The Role Of Paid Search Advertising

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The Role Of Paid Search Advertising

• The Web Association
• www.webassociation.org
• September 25th, 2007

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The Role of Paid Search

• Chris Caputo
• Director Acquisition Marketing
• American Greetings Interactive

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Paid Search Spending
Billions Spent
Unique Keywords
Source Marketing Sherpa
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Market Share
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Agency vs In-house

• 73 In-house vs. 27 Outsource split hasnt
  changed in several years
• Growth in paid search agencies has come from new
  companies getting into search marketing.
• Search marketing talent is at a premium and both
  companies and agencies are having a difficult
  time hiring and retaining experienced search
  marketers.

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Top Challenges for Marketers

• Increasing competition for top terms
• Tracking offline conversions
• Increasing competition from natural search
  listings
• Keyword price inflation
• Challenge of tracking total ROI
• Click Fraud

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The Role of Paid Search

• Direct Marketing Customer dialogue with
  measurable results
• Consumer Driven Keywords are the supply and
  demand in the search economy
• Cornerstone Component Paid search is the
  closer of an online media plan
• Branding Impressions are free and build
  awareness

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Online Media Roles
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Budgeting

• 15 of online marketing dollars are spent on paid
  search.
• Big brands spend their online dollars on display.
• 40 of all marketers individual online spending
  is on paid search.
• Smaller companies use paid search more
  aggressively.
• Setting an ROI focused goal and growing your paid
  search to that target is key.
• It takes time to optimize (3-12 months)
• Measure the effective Cost Per Acquisition (CPA).
• Total Online Media Cost / Total Actions

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Primer

• First timers
• Hire an agency
• Stick to Google/Yahoo
• Identify your target market
• Determine the ROI focused goals for the campaign
• Level 2
• Expand to MSN, Ask and 2nd tiers
• Tie banner campaigns to paid search
• Measure the effective CPA
• Train internal staff to push the agency farther
• Optimize your program with technology

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Technology in Paid Search

• True ROI measurement.
• Tie multiple data sources into one data-mart for
  optimization.
• Companies
• ClearSaleing
• BlackFoot
• Revcube

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The Agency Relationship

• The agency brings search industry best practices
  to the table
• Established relationships with the engines
• Familiarity with the process
• Strategy and analysis should happen both in-house
  and at the agency
• Review the campaign metrics weekly with the
  agency
• What worked, what didnt, whats next
• Compensation
• Pay for the work (Hourly)
• Do not tie compensation to ad spend or profit

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The Role of Paid Search
Jeff Pearl Manager, Search Engine
Marketing eMergent Marketing / Brulant Inc.
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Misalignment of Media Spend with Internet Usage
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Best Performing Online Advertising Tactics
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Paid Search Engine Marketing
Paid Search Engine Marketing (SEM) The act of
marketing a Web site via search engines by
purchasing paid listings and other search
engine-related activities.
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Paid Search Engine Optimization and Management
Methodology
STRATEGY
LAUNCH
EXPANSION
ANALYSIS MANAGEMENT

• Define business goals, strategies, and market
  opportunities
• Review existing campaign performance in
  comparison to industry leaders(if applicable)
• Research keyword and key phrase opportunities
• Define success metrics and establish performance
  benchmarks
• Deploy bid management and ROI tracking tools

• Provide proactive and timely progress updates
• Leverage analytics to determine keyword
  performance
• Manage bid prices, ad copy, landing pages, and
  keyword assortment in relation to performance
  benchmarks and goals
• Continually monitor and protect against click
  fraud

• Define campaign structure, including
• Ad group organization
• Geo targeting
• Budget allocation
• Match types
• Negative keyword list
• Ad copy
• Landing pages
• Launch new or updated campaigns
• Begin testing ad copy and landing pages to
  improve click through rates and conversions

• Coordinate with promotional or marketing
  calendars to support traditional marketing
  through the PPC channel
• Conduct ongoing keyword research, selection, and
  evaluation based on key performance metrics
• Incorporate A/B split testing strategy and
  execution to improve conversion rates and ROI

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Keyword Research

• Industry leading keyword research capabilities
  provide deep insight into
• Consumer demand
• Top keyword usage
• Market trends
• Geographic interest
• Seasonality of demand
• Search engine market share

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Unique Capabilities Geo Targeting

• Provides opportunity to target broad keywords or
  specific promotions to a targeted geography
• Generates larger volumes of qualified clicks for
  regionalized sites
• Ad copy can be custom tailored to each local
  market
• Enhanced relevancy leads to stronger click
  through rates (CTR) which in turn equate to lower
  costs-per-click

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Unique Capabilities Ad Copy Testing

• Goal Increase CTR to reduce CPC
• A/B Testing Test multiple versions of ad copy
  simultaneously
• Recommendation Create different groups of
  marketing messages and continually test to find
  the ideal messaging

Speed 10 CTR
Speed 10 CTR
Leadership 12 CTR
Payment 6 CTR
Leadership 12 CTR
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Unique Capabilities Landing Page Optimization /
Testing

• Utilizing A/B testing in conjunction with paid
  search campaigns and web analytics leads to
• Increases in click-to-start percentages
• Increases in overall conversion rates
• Decreases in cost-per-acquisition

VS.
Challenger
Control
Note Insights should be leveraged for all
aspects of website (SEO, Display Advertising,
email, etc)
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Bid Management and Conversion Tracking

• Bid management tools help turn the art of
  pay-per-click management into a science
• Rules-based bidding helps identify bid gaps,
  maximize ROI, and improve overall performance
• Click fraud reporting identifies and logs
  competitive clicks, suspicious IPs, click
  spikes, and geographic activity

Bid Management
ROI Tracking/Reporting
Click Fraud Reporting
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The Role of Paid Search

• Sage Lewis
• CEO
• SageRock.com

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(No Transcript)
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Pay Per Call(PPCA)
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Google Click-to-Call

• Charged for calls over 10 seconds.
• No extra cost for long distance or other
  phone-related charges.
• You pay only the click-to-call price that you set.

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Ingenio
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Google Mobile Search

• Search ads can now reach Google Mobile Search
  users.
• We have begun showing eligible ads on Google
  Mobile Search pages
• FREE CLICKS through November 18.

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Local

• What the heck is it?

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Local

• Web Increasingly Used For Local Service Business
  Searches
• Among more than 2,800 consumer responses, 70 had
  used the Internet to search for a local service
  business
• 68 said they would most likely use the phone
  number on the website to contact a vendor.

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LocalWhat does it mean?

• Geo-targeted ads
• Local qualifiers on national ads
• Maps

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Local

• Geo-targeted Pay per click

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LocalGoogle
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LocalYahoo
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Local

• Maps

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LocalGoogle Maps
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LocalGoogle Maps
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LocalGoogle Local Business Center
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Locallocal.Yahoo.com
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Locallistings.local.Yahoo.com
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Locallocal.live.com
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Locallocal.live.com
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Site TargetingGoogle
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Site TargetingGoogle

• To create a new site-targeted campaign, follow
  these steps
• Log in to your AdWords Standard Edition account
  at https//adwords.google.com (if you're not
  already logged in).
• On the Campaign Summary page, find the table
  titled Online Campaigns.
• Click site-targeted in the 'Create a new
  campaign' section at the top of the table.
• Follow the sign-up wizard instructions to create
  your campaign.

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Site TargetingGoogle
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Site TargetingGoogle
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Contextual Placement Report
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2nd Tier PPC