Yahoo! & Microsoft Search Alliance: What’s Changed?
After all of the build-up over the last few months, the merger between Yahoo! & Microsoft’s search engine marketing entities is now complete. Despite widespread concern, the world of search remains relatively unchanged. Although Yahoo’s pay per click platform has been shut down, all ads can still being displayed on this engine, via Microsoft adCenter.
The partnership itself opens up advertisers to 163 million unique searchers, which translates to roughly 33.8% of the entire United States search market. Paired with Google AdWords, pay per click campaigns have the potential to reach over 95% of all online searches.
Although there are some tangible benefits to the recent union, including a single consolidated interface, a functional desktop editor program, and increased traffic – there are some potential pitfalls that advertisers should be aware of:
1. Increased Click Costs: Increased impressions, mean increased clicks, which mean – increased costs. Assuming that the average cost-per-click (CPC) doesn’t rise, your costs probably will. Before the Alliance, campaigns and keywords were only receiving a fraction of the traffic. To maintain control on ad spend, keep bids conservative and gradually increase over time. This way you can still generate a constant flow of traffic without worrying about exhausting your monthly budget.
2. No Segmentation: Analyzing specific data sets, and making informed decisions based on your findings is essential to the success of any online marketing initiative. However, for the time being, advertisers will not be able to independently view performance data for Yahoo! & Bing. This means that maximum CPC’s will be standard for both engines despite competition and performance, so special care must be taken to have pre-determined benchmarks for success within your campaign.
3. No Revenue Tracking: There is currently no interface compatible revenue tracking column that allows site owners to calculate a goal return on investment. Although this data can be extracted within Google Analytics through the use of tagging, or through referring URL’s in the back end of your store, for optimizations on the fly is is best to have a goal cost-per-acquisition (CPA). If you know your average order value over a long enough timeline, you can adjust bids with relative ease and be certain that you are reaching your goals.
If you can manage to keep these three things in mind when managing campaigns through adCenter, you should be able to eliminate a lot of the growing pains associated with advertising on a new platform.
Google Instant, Learn to Love It…
Loyal readers probably noticed that it has been some time since my last post, but I do have a pretty good reason. Google recently made a big change in the way that people search online. Allow me to introduce you to Google Instant, a new game-changing feature in the dynamic world of Pay Per Click Advertising.
If the hyperlink is leaving anybody confused, or you haven’t experienced the new feature first hand, Google basically predicts your search before you finish typing it. It may offer new suggestions based on search volume, or even correct misspellings as you type, in an attempt to speed up the average time of a search. Although this feature seems helpful, it has been having some interesting effects on Google AdWords accounts.
Increased impression volume, lower click-through-rates, and spikes in ad spend, seem to be the most common side effects. This is because even the most relevant long tail keyword variations, are generating impressions by displaying ads as soon as a person searches a key phrase located within the term. This is causing impression spikes in broad match, which inevitably lead to lower click-through-rates (compare this to the search network vs. the display network). The increased impressions also translate to more exposure, which brings in more clicks over time, which drives up costs over time (without the promise of a higher conversion rates).
These changes have forced several advertisers to reformulate their strategies. Negative Exact Keyword variations are growing in popularity in order to help preserve CTR’s and keep costs down. This tactic allows the brunt of the traffic to be taken off of your broad and shorter keywords variations. If this is not enough, pausing broad match entirely, might be your best choice until you can restructure the account and optimize your keyword variations.
Despite having to tweak existing accounts, there is a very big positive side effect to come about from the birth of Google Instant. As you may or may not know, the the AdWords Reporting Center has been retired. Although the days of the all-mighty Search Query Report are long gone, there is a more intuitive way to generate negatives & account keywords within your campaigns.
Under the “Keywords” tab, there is a new button that reads” “See Search Terms…” Simply click on the button, select “All,” and you will be able to see every keyword that caused your ads to display within any given timeline. Click the radio button and add the term as a negative or account keyword to refine and increase the relevance of the traffic coming into your site.
Personally, I recommend looking at any extreme changes in account performance, and then determine which areas need to be optimized. Give higher spending campaigns top priority and evaluate performance at the granular level by analyzing adgroups and specific keyword variations. One single broad match term could throw off the profitability of entire account, so be sure to identify the root of problem before making major changes.
No matter what your take on Google Instant is at this time, I suggest you learn to love it – because it looks like it’s here to stay.
Should I Use PPC if I Rank High Organically?
There is a lot of debate over whether or not to continue using Pay Per Click advertising after your site begins to rank organically for your top performing keywords. Over time, store owners would ideally like to cut expenses by increasing free traffic streams to their site through SEO & Social Media efforts. However, deciding to pull the plug completely on your Sponsored Search initiatives, could have some very serious consequences on your overall performance.
The freedom of the Internet allows your competitors to bid on on literally any keyword under the sun. Because of this, the marketplace is fierce. Although you may have the top organic listing, that doesn’t mean that some “fly-by-night” company can’t spring up and pay a lower price to display ads in the spot that you once occupied (or worse, display an ad above your organic listing).
Also, the intelligence of the buying public is growing each and every day, and they actually tend to utilize the “Sponsored Links” section when they are at the final stage of the buying cycle, since they know that this space is a favorite hangout for ecommerce sites. Although free traffic may sound appealing, there is a certain level of reputability and brand reinforcement that is achieved by taking advantage of this double exposure, as well as an increased likelihood of converting.
Maintaining your PPC campaigns, also allows you to protect the integrity of your brand. As I mentioned earlier, the competition can bid on any keyword that they’re willing to pay money for – including your company name. If you aren’t at the very top of the page for your own site, it is likely that a percentage of searchers will never reach your store (despite their previous intent to). This tactic has also been proven to increase overall click-through-rates, as it further justifies the legitimacy of the user generated query.
Consistency is also a benefit of running PPC ads despite an uptick in organic traffic. Unlike paid search, your rank on the search engines can fluctuate greatly over a relatively short period of time. Between search algorithms, changing content, and competing SEO efforts – assuming that you will hold the top spot forever, simply isn’t feasible. Unlike sponsored links, you cannot go to the top of the search results with a simple bid increase. By doubling up on your efforts, you are not only protecting your stake in the online marketplace, but ensuring visibility when your organic efforts begin to slack.
Increased control, is also an additional benefit that PPC has over SEO. Pay Per Click campaigns allow you to execute time-sensitive promotions, customize ad content, and immediately respond to current trends in the marketplace, while organic listings wait be crawled and updated by the search engines. The control of paid search, also allows you the ability to respond to negative press, or give specific landing pages additional exposure based on demand. This control allows for a more proactive approach to your online marketing initiatives.
When it’s all said and done though, there will still be people that argue that it is pointless to “waste” money on sponsored links when you already have first page listings for your top keywords (including trademarks). However, I would never go so far as to call it a “waste.” Whenever I’m not sure about the best approach, I look at what the competition is doing, and the bigger the competitor – the better. Search for Amazon, Best Buy, Gap, Old Navy, TigerDirect, Walmart, or anybody else who can afford an in-house marketing department, and you will see that they have sponsored listings for their own brands.
If however you decide to stop advertising once you reach the top spot on Google, I recommend doing so with caution. Try ramping back on your spend in the beginning to see how it affects your traffic levels & sales volume. If the value of the reduced cost is greater than the decreased performance, try lowering your bids again and remember to track the changes to your bottom line. Every account is different, however you don’t want to limit the exposure of your business with the simple goal of saving money.
Google’s Robust Remarketing Feature
Even if you’re familiar with AdWords, you may not be familiar with the concept of Remarketing. Also known as Retargeting, this new feature allows you to display your ads to people on the Content Network who have previously visited your site, viewed a key landing page, or completed a predetermined action of your choosing.
The main goal of this feature is to qualify a visitors interest in your products and then reach out to them again, in an attempt to recapture an otherwise lost conversion. Google allows you to define a specific audience of users on your site by installing a custom cookie on one or more landing pages. Once a user visits a tagged page, their IP address is collected within AdWords in order to redistribute your ads to that specific group (audience) over the Content Network.
For example, say you are looking to sell a surplus of platinum wedding rings. Your landing page is getting plenty of traffic, however your products just aren’t selling. You can install a cookie on your platinum wedding ring product page, which will trigger a relevant ad to display to any visitor who who previously landed on this url, but failed to convert. These ads will be served over the Google Content Network, but will not be displayed to the general public. Because of this, the clicks received through a Remarketing Campaign are much more relevant, and therefore more likely to result in a conversion – since the target audience has already expressed interest in the specific products you are looking to sell.
There are also Custom Combinations, which allow you to target multiple and or exclude specific actions on your site. Let’s say a visitor enters the platinum wedding ring page and ends up purchasing on the spot. Naturally, you wouldn’t want to redistribute your ads to existing customers since the likelihood of a repeat purchase for the same product in such a short period of time is pretty unlikely. You can install a second tag on the order confirmation page, and much like a negative keyword – set up a rule which will prevent your ads from displaying to a specific group of people (i.e. existing customers).
Proper utilization of Google’s Remarketing feature is also a great way to expand your customer base. You can set up Custom Combinations specifically geared toward reducing cart abandonment by creating hidden landing pages and secret coupon codes that will be displayed to people who place products in your cart, but ultimately fail to convert. This cart abandonment can be due to elevated shipping costs or visitors who are simply in the data gathering phase that need an added incentive to finalize their purchase.
Although this highly targeted traffic has been proven to increase sales, it does come with a price. Much like the Google Search Network, the Content Network operates on an open auction bidding system, so you will be competing with other advertisers on 3rd party and publisher sites. When setting up your Remarketing Campaign, in order to receive impressions, it is recommended that you set maximum CPC’s at $2 to $3 in order to ensure that your ads are displayed. Also worth noting, you must collect a sample size of 500 unique IP addresses before your ads begin to display through a Google Remarketing Campaign.
Distinguishing Keyword Match Types
In Pay Per Click Advertising, you choose keywords that relevant to your site or service offerings and designate a maximum cost-per-click that you are willing to pay in order to bring a person into your site. Your ads display based on your own custom keyword lists, and only do so when they match the queries that people are searching. Although this all seems pretty straight forward, there is another factor that should be utilized to not only ensure relevance, but save you money over the course of your online campaigns. Keyword Match Types, are essential in in achieving these objectives.
There are four match types that can be utilized in the world of Paid Search: Broad, Phrase, Exact & Negative. It is best to think of these types in regard to relevance in order to better understand the function of each.
Broad Match keyword variations have the “broadest” relevance. Let’s say your online store sells high-end aviator sunglasses. Naturally, you want people who are searching for this particular style to see your inventory, so you decide to bid on this keyword. Under the guides of the broad match version of the term: aviator sunglasses, anybody searching for this keyword should see your ad. However, because this match type has the broadest relevance, your ad may also display under the following sample queries: “sunglasses aviator, expensive sunglasses that aviators wear, buy aviator sunglasses from top gun, etc.” Bidding on this match type allows the order of the keyword to be switched and other variants to be added to the beginning, middle, or end of the core keyword: aviator sunglasses.
Phrase Match keyword variations, on the other hand, must include the “phrase” to be relevant. In this case, the term will show up in quotations within the AdWords interface in order to distinguish it from a broad match type (i.e. “aviator sunglasses”). Unlike the aforementioned, phrase match variations must follow the same order as they appear within quotes. That being said, your ad may also display under the following sample queries: “mirrored aviator sunglasses, aviator sunglasses suck, cheap aviator sunglasses for sale, etc.” So long as the phrase “aviator sunglasses” remains intact, your ad has the potential to display.
Exact Match keyword variations will only display your ad when it is searched “exactly” as it is entered. This is illustrated within AdWords through the use of brackets to differentiate this type from the previous two (i.e. [aviator sunglasses]). No matter what variations are searched, your ad will only show when somebody searches for: “aviator sunglasses.”
Although it may be tempting to use only exact match since they don’t allow for any other keyword variations to trigger your ad, there is still one last type that can (and should always) be utilized. Negative Match keywords are unlike the other types, because they will never cause your ad to display. Shown in AdWords with a minus sign (-) in front of the keyword, this type of term will prevent your ad from being seen for searches that you deem irrelevant (i.e. -suck, -cheap, – top gun).
It is best practice to utilize broad, phrase & exact match types when conducting keyword research. Since there is no way to add every relevant variation during the initial account build, broad & phrase match types should prove to be very effective at driving a majority of traffic to your site. Over time, you will discover new terms that have varying levels of value to the account whether you decide to bid on them or add specific variables to your list of negatives.
PPC Advertising vs. SEO
Although this site is about Pay Per Click Advertising, we can’t deny the importance of incorporating Search Engine Optimization (SEO) within your website. However, it is important to know the difference between these two traffic-driving tactics, as they are quite different from one another.
PPC Advertising is based on keywords of your choosing, and you simply “Pay-Per-Click,” as the name indicates. These clicks can vary in cost, from a few cents – to a few dollars. Although you can see immediate traffic spikes to your site, these are not long-lasting, as they do not contribute to your overall ranking on search engines like Google, Yahoo, and Bing. Simply put, once you stop putting money into your advertising efforts – so does your traffic.
Search Engine Optimization on the other hand, is totally free (assuming you know how to do it yourself). Results typically are not as immediate, however it is a great long-term strategy for driving traffic to your site through increasing page rank with link building, relevant content, and Social Media Optimization (SMO). These tactics are often quite time consuming, and require constant attention as competitor sites try to rank on the same keywords that you do.
This is where PPC Advertising truly shines. Depending on how much you are willing to spend, you can always have a custom link to your site on top of (or directly to the right of) any organic listing on Google, Yahoo, or Bing. Even if you have a moderate budget, there is still a good chance that you can have your ads show on the first page of search results – which are ideal for maximum exposure and click-through-rates (CTR’s).
The great thing is, you can set up paid search campaigns to conicide with your SEO efforts until you establish a quality page rank. However, more often than not, you will discover that competitors maintain their PPC campaigns depsite how high they rank organically.
Common Google AdWords Terminology
Getting started in Google AdWords can be a bit overwhelming at first – especially when online support documents are catered to professional Internet Marketers. However, this doesn’t mean that you can’t start slinging around lingo like the pros by beefing up on some industry jargon.
Impressions:
An ‘Impression’ is the name given to the total number of times that your ad shows in AdWords. Although people see your sponsored link when they make a search in Google, this does not mean that you will incur any cost. So long as visitors are not clicking on your ads, just think of impressions as free exposure on Google’s Search Network.
Clicks:
A ‘Click’ is the name given to the total number of times that a visitor enters your website through a sponsored listing in Google. Every time you register a click, your AdWords account is assessed a predetermined fee that is established at the time of campaign creation.
CTR’s:
‘CTR’ is the name given to the ratio of clicks to impressions in AdWords. Also known as ‘Click Through Ratio’ or ‘Click Through Rate’ – this metric is expressed as the percentage of times an ad is clicked in Google, out of the total number of times the ad was seen (impressions). Although AdWords typically calculates this automatically, CTR’s can be found by dividing your total number of impressions, by your total number of clicks, and multiplying that number by 100.
Example: If you receive 25 clicks out of 100 impressions, you will have a CTR of 25%
(25/100 =.25) x 100 = 25%
Avg. CPC:
The ‘Avg. CPC’ is an abbreviation for ‘Average Cost-Per-Click’. Although somewhat self explanatory, this is the average price you pay for an ad to show at a given position. This value can be seen at the keyword, adgroup, campaign, and even the account level, to help determine how much you are paying on average to bring a visitor to your site.
Avg. Pos:
Depicted as a number from 1-10, this is the ‘Average Position’ of your Google ad impressions. Much like the ‘Avg. CPC’, this value can be seen at the keyword, adgroup, campaign, and account levels. This number can be used to see where your ads are being shown over a specific period of time.
Conversions:
‘Conversions,’ is simply another name for a completed action. Whether you are tracking sales, purchases, leads, sign-ups, or even a view of a key URL – conversions are a great way to determine the success of your AdWords account.
Cost/Conv:
‘Cost/Conv.’ is the abbreviated form of ‘Cost-Per-Conversion’. The ‘CPA’, as it is more commonly referred – is the amount of money it costs to bring about a designated action to your site. If you know the average value of a conversion, this is a great way to determine how much money you are bringing in vs. how much money you are spending on advertising costs.
Conv. Rate:
‘Conversion Rate’ is the name given to the ratio of conversions to clicks in AdWords. This metric is expressed as the percentage of times a customer or visitor completes a predetermined action on your site. The conversion rate can be calculated by dividing your conversions by your total number of clicks, and then multiplying that number by 100.
Example: If you receive 5 conversions out of 200 clicks, you will have a Conversion Rate of 2.5%
(5/200 =.025) x 100 = 2.5%