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NetElixir's SEM Fresh Ideas 2012


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Take a look at NetElixir's book of Fresh SEM Ideas for 2012!

Learn more during our first webinar on October 24th at 2pm EST! Register here:

For more information, call 609.356.5112 or email

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NetElixir's SEM Fresh Ideas 2012

  1. 1. Fresh Ideas... in Search Engine Marketing Fresh Online Marketing Ideas
  2. 2. I have great pleasure in presenting to you the 2012 edition of our Fresh Ideas Workbook.The first Fresh Ideas workbook was published in June 2009. Since then we have published2 more annual workbooks (2010 and 2011) and 12 white papers under our Fresh Ideasseries. The 2012 edition is a compilation of ten ideas that were rated “very useful” byonline retailers (the workbooks have been read by over 5000 retailers in US, UK andGermany).Search Engine Marketing (SEM) has evolved over the last 3 years. Searcher sophisticationhas increased (longer queries) and the post-recession shopper’s search to purchase pathhas become longer. Social media plays a bigger role in influencing buyer choices today(than in 2009) and mobile search has garnered sizeable share of all searches. However,the ideas presented in this workbook are still as applicable today as they were in 2009.We hope you are able to apply these ideas to boost your search advertising results. Happy Selling! UDAYAN BOSE Founder & CEO -1-
  3. 3. Why do you need a Practical Workbook? Successful keyword search advertising is “75% execution” and “25% strategy”. We have tested the concepts presented here for more than 200 retailer campaigns. Though this is not an exhaustive list, it is adequate for getting you off to a good start. The beauty of the concepts presented lies in the fact that they can be used on an “as is” basis. The ability to conduct “smart, objective focused tests” is key for optimal search advertising. Some control sheets presented here need to be filled by you on a weekly basis. You can therefore capture essential trends. We place a lot of emphasis on regular data analysis and extracting usable insights. This workbook will serve that purpose for you. -2-
  4. 4. NetElixir’s GOST- (Goals/Objectives – Strategic Initiatives – T actics) model is a simple yet powerful model for effective paid search advertising that connects the strategic and operational aspects of search advertising.The model was first introduced by us in our 2010 Fresh Ideas Workbook (June 2010). -3-
  5. 5. Create an integrated, multi-channel online customer Create anacquisition strategy online customer acquisition strategy integrated, multi-channel for the holidays for the holidays Business Goals/  Strategic Ini9a9ves  Tac9cs  Objec9ves  Promote STAR   •  Category level  and ASPIRANT  channel efficiency  categories through  analysis and budget  re‐alloca9on  PPC, CSE and SMM  •  $10,000,000  revenue from  new online  Out‐flank  customers  compe9tors in  •  Use Compe9tor  Offering, Promo9on  categories X,Y and  and Messaging Grid  •  ROAS = 400%  Z through strategic  to iden9fy  promo9ons    opportunity gaps  •  PPC Share of  Voice > 80%  5‐10% PPC SOV  •  Track PPC SOV on a  gain for categories  monthly basis at  X,Y,Z  category level   -4 -
  6. 6. NetElixir recommends a holistic approach towards search advertising. Our LXRRetailTM dashboard enables us to compare and manage SEO and SEM keywords side-by-side from a unified dashboard. The concept was recommended by us in our 2011 Fresh Online Marketing Ideas Workbook (June 2011). -5-
  7. 7. Using the dual power of SEO+SEM to drive results Using the dual power of SEO+SEM to drive results results Using the dual power of SEO+SEM to drive Idea Checklist  Why is it important?  Example  Idea Checklist  Why is it important?  Example  Optimal Listing position for organic and paid ads Create a list of keywords for  Improved SEM spend efficiency.  which you want to op9mize  It is possible to gain an idea of  Optimal Listing position for organic and paid ads Create a list of keywords for  Improved SEM spend efficiency.  search adver9sing (SEO+SEM)  op9mal organic and PPC lis9ng  SEO+SEM ROAS  which you want to op9mize  It is possible to gain an idea of  ROAS (Total Search Revenue/ posi9ons.  search adver9sing (SEO+SEM)  op9mal organic and PPC lis9ng  SEO+SEM ROAS  Total SEM Spend). Track the  ROAS (Total Search Revenue/ posi9ons.  ROAS for different combina9ons  Total SEM Spend). Track the  of search lis9ng posi9ons.  ROAS for different combina9ons  SEM Spend   of search lis9ng posi9ons.  SEM Spend   SEO/SEM Dashboard  SEO/SEM Dashboard  -6-
  8. 8. Should you be promoting all your products through paid search? We asked this question to IRCE 2009 attendees during our workshop in Boston. Many retailers said that this grid (Margin x Velocity = ROI) helped them run more focused and profitable search advertising programs. We first presented this concept in June 2009 at IRCE Boston. -7-
  9. 9. Keyword Strategy and “Return on Investment” Keyword Strategy and “Return on Investment” •  Scrub your keyword list regularly  •  Focus on efficiency and growth  •  Time Bound promo8ons to boost    •  Controlled Keyword list expansion     sales  •  Iden8fy new sources for keywords   •  Experiment with ad copies and      landing pages Margin Is Keyword Search Adver1sing  •  What’s your average order value?     right for you?     What is the order margin?  •  Number of inventory turns?  Velocity -8-
  10. 10. Competitor paid search surveillance helps in gainingvaluable insights into competitor strategies, focus areas and even product promotions. Very few advertisers conduct this process diligently. We proposed the Competitor Surveillance Grid in our 2009 Fresh Ideas workbook. -9-
  11. 11. Know thy Compe9tors  thy Competitors Know Why is this important? Why is this important?  You You are not adver9sing in  vacuum . The  searcher  always likes to compare before   are not advertising in “vacuum”. The “searcher” always likes to compare before making apurchase. making a purchase.  You  Compe?tor 1  Compe?tor 2  Product  Price  Promo9ons  Brand Strength  Es9mated SEM Spend  Number of keywords  Unique Selling Point   (ad copy and landing page)  Average Ad Lis9ng Posi9on  Specific SEM Tac9cs  employed (ex. day‐par9ng)  - 10 -
  12. 12. The importance of multi-channel marketing can not be over-emphasized. Click path analysis helps us derive valuable insights into use engagement patterns. NetElixir highlighted the importance of multi-channel marketing through a table thatcaptured the impact of search and social media during various stages of consumer buying cycle. This was published in our white paper, 8 Questions Every Search Marketer Should Ask (March 2010). - 11 -
  13. 13. Is your paid search advertising program in sync with other Is your paid search adver?sing program in sync with other online customer acquisi?on campaigns?  online customer acquisition campaigns? NetElixir Suggests: NetElixir Suggests: A •  A Paid search adver9sing campaign delivers superior returns when coupled with other   • paid search advertising campaign delivers superior returns when coupled with other channels like social media.  channels like social media. •  Search is a cri9cal element within the  Shopper Engagement Cycle . However, it is   • Search is a critical element within the “Shopper Engagement Cycle”, however, it is not the only not the only element.  As the table below shows, it is important to understand the  element. As the table below shows, it is important to understand the role that search plays in role that search plays in the consumer buying process.  the consumer buying process. Stage in Consumer  Influence of Search  Influence of Social Media  Buying Process  Problem Recogni9on  Low  High  Informa9on Search  High  High  Evalua9on of Alterna9ves  High  Moderate  Purchase Decision  High  High  Purchase  High  Low  Post Purchase Evalua9on  Low to Moderate  Low  Note: Very often, the role played by search in post purchase evaluation gets neglected. NetElixir has been able to conduct successful tests that supports the Note: Very ooen, the role played by search in post purchase evalua9on gets neglected.  importance of search during the post purchase evaluation process. You can read more on this here: NetElixir has been able to conduct successful tests that supports the importance of search  -12- during the post purchase evalua9on process.  
  14. 14. Strategic keyword bidding practices can havebig impact on paid search campaign profitability,especially during the hyper-competitive holidays.5 tips on strategic bidding best practices were presented in our 2009 Fresh Ideas workbook (June 2009). - 13 -
  15. 15. Strategic Keyword Bidding During HolidaysWhy is this important?During the holiday season, the average cost per keyword click (CPC) jumps by 50-80% forcategories like flowers and gifts, apparel and consumer electronics. 5 Essential Things to Remember in Keyword Bidding • idding strategy should be product category-specific B (know the categories “Not” to aggressively bid on) • Day-parting tactics help in better utilization of advertising budget • Days of “vanity bidding” (get the top listing position at any cost) are over • Value per click is the ultimate measure of bidding efficiency • conversion is an outcome of multiple clicks on (often) multiple keywords A (it is too simplistic to attribute a conversion to the last keyword click). Note: • Since bidding is a real-time process, manual bid management is not adequately efficient especially for campaigns with 5000+ keywords. Bid Optimization technologies like LXRRetailTM use complex algorithms to execute this process optimally. • Bidding strategy is influenced by both short term as well as long SEM objectives. The strategy adopted during Holiday Season may not apply during other months. - 14 -
  16. 16. A well written ad copy can boost Click-through-rate as well asconversion rate. At NetElixir, we have conducted extensive research on each and every character (quite literally) of an ad copy. At the Internet Retailing Show in London (in 2009) our CEO, Udayan Bose presented ten tips for boosting ad copy performance. - 15 -
  17. 17. Creating ad copies that work: Practical Tips1. Geo targeted ad copies always have higher CTR that national ad Copies2. Free shipping always boosts CTR3. Mentioning Official site (in display URL or ad copy) increases CTR4. Mentioning keyword in display URL increases CTR5. Free S/H + official site + call to action = BEST ad6. Brand name + retailer name = better than just retailer name7. High CTR ad copy need not be best converting8. Mentioning the brand name in ad copy improves CTR and also conversion9. Final Clearance or Clearance Sale ads have high CTR but may not have high conversion rate10. Adding an exclamation mark post a call to purchase ad copy line increases CTR - 16 -
  18. 18. Search Never Sleeps, why should your SEM Manager? We have always been big proponent of 24/7/365campaign management. A smart search marketer always finds out a way to maximize any opportunity. This concept was presented in 2010 Fresh Ideas workbook. Till date this idea has received maximum questions from retailers. - 17 -
  19. 19. Be Prepared for u?lizing sudden  Be prepared for utilizing sudden Severe snowstorm – East Coast will prevent  situa?onal opportuni?es through SEM  Shoppers from stepping out of their homes situational opportunities through SEM 12.19.2009 9 am EDT Short Term Search Advertising Campaign - 18 -
  20. 20. Key Performance Indicators (KPIs) help us measure progress andalso take necessary actions. We believe every business should builda custom set of KPIs. Having worked exclusively in the retail industry since 2005, we have had an opportunity to test various KPIs especially for measuring customer acquisition. We introduced these 3 KPI’s in our 2010 Fresh Ideas workbook (June 2010). - 19 -
  21. 21. Online Customer Acquisi9on KPI s Every Retail 3 Online Customer Acquisition KPI’s Every Retail Marketer Should Master Marketer Should Master  KPI  How to Calculate  Significance  New Customer  (Sales Revenue from New  Effec9veness of your  Contribu9on  Customers)/Total  acquisi9on program  Website Sales Revenue  Return on Adver9sing  Revenue Generated/  Category‐level, channel  Spend (at the category  Channel Adver9sing  specific adver9sing  and channel levels)  Spend  efficiency  (category‐level)  Average Order Value   AOV (new Customer)/  Rela9ve New Customer  (New Customer) vis‐a‐vis  AOV (Overall Website)  Value  Average Order Value for  all customers  - 20 -
  22. 22. We built the Channel Efficiency Dashboard for one of our very large retail clients. It was extremely effectivein helping us assess multi-channel advertising efficiency. We introduced the Channel Efficiency Dashboard in our 2011 Fresh Ideas workbook (June 2011). - 21 -
  23. 23. The Channel Efficiency Dashboard  The Channel Efficiency Dashboard Key Metrics  Key Performance Indicators  Channels  Unique  Orders  Revenue  Cost  Revenue/Cost  Revenue/  Orders/  % Revenue  visitors  (ROAS)  Orders  Unique  (new  (AOV)  Visitors  visitors)/  (Conversion  Total  Rate)  Revenue  SEM  SEO  CSE  SMM  Affiliate  EMail How to use the channel efficiency dashboard? • How to Use the channel efficiency dashboard?  metrics Set baseline numbers for KPI’s and key •  Set baseline numbers for KPI s and key metrics  • •  Daily Performance Alerts:  Daily Performance Alerts:     ‐ 10%+ baseline: Star (Green)  - 10%+ baseline: Star (Green)     ‐ (‐10%) – (9.99%) baseline: Aspirant (Yellow)  (Yellow) - (-10%) – (9.99%) baseline: Aspirant 22  - greater than -10% deviation from baseline: Laggard (Red)     ‐ greater than ‐10% devia9on from baseline: Laggard (Red)  - 22 -
  24. 24. About NetElixir NetElixir Global OfficesNetElixir, Inc., is a Princeton, NJ, based online customeracquisition management firm with offices in New York, Global Headquarters Europe Offices London, India, Germany, and Denmark. 475 Wall Street NetElixir Limited Princeton, NJ 08540 Central House USA 1 Ballards LaneThe company advises clients worldwide on online Phone: 609.356.5112 London, Englandcustomer acquisition strategies and, using its proprietary N3 1LQtechnology - the LXR core platform, helps them achieve Phone: 020 8349 040 online advertising performance maximization. NetElixir Scandinavia Bernhard bangs Alle 29 2000 Frederiksberg Denmark Phone: +45 40 867 827 Asia Pacific Office NetElixir (P) LimitedWebsite: Jyothi Bhopal Chambers,Phone: 609.356.5112 #7-1-19/5, Begumpet, Hyderabad 500016Email: Andhra Pradesh.Blog: IndiaTwitter: Phone: +91 40 4003 8996Twitter: © 2012 NetElixir, Inc. All rights reserved.