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Guiding Principles - 8 Steps Toward Effective PPC Marketing
1. Understand Your Metrics - Particularly ROI
In paid search, there are several key terms; but ultimately, none is more important than ROI:
There are many useful metrics available to better analyze and monitor PPC campaigns; in the end though, their greatest use is in understanding the ROI. Monitoring campaigns solely by traffic, impressions, or clicks can be dangerous. Remember also that ROI will vary based upon keyword(s), ad position, PPC platform, time/day, and other variables. Consequently, it is important to track each variable and its effect on overall ROI? bringing us to Guiding Principle #2:
| Acronym | Definition |
| ROI | Return on Investment |
| CPA | Cost Per Acquisition |
| CPC | Cost Per Click |
| CTR | Click Through Rates |
| EPC | Earning Per Click |
2. Track and Test
The key to successful PPC advertising is twofold: track and test. PPC platforms like Google, Overture, FindWhat and others enable advertisers to monitor all aspects of each campaign through robust reporting applications. Tracking ad ranks/positions, CPC, click-throughs, and other important metrics is easy with these platforms. Furthermore, comprehensive tracking and analysis is critical to understanding and improving your campaign ROI.
Testing various campaign elements is equally important. With PPC platforms, it is easy to identify which ad copy, landing pages, and ad positions work best. The following guidelines are excellent starting points:
Ad Copy
Certain keywords or campaigns perform considerably better during certain parts of the day, week, or month. In these situations, partners have benefited greatly from "day-parting": the practice of raising CPC bids to effectively emphasize creatives during particular hours, days, or weeks. If, for instance, your keywords convert 300% better during 7-9PM EST, you might increase your CPC bids so that your creatives will appear in higher positions during those hours. Day-parting can be achieved in three ways:
Testing various campaign elements is equally important. With PPC platforms, it is easy to identify which ad copy, landing pages, and ad positions work best. The following guidelines are excellent starting points:
Ad Copy
- Explain what's in it for the customer
- Use action-oriented language - "Buy", "Sign Up", "Read Reviews�?
- Avoid fluffy language. Remember, you have a character limit - use it wisely
- Carefully monitor your ad position, CPC, and CTR
- Typically higher positioning equates to higher CTR and higher CPC
- Evaluate which positions deliver the greatest CTR and whether it is worth the incremental cost
Certain keywords or campaigns perform considerably better during certain parts of the day, week, or month. In these situations, partners have benefited greatly from "day-parting": the practice of raising CPC bids to effectively emphasize creatives during particular hours, days, or weeks. If, for instance, your keywords convert 300% better during 7-9PM EST, you might increase your CPC bids so that your creatives will appear in higher positions during those hours. Day-parting can be achieved in three ways:
- using a third-party tool,
- writing an advanced script to adjust bids, or
- manually adjusting bids. The third option is time-intensive and is typically not optimal.
3. Segment Keyword Groups and Campaigns
As noted above, tracking and testing are essential elements of effective and efficient paid search advertising. Tracking and testing, however, can be difficult and burdensome for large keyword lists that can reach into the thousands.
By segmenting keyword groups and ad campaigns by specific variables (keyword, creative, maximum CPC, landing page, etc), advertisers are able to isolate each variable and determine what is effective. This insight can then be applied to the other segments and hopefully be used to increase overall ROI. When keyword lists are not segmented, for instance, the data becomes overwhelming and it becomes difficult to target which variables influence which metrics!
By segmenting keyword groups and ad campaigns by specific variables (keyword, creative, maximum CPC, landing page, etc), advertisers are able to isolate each variable and determine what is effective. This insight can then be applied to the other segments and hopefully be used to increase overall ROI. When keyword lists are not segmented, for instance, the data becomes overwhelming and it becomes difficult to target which variables influence which metrics!
4. Utilize "2nd Tier" PPC Engines
Google and Overture are easily the largest PPC engines. They draw the most advertisers and they reach the most users; however, because of the crowded landscape, Google and Overture typically carry very high costs per click. There are several smaller ("2nd tier") PPC platforms that, despite have smaller audience reaches, provide similar click through rates (CTR) with substantially lower costs per click. Moreover, these smaller PPC services frequently provide personalized customer-service which enable advertisers to reach traffic from different, untapped communities. A paid search best practice is to complement your Google and Overture campaigns with PPC advertising on the smaller platforms (see the list below for a sample of available PPC services). The benefits can be tremendous: lower CPC, higher CTR, increased market penetration and site traffic, and increased revenue.
Available PPC services (listed alphabetically):
Available PPC services (listed alphabetically):
| "First Tier PPC" | |
| Google AdWords | www.google.com/ads |
| Overture | www.overture.com |
| "Second Tier PPC" | |
| Ah-Ha | www.ah-ha.com |
| Business.com | www.business.com |
| FindWhat | www.findwhat.com |
| Kanoodle | www.kanoodle.com |
| LookSmart Looklistings | listings.looksmart.com |
| Lycos InSite | insite.lycos.com/adbuyer/overview.asp |
| Mamma Classifieds | ads.mamma.com/signup/signup.php3?md=67-331d |
| Search123 | www.search123.com |
| Sprinks | www.sprinks.com |
5. Utilize Untargeted, Niche Keywords
Identifying relevant and effective keywords is often straightforward. For example, imagine the fictional partner Golfers-Equipment.com. Relevant keywords and phrases for this company would be golf clubs and Callaway driver. These keywords, however, might have high CPC rates because they are rather general and probably have numerous other companies bidding on them.
It is possible, however, to avoid crowds (and high CPCs) by identifying niche keywords and phrases. Although misspellings, unique synonyms, and clever phrases deliver less traffic, they generally have very high CTRs with very low CPCs. Again using Golfers-Equipment.com as an example, the partner might consider complementing the more general keywords by bidding on the following "niche" ones: Caloway driver, Calloway wood, golfing clubs, golfers clubs, golfing irons, etc.
PPC platforms like Google and Overture offer tools such as the Keyword Suggestion Tool and the Search Suggestion Tool, respectively. By inputting keywords into these tools, the PPC engine will output variations and related permutations of your words and phrases. These are excellent tools to expand your keyword reach and utilize niche keywords.
Using different keyword matches (such as broad match, exact match, and phrase match) is an excellent way to target niche words. Likewise, utilizing negative keywords prevents superfluous, untargeted results. Consider, for instance, a partner that markets cruise vacations; they might bid on island cruise, Alaskan Cruise, or even cruise. They would also want to use negative keywords to disassociate any search with Tom Cruise ( -Tom).
It is possible, however, to avoid crowds (and high CPCs) by identifying niche keywords and phrases. Although misspellings, unique synonyms, and clever phrases deliver less traffic, they generally have very high CTRs with very low CPCs. Again using Golfers-Equipment.com as an example, the partner might consider complementing the more general keywords by bidding on the following "niche" ones: Caloway driver, Calloway wood, golfing clubs, golfers clubs, golfing irons, etc.
PPC platforms like Google and Overture offer tools such as the Keyword Suggestion Tool and the Search Suggestion Tool, respectively. By inputting keywords into these tools, the PPC engine will output variations and related permutations of your words and phrases. These are excellent tools to expand your keyword reach and utilize niche keywords.
Using different keyword matches (such as broad match, exact match, and phrase match) is an excellent way to target niche words. Likewise, utilizing negative keywords prevents superfluous, untargeted results. Consider, for instance, a partner that markets cruise vacations; they might bid on island cruise, Alaskan Cruise, or even cruise. They would also want to use negative keywords to disassociate any search with Tom Cruise ( -Tom).
6. Understand Your Competitive Landscape
Competition plays a critical role in PPC advertising because marketers essentially "bid" for ad placements. Understanding the competitive nature of particular PPC segments is crucial in formulating campaign metrics (CPC, CPA, ROI). Furthermore, understanding how "crowded" particular keywords are enables advertisers to determine appropriate CPC rates. Meanwhile, capturing "un-congested" keywords enables advertisers to capture low CPC and high CTR phrases.
By visiting Overture (www.overture.com), publishers can monitor the competitive landscape (number of bidders and CPC) of each keyword and phrase. All users - registered and non-registered - are able to take advantage of this very useful feature.
By visiting Overture (www.overture.com), publishers can monitor the competitive landscape (number of bidders and CPC) of each keyword and phrase. All users - registered and non-registered - are able to take advantage of this very useful feature.
7. Understand the Landscape of Third-Party PPC Management Tools
We have emphasized the tremendous value of testing and tracking campaign metrics. For Web sites and companies with large PPC campaigns, testing and tracking can become time-intensive. Moreover, running campaigns on several PPC platforms complicates the issue: there are different CPC bids, keyword lists, campaign results, etc.
Utilizing third-party bid management and tracking tools is a great solution for partners feeling overwhelmed by data and results. These tools and applications typically offer the following benefits:
Utilizing third-party bid management and tracking tools is a great solution for partners feeling overwhelmed by data and results. These tools and applications typically offer the following benefits:
- Time efficiency
- The ability to manage accounts from a single application rather than several Web-based applications
- Automated CPC bidding tools
- The ability to set bidding rules (for example, automatically increase bids during specific hours, days, and weeks)
- Enhanced metric reporting and ROI tracking
- Consolidation of campaign metrics - directly compare campaigns from various PPC platforms
- Automated bidding capabilities
- Bidding rules capabilities
- Reporting and tracking features and thoroughness
- Customer service level
- Number of supported PPC services
- Price (one-time purchase vs. monthly fee vs. revenue-based fee)
- Application software (Web-based or installed software)
| BidRank | www.bidrank.com |
| BlowSearch | www.blowsearch.com |
| ClickTracks | www.clicktracks.com |
| Did-it.com | www.did-it.com |
| Go Toast | www.gotoast.com |
| Index Tools | www.indextools.com |
| Kanoodle.com | www.kanoodle.com |
| Marketleap | www.marketleap.com |
| TrafficLeader | www.trafficleader.com |
| Website Management Tools | www.websitemanagementtools.com |
| 24/7 Website Results | www.247wsr.com |
8. Monitor & Understand the PPC Landscape
Paid search is a rapidly growing - and rapidly changing - industry. New services and products are introduced seemingly on a daily basis. As a PPC advertiser, it is essential to always monitor the industry, its biggest players, and its sweeping changes. It is important for you to keep your campaigns flexible so that, when these changes occur, you are prepared and able to adjust appropriately!
Consider, for instance, new contextual advertisers like Google AdSense and Overture Content Match. These new PPC tools display your PPC ads within search results shown on related Web sites (hence the name, contextual ads). AdSense and Content Match, however, do not provide partners the ability to track or optimize their campaigns. Consequently, we do not recommend using these tools.
Consider, for instance, new contextual advertisers like Google AdSense and Overture Content Match. These new PPC tools display your PPC ads within search results shown on related Web sites (hence the name, contextual ads). AdSense and Content Match, however, do not provide partners the ability to track or optimize their campaigns. Consequently, we do not recommend using these tools.
Additional Information
If you have additional questions or want to do further research, the following Web sites are filled with great industry information:
Paid search is a tremendously powerful means to improve your business and drive additional commissions; and if your business model currently includes paid search, integrating these best practices is a great way to improve your ROI and increase your Revenue.
| Internet.com | www.internet.com |
| JupiterResearch | www.jupiterresearch.com |
| Search Engine Strategies | www.searchenginewatch.com |
| SEMList.com | www.semlist.com |
