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

The 6 advanced strategies Use profit as your guiding metric Look at the cumulative effect of your advertising Connect your offline sales to your online advertising Build a data warehouse Use search queries as a basis for new keywords and negatives Implement an alert system

Use profit as your guiding metric

Look at the cumulative effect of your advertising

Connect your offline sales to your online advertising

Build a data warehouse

Use search queries as a basis for new keywords and negatives

Implement an alert system

Strategy #1 Use profit as your guiding metric

PPC metrics are flawed Revenue can increase… Profit can decrease Conversion Rate can increase… Profit can decrease CPA or Cost Per Conversion can decrease… Profit can decrease Sales can increase… Profit can decrease ROAS can increase… Profit can decrease

Revenue can increase… Profit can decrease

Conversion Rate can increase… Profit can decrease

CPA or Cost Per Conversion can decrease… Profit can decrease

Sales can increase… Profit can decrease

ROAS can increase… Profit can decrease

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

Strategy #2 Look at the cumulative effect of your advertising

Not as valuable as you think

Never underestimate the value of air conditioning Should I close the doors to save on my electric bill?

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

How can I use the Purchase Path TM ? AdWords (Toaster Oven) > AdWords (GE toaster) > (TEM500) > $90 Sale $30 Toaster Oven $30 GE Toaster $30 TEM500 $90 TEM500 $90 Toaster oven Credit Allocation Even Last First ROI Type

AdWords (Toaster Oven) > AdWords (GE toaster) > (TEM500) > $90 Sale

Strategy #3 Connect your offline sales to your online advertising

Offline sales tracking Assign an ID to each keyword Dynamically insert keyword ID on your website Have sales person capture keyword ID along with other contact information Run a sales report that shows sales with keyword ID’s Determine if those keywords are profitable Keyword = flat screen = ID 3378

Assign an ID to each keyword

Dynamically insert keyword ID on your website

Have sales person capture keyword ID along with other contact information

Run a sales report that shows sales with keyword ID’s

Determine if those keywords are profitable

Strategy #4 Build a data warehouse

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%)

Mine your data

Use the data you mine And/Or

Strategy #5 Use search queries as a basis for new keywords and negatives

What’s the ideal recommendation tool? Ideal = 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

Ideal =

Use the information available to you Search query = 50 inch flat screen TV Keyword = flat screen Keyword match type = broad Conversion = $4,700 sale New keyword = 50 inch flat screen TV New keyword match type = exact Advantages = Know it works, cheaper CPC, higher QSR, more targeted

Search query = 50 inch flat screen TV

Keyword = flat screen

Keyword match type = broad

Conversion = $4,700 sale

New keyword = 50 inch flat screen TV

New keyword match type = exact

Advantages = Know it works, cheaper CPC, higher QSR, more targeted

Continued…negatives Search query = flat screen computer monitor Keyword = flat screen Keyword match type = broad Conversion = $0 Negative keyword = computer and monitor Advantages = target right audience, don’t waste ad dollars

Search query = flat screen computer monitor

Keyword = flat screen

Keyword match type = broad

Conversion = $0

Negative keyword = computer and monitor

Advantages = target right audience, don’t waste ad dollars

Strategy #6 Implement an alert system

Why use alerts? Impossible to keep your eye on 10,000’s of keywords Saves time by allowing you to focus Insurance against human error Ability to automate responses to alerts

Impossible to keep your eye on 10,000’s of keywords

Saves time by allowing you to focus

Insurance against human error

Ability to automate responses to alerts

Types of Alerts Compare date range A to date range B and alert me if… Sales Profit Traffic Alert me when a metric increases by X or decreases by Y Ad Spend Conversion rate CTR Ad position * Make sure you are being alerted only when data is statistically sound

Compare date range A to date range B and alert me if…

Sales

Profit

Traffic

Alert me when a metric increases by X or decreases by Y

Ad Spend

Conversion rate

CTR

Ad position

* Make sure you are being alerted only when data is statistically sound

How to set up alerts Directly from the ad sources in some cases (Google, Yahoo, etc) Make use of the API Build internal tools Buy an off the shelf product

Directly from the ad sources in some cases (Google, Yahoo, etc)

Make use of the API

Build internal tools

Buy an off the shelf product

Bonus Strategy Methodology used by sophisticated advertisers to earn the maximum profit

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

Adam S. Goldberg [email_address] 1.800.592.0463 Blog: www.clearsaleing.com/blog TM