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Effectively Managing Online Marketing Programs


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Search marketing continues to grow in importance as an advertising channel for businesses of all kinds. Even during the past 12 months, as the Great Recession has taken its toll on other advertising channels – from display to TV, and most decidedly to print – search advertising has continued to grow. As the paid search advertising market has grown and matured, the cost of entry for new players has increased, and for those who have been doing search for some time, the cost of being successful and driving optimal results from paid search continues to go up. The sophistication of the market requires constant investment.

Advertisers have several choices as to how they choose to deal with building and maintaining their programs, each with different pros and cons:

• Hire a search agency – according to Forrester Research, approximately 52% of companies elect to leverage agencies to do their paid search work, with that percentage increasing as more money is spent

• Manage in-house – this is most common in retail and travel, as well as with small and mid-sized firms

• Build-Operate-Transfer (BOT) – a hybrid model by which advertisers begin with an agency, with the intention of managing risk until the program can be brought in-house in order to manage costs more effectively

The webcast will go through each model, as well as discuss the technology, skill sets, and processes needed to have a successful paid search program.

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Effectively Managing Online Marketing Programs

  1. 1. <ul><li>Effectively Managing Online Marketing Programs </li></ul><ul><li>The webcast will review several different models for managing your online marketing, as well as discuss the technology, skill sets, and processes needed to have a successful paid search program. </li></ul><ul><li>Presented by: </li></ul><ul><li>Eric Waldinger, Practice Leader, Aquent Craig Macdonald, Senior VP & CMO, Covario </li></ul>
  2. 2. Thank you for attending this Aquent sponsored webcast <ul><li>Aquent is the global marketing and design staffing company. </li></ul><ul><ul><li>Specialized Agents focused on a single marketing or design discipline </li></ul></ul><ul><ul><li>Connect with a specialized Agent in: </li></ul></ul><ul><ul><ul><li>Online marketing </li></ul></ul></ul><ul><ul><ul><li>Marketing </li></ul></ul></ul><ul><ul><ul><li>Interactive design </li></ul></ul></ul><ul><ul><ul><li>Graphic design </li></ul></ul></ul><ul><ul><ul><li>Find an agent at </li></ul></ul></ul>
  3. 3. Effectively Managing Online Marketing Programs Presented by: Craig Macdonald & Eric Waldinger |
  4. 4. Driving Leads is the High Priority in Marketing <ul><li>The economy is forcing a focus on lead generation … </li></ul><ul><li>… and SEO is one of the top priorities in driving leads </li></ul>
  5. 5. Organic Search – The New Old Thing <ul><li>SEO is the leading tactic in lead gen in 2009 </li></ul><ul><li>Moreso than PPC, Display or email </li></ul><ul><li>This is particularly true for larger companies </li></ul>
  6. 6. Search Continues to be Lead Interactive Media Channel
  7. 7. Major Issues Facing Advertisers <ul><li>Search continues to be a key interactive marketing channel </li></ul><ul><li>However, it is becoming “expensive” </li></ul><ul><li>Major issue is integration of search into all other forms of media </li></ul><ul><li>Major issue is that the alignment of incentives with agency model is becoming problematic </li></ul><ul><li>Leading to insourcing </li></ul>
  8. 8. Three Options for Managing Search Programs <ul><li>Leveraging a search agency </li></ul><ul><li>Manage program in-house </li></ul><ul><li>B-O-T: Build Operate Transfer </li></ul>
  9. 9. Majority of Firms (54%) Outsource To Agencies – Stand Alone Software Represents 21% of Market
  10. 10. 1. Agency Model <ul><li>Pro’s </li></ul><ul><ul><li>Agency manages the headcount risk </li></ul></ul><ul><ul><li>Fast time to market with programs </li></ul></ul><ul><ul><li>Agency brings expertise and technology (?) </li></ul></ul><ul><li>Con’s </li></ul><ul><ul><li>Loss of control over IP for important advertising panel </li></ul></ul><ul><ul><li>Requires governance – few global agencies </li></ul></ul><ul><ul><li>Misalignment of incentives </li></ul></ul><ul><li>Pricing </li></ul><ul><ul><li>5-15% of media spend (PPC) </li></ul></ul><ul><li>Application </li></ul><ul><ul><li>Brand companies (Pharma, CPG, Tech, Telco, Auto) </li></ul></ul>
  11. 11. 2. In House Management <ul><li>Pro’s </li></ul><ul><ul><li>Direct control over program </li></ul></ul><ul><ul><li>IP around program remains inhouse </li></ul></ul><ul><ul><li>Aligned incentives </li></ul></ul><ul><li>Con’s </li></ul><ul><ul><li>Headcount and technology procurement risk </li></ul></ul><ul><ul><li>Slower time to market (long time to build program maturity) </li></ul></ul><ul><ul><li>Difficult to scale </li></ul></ul><ul><li>Pricing </li></ul><ul><ul><li>Headcount – 3% </li></ul></ul><ul><ul><li>Technology 2-4% </li></ul></ul><ul><li>Application </li></ul><ul><ul><li>Direct commerce (retail, ecommerce, FS, travel) </li></ul></ul>
  12. 12. 3. Build-Operate-Transfer <ul><li>Pro’s </li></ul><ul><ul><li>Time to market is controlled </li></ul></ul><ul><ul><li>Risk for headcount and technology is mitgated </li></ul></ul><ul><ul><li>IP around program remains in-house </li></ul></ul><ul><li>Con’s </li></ul><ul><ul><li>Ongoing execution risk </li></ul></ul><ul><ul><li>Transfer may never happen </li></ul></ul><ul><ul><li>Initial pricing for agency is high </li></ul></ul><ul><li>Pricing </li></ul><ul><ul><li>Year 1 – 15% </li></ul></ul><ul><ul><li>Year >2 – 2-5% </li></ul></ul>
  13. 13. B-O-T Examples <ul><li>Media company – Technology setup, recruiting, and training </li></ul><ul><li>Job site – 6 month project to do media buying, documentation of process </li></ul><ul><li>Travel site – 6 month project to setup technology, do media buying, hire and train </li></ul>
  14. 14. In-house and BOT Considerations <ul><li>People </li></ul><ul><ul><li>Senior director </li></ul></ul><ul><ul><li>Media buyer (1 FTE per $1-5M in media spend) </li></ul></ul><ul><ul><li>Support for WA team internally (IT support) </li></ul></ul><ul><ul><li>Landing page control (IT support) </li></ul></ul><ul><li>Technology </li></ul><ul><ul><li>Bid mgmt system </li></ul></ul><ul><ul><li>Reporting system </li></ul></ul><ul><ul><li>Web analytics </li></ul></ul><ul><ul><li>LP testing </li></ul></ul>
  15. 15. Bid System Vendor Evaluation CONFIDENTIAL, Covario, Inc. DO NOT DISTRIBUTE
  16. 16. Conclusions <ul><li>Search continues to be a key interactive marketing channel </li></ul><ul><li>Major issue is integration of search into all other forms of media </li></ul><ul><li>Being good at search is becoming more complex </li></ul><ul><li>Trend toward in-sourcing is moving from retail/ecomm to other fields </li></ul><ul><li>B-O-T model offers a way to bring search inhouse with lower risk </li></ul>
  17. 17. What should a in-house resource do? <ul><li>Branded vs. Non Branded Key Word </li></ul><ul><li>Bidding Strategy </li></ul><ul><li>Copy Audit </li></ul><ul><li>Account Structure Audit </li></ul><ul><li>Landing Page Audit </li></ul>
  18. 18. Key Roles: SEM Manager <ul><li>Promote websites by increasing search engine visibility </li></ul><ul><li>Manage day-to-day search marketing efforts - keyword bidding, copy, & optimization </li></ul><ul><li>Manage & execute operations across various media </li></ul><ul><li>Develop & sustain relationships with advertising partners </li></ul><ul><li>Report & analyze advertising performance on a monthly basis </li></ul><ul><li>Prepare & monitor annual advertising budget </li></ul><ul><li>Propose new advertising ideas </li></ul>
  19. 19. High-level requirements for a successful centralized supply model <ul><li>Resources involved in strategy, planning and analytics should be core staff. </li></ul><ul><li>Leverage data management/content management </li></ul><ul><li>Focus on performance indicators with media suppliers – build direct relationships and compensation based on key performance indicators. </li></ul><ul><li>Centralized strategy functions must include centralized SEM/ SEO </li></ul><ul><li>Brand building (internet space) will be the result of effective execution not a standalone goal </li></ul>
  20. 20. Key Activities <ul><li>Develop, implement and continuously optimize online marketing strategy and specific online marketing campaigns for enterprise initiatives </li></ul><ul><li>Ensure strategic alignment, documentation, cross-team and business community understanding and effective ongoing analytics and success measurement. </li></ul><ul><li>Leverage existing web assets and content delivery methodologies to conceive, develop and deliver packaged interactive marketing initiatives. </li></ul><ul><li>Develop and manage conversion measurement methodologies and develop reporting for all online marketing activities. </li></ul>
  21. 21. <ul><li>Assess your current situation </li></ul><ul><li>Identify your landing pages and check that they are indexed </li></ul><ul><li>Check you and competitors’ search rankings </li></ul><ul><li>Check keyword demand via search engine keyword tools </li></ul><ul><li>Discover missed opportunities </li></ul><ul><li>Project future traffic </li></ul><ul><li>Project future conversions </li></ul>Developing & Measuring Successful SEM Program
  22. 22. <ul><li>Keyword planning to drive the most qualified </li></ul><ul><li>Types of keyword bidding (gap surfing, bid jamming, friendly URL) </li></ul><ul><li>Selecting your bid strategy </li></ul><ul><li>Managing keyword bids </li></ul><ul><li>Optimizing ad copy and landing pages </li></ul>Optimizing & Reviewing Program Results
  23. 23. SEM Best Practices <ul><li>QA landing pages with the Campaign Approval Worksheet before going live. </li></ul><ul><li>Read industry articles, take classes, attend conferences to stay on top of trends and changes. </li></ul><ul><li>Cross-train and discuss day to day successes and struggles. </li></ul><ul><li>Ban frames, pop-up windows, &quot;meta refresh&quot; tags from landing pages. </li></ul><ul><li>Do not allow pages to exceed 100K. </li></ul><ul><li>All web pages must completely load within 10 seconds. </li></ul><ul><li>Create and maintain centralized keyword management database </li></ul><ul><li>Create and maintain a database of all paid search requests to check for keyword conflict between business units </li></ul>
  24. 24. <ul><li>If you run a geo-targeted campaign, then you should run a separate national campaign to ensure full visibility in all markets. </li></ul><ul><li>If you run a search and content campaigns for the same group of keywords, then they should be separate campaigns in order to accurately monitor progress. </li></ul><ul><li>If you see a consistently high CTR but a low conversion rate = possible landing page issue </li></ul><ul><li>If you see a high number of clicks and a low CTR = possible ad copy issue </li></ul><ul><li>Maintain 3 versions of ad copy per ad group and rotate highest performing versions through a monthly ad copy audit. </li></ul>SEM Best Practices, cont.