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Principles of choosing keywords for cpc campaigns
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Principles of choosing keywords for PPC campaings - Analytical way

Principles of choosing keywords for PPC campaings - Analytical way

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Principles of choosing keywords for cpc campaigns Presentation Transcript

  • 1. Principles of choosing keywords for PPC ad campaigns – Analytical Marketing
    Tanmay Saraykar
    1
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
  • 2. How would you choose keywords?
    Experience?
    Opinion?
    Feel?
    Instinct?
    Liking?
    Brand name?
    Company name?
    Logic!
    There is a better way! The analytical way!
    2
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
  • 3. How would you choose keywords?
    The analytical way - Parameters
    3
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
  • 4. What next? – The process
    4
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
  • 5. The process - in detail
    5
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
  • 6. Level 1 categorization and keywords lists
    Categorization of Keywords
    Industry keywords
    Keywords that describe the industry
    Business Keywords
    Keywords that describe your business
    Product /brand keywords
    Generic product category, your brand name, company name, competitions product names
    Process keywords
    Keywords that describe process
    6
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
  • 7. Keyword lists – Industry, Business, Product, Process
    Lets choose diverse sets of keywords…
    7
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
  • 8. Getting lists – Google Keyword Tool
    Download
    8
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
  • 9. The data looks like this..
    9
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
  • 10. Definitions
    Local monthly searches - For a specific language and a country, this is 12 months average number of user queries for the keyword.
    Global monthly searches - The approximate 12 month average of user queries of the keyword, on Google.com and Google search network. This is specific to match type specified.
    Competition - This represents number of advertisers bidding on each keywords, relative to all keywords across Google. (This doesn’t say how much are they willing to pay!)
    The estimated cost-per-click (CPC) for your ad for the associated keywords. AdWords estimates your performance using a maximum CPC that is predicted to place your ad always in positions 1-3 with an unlimited budget to capture all available impressions.
    10
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
  • 11. Should you choose keywords…
    Should we choose keywords because many are searching by them i.e. they have a high search volume?
    Or should I choose keywords because they have low CPC i.e. they will cost us less?
    Or should I choose keywords because they have low competition because no one else wants them?
    How do we know which keywords will bring us business with optimum use of our money?
    11
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
  • 12. Don’t get tempted into…Assumptions
    If a keyword is popular in the US, its likely popular globally
    Higher the search volume of the keyword, more popular it is, more people are searching for it and hence competition should be high
    Higher the search volume, more expensive the keyword ought to be
    Higher the competition for a keyword, more bids it receives, higher should be its CPC
    Lets see…
    12
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
  • 13. 13
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
    Because these assumptions may not be true…lets see if they are true, using Correlation Coefficient..
  • 14. Correlation Coefficient
    Correlation Coefficient (CoCo)–
    Relationship between two variables – A statistic representing how closely two variable co-vary
    Is a numerical value between -1 and 1
    (-1) means 100% of the time, if one increases other decreases
    (+1) means 100% of the time, if one increases, other also increases
    (0) means there is no relationship
    14
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
  • 15. Correlation Coeff. For keywords sets related to e-books
    15
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
  • 16. Visual plotting….
    What do these numbers mean? Are they consistent across keyword data sets? Lets see….
    16
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
  • 17. Keyword set 1 – e -books
    17
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
  • 18. Statistical relationships – E-books
    18
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
    E - Books
  • 19. Global Search and Local Search
    Correlation Coefficient – 0.876
    19
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
    E - Books
  • 20. Search Volume and CPC
    Correlation Coefficient – -0.153
    20
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
    E - Books
  • 21. Search Volume and competition
    Correlation Coefficient – 0.264
    21
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
    E - Books
  • 22. CPC and Competition
    Correlation Coefficient – 0.150
    22
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
    E - Books
  • 23. Keyword set 2 – Indian Food
    23
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
  • 24. Statistical relationships – Indian food
    24
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
  • 25. Global Search and Local Search
    Correlation Coefficient – 0.980
    25
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
    Indian food
  • 26. Search Volume and CPC
    Correlation Coefficient – - 0.044
    26
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
    Indian food
  • 27. Search Volume and competition
    Correlation Coefficient – 0.396
    27
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
    Indian food
  • 28. CPC and Competition
    Correlation Coefficient – -0.008
    28
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
    Indian food
  • 29. Keyword set 3 –Auto parts
    29
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
  • 30. Statistical relationships – Auto parts
    30
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
  • 31. Global Search and Local Search
    Correlation Coefficient – 0.934
    31
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
    Auto parts
  • 32. Search Volume and CPC
    Correlation Coefficient – 0.038
    32
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
    Auto parts
  • 33. Search Volume and competition
    Correlation Coefficient – 0.013
    33
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
    Auto parts
  • 34. CPC and Competition
    Correlation Coefficient – 0.163
    34
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
    Auto parts
  • 35. Lets put it all together
    35
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
  • 36. Conclusions..
    Strong positive correlation between global search volume and local search volume
    Hence they can be taken as same parameter for the purpose of analysis
    Weak negative correlation between search volume and estimated CPC
    This means that even though the search volume for some keywords may be high, not many advertisers are bidding high for them, or they are independent
    Moderate positive correlation between search volume and competition
    This means that for a significant number of keywords in this set, if the search volume is high, the competition (people wanting to bid for it, and not how much are they willing to pay) is high.
    Weak positive correlation between CPC and competition
    This means that how many advertisers are bidding for a keyword and how much are they wiling to pay are aspects independent of each other
    36
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
  • 37. So What?
    Does statistics support our assumptions?..not always
    High local search volume indicates high global search volume
    High search volume doesn’t mean high competition
    High search volume doesn’t necessarily mean expensive keyword
    High competition doesn’t mean high CPC..
    37
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
  • 38. Now what?
    We need a better way of keyword grouping!
    38
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
  • 39. Keyword grouping
    39
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
  • 40. Grouping keywords
    Long tail – keywords with low search volume and high CPC (small quantities of large number of unique keywords)
    Value – high search volume and high CPC, you get what you pay for
    Economy – high search volume and low CPC, may tap a large market but may not be very relevant, pay less – target more
    Useless – low search volume and low CPC, no one is searching, no one is paying
    40
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
  • 41. Marketing objectives
    Genuine leads – Low traffic to the website but only people who care and want our stuff
    Traffic and Leads – Moderate traffic and moderate leads
    Brand awareness - More traffic to the website, no matter what traffic
    Be present – Low budget but want to be in the scene
    41
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
  • 42. Marketing objectives
    42
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
  • 43. Keyword grouping
    Genuine leads
    Traffic and leads
    Be present
    Brand awareness
    43
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
  • 44. Lets plot some data..
    44
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
  • 45. Lets plot some data for Indian food
    45
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010
  • 46. Marketing (CPC)Budget allocation
    This is what I would do….
    46
    © Tanmay Saraykar – Choosing Keywords
    8/31/2010