Run Test Ads

Testing Value Propositions with ads

Pay-Per-Click (PPC) advertisements are particularly suitable for testing value propositions due to their ability to isolate value, force succinctness, and present direct competition. This method involves creating and testing unique PPC ads for each compelling reason identified in your value proposition. The performance of these ads can then be integrated into the design of landing pages for further testing.

A Value Proposition is the answer to why your ideal prospect should choose you over competitors. It’s not a high-level vision statement or a feature description but a concise, clear, and compelling reason to choose your product. In the fast-paced online environment, where web visitors have short attention spans, especially on mobile, the clarity and brevity of your Value Proposition become even more crucial.

PPC ads offer a unique testing ground for Value Propositions in an environment where succinct messaging is paramount. Their format aligns perfectly with the design of most landing pages, which typically consist of a headline, a subtitle, and a call to action. This synergy is vital for capturing the fleeting attention of web visitors.

Benefits include:

1. Isolation of Value. PPC ads allow for the focus on Value Propositions without distractions, a critical factor given the limited attention span of online visitors.
2. Enforced Succinctness. The character limits of PPC ads compel marketers to distill their message, aligning with the Nielsen Norman Group’s findings that web visitors make quick judgments.
3. Direct Competition. By placing your Value Proposition in direct comparison with competitors, PPC ads provide immediate feedback on its effectiveness.

Platforms for Value Proposition Testing

There are a number of different platforms / network sthat can be used to test value propositions. The list below are the most commonly used platforms for testing:

• Google AdWords. Use targeted keywords to reach audiences interested in your solution. Measure the click-through rate of each ad variation to determine the most appealing aspects of your offer.
• Facebook & Instagram Ads (Meta). Segment your audience based on interest to test different value propositions. This method is particularly effective for products that might not attract organic search traffic but appeal to casual web browsers or specific demographics.
• Paid Email List Promotion. Utilize email ads on targeted industry lists to quickly gauge which aspects of your product resonate most with your audience.

Always create multiple variations

The great thing about digital advertisement platforms is, that they all come with A/B testing built in. The auction feature will allow you to test multiple variaitons up against each other in a short time, cheaply, and up against a rather large (and possibly segmented) audience.

What metrics to watch

When evaluating results, there are several metrics to take note of:

• Clicks-through-rate (CTR). Variations with a higher CTR convey a greater user interest.
• Cost Per Click (CPC). A low CPC clues that its easier to find interested users in this target segment. Possibly because the segment is large. Possibly because the ad competition within that keyword or segment is not big.
• Reach. While reach alone won’t reveal how engaged that audience is, it does tell you something about the size of the segment you targeted.

Identifying Your Target Customers Online

The journey begins with pinpointing where your target customers spend their time online. This involves asking some fundamental questions about their online behavior:

• What websites do they frequent?
• Which apps are part of their daily routine?
• Where do they hang out online?

Engage your team in this exploration and focus on 1-3 primary online locations for initial testing. A simple yet effective method is to have a team vote on where they believe the time and resources should be invested to reach the target customer online.

Push vs Pull

Your approach to reaching customers online can vary significantly.

Early adopters are the ideal initial test group for your product. These early adopters:

• Have a problem that your product can solve.
• Are aware of this problem.
• Have been actively seeking a solution.

Use your customer profile to assess whether your target customers are already aware of and seeking solutions to their problems.

The “Push” Approach. When your target customers are aware of the problem but not actively seeking a solution, a ‘push’ approach is appropriate. This involves display advertising targeting specific criteria like age, demographics, and location. The goal here is to build awareness and encourage potential customers to engage with your ad.

The “Pull” Approach. Conversely, for customers actively seeking solutions, the ‘pull’ approach is more effective. This strategy involves positioning your ads on search result pages, targeting users precisely when they are looking for solutions. These ads often appear at the top of search results, marked with an “Ad” superscript.

After launching your ads, closely monitor their performance. Use the insights gained to refine your approach, messaging, and targeting. Remember, the ultimate goal is to establish a problem-solution fit that resonates with your target audience.