Marketing

What is the advantage of paying for conversions in Yandex.Direct and how to connect it
March 11, 2021 Online Advertising 1.8K 8 min. 0
Read later
In April 2020, Yandex opened beta testing of a new payment model in Yandex.Direct campaigns - pay for conversions. At the end of August, all advertisers became able to use the model. We will tell you about the advantages and features of payment for conversions, as well as show how to set it up correctly.

How is Pay Per Conversions different from other payment models and who benefits from it?
Traditional payment models (for example, pay per clicks) have a significant drawback - there can be a lot of traffic, but orders or applications - 0. But you have to pay for each click on the ad, regardless of whether the ad pays off or if it brings at all some kind of result.

The business itself does not need clicks, it needs targeted actions: registrations, transactions, requests, etc.

Therefore, from a business point of view, it is profitable to pay for conversions: the acceptable cost of a lead can be calculated based on the margin of the product or service (in some cases, on the client's LTV).

It is this model that became available in Yandex.Direct. The logic is simple:

You select the target action (Metrica goal), the achievement of which you want to pay for. For example, placing an order.
Set the cost per conversion. For example, 400 rubles.
For each achievement of the “Checkout” goal by a user who came through your ads, Direct will charge 400 rubles.
For a business, such a scheme is more logical and secure - only targeted actions are paid for, the budget will not merge on clicks of users who do not buy.

Note! If you have active pay-per-click ad campaigns that are bringing in leads within the acceptable price range, don't rush to turn them off and switch to pay-per-conversions. The principle applies here: “we don’t touch what works”. To test pay-per-conversion, it's best to create a separate campaign and look at the results over several weeks (and compare with a campaign that uses pay-per-click). Auto strategies work better every year, but unstable work is possible (including due to the fact that the technology is new). Therefore, it is better not to turn off what is already yielding good results, and to carefully test the payment for conversions.

When to switch to pay-per-conversion
The goal of your advertising activities is to generate sales or leads. You must have a specific target action that the analytics system can track.
You constantly need to test new mechanics to reduce the cost of leads (relevant for B2B and other complex niches).
You do not understand how to reduce the cost of conversions with traditional payment models (for example, you independently launch ads for your business and there is no time to understand the intricacies of optimizing advertising campaigns). A pay-per-conversion model will help you get customers at a set price (or at least not waste your budget).
How effective is pay-per-conversion
When opening access to the new payment model, Yandex published some statistics obtained during beta testing. The beta test involved 3,000+ organizations. 63% of them are small and medium-sized businesses.

The test results are as follows:

89% of companies that have tested the new payment model plan to continue using it.
The case of the World of Cubes chain of stores is indicative - advertising campaigns with pay-per-conversion rates showed a significant increase in performance compared to manual bids management: income grew by 33% on search and by 74% in YAN.