Setting Revenue Goals and Optimizing Ad Spend May 27, 2010 1:00 PM – 2:00 PM (EDT)
Who We Are Clickable is a platform that makes online advertising simple, instant and profitable. Our purpose is to help businesses survive and thrive by simplifying online advertising success. Ben Seslija Clickable Search Marketing Guru & Senior Director of Acquisition and Analytics Max Kalehoff Clickable Search Marketing Guru & Vice President of Marketing 5/27/10 2
What is Search Engine Marketing? Paid Search Results Over 1 million businesses drive revenues online by spending over $14 billion annually on SEM. 5/27/10 3
Agenda Our Goal Today: Outline best practices for setting revenue goals, tracking and optimizing performance. Launching your goal-based online campaign. Implementing effective conversion tracking tools. Evaluating campaign performance. Optimizing campaigns to meet and exceed revenue goals. 5/27/10 4
Your Business, Your SEM Campaigns Before engaging in campaign development, review a few key questions: What are your overall costs? How much does it cost you to produce a product? How much does it cost you to distribute a product? How much revenue are you bringing in? How much can you spend on advertising? 5/27/10 6
Using Historical Data You need to use historical data to make the right assumptions about revenue goals. Many advertisers experience frustration when they don’t hit revenue goals. Don’t set unrealistic goals. Use historical cost and revenue indicators to determine future revenue goals: aim to improve by 5 to 10 percent, not 50. 5/27/10 7
Actionable Business Metrics Everything starts with “Cost” and “Revenue,” but a lot happens in between … 5/27/10 8
Imperatives: Track These or Lose TRACK Impressions Conversions/Sales Clicks CPA Customer GEO CTRs Conversion Rates Time of Conversion Cost Revenue CPC Demo, LTV, Behavioral, etc. ROI Avg. Position OPTIMIZE 01/21/10
Selecting Media Channels You need to understand demand on search and social networks before launching your campaigns. Average CPCs on each search channel. What kind of traffic can you expect? Many tools to find this data: Google Keyword Traffic Estimator SEM Rush Compete 5/27/10 10
Starting Your Online Campaign Timing is essential. The opening phase of a search campaign is expensive: don’t compound the expense by launching at the wrong time. Know your business and what drives it, and start accordingly. If your product or service sells better in certain seasons, start there: don’t start selling air conditioners at the end of the summer. 5/27/10 11
Success Lies In Fundamentals Tracking: Track your funnel
Know conversion metrics at all friction points
Assign cost to each stage of funnel
Focus: Avoid paralysis by analysis
Establish key metrics that you will observe on adaily basis & use for optimization
Automate: Use tools to diagnose opportunities & threats
Use tools to save time developing & managing your Search efforts
Existing Conversion Tracking Tools There are a variety of tools available today: Every Search Engine has its own tracking code. Google also offers Analytics, which works across all channels and compliments AdWords Tracking. Omniture and others offer third-party tools. You can create a proprietary tracking tool. Clickable Conversion Tracking works across the three major search networks, and Facebook Advertising. 5/27/10 14
How to Choose a Conversion Tracking Tool Key Questions: What channels are you advertising on? How complex is the conversion process on your site? The more complex, the simpler you conversion tracking system needs to be. 5/27/10 15
Accurate and Accessible Reporting Everything is real time in the online world. Reporting needs to be a real time, not aggregate and outdated. All of the key metrics that you track need to be accessible in your reporting layer. Initial time setting up reports will be repaid significantly when optimizing campaigns in a live environment. 5/27/10 17
Metrics you need to track daily (SEM Manager) TRACK Impressions Conversions/Sales Clicks CPA Customer GEO CTRs Conversion Rates Time of Conversion Cost Revenue CPC Demo, LTV, Behavioral, etc. ROI Avg. Position OPTIMIZE 01/21/10
Metrics you need to track Monthly (Senior Level) Costs Budgets Number of Conversions/Sales Cost per Conversion 5/27/10 19
The importance of sample sizes Do not make key decisions on the basis of thin data. You need an accurate sample size to make statistically valid decisions. Let your campaigns run until you have the correct amount of data before optimizing. Length of time is less important than volume of data. Set expectations at the beginning of the campaign. 5/27/10 20
Optimize Performance (High Level)
Observe data on keyword and daily level.
Analyze actionable metrics and assign goals by:
Time of day performance
Devote 10% of your traffic for testing.
Understand dynamics of all Search Engines.
Don’t venture out to new campaigns without tracking.
SEM works in conjunction with your landing pages.
Pay attention to SEO and QS.
Optimize Performance (Practical Level)
Sort and refine keywords by cost.
Examine high-volume ad groups on the ad copy level.
Analyze keyword reports for low clickthrough.
Separate search and content network campaigns.
Focus content advertising on relevant sites.
In content advertising, ensure ad standard compliance.
Simplifying SMA with Clickable 5/27/10 24
How to Sign Up for Clickable Simply go to www.clickable.com/signup and try the Pro product free for 15 days. If you want more support, consider Clickable Assist, our fully-managed solution: www.clickable.com/assist Or email us: email@example.com 5/27/10 25