This is a YouTube video titled "The real price of traffic #entrepreneur #googleads #traffic #advertising" containing a monologue by Rich Schefren recorded in January 2024. In this content, Rich Schefren explains the concept of traffic value in digital marketing, emphasizing how marketplace bidding sets the price of traffic and the importance of extracting sufficient value from visitors to make traffic profitable.
All traffic has a value. It's generally by bidding of competitors for that same traffic. And it doesn't matter if we're talking about YouTube. It doesn't matter if we're talking about Facebook. There is a price that's set, and it's generally by the marketplace. If you extract less value from a visitor than the marketplace has determined that visitor is worth. Even if you work really hard and you get organic to work, if you're making less than what the value of the marketplace has suggested that traffic is worth, you probably can make more money sending that traffic to someone else rather than your own website. It's like, I can take gold and make it worth $5 an ounce, it's worth 1300 an ounce, or whatever it's worth. The only way that you make traffic work is that you're able to extract more from that visitor than what the marketplace says that visitor is worth. But if you never want to have to deal with traffic, then work on conversion and value visitor value. If you make that high enough, there'll be enough room for people who can move fast with traffic to partner up with you.