The Role Of Paid Search Advertising

The Role Of Paid Search Advertising The Web Association www.webassociation.org September 25th, 2007 The Role of Paid Search Chris Caputo Director Acquisition Marketing American Greetings Interactive Paid Search Spending 9.0 8.0 25,000 6.0 5.0 4.0 3.0 2.0 1.0 0.0 0 20,000 15,000 10,000 5,000 30,000 2004 2005 2006 Source: Marketing Sherpa Unique Keywords 7.0 Billions Spent Market Share comScore Core Search Report* August 2007 Total U.S. – Home/Work/University Locations Source: comScore qSearch 2.0 Share of Searches (%) Point Change Aug-07 vs. Jul-07 1.3 -0.2 Core Search Entity Google Sites Yahoo! Sites Jul - 07 55.2% 23.5% Aug -07 56.5% 23.3% Microsoft Sites Time Warner Network Ask Network 12.3% 4.4% 4.7% 11.3% 4.5% 4.5% -1.0 0.1 -0.2 Agency vs In-house • 73% In-house vs. 27% Outsource split hasn’t 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. • • 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 • 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 • Online Media Roles Brand Paid Search SEO Social Media Display Reach ROI Video PR Email + ++ ++ +++ + +++ + ++ ++ ++ +++ +++ + - +++ +++ + + ++ 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 Primer • First timers an agency – Stick to Google/Yahoo – Identify your target market – Determine the ROI focused goals for the campaign – Hire • Level 2 to MSN, Ask and 2nd tiers – Tie banner campaigns to paid search – – Expand Measure the effective CPA internal staff to push the agency farther – Optimize your program with technology – Train Technology in Paid Search • • • True ROI measurement. Tie multiple data sources into one datamart for optimization. Companies – ClearSaleing – BlackFoot – Revcube Media Results Data Website Traffic Sales History 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 didn’t, what’s next • Compensation for the work (Hourly) – Do not tie compensation to ad spend or profit – Pay The Role of Paid Search Jeff Pearl Manager, Search Engine Marketing eMergent Marketing / Brulant Inc. Misalignment of Media Spend with Internet Usage Best Performing Online Advertising Tactics 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 enginerelated activities. 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  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  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 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 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 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 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…) 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 IP’s, click spikes, and geographic activity ▪ Bid Management ROI Tracking/Reporting Click Fraud Reporting The Role of Paid Search Sage Lewis CEO SageRock.com Pay Per Call (PPCA) Google Click-to-Call Charged for calls over 10 seconds. No extra cost for long distance or other phonerelated charges. You pay only the click-tocall price that you set. Ingenio 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. • • Local What the heck is it? 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. • Local What does it mean? • • • Geo-targeted ads Local qualifiers on national ads Maps Local Geo-targeted Pay per click Local Google Local Yahoo Local Maps Local Google Maps Local Google Maps Local Google Local Business Center Local local.Yahoo.com Local listings.local.Yahoo.com Local local.live.com Local local.live.com Site Targeting Google Site Targeting Google • • • • 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. Site Targeting Google Site Targeting Google Contextual Placement Report 2nd Tier PPC