6 Advanced Paid Search Strategies used by the Internet Retailer Top 500

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The following presentation outlines 6 strategies that leading online marketers follow concerning paid search. To view a video of the presentation, please visit: http://www.clearsaleing.com/blog/archives/2007/09/30/webinar-video-6-advanced-paid-search-strategies-used-by-internet-retailer-top-500/

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  • 6 Advanced Paid Search Strategies used by the Internet Retailer Top 500

    1. 1. September 6, 2007 The Clear Sale ing TM Webinar Series 6 Advanced Paid Search Strategies Used by the Internet Retailer Top 500 Presented by Adam Goldberg a former Google Insider and Co-Founder of Clear Sale ing TM
    2. 2. The 6 advanced strategies <ul><li>Use profit as your guiding metric </li></ul><ul><li>Look at the cumulative effect of your advertising </li></ul><ul><li>Connect your offline sales to your online advertising </li></ul><ul><li>Build a data warehouse </li></ul><ul><li>Use search queries as a basis for new keywords and negatives </li></ul><ul><li>Implement an alert system </li></ul>
    3. 3. Strategy #1 Use profit as your guiding metric
    4. 4. PPC metrics are flawed <ul><li>Revenue can increase… Profit can decrease </li></ul><ul><li>Conversion Rate can increase… Profit can decrease </li></ul><ul><li>CPA or Cost Per Conversion can decrease… Profit can decrease </li></ul><ul><li>Sales can increase… Profit can decrease </li></ul><ul><li>ROAS can increase… Profit can decrease </li></ul>
    5. 5. PPC metrics are flawed Plasma TV Cost per conversion: $375 LCD TV Cost per conversion: $450 Sale Price: $1,000 Sale Price: $3,000 Sale Price: $3,000 Product: PN 2387 Profit Margin: 13% Profit ($95) Product: PDP 4250 Profit Margin: 18% Profit $165 Product: LG 37LP1 Profit Margin: 24% Profit $270 Flat screen TV Cost per conversion: $225
    6. 6. Strategy #2 Look at the cumulative effect of your advertising
    7. 7. Not as valuable as you think
    8. 8. Never underestimate the value of air conditioning Should I close the doors to save on my electric bill?
    9. 9. November 15, 2006 Most common Purchase Paths TM Average # of clicks to sale: 2.75 Nextag (plasma TV) > Nextag (Pioneer plasma) > Nextag (PDP-HD50) > Sale Purchase Path TM 4 AdWords (modern lamp) > AdWords (modern floor lamp) >AdWords (ingo mauer) > AdWords (im-hotachille) > AdWords (company name) > Sale Purchase Path TM 3 Nextag (PDP-HD50) > AdWords (company name) > Sale Purchase Path TM 2 AdWords (Toaster Oven) > AdWords (GE toaster) > AdWords (TEM500) > Sale Purchase Path TM 1 Path
    10. 10. How can I use the Purchase Path TM ? <ul><li>AdWords (Toaster Oven) > AdWords (GE toaster) > (TEM500) > $90 Sale </li></ul>$30 Toaster Oven $30 GE Toaster $30 TEM500 $90 TEM500 $90 Toaster oven Credit Allocation Even Last First ROI Type
    11. 11. Strategy #3 Connect your offline sales to your online advertising
    12. 12. Offline sales tracking <ul><li>Assign an ID to each keyword </li></ul><ul><li>Dynamically insert keyword ID on your website </li></ul><ul><li>Have sales person capture keyword ID along with other contact information </li></ul><ul><li>Run a sales report that shows sales with keyword ID’s </li></ul><ul><li>Determine if those keywords are profitable </li></ul>Keyword = flat screen = ID 3378
    13. 13. Strategy #4 Build a data warehouse
    14. 14. All sales are not created equal 5 Sales (CPA = $123) TV cable = $30 (Margin = 25%) TV stand = $199 (Margin = 15%) Plasma TV = $3999 (Margin = 8%) Flat Screen TV = $299 (Margin = 32%) Gift card = $25 (Margin = 27%)
    15. 15. Mine your data
    16. 16. Use the data you mine And/Or
    17. 17. Strategy #5 Use search queries as a basis for new keywords and negatives
    18. 18. What’s the ideal recommendation tool? <ul><li>Ideal = </li></ul>Sorry, this does not exist…but a recommendation tool that can accurately tell you the ROI on a new keyword prior to adding it to your campaign
    19. 19. Use the information available to you <ul><li>Search query = 50 inch flat screen TV </li></ul><ul><li>Keyword = flat screen </li></ul><ul><li>Keyword match type = broad </li></ul><ul><li>Conversion = $4,700 sale </li></ul><ul><li>New keyword = 50 inch flat screen TV </li></ul><ul><li>New keyword match type = exact </li></ul><ul><li>Advantages = Know it works, cheaper CPC, higher QSR, more targeted </li></ul>
    20. 20. Continued…negatives <ul><li>Search query = flat screen computer monitor </li></ul><ul><li>Keyword = flat screen </li></ul><ul><li>Keyword match type = broad </li></ul><ul><li>Conversion = $0 </li></ul><ul><li>Negative keyword = computer and monitor </li></ul><ul><li>Advantages = target right audience, don’t waste ad dollars </li></ul>
    21. 21. Strategy #6 Implement an alert system
    22. 22. Why use alerts? <ul><li>Impossible to keep your eye on 10,000’s of keywords </li></ul><ul><li>Saves time by allowing you to focus </li></ul><ul><li>Insurance against human error </li></ul><ul><li>Ability to automate responses to alerts </li></ul>
    23. 23. Types of Alerts <ul><li>Compare date range A to date range B and alert me if… </li></ul><ul><ul><li>Sales </li></ul></ul><ul><ul><li>Profit </li></ul></ul><ul><ul><li>Traffic </li></ul></ul><ul><li>Alert me when a metric increases by X or decreases by Y </li></ul><ul><ul><li>Ad Spend </li></ul></ul><ul><ul><li>Conversion rate </li></ul></ul><ul><ul><li>CTR </li></ul></ul><ul><ul><li>Ad position </li></ul></ul><ul><li>* Make sure you are being alerted only when data is statistically sound </li></ul>
    24. 24. How to set up alerts <ul><li>Directly from the ad sources in some cases (Google, Yahoo, etc) </li></ul><ul><li>Make use of the API </li></ul><ul><li>Build internal tools </li></ul><ul><li>Buy an off the shelf product </li></ul>
    25. 25. Bonus Strategy Methodology used by sophisticated advertisers to earn the maximum profit
    26. 26. 5-Step methodology for increasing profit Ad Spend Profits 20K 40K Identify Ad Waste Eliminate Waste Buy Maximum Clicks Add Ad Sources Time Optimize Business
    27. 27. Adam S. Goldberg [email_address] 1.800.592.0463 Blog: www.clearsaleing.com/blog TM

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