Mazda Gets Pontiac Search Engine Traffic Ppc

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  • Honda wanted to market to young male professionals (single, 20’s, with college education, in their first job)Bidding for car ads is rather expensive, overcrowded marketCreated a whimsical campaign with strange commercials where the Honda Element talks with different animals (show YouTube ad)The keywords associated with the campaign are much cheaper, and target the correct demographic
  • Ad Scheduling: Talk about Bud commercials, daytime targetting, end of work day, more intense on FridaysRoadblock techniques for site targetting
  • Geotargeting: pages 18-19 of OAP.
  • Find which sites these customers target.Then find keywords that they use to go to these sites
  • http://www.time.com/time/business/article/0,8599,1702277,00.htmlhttp://weblogs.hitwise.com/bill-tancer/2008/01/starbucks_v_mcdonalds.html
  • Mazda Gets Pontiac Search Engine Traffic Ppc

    1. 1. Search and the New EconomySession 4Pay-per-click Advertising<br />Prof. Panos Ipeirotis<br />
    2. 2. Today’s Objectives<br />Understand current audience<br />Get intelligence from referring URL’s<br />Get intelligence from search keywords<br />Plan and optimize site for target audience<br />Optimize internal search<br />Optimize external search<br />Keyword-based Advertising (Pay per Click, PPC)<br />Understand pricing model<br />Understand keyword selection principles<br />User generated content and ads<br />Advertising Networks<br />Guest speaker: Heath Row, Research Manager at Doubleclick<br />
    3. 3. Anatomy of Search Results: Google<br />PPC Ads<br />PPC <br />Ads<br />Organic Web Results<br />
    4. 4. Anatomy of Search Results: Yahoo! <br />PPC Ads<br />PPC<br />Ads<br />Organic Web Results<br />
    5. 5. PPC Terminology<br />PPC: Pay Per Click<br />CTR: Click Through Rate<br />Percentage of clicks to impressions<br />CPC: Cost Per Click<br />Price an advertiser pays for each click on his/her ad<br />Daily Budget<br />Amount advertiser is willing to spend, each day, on PPC ads<br />
    6. 6. How PPC Works<br />Advertiser<br />User enters query<br />Advertiser s place bids<br />Engine runs auction and displays winning ads<br />Advertiser’s Website/Landing Page<br />Surfer “lands” on website<br />User<br />Surfer clicks on an ad<br />Search Engine Server<br />Millions of auctions executed every day<br />Once the daily budget is reached, the ad will no longer be shown.<br />
    7. 7. The PPC Auction Model<br />Basic model<br />Highest bidder gets highest slot<br />Winner pays winning bid<br />Not ideal! Why?<br />Vickrey-Clarke-Groves (VCG) auction<br />Second price auction<br />Optimal for single slot<br />Reveals true willingness to pay, no need to be strategic<br />Winner for slot i pays maximum bid of bidder that get i+1 slot<br />Still not the best for Google, Yahoo, MSN etc.<br />Why?<br />
    8. 8. Ad Quality Score + Landing Page Quality<br />Search engine needs repeat customers<br />Needs to improve user experience for long term<br />Bid transformation:<br />(Bid $ amount) x (Ad Quality Score)<br />~ (Bid $ amount) x (CTR rate + relevance)<br />In other words, rank by expected revenue for Google<br />High quality ads -> Lower bid amount(incentive compatibility)<br />Main difference between Yahoo and Google until 2007<br />Details for quality score: https://adwords.google.com/support/bin/answer.py?answer=10215 <br />
    9. 9. Mini Case: Cost per Click and Holidays<br />CPC increases before the holidays<br />Should advertisers refrain from bidding?<br />How to approach the problem?<br /><ul><li>CPC increases but conversion rate (CR) increases more
    10. 10. Cost per Acquisition (=CPC/CR) drops!
    11. 11. Holiday season offers better bargain than other days</li></li></ul><li>Today’s Objectives<br />Understand current audience<br />Get intelligence from referring URL’s<br />Get intelligence from search keywords<br />Plan and optimize site for target audience<br />Optimize internal search<br />Optimize external search<br />Keyword-based Advertising (Pay per Click, PPC)<br />Understand pricing model<br />Understand keyword selection and bidding principles<br />Understand important campaign techniques<br />
    12. 12. AdWords Demo<br />Issues to consider<br />Daily budget, Max CPC (affects top placement)<br />Ad generation + landing page<br />Keyword generator, Traffic estimator<br />Campaign Settings<br />Ad position preference<br />Targeting capabilities<br />Daytime<br />Geo targetting<br />
    13. 13. Ad Generation<br />{<br />Static<br />“Search keyword insertion”<br />Headline:<br />Ad Text: <br />Landing URL<br />{<br />Well Written(describing product)<br />Poorly Written (vague, generic, dull)<br />What matters?<br />
    14. 14. Improving PPC ROILanding Pages<br />Targeted Website PageAverage Conversion Rate: 2.40%<br />Website Home Page<br />Average Conversion Rate: 1.17%<br />Targeted pages that are part of the website often outperform the home page as a landing page (Clovis)<br />
    15. 15. Improving PPC ROILanding Pages<br />Targeted Website PageAverage Conversion Rate: 2.40%<br />Website Home Page<br />Average Conversion Rate: 1.17%<br />Special Landing Page<br />Average Conversion Rate: 12.5%<br />Specially-created landing pages often outperform website pages, even targeted ones, as the landing page<br />Use A/B testing (Clovis Group) or multivariate testing (Dale and Thomas)<br />OK<br />BEST<br />BETTER<br />
    16. 16. Keyword Selection: What keywords to bid on?<br />Match by topic/relevance:<br />Google Keyword Tool (Tools -> Keyword tool)<br />WordTracker<br />Analyze keyword demographics<br />(See earlier discussion)<br />Negative Keywords<br />E.g., “Dove” (soap) vs. Dove chocolates vs. Lonesome Dove (book) vs. Rita Dove (poet)<br />Association with desirable (sponsored) events, people<br />Coca-Cola and “American Idol” / “Simon Cowell” / “Carrie Underwood”<br />
    17. 17. Keyword Selection: How much?<br />Tools &gt; Traffic Estimator<br />
    18. 18. Demographic Targeting: Honda Element<br />Target Demographic: Young, single males<br />http://www.youtube.com/watch?v=fxPg7CwtG2w<br />http://www.youtube.com/watch?v=lhkAGfS__mk<br />http://www.youtube.com/watch?v=5k50lKeXeTI<br />
    19. 19. Competition Waits Though…<br />For every Honda Element, there is a GM Pontiac<br />TV Campaign from GM: “Google Pontiac”<br />Mazda bids on keyword “Pontiac”<br />69% of Pontiac traffic goes to GM<br />2.43% goes to Mazda according to HitWise<br />http://weblogs.hitwise.com/bill-tancer/2006/01/google_pontiac.html<br />
    20. 20. Campaign Settings<br />“Roadblock”<br />Geo-targeting<br />Daypart<br />Targeting<br />Rank Targeting<br />
    21. 21. Examples of Winning Plays<br />Daytime targeting: Budweiser<br />Roadblock + daytime: HollowMan DVD<br />Ads in as many sites visited by target demongraphic<br />Ads run during lunch time, and prime time of Friday<br />Geo-targeting: Multichannel play (many customers shop online, but buy offline)<br />CompUSA: Displays inventory levels at local stores<br />Luxury cars: Specific zip-codes + telephone of local dealer<br />40% of car rentals ads, convert offline<br />30% of job applicants saw online ad, submitted offline<br />Rank target: “Mining behavior” of customers<br />
    22. 22. Targeting Demographics: PRIZM <br />How different demographics behave online?<br />
    23. 23. Demographics Behavior<br />Brewing Battle: Starbucks vs. McDonalds<br />Will McDonalds get the $4/cup crowd from Starbucks?<br />Starbucks: Urban Commuter Family, &quot;college-educated households containing dual income couples.&quot;<br />McDonald’s: Struggling City Centers, &quot;lower-income households living in city neighborhoods in the South.&quot;<br />http://www.time.com/time/business/article/0,8599,1702277,00.htmlBill Tancer, HitWise<br />
    24. 24. Improving PPC ROIThe “Long Tail” Concept<br />“The Long Tail” by Chris Anderson<br />An aggregate of less popular products can sell more in the “long tail” than the most popular products<br />Same applies to PPC<br />An aggregate of specific, less searched terms can provide better ROI than highly searched terms<br />
    25. 25. The Long Tail Illustrated<br />
    26. 26. Does It Really Work? YES.<br />Major athletic retailer case study<br />80% of PPC sales come from long tail keywords<br />Specific, product-name keywords<br />Only 20% of sales come from broad terms, like “BRAND shoes” or “BRAND jacket”<br />Most “long tail” keywords are inexpensive<br />[web hosting] $8.30<br />[freebsd web hosting] $0.10<br />Targeted at customers with specific needs, closer to purchase<br />
    27. 27. PPC Cycle<br />Discover/Research<br />Compare<br />Purchase<br />Broad,approximately 50 keywords<br />ex: shoes<br />Medium,approximately 100 keywords<br />ex: running shoes<br />Specific,approximately 1,000 keywords<br />ex: Asics 2010 running shoes<br />Keywords<br />High,typically high cost per click,more competition<br />Medium,average cost per click,medium competition<br />Low,low cost per click,very little competition<br />SearchVolume<br />Obtain a ready sale now;acquire a customer who knows what he/she wants<br />Frame the buying decision;establish credibility<br />Compete on more specific criteria;capitalize on customer preferences<br />Opportunity<br />ConversionRate<br />Lower<br />Medium<br />Higher<br />
    28. 28. Alternative Models<br />First-price Auctions (Goto.com, Overture)<br />Pay per Impression (Banner ads)<br />Pay per Action (PPA) (Newly introduced)<br />Pay per Dollar Revenue (PPR) (Amazon Associate)<br />Advantages and Disadvantages of Each Model?<br />

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