Principles of choosing keywords for cpc campaigns

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Principles of choosing keywords for PPC campaings - Analytical way

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Principles of choosing keywords for cpc campaigns

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

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