties in operating your business successfully. 

Tracy is the owner of a pizzeria. She needs help gathering customers. She is unable to decide which bidding strategy is applicable here. So what bidding strategy should Tracy, a pizzeria owner, use to get more people to call her business? Here, I will answer this question in detail.

What Bidding Strategy Should Tracy, A Pizzeria Owner, Use To Get More People To Call Her Business? – Detailed Explanation

Tracy must use a target cost-per-acquisition business strategy (CPA) to bring her business under everybody’s prime attention. But why Target CPA? With automated target CPA, Tracy can increase conversions by getting bids. So, as the conversion rises, your brand will get more people to call her business.

Bidding Strategies

To decide which bidding strategy will be appropriate for Tracy, we need to know about the four types of bidding strategies. And they are,

1. CPV.
2. CPM.
3. CPC.
4. CPA.

This will also answer the question, “What bidding strategy should Tracy, a pizzeria owner, use to get more people to call her business?”

1. Cost-Per-View Or CPV

CPV, or cost-per-view, is a bidding strategy suitable for video campaigns. And for a view, you need to pay. 

In this case, your video has to be interacted with or viewed for at least 30 seconds or a specific duration if the video is shorter. Only then does it become a view.

Companion banners and CTAs or call-to-action overlays are interactions with the video. By setting CPV bids, you can set the amount you will pay for every view.

When creating your ad group, you can set the maximum CPV bid. Based on other advertisers ‘ bids, you will pay an amount equal to or slightly less than the set amount. To use the option CPV bidding, you need to run TrueView. 

2. Cost-Per-Thousand-Impressions Or CPM

CPM or cost-per-thousand-impressions generally known as cost per mile. On a single webpage, the price of 1,000 advert impressions is denoted as CPM. 

Suppose you are a website publisher and charge $2. 

So, an advertiser has to pay $2 for 1,000 impressions of your ads. This method is prevalent when pricing web ads. With its click-through rate, the success of this campaign is measured. 

The percentage of people who have seen the adverts is the click-through rate. 

If, for every 100 impressions, the adverts receive two clicks, then the click-through rate will be 2%. 

However, this CTR is one of many things used to evaluate the success of a CPM. It will still make some contribution if you click on an ad and do not view it. 

3. Cost-Per-Click Or CPC

The other name of CPC or cost per click is PPC or pay per click. Based on the number of times a viewer has clicked on an advert, the website uses it to make the bill. This method is used most of the time to set a daily budget. 

The ad is removed from the rotation once the advertiser touches their budget. 

This will continue for the remaining duration of the particular billing period. Suppose a website offers 2,000 click-throughs, and the rate is 20 cents; the sum will be $400.

So, by multiplying the click-throughs by the money, you will get the total cost: a bidding process or a formula set the amount the advertiser would pay. 

Moreover, as it’s an online business, publishers often look for third parties like Google AdWords to match with advertisers. 

4. Cost-Per-Acquisition Or CPA

CPA or cost per acquisition is also known as cost per action. When a customer takes action that causes a conversion, the cumulative cost is measured as CPA. 

A conversion can be a sale, or sometimes it also can be an installation, a download, or a click. 

It can get a paying customer on a channel level or a campaign by measuring aggregate costs. By paying a CPA, you get a direct result. This makes CPA so crucial. 

With this, you will also be able to compare performance across channels. 

For example, for your online shop, you run a campaign on Google with a budget of $700. And by the end of the campaign, you can get 20 sales. 

So, by dividing $700 by the conversion of 20, you get the CPA of $35. The budget you have assigned to get a client is the determining factor here.

You must know the customer’s lifetime value. The reason behind this is it represents the total amount of money a customer can spend during their time on your website.

What Bidding Strategy Should Tracy, A Pizzeria Owner, Use To Get More People To Call Her Business?

Now is the time to answer the question: What bidding strategy should Tracy, a pizzeria owner, use to get more people to call her business? 

Among all the four options that Tracy has, she should go for the cost-per-acquisition, cost-per-action, or CPA. 

With a CPA, she can pay for the direct action. And she can also check and compare performance across several channels. All these reasons make CPA the best option for Tracy.

Frequently Asked Questions (FAQs):-

Check out the most frequently asked questions related to such a situation.

And It’s A Wrap!

So, here you get the answer to your question and learn about the four different bidding strategies. 

Do you know what Bidding Strategy Tracy, a Pizzeria Owner, should Use To Get More People To Call Her Business? It is essential to know what results you want. Only then will you be able to choose the proper bidding strategy?   

Did you find this article helpful? Let us know your viewpoints in the comment box below. Also, you can shoot your queries if you have any.  We will be more than happy to help you out. Check out our latest guide on ” Which Option Can You Use To Capture Potential Business Later In The Day, Even On A Limited Budget? “

Additional Reading:

• What Is Business Strategy Consulting And When Do You Need It?
• How Outsourced Sales And Marketing Can Boost Your Business 
• Which Statistic Indicates How Often A Click Has Led To A Conversion?