Online Marketing Programs: Search PPC (Pay-Per-Click) Programs Google AdWords Pay-per-click: Pay-per-click (PPC) advertising programs are available on established advertising platforms, such as Google AdWords, Overture, and MSN. A PPC program can be easy to implement, test, and manage. The program can be developed on Google AdWords, and then migrated to other programs. The tasks required for a successful search program are: o o o o o o Establishing a strategy and testing program Outlining the management techniques for meeting plan objectives Determining a list of keywords Writing copy Trafficking Reporting Search Strategy and Testing A successful search strategy involves: o Defining the bidding strategy based on competition and keyword popularity o Implementing the list across a selected search engine network o Tracking results to continually redefine the keyword list, the bidding strategy, and the successful ad copy Testing is an integral part of any search marketing strategy. By testing and tracking the cost and response to any keyword, a program can be fine tuned to produce the maximum response. Bidding strategy can include: o o o o Bidding for #1 placement for the most important keywords Bidding for top 3 placement for important keywords Bidding for top 5-7 for less relevant keywords Bidding for the optimal total cost-per-click Ad Groups Google AdWords keywords can be used to group similar keywords into Ad Groups which are then combined in a Campaign. By creating these groups, it is possible to have a more focused strategy reaching a relatively homogeneous market. The strategy should be quantifiable. For example, the strategy for a search advertising program for a company could be: (for a 3 month period): o Generate 47,550 click-throughs o At a cost of $.34 per click o Generating 860 sales Here are some rough example projections on the type of activity which we should be able to produce with a managed PPC program. The shaded areas are the areas which are managed to meet the programs objectives. Below is a description of management techniques for each of these items. PPC Projections Month 1 1,000 20 Month 2 1,250 20 Month 3 1,500 20 Total Annual Rate Keywords Daily Impressions/Keyword Monthly Impressions CTR Clicks CPC Total Cost Conversion Rate Sales Units Avg Sale Total Sales Margin Margin % Margin/Unit Daily Impressions Clicks Cost Sales Sales $ Margin 600,000 2.0% 12,000 $0.40 $4,800 1.5% 180 $29.99 $5,398 $598 12.5% $3.32 750,000 2.1% 15,750 $0.35 $5,513 1.8% 284 $29.99 $8,502 $2,990 54.2% $10.55 900,000 2,250,000 2.2% 2.1% 19,800 47,550 $0.30 $0.34 $5,940 $16,253 2.0% 1.8% 396 860 $29.99 $29.99 $11,876 $25,776 $5,936 $9,524 99.9% 58.6% $14.99 $11.08 10,800,000 2.2% 237,600 $0.30 $71,280 2.0% 4,752 $29.99 $142,512 $71,232 99.9% $14.99 20,000 400 $160.00 6 $179.94 $19.94 25,000 525 $183.75 9 $283.41 $99.66 30,000 660 $198.00 13 $395.87 $197.87 Management Techniques to Meet Plan Objectives Keywords: The plan would be established with an initial set of keywords which is produced using various online tools from both Overture and Google. Over time, the key word list will be refined and augmented. Using the learning from the existing keyword list, newer and more specific keywords will be identified and added. Other keywords will be determined to be unproductive and those will be removed. The online tools in Google AdWords will also be utilized to review suggested keywords to include, and that list changes over time. As new products are introduced to the company portfolio, we will add significant numbers of new keywords. Click Thru Rate (CTR): The click thru rate can be managed over time by continually reviewing the keyword list as well as managing the maximum bid that is paid for each keyword. Google AdWords reports the average position for each keyword in relation to the competing ads. By increasing the bid, the position will improve and the CTR will increase. By identifying the keywords that are less competitive, we will be able to lower the bid and maintain an acceptable position without impacting our CTR. The position will also change as competitors move in and out of the AdWords system. Also, within a program such as Google AdWords, there are several options to test. The keywords can be selected to be static (only that exact keyword match will trigger an impression) or more dynamic (allowing other phrases containing the keyword to trigger an impression). The more static keywords will produce fewer impressions, yet they may be the most targeted and therefore the most productive. The dynamic keyword appearing in similar phrases will generate more impressions, but will typically generate a lower response as the ad will appear for unrelated searches that aren’t foreseen. Testing of the use of static and dynamic will vary by Ad Group, as they may produce different results depending on the subject matter included in the Ad Group. Another option within Google AdWords is whether to allow keyword impressions to appear in content locations. This is when the ad is shown in Google AdSense on a site which is displaying relevant content to the keyword, as well as in Gmail. Content ads will generate a high number of impressions, but at a much lower response, lowering our CTR. There is also the option to select sites to include or exclude from receiving ads. In general we should see that the content ads have a significantly lower CTR and we can remove Ad Groups from that program when needed. Another option to test will be whether to select certain keywords that never trigger an impression. For example, we would include any type of pornographic reference. And we will test whether the word ‘free’ is productive or not. The copy used for the ads will also determine our CTR. In AdWords, we have the ability to generate several different copy versions and they are served based on popularity. This is fairly automatic and all we will need to do is to continually test new copy. We also have the option to use static or dynamic headlines. For the static headline, we would test various versions, such ‘Best Poker Tips’ which would appear for each ad. We can also choose to have a dynamic headline which is triggered by the keyword. For example, if the search is for ‘texas hold em’, the headline would read ‘Texas Hold Em’. The dynamic headlines typically outperform the static ones. There is also a default headline that is used is the keyword isn’t an exact match, or if the keyword is too long. Cost-per-click (CPC): The cost-per-click is managed through the selection of the maximum bid we are willing to spend. We will work to minimize the needed bid to achieve our click thru rate. There may be some words – the term ‘poker’ for example – which may be too expensive no matter what the CTR is. We may also be willing to have a very low position and still have a reasonable response. Conversion Rate: The conversion rate is a function of matching the right traffic to the right product. We will be able to identify which keywords are the most productive and learn to supplement the keyword list to exploit this information. The conversion rate is also heavily influenced by the user experience once they click thru from the ad. Testing can be done on which landing pages generate the highest conversions. One testing technique can be to test price points from the AdWords ads. Margin Percentage: The margin percentage is the relationship between the dollars spent on PPC advertising and the sales revenue. This is not the same margin as used in the merchandising sense, as it doesn’t take into account the cost of the product. We should be able to produce a margin exceeding 50% on a regular basis by managing the other factors. Keyword Selection Selecting keywords is critical to the success of the program. A base list is created, and then refined before program implementation. There are several keyword generators provided by the search engines, which highlight search popularity as well as current cost for desired placement. Competition is reviewed to determine which keywords are used by other sites. Bidding cost is a reflection of the value of a particular keyword. The keyword list is dynamic as it needs to continually be reviewed with terms added and deleted using a predetermined testing strategy. A sample list of keywords will be provided in a separate spreadsheet. Copy The copy needed for a search program includes: o Titles – usually up to 25 characters o Static o Dynamic o Ad Copy – usually up to 255 characters Copy is tested to maximize response and can include multiple versions to match the copy to the search term used. Trafficking The actual implementation of the program involves uploading the keyword list, copy and bids to the search engine. For a large program, this can involve several hundred keywords, with many variations of copy. Bidding is also managed as competitors adjust their bids. Reporting Reporting is extremely important to a successful search program. Immediate results are available, and this data is used to learn how to manage the program as well as provide overall response information. Reporting can be done on a weekly basis, with daily review to see how the program is progressing. These programs are the quick and easy ways to generate immediate response, and can be easily measured for ROI. Information learned from a well-developed PPC program can be the basis for a successful SEO program. Overture (Yahoo)/MSN Pay-per-click: The PPC program described in Google AdWords can be implemented before being expanded to Overture and MSN. After a period of 4 weeks of reporting, we will have sufficient learning to create the most productive program. At that time, the following tasks deadlines will be established: o Establishing a strategy and testing program – variance with Google AdWords o Outlining the management techniques for meeting plan objectives – variance with Google AdWords o Determining a list of keywords – current keyword list in place for Google AdWords will be used o Writing copy – the highest performing copy and headlines from Google AdWords will be used o Trafficking – upon program approval, will be completed within 2 days o Reporting – will begin upon program implementation, reporting to be done on a weekly basis in a standardized format Contact Information: Tom Leonard LEFT Marketing www.leftmarketing.com search@leftmarketing.com