Archive Search Engine Marketing

Managing Experience is Key

According to Vovici, Customer Experience Management (CEM)  is seen as the number one Differentiator among business leaders.

When asked about greater consistency at every customer touch point, only 36% believe this area of the customer engagement is benefiting their organizations.

From an online marketing perspective,  consistency is a critical factor. It is impacted by what we say, how we say it, and how we manage it. One of the things I have emphasized with my online teams is that “experience needs to meet expectations.” If they don’t, you wasted the spend, and much more importantly, you may have permanently lost your customer.

If consumers click on a search ad about a specific type of shoe, and the landing page is about clothing in general, we blew it. If they click on an ad about a certain model car, and they hit the OEM home page, we blew it.

Managing the customer experience starts with the first touch point.

Search keywords & copy.

When I was in a large agency years back, we were told by researchers that consumers were healthier, conscientious about their weight, and eating better. Yet, when you looked at IRI scanner data from the supper markets, chips, cookies and candies did not take a hit. In fact, they were out pacing other food categories.

An article in Vovici reminds us that we have to be vigilant in our attention to what the consumer does as well as what they say they do. The example is the mp3 player. Engineers think gigabytes of storage, consumers think number of songs. Who’s right?

Well, both. When we look at search queries, consumers don’t search for “500 song mp3 players,”  they search for “4GB mp3 players”. But, when you look at the qualitative research, according the the article, consumers are thinking of song capacity.

Though traditional search tactics tell us to match ad text closely to query strings, we need to be more sophisticated. A user may query in GBs, but read ad copy in “song counts” for mp3 players. Perhaps they have been trained to think one way and speak another. Or perhaps, we are really missing an opportunity.

Either way, understanding the qualitative data of consumer thinking, and the quantitative data of consumer behavior, can lead to unique and better converting combinations of keywords and ad copy.

SEO Insight from Randfish

As always, randfish has great SEO insights into the components and relative importance with regards to organic page rankings for Google. 

You will read many responses to his post. My caution when I see these conversations start is, don’t focus on one or two things only. As you will see from his historical graph, a component’s importance changes over time. The best practice has always been to focus on good, holistic site / page development with a great deal of attention paid to the user. Don’t chase the shinny object of today; keep it in mind along with all the others. 
When you talk to folks at Google, or listen to them present, the common theme is a quality user experience. Combine this with good technical practices in site development, link partnerships (intent on good user experience) and you are most of the way there. 
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steve haar

April 9th

Google

SEO

Search Engine Marketing

Branded Keyword Bidding vs Fixed Placement

Today, of Razorfish proposed search engines offer a branded keyword lock-in option for brand owners. Essentially, pay a fee, not a PPC, and then be guaranteed first position, with all other competing ads aligned on the rail (but they should still be part of the auction model). The suggestion on setting the fee is:

“The fee should reflect the incremental value of branded keyword clicks along with a reasonable premium for price stability and the brand value of a guaranteed top position.”

This reflection came after being told that the CPC of a branded Keyword increased 300% over the prior month, with no changes at all on their end. I’ll forgo overly commenting on the “set it and forget it” PPC management strategy this statement implies (unintentionally as razorFish is a good agency), and instead focus on the “value” proposition.

We have target metrics to align costs and value. If the branded keyword is costing 300% more than a month ago, then somewhere a competitor figured out their metrics placed the value of the keyword at a significantly higher cost than they were previously bidding. In effect, the market has provided you with the potential value of the keyword. If you are not seeing the ROI on a transactional basis (since this is your brand, the the competition is leveraging it for the transaction), then your competitor has either figured out something that you missed, or is messing with the bid landscape (which will subside as they go bust).

If you then take the transactional value, add to it the brand value and then layer on top of that a ‘stabilization fee’, you end up paying more and losing more upside, than if you simply deploy the resources necessary to properly manage the program.

A fixed fee is great for agencies. Tack on 15% and you can set the program, visit the results monthly, give your clients a report, and send them a bill. This is reminiscent of when I was selling online advertising back in 1995, the precursors to search and IYPs of today. At the end of the contract, the client’s questions came: “what did I get for my spend?” and “what, exactly, did you do to earn the commission?”

One of the attractions of search engine marketing is that, if done properly, it propels us into an understanding of our clients’ business from pre-click to sale, and being able to clearly demonstrate value. We run programs that close online as well as offline; our compensation only happens when our clients close the sale. We spend our own money, track results with our clients, and run the risk of losing money if we screw up. This model is one of the reasons our clients have come to us to run their corporate search programs.

Since this is our own money, you might think that I would be in favor of fixed placements, for all the reasons Matt points out. However, stability comes at a price… growth. If we see that our CPCs are increasing day over day, we have to ask ourselves, “did someone figure something out that we missed?” Rather than seeking the shelter provided by a fix placement model, the beauty of the market-based system of search is that it gives you day-to-day, hour-to-hour feedback on how well you are doing. Not just in how well you hold your keyword position, but how well you help your clients grow their sales.

So, rather than suggest the engines shelter us for the competition, I would propose that the onus is on us:

1) Focus on the entire buying process to align value
2) Continuous conversion / sales monitoring
3) Use transactional metrics to assess relative performance
4) If there is a CPC change, investigate the competition and ask yourself what they are doing better

I understand that these proposals do nothing to mitigate the CPC fluctuation, and are at the heart of most SEM, but when simply followed, they can do much to help improve the value you receive out of each click. Very often, I am telling people that good SEM is not rocket science, just good hard work (with some social and statistical science thrown in :) ).

Finally, I have to make the point that I am not thoroughly convinced that a first position strategy is necessarily warranted. Of course, if the c-level office wants it, you give it to them. But, as a corner stone of SEM, this strategy is has not always born fruit and made financial sense. We have to be very clear on the motive for any postion, if any, we target for our clients.

Google is no longer going to de-activate keywords, and will have on the fly Quality Score


Essentially Min bids and inactive keywords are out. Instead, you will see a First Page bid estimates and keywords will always be active (though not always showing because of relatively low QS). The other change will move from periodic quality review and score updates to dynamic, on-the-fly scoring. At this time, I am focused on the minimum bid changes. 

What this means to you depends on where you are in the marketing chain. From the campaign managers to the product managers, these changes can have very little, or a very big impact. There are however, much broader implications for those who are managing the spectrum on online activity and relationships. In some cases, there is only one channel that a company will use. While I believe this is very limiting to the potential benefit, it is easier for someone to manage – fewer plates spinning. It is only justified if there are no venues for exploiting more online channels. For those who choose the harder, but more profitable road of managing multiple channel types, this gets interesting. 

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Affiliate / e-tail program managers will have to pay attention to the landscape with the new changes. There are several ways to manage the search landscape ranging from no bidding to a free for all. Though they are quite common, I have never been a fan of bid caps as a way to manage programs. The market is too dynamic for a fixed value to have relevancy over time. As a way to keep some people out, there is a strategy to set bid caps so low that you know it is below reasonable minimum bids ( a de facto “no bid” rule). So, it is possible that players who would not spend the min $1.00 or $5 or $10, can now appear for $0.50. Discouraged from the market place before, these people placed virtually no price pressure on keywords. Now, they have a chance to enter the market, get some results and start appearing. Do you have any mechanism to maximize profit by ensuring only your best partners are showing up?
Before you think, “no bidding on my brand” as a way to keep it easy, be leery of this relatively lazy strategy – it is the realm of the naive and ignorant. With it, your life may seem easier, but you give up a chance to let your best partners help you while simultaneously exposing your marketing underbelly to the competition.

Competing brands or products will now find it easier to enter your bid landscape. If you are Sony and none of your affiliates or e-tailors are allowed to bid on your brand, minimum bids often made it cost prohibitive for your competitors to do so as well (quality score issues created high minimum bids). So, you could possibly control your brand’s bid landscape (for many categories, even the minimum bids have not discouraged bidding on competitive brand keywords). This is no longer true. Mitsubishi, Sharp and others will not be hit with minimum bids and can enter your playground much more easily. So rather than have e-tailors that target segments of your customers to whom you cannot cater, you have given up the landscape to your competitors.
While this has always been an issue for the “no-bid” group, the reality becomes even more severe once the Minimum Bid is removed as a competitive obstacle. I can tell you, we will leverage it; any good SEM will. Your best defense to to build up a small, but strong group of e- tailors that will promote your product and services. Take up the bid landscape for your brand with partners that can leverage segments of your market where they are stronger than you are. This is not an issue of duplicate listing. It is an issue of directing users to experiences which are truly geared for their stage in the buying cycle or buying motivation.

Some segments are upper funnel. Corporate sites provide a level of confidence and information sources that upper funnel users are looking for. Other sites, typically e-tail sites with time and resources to optimize against conversion, are far more adept and managing the lower end of the funnel.  Well over a year ago, I vented against the branded keyword sales being a given.
 
I have seen first hand the differences in subtle changes, importance of MVT for the experience and managing SEM based on long term / annual trend performance.

Combine this with a compensation structure that encourages performance rather than one which simply encourages spending (cost plus) and the right partners, and you can develop a channel that is motivated to drive down market costs (their margins are directly affected) while maximizing your sales. 

This change in Google’s policy provides and opportunity for online marketers to evaluate their search programs and how they will manage the diverse consumer base. They can either take the easy way out and limit sales, or they can maximize their market potential.

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steve haar

August 29th

Google

Search Engine Marketing

min bids

Promotions… build them and they will come?

In the early 90′s, one of the clients I had was an auto after-market repair chain that was a mix of corporate owned and franchise locations. The corporate client opened a new store not too far from a franchisee. The franchisee was up in arms. He shouted that the corporate location was stealing his customers, and as proof he showed a decreasing sales trend vs the prior year. The client asked us to run some numbers. Since we were ‘third’ party and both had business with us, the analysis would be accepted by both.

Well, to combat the corporate location, the franchisee began a series of promotions. x% off brake jobs, every x oil change free, free labor on exhaust installation, etc. The promotions worked really well… at lowering his average sale. It turns out, he was just running the promotions in store. There was no out-bound advertising to draw people in (or very little actually). So, while the corporate location did virtually nothing to decrease his customer base, his promotion-focused ‘solution’ did a lot to decrease the value of that base.

So, this is the lens through which I read the clickz article, “Promotions Could Overtake Display and Search Says Report” According to the study, search and display will peak, then decline while promotions will overtake them. The study was done by Borrell and Associates ( CEO Gordon Borrell) According to the study, display advertising is flat at about $12.6B and will decline by 1/2 over the next four years. “What’s driving it is an overall dissatisfaction or nagging feeling on the part of advertisers that their advertising isn’t working, or that they’re overspending on it,” said Borrell. “With the Internet, they can go straight to consumers. If they’re having a sale, they can put it up on their Web site and consumers will come to them, and if their Web site is good enough, consumers will keep coming back.”

“With the Internet, they can go straight to the consumers.”  I am not sure how. Decrease the display advertising, decrease the search
advertising, and anti spam laws are terrifying companies. How exactly do they go straight to the consumers with the promotions? The answer would appear to be, ” put it up on their Web site and the consumers will come to them..”. So, they are not attracting as many new customers (if any at all), and for any  customer that would come to the site anyway, they will give them a discount – promotion.

Now, contrast Gordon Borrell’s perspective with that of Jon Brancheau,(15 minute video) from GM.  GM’s director of media operations, Jon Brancheau, reveals the truth about the company’s digital budget allocations in a frank chat from the 2008 iMedia Driving Interactive Summit. He is bullish on the digital space.  Far from seeing digital as not working, this is a place to push the boundaries.

I cannot see a 50% decline in display advertising. As for it being flat the past 2 years, there has been an inventory influx with social media over that time. This has been high volume, low CPM inventory. Contrary to a retraction, as behavioral targeting improves and the niche value of the individual areas of inventory are identified, I believe this will increase. These low value segments will fine their place in the advertising ecosystem and help it grow.

I am not sure that Gordan Borrell believes in the ‘build-it-and-they-will-come’ myth that was debunked years ago. But the general sense of the article would lead one to believe that this is nearly so.

If we believe the advertising is not working, then we should fix it before we start leaving money on the table with unadvertised promotions. There really is no reason for any online advertiser to wonder if their efforts are working. We can track minutia. If we are unsure of performance, it is not a lacking of the media, but a lacking of our imaginations. There are many ways to tag metrics to our advertising. And it will probably cost less than running unadvertised promotions.

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steve haar

May 3rd

Search Engine Marketing

display

Enamored with Technology… the Google – ization of us all.

At AdTech last week, I was going to meet some folks for dinner. I knew the
name of the restaurant and the street name, that’s it. No address. So,
I pulled out my blackberry, went to Google, and wham! nothing. There
were some reviews, but not a listing. Next Yahoo! Go!. nothing. Again,
some web sites with reviews. Then Live. Bingo. No websites, no links.
just Name, Address and Phone number. Then click, a map. Oh, and I was
probably just a few feet from a yellow pages directory in the room. But, I wanted to use the technology.
To me, this would seem like an obvious search. A mobile device and a specific restaurant name. Live knew (or guessed) exactly what I wanted. The other two were clueless. 


But, I wanted it to work. I wanted technology to provide the answer. So, while it took a bit longer than I’d like, 1 of the 3 did work for me. But this got me thinking, ‘are we too enamored with technology?’ I could have picked up the phone, talked to concierge and had my directions faster. But, I didn’t. 

I see this take place in SEM all the time. Bid management tools, algorithms that can tell you (so they say) when someone is ready to buy, or can optimize your media program. I was on a call the other week with an agency that appeared to rely nearly 100% on statistically driven bid management programs. I wish I could say these things worked. But they don’t. Sure, they can do what you tell them, adjusting bids based on historical inputs and manage to your parameters. But they can not ‘read’ the market. Adjusting to the unexpected is too cumbersome, and anticipating the new is impossible. If ‘it’ is not in the historical data, whatever ‘it’ is can not be considered by the technology. 

People, however are very good at this. We know how our competition and consumers respond. We know our clients and their marketing calender. We can anticipate, and adjust and optimize. We can also take risks. This is where the rewards come from. Try something you’ve never done and see what happens. Algorithms can’t do this SEO suffers from the same problem (but I think they get more feisty about it). SEO is a very manual service. No two SEO experts will agree on every ‘best’ way to do things. Computer programs that analyze your site are useless. A good SEO person will admit and adjust to stumbles. SEO programs will keep blundering along. 

In a world where we really want technology to solve problems (and it does have its place among our tools), sometimes it is hard to accept that the real answer is not a technological one. Its human. 

Experience, perception, anticipation, risk taking and hard work. These are the hallmarks of a good SEM shop.

Is that Local Search, or just Geo-targeted?

The way I see it, local search is not just about a technical definition, it is a mindset. I started out in local search and at the time, the technology was not quite what it is today. But as I said, its as much a mind set as it is a technology. 


Geo targeting is about what makes areas similar. No…seems counter intuitive?  Most companies enter into geo targeting grudgingly. They look for as much commonality as they can between areas, see what is not common and make a decision about the value of changing what they do for each area. For efficiency sake, they hope that they have as few differences as possible and try to cater to the lowest common denominator. Where it makes sense, they will vary what they do. In search, they have the ability to message differently by area, adjust to the area’s bid landscape and generally take into account some of the differences between areas. 

However, what is the up shot? Is the bidding efficiency worth the extra work? Does message management have an ROI impact? While the answer is usually yes (at least in our industries) the fact that most marketers constantly strive to minimize the ‘break down’ of the geographies is very telling about the mindset of Geo targeting. If they could make all areas fit into one, nice big area and still make the same profit, they would do it.

Local search is about what makes an area unique. When you really get into local search, the last thing you want to do is find commonness with other things. There is a bit of pride in the distinctiveness of the business, the people and the town. You look for those things which have a real sense of the area. You can’t fake it either. In the Chicago last summer, there was a series of beer commercials on the radio that tried to ‘be local’. They got some of the names right, but the way they were said was clearly not ‘local’. It was disingenuous; I bet you heard the same voice actor throwing out some lines about your town as well.

Out-of-towners can do local marketing in your area (or mine). But they have to have a natural curiosity about the business and, more importantly, about the people. They need to want to know what makes them unique.

I’ve heard that local search is when you are driving the consumer to a local business. Technically, perhaps, but what is being done differently for each location? In one of our industries, there is a ‘leader’ with locations throughout a large region of the US. They have the same ad running in all geographic areas. Technically, this is part of a local search program (I presume), but the ads do nothing to speak to the area around the locations. Maybe this works, but our experience is that every location’s customer base is distinct, so our search team is managing messaging to the location level. Is there some commonality? Sure. But, we are constantly trying to see what makes one different from the others, and leverage that into an ad and an experience that optimizes the performance. 

Is your program technically local? It is if it has a local destination, geo targeted paid search, locally targeted SEO efforts, map listings, iYP, and all the other online ‘local’ search stuff. But, is it local at heart? Will a person in Albany, NY be treated like the person from Miami, FL? Search in general, and local search in particular, is about the individual searcher. A true local search program is the epitome good SEM.
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steve haar

March 20th

Search Engine Marketing

local search

Google Share sees slight decline

In November last year, I wrote a piecefor SEMPO
Global Search Blog regarding the plateau that I see for Google. Earlier this month, I
submitted a piece to Search Engine Watch which included my belief that
there will be a reduction in Google share by  Q4. I was wrong. It
actually happened in December 2007. Google is down slightly to 56.3% in December from 57.7% in November.

Ranked by Searches (U.S.)

Provider  Searches
(000)
 Share of
Searches
 Searches per
Searcher
 Google Search  4,062,536  56.3%  37.9
 Yahoo! Search  1,273,688  17.7%  22.4
 MSN/Windows Live Search  995,899  13.8%  31.7
 AOL Search  339,761  4.7%  10.0
 Othere…..      

Source: Nielsen Online, MegaView Search

Why does this matter? Well, considering that Google is and will remain the
leader in search for the foreseeable future and that search will
continue to grow, it doesn’t really affect the numbers in any negative
way, yet. It does, however, provide an opening. One through which we
can see that other options are viable and profitable. As this happens,
more opportunities can fall upon Microsoft and Yahoo!.
I believe that the market needs the competition. Even as analysts call (SEW) for Yahoo! to break off search and outsource to Google, I think there is a long term benefit even to Yahoo! shareholders in the dedicated Yahoo! effort to search. With more brand dollars being
considered for search, and the search product itself expanding to
potentially include images and different ways to deliver results, these calls for divesting the core technology are premature.


With continued strength in the display / publisher side and the nascent
nature of search (relative to the potential applications), Yahoo! is
uniquely positioned to package search and display advertising to
optimize the ROI for advertisers. Give up the tech side of search, and
the synergistic opportunities go way.

The vital non-search part of search

Planning for any marketing campaign is challenging. Most of what we
read about starting the program is focused on keywords, campaigns, urls,
etc. These all should be. But there is a missing element. In today’s
dynamic business environment, there is a lot that search marketers need
to coordinate along with the campaign itself.

I have read about launched campaigns being rejected or with an
inflated min bid because the site was down. Or the product page text
was not search engine friendly, or the offers did not match up. So, a
quick review of things to proactively get into.

1) Server Maintenance Schedule. Most maintenance does not
necessarily take down the sites. However, this is the time when the
site is very vulnerable. If something is going to happen, now is the
time.

Why care. Don’t launch just before or during these times. The
engines are going to inundate your servers with bot hits to get content
and assess access. Depending on your campaign, this can be significant.
While normally not an issue, if something happens with maintenance,
these hits can complicate it. It also will be a problem for your
campaign’s validation and quality score assessment if the server goes
down.

2) Production schedule. This is important in two areas. One, like
server maintenance, this is vulnerable time. But, it is also a time
when hidden problems can happen. Where content or pricing is not what
you thought. This is particularly true with dynamic content or product
sites. In my view, it is best to closely coordinate this effort and
confirm the target page content prior to launching any new campaigns.
With existing campaigns, this is a time to double check the landing
pages.

3) Marketing campaigns. As we move products and services through the
development cycle at an ever increasing pace, the opportunity for the
outbound messaging to fall behind the product offering also increases.
By not waiting for new offers or product information to be given to you
and working your way into the pre-launch discussions, you’ll be sure that whatever you’re launching is in sync with the products.

4) Site design and development. How many times have you launched a
product only to learn that the landing page is generic, or full of
images and no or little text relevant to the product? Anyway, long
before the launch of any search campaign, you need to involve yourself,
at some level, with site design and development.

5) Analytics, reporting and application development. These are
related to each other and usually are in place well before the process
of creating search campaigns even begins. This is all the more reason
why search people need to be well ingrained in the overall business. It
is too late to raise your hand as you put your campaigns together and
ask for special development, reporting or analytics support. Again,
insert yourself in the long range process involved with these areas.

I have said many time that search marketers need to be more than
just search marketers. They need to be good marketers and involved in
there company’s business. Get involved beyond search.

 

 

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steve haar

January 16th

SEM

Search Engine Marketing
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September 2010
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