David Rodnitzky, SMASH Summit NYC

The Good and BadSEM News for StartupsDavid Rodnitzky

The 80/20 Rule for Startups and SEM2

Search Engine Marketing Myths v. Reality Reality Innovative companies are the WORST fit for SEM SEM is highly competitive = hard SEM is efficient = ROI not guaranteed The long tail is . . . DEAD3

Five Reasons You Should Avoid SEM 1. No demand for your product/service 2. Uncompetitive economics 3. Lack of SEM chops 4. Average or bad conversion funnel 5. Uncompetitive offer Note: There will be some good news at the end of the presentation – promise!4

Reason #1: No Demand for Your Product or Service

SEM is the “Database of Intentions”  People search for EXISTING products and services  Search is about fulfillment of demand, not creation6

Innovative Products and Solutions = Bad for SEM  Which keywords would you buy:  In 1997 for Tivo? “VCR Alternative”?  In 2004 for Facebook? “Share with Friends”?  In 2012 for Lytro? “Focus 1000X Camera”?7

Reason #2: Uncompetitive Economics

SEM is an Increasingly “Efficient” Market • The long tail is DEAD = Fewer keywords with more auction participants • SEM is a staple of most established businesses • Auction-based economics favor companies with strongest finances9 Source: http://wallstreetwit.blogspot.com/2008/05/efficient-market- hypothesis.html

Search for “Cloud Computing”10

Search for “low cost cloud computing that runs on multiple servers in linux”11

Search is Popular (Expensive), But Not Cool 2002 2004 2012 Red = Spend Blue = Interest12

Reason #3: A Lack of SEM Chops

The 7 Habits of Highly Effective SEM14 Source: http://ppcassociates.com/7habits-guide.html

Reason #4: An Average or Bad Conversion Funnel

Great SEM without a Great Conversion Funnel16

Reason #5: Lack of a Compelling Offer

“The Competition is a Click Away”18

And Now for Some Good News

Solve All Five Issues = $$$$$ • AdWords is Marketing to hand raisers – it works! • Your competitors may not know their true economics – LTV, ROAS, can give you an advantage • Many (most?) AdWords campaigns are poorly managed = opportunity • You can start with $5! • Iterative testing of conversion funnel is relatively easy (Optimizely, Unbounce, etc) • Offer testing is also easy and most people don’t do it!20

The 7 Habits of Highly Effective SEM (Again)21 Source: http://ppcassociates.com/7habits-guide.html

Keywords vs. Queries - A Crucial Distinction Keyword Queries22

Creating & Analyzing The Beta Campaign Step One: Create the Beta campaign “The Bait”  All keywords should be on broad match modified (+broad +match +modified) Step Two: Run raw search query analysis on Beta campaign Step Three: Identify winning queries and losing queries23

Creating the Alpha Campaign, Refining the Beta Step Four: Create an Alpha campaign. Move winning queries into SKAGs in the Alpha  SKAGs = Single Keyword Ad Groups  Put all Alpha queries on Exact Match  Create targeted ad text and landing pages for each SKAG Step Five: Add all losing queries to the Beta campaign as Negative Exact Match24  -[free dragon tattoo poster]

The Air-Tight Account Secret Step Six: Add all Alpha queries to your Beta campaign as Exact Match Negatives!  This prevents Google from matching a bait keywords to your profitable Alpha query  You control bid, ad text, and landing page for winners! Step Seven: Continue to identify winners and losers in the Beta campaign. Move winners into the Alpha25

Ad Text – The “Gatekeeper” • Call to action • Four human emotions  Fear  Greed  Exclusivity  Vanity • Targeted to specific ad group • Test, test, test – CTR X Conv. Rate26 Source: http://www.amazon.com/Direct-Mail-Copy-That-Sells

Landing Pages – The “Closer” • Clear call to action • Important data above the fold • Establish credibility • Highly targeted to your keyword & ad text • Function over form (limit flash, sound, etc) • Multiple methods of communication • Test, test, test • Quality score: contact us, privacy policy, about us, site map, load time27

Your Next Steps • Ask yourself – are you in the 20%? • Assess your SEM chops or hire an expert • Work tirelessly on your conversion funnel • Start testing SEM - slowly28

Thank You!david@ppcassociates.comwww.ppcassociates.com@rodnitzky

David Rodnitzky, SMASH Summit NYC

by 500 Startups on Jul 30, 2012

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