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This is an example of pay per click advertising. This document is useful for conducting pay per click advertisings.
Branded and Non-Branded Keywords Pay Per Click Advertising…Branded and Non-Branded Keywords By, Alexander Heimann, Director of Interactive Marketing In today’s fragmented advertising world, more and more marketing dollars are moving online. When reviewing your advertising budget, it’s important to ask the following questions: How much of the total advertising budget is dedicated towards online marketing? Of the online marketing budget, how much is directed towards banner advertising? What percentage is allocated for Pay Per Click advertising? For many advertisers, Pay Per Click Advertising (PPC) can be an intimidating proposition. Before you begin shifting dollars in your online marketing budget, it’s important to have thorough understanding of the terminology and differences between types on online advertising. Pay Per Click is an advertising model where the advertiser only pays when a user clicks on an online ad to visit the advertiser’s web site. The Pay Per Click advertising model became mainstream when search engines began offering “sponsored ads” next to or above the natural organic rankings. (See illustration below: Pay Per Click Advertising is highlighted in yellow) 1 of 4 Branded and Non-Branded Keywords I’m often asked “Why pay for clicks when you can get them for free?” In short there are two main reasons. Studies have shown that people tend to click on the top left section of the screen. You increase your branding by reinforcing top placement, which increases your odds for a conversion. Secondly, you can expand your reach. Since an organic search campaign takes time, this is an instantaneous and cost effective way to increase conversion. If you are considering starting a Pay Per Click program, or if you’re already generating traffic for your web site using Pay Per Click Advertising, it’s imperative that you understand how to strategically bid on keywords that give you the highest chance to connect to your customer. To do this you need to understand the process by which consumers use the Internet… and more importantly, how they use search engines to research and purchase goods and services. First, let’s cover some of the basics terms... • • Impression: An impression is a single instance of an online ad being displayed. In Pay Per Click you don’t pay by the impression, you pay only when a visitor clicks on your ad. Click Through Rate (CTR): Is the ratio of users who clicked on your ad to the number of impressions (how many people viewed) the ad served. If your ad received 100 impressions and 1 user clicked on it, you have a CTR of 1 percent. Landing Page: The page that a visitor is taken to when they click on an advertisement. The landing page may be specific to that ad, or often times it may be the Advertisers home page. Quality Score: Dynamic metric assigned by Google which rewards high performing keywords with a lower minimum bid and a better ad position. The quality score is determined by your CTR and the relevance of the keyword to the landing page Non-Branded Keywords: Broad or generic keyword or keyword phrases. Branded Keywords: Keywords or keyword phrases associated with a brand. • • • • Now that you have a grasp of the basic terms, it’s important to understand how Consumers utilize search engines. There are typically two different kinds of online Consumers, as illustrated below: Consumer A: I don’t know exactly what I am looking for. I am going to use the search engine to help me find what I am looking for. Consumer B: I know what I am looking for. I am going to use the search engine to help me navigate to where I need to go as quickly as possible. There is a distinct difference between both types of Consumers. In the offline world Consumer A would be considered a “window shopper”. Consumer B has already made their choice and just needs a point in the right direction so they can get to the store and make a purchase. 2 of 4 Branded and Non-Branded Keywords Consumer A and Consumer B are going to use Search Engines in completely different ways, with two different types of keyword and keyword phrases to find what they are looking for. As a marketer utilizing Pay Per Click advertising it is vital to understand the difference and create your keyword list and strategy around which Consumer type you’re marketing to. Consumer A, the window shopper, is going to use broad-based, non-branded keywords. For example, Consumer A knows they are going to go to Arizona, but they do not know when, where they are staying, or what specific activities they will partake in once they arrive. They may use search terms such as • • • • “Things to do in Arizona” “Arizona hotels” “Arizona Summer Vacation” “Arizona Hiking Trails” Consumer B, who already has a plan and has made up their mind, will be using more specific, branded keywords. • • • • “Scottsdale, Arizona Morton’s Steakhouse” “Scottsdale Arizona Fashion Square” “Scottsdale Arizona Hilton” “Camelback Mountain Hike, Arizona” Developing a strategy where you bid on both types of keywords is the most effective method of utilizing Pay Per Click Advertising. To do so you must keep in mind a number of things… ROI and CTR: For the most part, bidding on focused, branded keywords will show higher ROI and CTR in your reporting. Don’t read too far into this and focus only on branded keywords. Your Consumer may not have made up their mind at this point (Consumer A) – you don’t want to miss the chance to connect with them because they are undecided. Your budget and timeline should dictate the mix of your keywords. Landing Pages and Quality Scores: Sending all of your Pay Per Click traffic to your home page will have an adverse effect on your quality score. The old adage “You can’t be good at everything” applies here. It is impossible for your homepage to be everything to everyone. Set up Ad Groups and direct them to specific sections or Landing Pages on your website that address the type of consumer you are focusing on. Consumer A will want more information, Consumer B will want the quickest way to purchase, a phone number or directions to your offline storefront. Pay Per Click can be intimidating and, if done improperly, can easily turn into a giant vacuum sucking away your marketing dollars. Before you begin any online marketing engagement it is important to identify clear-cut goals, a timeline, and research your consumers. Pay Per Click is a great medium to reach your target audience. Make sure you compare apples to apples and have a clear understanding of Branded Focused and Non-Branded Keywords. Mixing up the 3 of 4 Branded and Non-Branded Keywords types of keywords that are used in your campaign is the best way to increase overall conversions. 4 of 4
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