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PPC Advertising Assessment:
Pardot B2B Marketing Automation by Salesforce
Georgia Tech Scheller College of Business
MGT 4311: Digital Marketing
Morgan Beek - mbeek3@gatech.edu
Andrew Hedrich - ahedrich3@gatech.edu
Larry Lacksen - llacksen3@gatech.edu
Alexa Pierre - alexapierre@gatech.edu
Laurel Street - lstreet3@gatech.edu
Introduction
Our consulting team has been tasked with assessing the PPC advertising of Pardot, a
marketing automation service provider in the B2B industry. Starting as a pioneer in a fledgling
industry in 2007, Pardot has built their quality and their revenues to the point when they were
acquired by ExactTarget in 2012 who was then acquired by Salesforce.com in 2013. The services
offered at Pardot focuses on integrating multiple facets of a company’s marketing campaign and
offering data and trends of client responses. This helps a company be more aware of when a
client is toward the decision or consideration portion of their journey. However, due to these
acquisitions, Pardot has become lost in the shuffle of many services Salesforce.com provides.
Further complicating Pardot’s problem, they spend hundreds of thousands of dollars per year on
their PPC advertising campaigns, yet they do not have a clearly defined set of objectives inherent
within their ads.
Through our analysis, we look to define a clear set of objectives for Pardot focused on
creating awareness and engagement with their brand. This will help distinguish them from the
Salesforce.com shadow. In order to conduct an analysis, we will use SpyFu and Google Adwords
to research Pardot’s current PPC advertising state. We will then look to analyze Pardot’s
competition and compile a list of keywords that will not only improve their current situation but
also build their future prospects in the automation industry. Finally, we will craft draft PPC ads
and landing pages to help align Pardot’s objectives with their output. Through this assessment,
we will display why Pardot can become a driving force in the marketing automation industry and
provide real world examples and financials to support our claims.
Target Audience/Persona Analysis
As Pardot is in the B2B market of selling services, it was necessary that our group
identifies and researches personas from a business standpoint rather than an individual one. With
that mindset established, our group brainstormed businesses that would be interested in a
marketing automation service to improve client interactions. Paired with research of the
company itself, our brainstorming led to three distinct groups that represent a majority of
Pardot’s target audience: entrepreneurial start-ups, IT service industries, and marketing agencies
themselves. Within these three subsets, it is key to note that Pardot focuses on small-to-midsize
businesses each with a different breadth of marketing knowledge.
Entrepreneurs/Startup:
Starting with the entrepreneurial persona, our group decided to focus on this subset
because of two distinct regions: the local Atlanta Tech Village and the Silicon Valley giants. A
common demographic profile of these groups is single men and women aged 20-30. They
generally have a college education, and they are resourceful. As mentioned, the geographic
location of these groups will generally hub around a certain areas; for instance, the two
mentioned above are located in Atlanta and along the West Coast. When analyzing the
psychographic profiles of this subset, their personalities are likely to be eclectic as they are the
brightest in their respective fields coagulated in a distinct setting. Furthermore, their attitudes and
values are singularly focused on achieving the goal of making their product or service a hit.
Getting into the intrinsic detail of this group, we must evaluate key assumptions, their
behavioral mindset, and their RFM mindset. In addressing assumptions for this group, our group
suggests that despite their intellectual capabilities, they are not familiar to marketing jargon.
Thus, we will tend to focus on the discovery and consideration sections of the buyer journey.
Regarding behavioral variables, startups are looking for trustworthy partners to help them
achieve their goals. Therefore, they are likely to be increasingly loyal if Pardot is successfully
able to service their needs. Additionally, the usage rate of Pardot’s service will be intensified as
they are looking to make a huge splash and convert as many users as possible. Within the RFM
framework, entrepreneurs will understand it takes a bit of time for their product or service to
become grounded. This leads to a period of 6 months to a year where Pardot is receiving monthly
payments for their services. As this is an energized group, they are also likely to be frequently
using and analyzing the results provided by Pardot’s service which will help them become reliant
upon our service and keep them long-term if we deliver. There is a great opportunity to address
this highly active group and embed ourselves within their plans if they do strike big.
Furthermore, with our monthly service cost is not likely to break their bank as they will be
approaching us once they seem to have a product or service that has a market opportunity to
thrive.
IT Service:
Moving onto the IT service industries, this industry has the privilege of having a great
service, but the misfortune of having trouble identifying and securing clients to distribute toward.
This is where Pardot can step in and help build their base, and in return, the respective business
is likely to continue business with us and recommend us to others in their industry. When
researching Pardot, it was clear they had serviced many IT focused companies whether it be data
trend services (Data-sync) or a number of online payment systems for businesses (2 Checkout,
Field Nation, Redtail Solutions). While this may appear that Pardot is serving this industry well,
there are thousands of these niche services in the United States. Pairing our expertise in market
analytics with communicating when clients are in the informing or deciding stage of their
purchase will allow these IT services to better meet the changing needs of businesses.
Within the profile we developed for this subset, it was a bit more nebulous to grasp;
however, it required just a shift of thought from individual characteristics to group
characteristics. Key assumptions we made regarding this group was that they were likely to have
a marketing lead familiar with the terminology of the field, but strictly that person is
knowledgeable. A couple other assumptions we made are that the company has plateaued growth
wise and they are established in the market. Within this segment, we decided the consideration
portion of the buyer journey was the most prevalent. Regarding the attributes of the
demographic, they are likely to be companies that are a few year past inception: so 3-5 years,
filled with mostly bachelor degree workers developing their software. As mentioned in the prior
paragraph, the geographic settings of these businesses are widespread with a large potential. The
“emotional” psychographic profiling is focused on targeting groups that may be discouraged
about their current operations due to the fact that they have a capable service but not as much
interest as they expected. Pardot’s ability to notify potential purchase opportunities to these IT
industries will engender an affective response toward our product, and will lead directly into the
next two profiling techniques.
Behavioral variables for businesses are similar yet distinct to that of individuals. They
value the benefit Pardot brings to the table, but also are known to seek the lowest cost option.
Therefore, Pardot needs to establish their credibility and necessity by the service being extremely
useful by providing ROI dependent upon usage rates. This will help them distinguish themselves
to their client and lead to loyalty if implementation is successful. Finally, the RFM framework is
a big factor to consider in this IT industry. Monetary is a standard monthly fee which we can
assume they can meet. The frequency of product use will be the key focus that Pardot needs to
communicate. By connecting usage to revenue/profit numbers, these IT service businesses will
become dependent on Pardot’s technology leading to a longer relationship.
Marketing Agencies:
Pardot also provides their marketing services to other marketing agencies. One of the
most prominent reasons other marketing companies need Pardot’s help is to help generate both
new and better quality leads. Other reasons marketing agencies need Pardot’s services include
the ability to join and align different departments such as sales and marketing department
initiatives, to more quickly develop higher quality leads, have higher response rates, and shorten
the overall sales cycle. An example of this is with Vidyard, a company specializing in video
marketing platforms, used Pardot’s marketing services to send high quality leads to their sales
department. The high quality leads that were generated strengthened the relationship between
Vidyard’s sales and marketing team, creating a more cross-functional and cohesive company
from Vidyard.
We are assuming that the marketing agencies are familiar with the marketing jargon
related to the services that Pardot provides. With marketing agencies we are focusing on the
consideration stage of the buyer journey because we know that marketers are already familiar
with the types of services Pardot offers. We want to then focus on converting them into
becoming a Customer of Pardot, rather than just explaining marketing automation services that
they’re already familiar with. Proving to them with hard numbers and facts will allow them to
see how Pardot’s services are worth the consideration and the overall investment. Furthermore,
the demographic and geographic profiling will be widespread across the country.
Psychographically, we will want to communicate through our service that we match their
personality and company values through our customizable software. If we are able to
successfully accomplish that, they will frequently use the service and continue the relationship
with us as long as the benefits are readily apparent.
Keyword Research Analysis
After our consulting team was tasked with assessing and developing a PPC campaign for
Pardot, we immediately began researching their current campaign for guidance and opportunities
for improvement. Through paid search tools like SpyFu and Google Adwords, we gained insight
into some key details about Pardot’s current plan. For instance, SpyFu was able to inform us that
Pardot currently spends $100,000 per month on their Adwords budget. Yet, their average
position on a SERP page is fifth in the sponsored section. Furthermore, Pardot’s organic versus
paid clicks are just about a 50-50 split which provides a great opportunity to generate
conversions. Pardot refocusing their PPC campaign objectives toward awareness and
engagement will increase the strength and relevance of their ads, landing them a higher SERP
position and more impressions.
Using the information gathered from Pardot’s current state, we developed a new PPC
strategy to focus on the discovery and consideration part of the buyer journey. Therefore, the list
of 22 keywords we have below involves little redundancy and is focused on prospective and
integrated keywords with our PPC campaign. Specifically, many of the keywords listed here will
gain greater prominence, as the marketing automation field will increase in the next five years.
According to Hubspot, marketing automation has experienced the fastest growth of CRM
components and will continue to grow in the coming future as it is becomes more prevalent in
the B2B business space.
Source: Google Keyword Planner
Competitive Analysis
SilverPop, Oracle CRM, and Marketo are several of Pardot’s main competitors. The
SWOT analyses below examine the strengths and weaknesses of each competitor, with respect to
their PPC efforts, in greater detail.
SilverPop: comparable to Pardot in software scope, customer size, and delivery model.
Helpful Harmful
Internal Origin Strengths:
· The placement of the demo in a
prominent location of the ad is
helpful for customers who are
gathering information early in the
buyer journey.
· Quick link to products is helpful for
customers who are ready to purchase.
· Ad heading/copy alignment is
appropriate, as they both contain the
name of the company and are simple
and easy to read.
· The domain URL is relevant, as it
takes the user to a landing page and
contains a call to action, asking for
some basic data (name, email, etc.) in
order to view the demo.
Weaknesses:
· The heading is very simple
and does not include
attention-grabbing
buzzwords like “free” or
“see smarter selling in
action” like its competitors.
· Although the landing page
is relevant, users who are
further along in the buyer
journey and want to
purchase products instead of
viewing the demo may
become frustrated.
External Origin Opportunities:
· Ad position is appropriate; it
appears first in a Google search for
Silver Pop.
Threats:
· Ads for Eliqua, a
competitor, also appear in
the results of a Google
search for Silverpop.
Oracle CRM: comparable software scope, customer size, and delivery model.
Helpful Harmful
Internal Origin Strengths:
· Quick links are helpful for
customers who are comparing products
· Free Live Demo offer caters to
customers who are early in the buyer
journey and want to test Oracle’s
services
· Ad heading/copy alignment is
attention-grabbing and straightforward
· Ad-landing page copy is logical and
simple
· Landing page is appropriate; users
land on a page that contains an
overview of Oracle’s CRM service
offerings
Weaknesses:
· Ad appears a bit more
cluttered and wordy from a
visual standpoint, compared
to competitors like
Silverpop
· Call to Action (free demo)
should be hyperlinked for
customers to more easily
click
External Origin Opportunities:
· Large number of Google+ followers
adds credibility to the brand
Threats:
· CRM-
SoftwareReview.org and
Microsoft appear as ads
before Oracle CRM in a
Google search for “Oracle
CRM”
Marketo: comparable software scope, delivery model and price point.
Helpful Harmful
Internal Origin Strengths:
· Quick links, particularly the Guide
to Lead Scoring and Compage
Automation Vendors cater to different
stages in the buyer journey
· Position of the ad is appropriate;
design is simple and streamlined
· Ad heading copy contains
buzzword “free”
Weaknesses:
· Landing page is the
homepage, instead of a
specialized page outlining
products or containing rich
material like a video
· Lacks a Call to Action
External Origin Opportunities:
· Appears in the first spot for a
Google search for “Marketo”
Threats:
· Features significantly
fewer followers on Google+
than competitors
Pardot:
Helpful Harmful
Internal Origin Strengths:
· Free Demo video caters to buyers
who are early in the buyer journey
· Landing page copy is simple and
straightforward
Weaknesses:
· Ad is unnecessarily large
and cluttered
· Heading/copy does not
contain a CTA and is bland
and not enticing
· Landing page is dry; most
of the information is below
the fold. There are no
videos.
External Origin Opportunities:
· Includes “Fastest Growing
marketing automation system” from
third party VentureBeat
· Appears in the first spot for a
Google search for “Pardot”
Threats:
· Only has 952 followers on
Google+
As shown in the images above, Pardot utilizes an ad style quite different than its
competitors. While Silverpop, Marketo and Oracle CRM have more streamlined, concise ad
styles, Pardot’s is longer, wordier, and uses a larger font. Pardot’s ad may intimidate buyers who
are early in the buyer journey and deter them from clicking on the ad. Another determent is the
fact that Pardot only has 952 followers on Google+, compared to Marketo’s 2,400 and Oracle
CRM’s 44,000+. Pardot’s ad lacks a call to action, and the landing page itself is quite bland. It
doesn’t contain any rich media, and most of the text is below the fold. Although it has a lot of
room for improvement, Pardot’s ad has some strengths as well. The free demo video caters to
buyers who are early in the buyer journey, and the landing page copy is simple and
straightforward. It also offers some credibility from a third-party source, as it features the tagline
“Fastest Growing marketing automation system” from VentureBeat. From a relevancy
standpoint, the ad appears in the first spot for a Google search for “Pardot.”
PPC Ads
Within our consideration for creating Pardot’s updated PPC ads, our group reflected on
the business objectives of increasing awareness and engagement by focusing on the first two
parts of the buyer journey: discovery and consideration. With that in mind we also looked to
identify which personas each ad would gravitate towards as well as a landing pages setup for
them if it were relevant. Finally, we had a suggested keyword section as well as a match type
associated with each ad to further segment our list. All of this information is located directly
below each ad.
Ad #1
Marketing Automation
www.pardot.com/the-basics
Quick Guide to Marketing Automation
Gain 50 New Client Opportunities
Persona: Startup/Entrepreneurs and IT Services
Objective: Awareness/Discovery
Keyword: “what is marketing automation” “new to marketing automation”
Keyword Match Type: Phrase
Landing Page: video walking the user through what it is; CTA: video and newsletter
This PPC ad focuses primarily on the users who do not know what marketing automation is.
Therefore, it is tailored towards the discovery stage and aimed at entrepreneurs or IT service
firms. Upon clicking the ad, we envision the user being brought to a Pardot page in which there
is a brief video detailing the basics of marketing automation as well as an option to sign up for a
demo or newsletter.
Ad #2
Automation Tutorial
www.pardot.com/product-walkthrough
Learn About Pardot’s 6-Step System
Sign Up for a Detailed Product Tour
Persona: All 3
Objective: Consideration/Engagement
Keyword: “pardot automation” “automation tutorial” “salesforce.com”
Keyword Match type: Broad or Exact
Within this ad, we looked to service all of our personas and offer a comprehensive walkthrough
of Pardot’s service. Through this, Pardot will directly influence the consideration portion of the
buyer journey and truly engage with its potential customers.
Ad #3
Pardot Consultation
www.pardot.com/scheduling
Meet with a Team of Specialists
Craft a Unique Marketing Campaign
Personas: All 3
Objective: Discovery/Engagement
Keyword: “Marketing automation” “pardot consulting” “salesforce.com”
Keyword Match Type: Broad
When brainstorming ideas for PPC ads, our team thought that offering an in person consulting
opportunity would further convince potential clients to choose Pardot’s service. Therefore, this is
catered to all three personas and attempts to engage with them in a way where digital interaction
cannot compete.
Ad #4
Startup Marketing
www.pardot.com/entrepreneur-guide
Generate 517% More Leads Per Year
Collaboratively Develop a Campaign
Persona: Entrepreneurs
Objective: Discovery/Awareness
Keywords: “startup marketing” “marketing automation”
Keyword Match type: Phrase
Within this ad, Entrepreneurs’ needs are addressed. By listing a tangible result of a past client’s
partnership with Pardot in the ad copy line, we meet Entrepreneurs prime focus and generate
immediate interest in the company.
Ad #5
Pardot Automation
www.pardot.com/client-tools
Learn How to Convert Client Leads
Utilize ROI Tool to Measure Success
Persona: IT and Marketing
Objective: Discovery/Awareness
Keywords: “marketing automation” “salesforce.com” “client conversion”
Keyword Match type: Broad and Phrase
This ad caters to the marketing leads in both the IT services and marketing agencies. By listing
one of Pardot’s specific tools (ROI tracker), they will be able to entice prospective clients to
click on the ad to learn more.
Ad #6
Increase Web Traffic
www.pardot.com/automation-tools
Tools of Marketing Automation
Increase Average Time Spent on Page
Persona: IT Services/Marketing Agencies
Objective: Engagement/Consideration
Keywords: “marketing automation tools”
Keyword Match Type: Phrase
Landing Page: Infographic displaying the 6 services Pardot Offers and testimonials
This PPC ad also services the marketing leads of IT services and marketing agencies; however,
this ad will lead to a page where all 6 services Pardot offers will be listed instead of just one.
This will allow engagement with the brand to occur and lead to more opportunities.
Ad #7
Increase MQLs
www.pardot.com/marketing-qualified-leads
Lead Qualification Tools
Increase Qualified Leads by 300%
Persona: Marketing Agencies
Objective: Consideration/Awareness
Keywords: “lead qualification tools” “increase marketing qualified leads”
Keyword Match Type: Broad
Landing Page: Information heavy page displaying features and functions of the lead
qualifications and lead nurturing tools, and showing how these features can increase MQLs,
produce higher response rates, and shorten the overall sales cycle.
The use of marketing jargon in this ad will naturally attract those who are in marketing agencies.
Followed up by the use of a client result (300%), clients will want to see how the lead
qualification tools can help their personal business.
Ad #8
Improve Inbound Marketing
www.pardot.com/lead-scoring
Lead Scoring and Prospect Tracking
Identify and Increase Promising Leads
Persona: IT Services/Marketing Agencies
Objective: Consideration/Engagement
Keywords: “score leads” “identify new leads” “improve inbound marketing” “generate
promising leads”
Keyword Match Types: Phrase and Exact
Landing Page: Information Page showing the scoring process of leads, and what the scores mean.
A score of 100 means a lead is very promising, where a score below the 100 means the leads
need to be nurtured even though they aren’t ready to buy just yet.
This ad assumes knowledge of what marketing automation is; furthermore, it ties directly into
the consideration portion of the buyer journey. The landing page to this ad will be instrumental
in converting potential clients by demonstrating the capabilities of Pardot’s service.
Ad #9
Shorter Sales Cycle
www.pardot.com/lead-scoring
Qualify Leads and Lead Nurturing
Increase Response Rates
Persona: Marketing Agencies
Objective: Consideration/Awareness
Keywords: “shorter sales cycle” “increase response rates” “qualify leads” “prospecting
leads”
Keyword Match Type: Broad or Phrase
Landing Page: (same as “Increase MQLs) Information heavy page displaying features and
functions of the lead qualifications and lead nurturing tools, and showing how these features can
increase MQLs, produce higher response rates, and shorten the overall sales cycle.
This ad piques the user’s interest by offering a deliverable result in the title. This will help
generate awareness for Pardot while offering ethos. For a marketing agency, this ad will directly
generate the most interest.
Ad #10
Increase Lead Generation
www.pardot.com/lead-generation
Focus on the Right Leads
Increase Web Leads by 50%
Persona: IT Services
Objective: Discovery/Engagement
Keywords: “increase lead generation” “increase leads” “increase web leads” “finding the
right leads”
Keyword Match Types: Broad and Phrase
Landing Page: simplified version of the MQL page with less marketing jargon and a more basic
and thorough explanation of the importance of identifying quality leads from the wrong leads.
This ad will directly address the needs of the IT services by offering a less complex display of
Pardot’s services. This will help the IT companies discover who Pardot is and engage with the
brand through a set of infographics on the landing page.
Landing pages
Marketing Automation
www.pardot.com/the-basics
Quick Guide to Marketing Automation
Gain 50 New Client Opportunities
When clicking on this PPC ad, it will take you to a “What do We Do?” landing page
which focuses on discovery portion of the Buyer’s journey. The goal with this landing page is to
educate the potential consumer about Pardot, create a need, and promote a call to action. The
video tutorial provides an easy way for customers to educate themselves about Pardot. The
“Request a Demo!” and “Sign Up Today!” buttons provide a call to action for the consumers -
giving them a choice of a demo if they are still hesitant about the product and features, or
allowing them to completely sign up if they believe Pardot fulfills their needs after watching the
tutorial video. The awards and newsletter section will provide up to date news and awards that
will help to increase the reputation and prestige of Pardot as a company.
Increase Web Traffic
www.pardot.com/automation-tools
Tools of Marketing Automation
Increase Average Time Spent on Page
When clicking on this PPC ad, it will take you to a “Meet Pardot Marketing Automation”
landing page. This page focuses on the consideration and engagement segment of the buyer’s
journey. The infographic will provide an interactive way to obtain more detailed information
about the 6 services Pardot offers. The testimonials underneath the infographic will provide
positive word-of-mouth experiences of customers who have used the Pardot resources, helping to
strengthen the brand of the business and increase credibility.
Summary and Analysis
PPC Advertising Analysis:
When constructing the PPC ads for Pardot’s new campaign, we shifted the company’s
focus from catchall to specific targeting. Within the B2B service framework, the user experience
is generally more focused on the discovery and consideration portion of the buyer journey rather
than the decision portion. Therefore, we defined the new objectives of Pardot as follows: to focus
on awareness of their brand and marketing automation in general; and to create engagement with
the brand through our integrated PPC and landing page campaign.
Regarding our decisions for the PPC ads, we constructed a process where we evaluated
which persona, keyword, business journey aspect, and objective we wanted to address. With
those factors in mind, we constructed ten PPC ads. Within these ads we had five targets: the
discovery/awareness aspect of the buyer journey, and the other five ads targeted the
consideration/engagement portions. Whether it was offering information to a startup company,
setting up a consulting appointment with Pardot, or demo the services provided at Pardot, these
new ads will attract greater attention from prospective buyers because they are relevant to
Pardot’s core objectives. Finally, we made a conscious decision to stray away from the decision
portion of the buyer journey for our ads. This is due to the fact that Pardot’s service costs over
$1,000 a month for the basic model; thus, users who purchase Pardot’s service are likely to do it
with intention rather than on a whim, further illustrating the need to target the discovery and
awareness portions of the buyer journey.
Landing Page Analysis:
Since our PPC ads focused on increasing awareness and engagement, we chose two
landing pages that reflected each of these topics. For the “www.pardot.com/the-basics” landing
page, the video created a passive engagement opportunity for customers. In a study done by
eyeviewdigital.com, it was discovered that videos on landing pages have the potential to increase
conversion rate by 80%. Videos are a great way to establish a call to action among customers.
The “request a demo” and “sign up today” buttons will be an additional reinforcement of CTA.
This video will not only educate customers about Pardot’s available resources, but it will also
increase the length of traffic time through the website. People prefer to be educated by a video
instead of reading various facts that will most likely not be retained.
The infographic for the “www.pardot.com/automation-tools” landing page will help to
increase the consideration of Pardot as a brand and resource. Studies have shown that 90% of the
information people remember is based on visual impact. Similar to the video, infographics are
more appealing to appealing to the eye, and will help to attract interest and traffic to the
webpage. The testimonials and the current news and recent awards section on both pages will
help to increase the trust factor among customers. Reviews and experiences from employees,
loyal customers, friends, or family is often the deciding factor between a customer buying or
forgoing a product.
Use of video leads to 80% conversion rates: http://unbounce.com/landing-page-articles/the-
benefits-of-using-video-on-landing-pages/
Use of video for B2B: http://www.skyword.com/contentstandard/enterprise-marketing/3-b2b-
content-marketing-tactics-to-please-audiences-and-stakeholders/
Infographic statistic: http://www.searchenginejournal.com/6-benefits-using-infographics/70917/
Financial Analysis:
2010-2012 Income Statement
As we can see from the last set of financials for Pardot before they were acquired, they
had not had a profitable year. A big reason for that was the amount of sales and marketing
expenses they were incurring. As a percentage of gross profit, marketing expenses accounted for
over 60% of their total expenses in 2012. Unpacking this expense, a component would be
Pardot’s PPC campaign in which they spent over $100,000 a month during this timeframe
(SpyFu.com). If we clearly develop a set of business objectives and a PPC campaign to tailor to
those objectives, this monthly expense will yield more conversions in the long run, leading to
increased profit.
Average Order Value and Profit Margin:
Through consulting with an executive of Pardot, we were able to ascertain that 45% of
clients use the standard model, 35% use the pro model, and 20% of clients purchased the
ultimate model. Using these percentages with the price of each respective model, we were able to
determine that the average order value (AOV) for a Pardot product model is $1,750. We then
combined this with the profit margin obtained by our consultant meeting, which was 15%.
Multiplying the profit percentage by the AOV, the profit margin per month of a product is
$262.50. This shows promise for Pardot, as they are able to turn a profit on their services as
opposed to the losses a few years back.
Break-even Point and LTV:
By applying a conversion rate of 5% determined in our consulting meeting, we were able
to solve the BEP Cost-per-Click for an average order value: $13.13. As we will see in the next
section, this is higher than our average cost-per-click allowing us to generate a profit.
Solving for Life-time Value (LTV) of a client was a bit tougher. However, through our
talk we were able to come up with 30 months as the average tenure of a client. Therefore
applying the same principles as above, we calculated the LTV profit to be $7,875 and the BEP to
be $393.75 over the 30 months. Through an effective rollout of a revamped PPC campaign, we
can increase our profit substantially due to Pardot’s long-term service and profitability.
ROI and Payback Period:
When calculating ROI, we extrapolated from prior information to reach a PPC
Conversion Cost of $248.35. When dividing this number by our profit/monthly sale of $262.50,
we get an ROI of 106%, which signals a positive campaign result. It is key to note that this may
not be as high as some were expecting. When you step back though, the objectives of the PPC
assessment were to generate awareness and engagement with the brand. Taking that into account,
Pardot should be pleased with this result. Additionally, we calculated average CPC to be $12.42,
which is less than our BEP CPC determined in the prior section.
Finally, our team determined that Pardot serves 2000 clients per month, leading to
monthly profit of $525,000. Additionally, our team estimated pre-implementation costs resulting
from consulting fees, research costs, design costs, and advertising costs are equal to $5,000,000.
Therefore, the payback period for this rollout is about 9.5 months, which is a quick turnaround.
Also, this doesn’t take into account any new clients that may be added during that timeframe, so
if Pardot adds more clients than they lose in this timeframe, the payback period would decrease
further.
Final Wrap-up:
Throughout this assessment we have continuously stressed the need for a clearly defined
and integrated set of objectives. The objectives we determined to have the greatest immediate
and future impact for Pardot were awareness and engagement. Along with these objectives, we
decided that the decision portion of the buyer journey would be a fruitless endeavor; therefore,
we developed a strategy focused on the discovery and consideration portion of the buyer journey.
With that as our foundation, we constructed a persona analysis that identified three markets that
possess the greatest opportunity for Pardot as well as a competitor analysis that identified the
strengths and weaknesses that we can learn from our competition.
With the research portion of our assessment complete, we developed a list of 22
keywords that mostly focus on phrases that Pardot is not currently using as well as keywords that
have future potential in the industry. Using these keywords, we created draft PPC ads as well as
landing pages that were relevant to Pardot’s objectives. Finally, we performed a financial
analysis that proved this would be a profitable venture not only regarding the amount of attention
Pardot would receive but also financially. We fully recommend that Pardot implement our
suggestions for a completely integrated PPC campaigns, as this will make them a pioneer in the
field of automation and a significant partner of Salesforce.com.
Works Cited:
"Automating Marketing | Venture Atlanta." Venture Atlanta. Venture Atlanta, n.d. Web. 1 May
2015.
"The Benefits of Using Video on Landing Pages." Unbounce Latest Posts RSS. Unbounce, n.d.
Web. 1 May 2015.
"Pardot B2B Marketing Automation by Salesforce." Pardot. N.p., n.d. Web. 1 May 2015.
"Pardot Competitors." Pardot Marketing Software Competitors. CRM Search, n.d. Web. 1 May
2015.
"Pardot Historical Financial Statements." Pardot Historical Financial Statements. SEC, n.d.
Web. 1 May 2015.
"3 B2B Content Marketing Tactics to Please Audiences and Stakeholders." The Content
Standard by Skyword 3 B2B Content Marketing Tactics to Please Audiences and Stakeholders
Comments. Skyword, 22 Sept. 2014. Web. 1 May 2015.
"25 Jaw-Dropping Marketing Automation Stats [Data]." 25 Jaw-Dropping Marketing
Automation Stats [Data]. Hubspot, n.d. Web. 1 May 2015.

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Pardot PPC Analysis

  • 1. PPC Advertising Assessment: Pardot B2B Marketing Automation by Salesforce Georgia Tech Scheller College of Business MGT 4311: Digital Marketing Morgan Beek - mbeek3@gatech.edu Andrew Hedrich - ahedrich3@gatech.edu Larry Lacksen - llacksen3@gatech.edu Alexa Pierre - alexapierre@gatech.edu Laurel Street - lstreet3@gatech.edu
  • 2. Introduction Our consulting team has been tasked with assessing the PPC advertising of Pardot, a marketing automation service provider in the B2B industry. Starting as a pioneer in a fledgling industry in 2007, Pardot has built their quality and their revenues to the point when they were acquired by ExactTarget in 2012 who was then acquired by Salesforce.com in 2013. The services offered at Pardot focuses on integrating multiple facets of a company’s marketing campaign and offering data and trends of client responses. This helps a company be more aware of when a client is toward the decision or consideration portion of their journey. However, due to these acquisitions, Pardot has become lost in the shuffle of many services Salesforce.com provides. Further complicating Pardot’s problem, they spend hundreds of thousands of dollars per year on their PPC advertising campaigns, yet they do not have a clearly defined set of objectives inherent within their ads. Through our analysis, we look to define a clear set of objectives for Pardot focused on creating awareness and engagement with their brand. This will help distinguish them from the Salesforce.com shadow. In order to conduct an analysis, we will use SpyFu and Google Adwords to research Pardot’s current PPC advertising state. We will then look to analyze Pardot’s competition and compile a list of keywords that will not only improve their current situation but also build their future prospects in the automation industry. Finally, we will craft draft PPC ads and landing pages to help align Pardot’s objectives with their output. Through this assessment, we will display why Pardot can become a driving force in the marketing automation industry and provide real world examples and financials to support our claims. Target Audience/Persona Analysis As Pardot is in the B2B market of selling services, it was necessary that our group identifies and researches personas from a business standpoint rather than an individual one. With that mindset established, our group brainstormed businesses that would be interested in a marketing automation service to improve client interactions. Paired with research of the company itself, our brainstorming led to three distinct groups that represent a majority of Pardot’s target audience: entrepreneurial start-ups, IT service industries, and marketing agencies themselves. Within these three subsets, it is key to note that Pardot focuses on small-to-midsize businesses each with a different breadth of marketing knowledge. Entrepreneurs/Startup: Starting with the entrepreneurial persona, our group decided to focus on this subset because of two distinct regions: the local Atlanta Tech Village and the Silicon Valley giants. A common demographic profile of these groups is single men and women aged 20-30. They
  • 3. generally have a college education, and they are resourceful. As mentioned, the geographic location of these groups will generally hub around a certain areas; for instance, the two mentioned above are located in Atlanta and along the West Coast. When analyzing the psychographic profiles of this subset, their personalities are likely to be eclectic as they are the brightest in their respective fields coagulated in a distinct setting. Furthermore, their attitudes and values are singularly focused on achieving the goal of making their product or service a hit. Getting into the intrinsic detail of this group, we must evaluate key assumptions, their behavioral mindset, and their RFM mindset. In addressing assumptions for this group, our group suggests that despite their intellectual capabilities, they are not familiar to marketing jargon. Thus, we will tend to focus on the discovery and consideration sections of the buyer journey. Regarding behavioral variables, startups are looking for trustworthy partners to help them achieve their goals. Therefore, they are likely to be increasingly loyal if Pardot is successfully able to service their needs. Additionally, the usage rate of Pardot’s service will be intensified as they are looking to make a huge splash and convert as many users as possible. Within the RFM framework, entrepreneurs will understand it takes a bit of time for their product or service to become grounded. This leads to a period of 6 months to a year where Pardot is receiving monthly payments for their services. As this is an energized group, they are also likely to be frequently using and analyzing the results provided by Pardot’s service which will help them become reliant upon our service and keep them long-term if we deliver. There is a great opportunity to address this highly active group and embed ourselves within their plans if they do strike big. Furthermore, with our monthly service cost is not likely to break their bank as they will be approaching us once they seem to have a product or service that has a market opportunity to thrive. IT Service: Moving onto the IT service industries, this industry has the privilege of having a great service, but the misfortune of having trouble identifying and securing clients to distribute toward. This is where Pardot can step in and help build their base, and in return, the respective business is likely to continue business with us and recommend us to others in their industry. When researching Pardot, it was clear they had serviced many IT focused companies whether it be data trend services (Data-sync) or a number of online payment systems for businesses (2 Checkout, Field Nation, Redtail Solutions). While this may appear that Pardot is serving this industry well, there are thousands of these niche services in the United States. Pairing our expertise in market analytics with communicating when clients are in the informing or deciding stage of their purchase will allow these IT services to better meet the changing needs of businesses. Within the profile we developed for this subset, it was a bit more nebulous to grasp; however, it required just a shift of thought from individual characteristics to group characteristics. Key assumptions we made regarding this group was that they were likely to have
  • 4. a marketing lead familiar with the terminology of the field, but strictly that person is knowledgeable. A couple other assumptions we made are that the company has plateaued growth wise and they are established in the market. Within this segment, we decided the consideration portion of the buyer journey was the most prevalent. Regarding the attributes of the demographic, they are likely to be companies that are a few year past inception: so 3-5 years, filled with mostly bachelor degree workers developing their software. As mentioned in the prior paragraph, the geographic settings of these businesses are widespread with a large potential. The “emotional” psychographic profiling is focused on targeting groups that may be discouraged about their current operations due to the fact that they have a capable service but not as much interest as they expected. Pardot’s ability to notify potential purchase opportunities to these IT industries will engender an affective response toward our product, and will lead directly into the next two profiling techniques. Behavioral variables for businesses are similar yet distinct to that of individuals. They value the benefit Pardot brings to the table, but also are known to seek the lowest cost option. Therefore, Pardot needs to establish their credibility and necessity by the service being extremely useful by providing ROI dependent upon usage rates. This will help them distinguish themselves to their client and lead to loyalty if implementation is successful. Finally, the RFM framework is a big factor to consider in this IT industry. Monetary is a standard monthly fee which we can assume they can meet. The frequency of product use will be the key focus that Pardot needs to communicate. By connecting usage to revenue/profit numbers, these IT service businesses will become dependent on Pardot’s technology leading to a longer relationship. Marketing Agencies: Pardot also provides their marketing services to other marketing agencies. One of the most prominent reasons other marketing companies need Pardot’s help is to help generate both new and better quality leads. Other reasons marketing agencies need Pardot’s services include the ability to join and align different departments such as sales and marketing department initiatives, to more quickly develop higher quality leads, have higher response rates, and shorten the overall sales cycle. An example of this is with Vidyard, a company specializing in video marketing platforms, used Pardot’s marketing services to send high quality leads to their sales department. The high quality leads that were generated strengthened the relationship between Vidyard’s sales and marketing team, creating a more cross-functional and cohesive company from Vidyard. We are assuming that the marketing agencies are familiar with the marketing jargon related to the services that Pardot provides. With marketing agencies we are focusing on the consideration stage of the buyer journey because we know that marketers are already familiar with the types of services Pardot offers. We want to then focus on converting them into becoming a Customer of Pardot, rather than just explaining marketing automation services that
  • 5. they’re already familiar with. Proving to them with hard numbers and facts will allow them to see how Pardot’s services are worth the consideration and the overall investment. Furthermore, the demographic and geographic profiling will be widespread across the country. Psychographically, we will want to communicate through our service that we match their personality and company values through our customizable software. If we are able to successfully accomplish that, they will frequently use the service and continue the relationship with us as long as the benefits are readily apparent. Keyword Research Analysis After our consulting team was tasked with assessing and developing a PPC campaign for Pardot, we immediately began researching their current campaign for guidance and opportunities for improvement. Through paid search tools like SpyFu and Google Adwords, we gained insight into some key details about Pardot’s current plan. For instance, SpyFu was able to inform us that Pardot currently spends $100,000 per month on their Adwords budget. Yet, their average position on a SERP page is fifth in the sponsored section. Furthermore, Pardot’s organic versus paid clicks are just about a 50-50 split which provides a great opportunity to generate conversions. Pardot refocusing their PPC campaign objectives toward awareness and engagement will increase the strength and relevance of their ads, landing them a higher SERP position and more impressions.
  • 6. Using the information gathered from Pardot’s current state, we developed a new PPC strategy to focus on the discovery and consideration part of the buyer journey. Therefore, the list of 22 keywords we have below involves little redundancy and is focused on prospective and integrated keywords with our PPC campaign. Specifically, many of the keywords listed here will gain greater prominence, as the marketing automation field will increase in the next five years. According to Hubspot, marketing automation has experienced the fastest growth of CRM components and will continue to grow in the coming future as it is becomes more prevalent in the B2B business space.
  • 7. Source: Google Keyword Planner Competitive Analysis SilverPop, Oracle CRM, and Marketo are several of Pardot’s main competitors. The SWOT analyses below examine the strengths and weaknesses of each competitor, with respect to their PPC efforts, in greater detail. SilverPop: comparable to Pardot in software scope, customer size, and delivery model.
  • 8. Helpful Harmful Internal Origin Strengths: · The placement of the demo in a prominent location of the ad is helpful for customers who are gathering information early in the buyer journey. · Quick link to products is helpful for customers who are ready to purchase. · Ad heading/copy alignment is appropriate, as they both contain the name of the company and are simple and easy to read. · The domain URL is relevant, as it takes the user to a landing page and contains a call to action, asking for some basic data (name, email, etc.) in order to view the demo. Weaknesses: · The heading is very simple and does not include attention-grabbing buzzwords like “free” or “see smarter selling in action” like its competitors. · Although the landing page is relevant, users who are further along in the buyer journey and want to purchase products instead of viewing the demo may become frustrated. External Origin Opportunities: · Ad position is appropriate; it appears first in a Google search for Silver Pop. Threats: · Ads for Eliqua, a competitor, also appear in the results of a Google search for Silverpop. Oracle CRM: comparable software scope, customer size, and delivery model.
  • 9. Helpful Harmful Internal Origin Strengths: · Quick links are helpful for customers who are comparing products · Free Live Demo offer caters to customers who are early in the buyer journey and want to test Oracle’s services · Ad heading/copy alignment is attention-grabbing and straightforward · Ad-landing page copy is logical and simple · Landing page is appropriate; users land on a page that contains an overview of Oracle’s CRM service offerings Weaknesses: · Ad appears a bit more cluttered and wordy from a visual standpoint, compared to competitors like Silverpop · Call to Action (free demo) should be hyperlinked for customers to more easily click External Origin Opportunities: · Large number of Google+ followers adds credibility to the brand Threats: · CRM- SoftwareReview.org and Microsoft appear as ads before Oracle CRM in a Google search for “Oracle CRM” Marketo: comparable software scope, delivery model and price point.
  • 10. Helpful Harmful Internal Origin Strengths: · Quick links, particularly the Guide to Lead Scoring and Compage Automation Vendors cater to different stages in the buyer journey · Position of the ad is appropriate; design is simple and streamlined · Ad heading copy contains buzzword “free” Weaknesses: · Landing page is the homepage, instead of a specialized page outlining products or containing rich material like a video · Lacks a Call to Action External Origin Opportunities: · Appears in the first spot for a Google search for “Marketo” Threats: · Features significantly fewer followers on Google+ than competitors Pardot: Helpful Harmful
  • 11. Internal Origin Strengths: · Free Demo video caters to buyers who are early in the buyer journey · Landing page copy is simple and straightforward Weaknesses: · Ad is unnecessarily large and cluttered · Heading/copy does not contain a CTA and is bland and not enticing · Landing page is dry; most of the information is below the fold. There are no videos. External Origin Opportunities: · Includes “Fastest Growing marketing automation system” from third party VentureBeat · Appears in the first spot for a Google search for “Pardot” Threats: · Only has 952 followers on Google+ As shown in the images above, Pardot utilizes an ad style quite different than its competitors. While Silverpop, Marketo and Oracle CRM have more streamlined, concise ad styles, Pardot’s is longer, wordier, and uses a larger font. Pardot’s ad may intimidate buyers who are early in the buyer journey and deter them from clicking on the ad. Another determent is the fact that Pardot only has 952 followers on Google+, compared to Marketo’s 2,400 and Oracle CRM’s 44,000+. Pardot’s ad lacks a call to action, and the landing page itself is quite bland. It doesn’t contain any rich media, and most of the text is below the fold. Although it has a lot of room for improvement, Pardot’s ad has some strengths as well. The free demo video caters to buyers who are early in the buyer journey, and the landing page copy is simple and straightforward. It also offers some credibility from a third-party source, as it features the tagline “Fastest Growing marketing automation system” from VentureBeat. From a relevancy standpoint, the ad appears in the first spot for a Google search for “Pardot.” PPC Ads Within our consideration for creating Pardot’s updated PPC ads, our group reflected on the business objectives of increasing awareness and engagement by focusing on the first two parts of the buyer journey: discovery and consideration. With that in mind we also looked to identify which personas each ad would gravitate towards as well as a landing pages setup for them if it were relevant. Finally, we had a suggested keyword section as well as a match type associated with each ad to further segment our list. All of this information is located directly below each ad.
  • 12. Ad #1 Marketing Automation www.pardot.com/the-basics Quick Guide to Marketing Automation Gain 50 New Client Opportunities Persona: Startup/Entrepreneurs and IT Services Objective: Awareness/Discovery Keyword: “what is marketing automation” “new to marketing automation” Keyword Match Type: Phrase Landing Page: video walking the user through what it is; CTA: video and newsletter This PPC ad focuses primarily on the users who do not know what marketing automation is. Therefore, it is tailored towards the discovery stage and aimed at entrepreneurs or IT service firms. Upon clicking the ad, we envision the user being brought to a Pardot page in which there is a brief video detailing the basics of marketing automation as well as an option to sign up for a demo or newsletter. Ad #2 Automation Tutorial www.pardot.com/product-walkthrough Learn About Pardot’s 6-Step System Sign Up for a Detailed Product Tour Persona: All 3 Objective: Consideration/Engagement Keyword: “pardot automation” “automation tutorial” “salesforce.com” Keyword Match type: Broad or Exact Within this ad, we looked to service all of our personas and offer a comprehensive walkthrough of Pardot’s service. Through this, Pardot will directly influence the consideration portion of the buyer journey and truly engage with its potential customers. Ad #3 Pardot Consultation www.pardot.com/scheduling Meet with a Team of Specialists Craft a Unique Marketing Campaign Personas: All 3
  • 13. Objective: Discovery/Engagement Keyword: “Marketing automation” “pardot consulting” “salesforce.com” Keyword Match Type: Broad When brainstorming ideas for PPC ads, our team thought that offering an in person consulting opportunity would further convince potential clients to choose Pardot’s service. Therefore, this is catered to all three personas and attempts to engage with them in a way where digital interaction cannot compete. Ad #4 Startup Marketing www.pardot.com/entrepreneur-guide Generate 517% More Leads Per Year Collaboratively Develop a Campaign Persona: Entrepreneurs Objective: Discovery/Awareness Keywords: “startup marketing” “marketing automation” Keyword Match type: Phrase Within this ad, Entrepreneurs’ needs are addressed. By listing a tangible result of a past client’s partnership with Pardot in the ad copy line, we meet Entrepreneurs prime focus and generate immediate interest in the company. Ad #5 Pardot Automation www.pardot.com/client-tools Learn How to Convert Client Leads Utilize ROI Tool to Measure Success Persona: IT and Marketing Objective: Discovery/Awareness Keywords: “marketing automation” “salesforce.com” “client conversion” Keyword Match type: Broad and Phrase This ad caters to the marketing leads in both the IT services and marketing agencies. By listing one of Pardot’s specific tools (ROI tracker), they will be able to entice prospective clients to click on the ad to learn more. Ad #6 Increase Web Traffic
  • 14. www.pardot.com/automation-tools Tools of Marketing Automation Increase Average Time Spent on Page Persona: IT Services/Marketing Agencies Objective: Engagement/Consideration Keywords: “marketing automation tools” Keyword Match Type: Phrase Landing Page: Infographic displaying the 6 services Pardot Offers and testimonials This PPC ad also services the marketing leads of IT services and marketing agencies; however, this ad will lead to a page where all 6 services Pardot offers will be listed instead of just one. This will allow engagement with the brand to occur and lead to more opportunities. Ad #7 Increase MQLs www.pardot.com/marketing-qualified-leads Lead Qualification Tools Increase Qualified Leads by 300% Persona: Marketing Agencies Objective: Consideration/Awareness Keywords: “lead qualification tools” “increase marketing qualified leads” Keyword Match Type: Broad Landing Page: Information heavy page displaying features and functions of the lead qualifications and lead nurturing tools, and showing how these features can increase MQLs, produce higher response rates, and shorten the overall sales cycle. The use of marketing jargon in this ad will naturally attract those who are in marketing agencies. Followed up by the use of a client result (300%), clients will want to see how the lead qualification tools can help their personal business. Ad #8 Improve Inbound Marketing www.pardot.com/lead-scoring Lead Scoring and Prospect Tracking Identify and Increase Promising Leads Persona: IT Services/Marketing Agencies Objective: Consideration/Engagement
  • 15. Keywords: “score leads” “identify new leads” “improve inbound marketing” “generate promising leads” Keyword Match Types: Phrase and Exact Landing Page: Information Page showing the scoring process of leads, and what the scores mean. A score of 100 means a lead is very promising, where a score below the 100 means the leads need to be nurtured even though they aren’t ready to buy just yet. This ad assumes knowledge of what marketing automation is; furthermore, it ties directly into the consideration portion of the buyer journey. The landing page to this ad will be instrumental in converting potential clients by demonstrating the capabilities of Pardot’s service. Ad #9 Shorter Sales Cycle www.pardot.com/lead-scoring Qualify Leads and Lead Nurturing Increase Response Rates Persona: Marketing Agencies Objective: Consideration/Awareness Keywords: “shorter sales cycle” “increase response rates” “qualify leads” “prospecting leads” Keyword Match Type: Broad or Phrase Landing Page: (same as “Increase MQLs) Information heavy page displaying features and functions of the lead qualifications and lead nurturing tools, and showing how these features can increase MQLs, produce higher response rates, and shorten the overall sales cycle. This ad piques the user’s interest by offering a deliverable result in the title. This will help generate awareness for Pardot while offering ethos. For a marketing agency, this ad will directly generate the most interest. Ad #10 Increase Lead Generation www.pardot.com/lead-generation Focus on the Right Leads Increase Web Leads by 50% Persona: IT Services Objective: Discovery/Engagement Keywords: “increase lead generation” “increase leads” “increase web leads” “finding the right leads” Keyword Match Types: Broad and Phrase
  • 16. Landing Page: simplified version of the MQL page with less marketing jargon and a more basic and thorough explanation of the importance of identifying quality leads from the wrong leads. This ad will directly address the needs of the IT services by offering a less complex display of Pardot’s services. This will help the IT companies discover who Pardot is and engage with the brand through a set of infographics on the landing page. Landing pages Marketing Automation www.pardot.com/the-basics Quick Guide to Marketing Automation Gain 50 New Client Opportunities When clicking on this PPC ad, it will take you to a “What do We Do?” landing page which focuses on discovery portion of the Buyer’s journey. The goal with this landing page is to educate the potential consumer about Pardot, create a need, and promote a call to action. The video tutorial provides an easy way for customers to educate themselves about Pardot. The “Request a Demo!” and “Sign Up Today!” buttons provide a call to action for the consumers - giving them a choice of a demo if they are still hesitant about the product and features, or allowing them to completely sign up if they believe Pardot fulfills their needs after watching the tutorial video. The awards and newsletter section will provide up to date news and awards that will help to increase the reputation and prestige of Pardot as a company. Increase Web Traffic www.pardot.com/automation-tools Tools of Marketing Automation Increase Average Time Spent on Page When clicking on this PPC ad, it will take you to a “Meet Pardot Marketing Automation” landing page. This page focuses on the consideration and engagement segment of the buyer’s journey. The infographic will provide an interactive way to obtain more detailed information about the 6 services Pardot offers. The testimonials underneath the infographic will provide positive word-of-mouth experiences of customers who have used the Pardot resources, helping to strengthen the brand of the business and increase credibility.
  • 17. Summary and Analysis PPC Advertising Analysis: When constructing the PPC ads for Pardot’s new campaign, we shifted the company’s focus from catchall to specific targeting. Within the B2B service framework, the user experience is generally more focused on the discovery and consideration portion of the buyer journey rather than the decision portion. Therefore, we defined the new objectives of Pardot as follows: to focus on awareness of their brand and marketing automation in general; and to create engagement with the brand through our integrated PPC and landing page campaign. Regarding our decisions for the PPC ads, we constructed a process where we evaluated which persona, keyword, business journey aspect, and objective we wanted to address. With those factors in mind, we constructed ten PPC ads. Within these ads we had five targets: the discovery/awareness aspect of the buyer journey, and the other five ads targeted the consideration/engagement portions. Whether it was offering information to a startup company, setting up a consulting appointment with Pardot, or demo the services provided at Pardot, these new ads will attract greater attention from prospective buyers because they are relevant to Pardot’s core objectives. Finally, we made a conscious decision to stray away from the decision portion of the buyer journey for our ads. This is due to the fact that Pardot’s service costs over $1,000 a month for the basic model; thus, users who purchase Pardot’s service are likely to do it with intention rather than on a whim, further illustrating the need to target the discovery and awareness portions of the buyer journey. Landing Page Analysis: Since our PPC ads focused on increasing awareness and engagement, we chose two landing pages that reflected each of these topics. For the “www.pardot.com/the-basics” landing page, the video created a passive engagement opportunity for customers. In a study done by eyeviewdigital.com, it was discovered that videos on landing pages have the potential to increase conversion rate by 80%. Videos are a great way to establish a call to action among customers. The “request a demo” and “sign up today” buttons will be an additional reinforcement of CTA. This video will not only educate customers about Pardot’s available resources, but it will also increase the length of traffic time through the website. People prefer to be educated by a video instead of reading various facts that will most likely not be retained. The infographic for the “www.pardot.com/automation-tools” landing page will help to increase the consideration of Pardot as a brand and resource. Studies have shown that 90% of the information people remember is based on visual impact. Similar to the video, infographics are more appealing to appealing to the eye, and will help to attract interest and traffic to the
  • 18. webpage. The testimonials and the current news and recent awards section on both pages will help to increase the trust factor among customers. Reviews and experiences from employees, loyal customers, friends, or family is often the deciding factor between a customer buying or forgoing a product. Use of video leads to 80% conversion rates: http://unbounce.com/landing-page-articles/the- benefits-of-using-video-on-landing-pages/ Use of video for B2B: http://www.skyword.com/contentstandard/enterprise-marketing/3-b2b- content-marketing-tactics-to-please-audiences-and-stakeholders/ Infographic statistic: http://www.searchenginejournal.com/6-benefits-using-infographics/70917/ Financial Analysis: 2010-2012 Income Statement As we can see from the last set of financials for Pardot before they were acquired, they had not had a profitable year. A big reason for that was the amount of sales and marketing expenses they were incurring. As a percentage of gross profit, marketing expenses accounted for over 60% of their total expenses in 2012. Unpacking this expense, a component would be Pardot’s PPC campaign in which they spent over $100,000 a month during this timeframe (SpyFu.com). If we clearly develop a set of business objectives and a PPC campaign to tailor to those objectives, this monthly expense will yield more conversions in the long run, leading to increased profit.
  • 19. Average Order Value and Profit Margin: Through consulting with an executive of Pardot, we were able to ascertain that 45% of clients use the standard model, 35% use the pro model, and 20% of clients purchased the ultimate model. Using these percentages with the price of each respective model, we were able to determine that the average order value (AOV) for a Pardot product model is $1,750. We then combined this with the profit margin obtained by our consultant meeting, which was 15%. Multiplying the profit percentage by the AOV, the profit margin per month of a product is $262.50. This shows promise for Pardot, as they are able to turn a profit on their services as opposed to the losses a few years back. Break-even Point and LTV: By applying a conversion rate of 5% determined in our consulting meeting, we were able to solve the BEP Cost-per-Click for an average order value: $13.13. As we will see in the next section, this is higher than our average cost-per-click allowing us to generate a profit.
  • 20. Solving for Life-time Value (LTV) of a client was a bit tougher. However, through our talk we were able to come up with 30 months as the average tenure of a client. Therefore applying the same principles as above, we calculated the LTV profit to be $7,875 and the BEP to be $393.75 over the 30 months. Through an effective rollout of a revamped PPC campaign, we can increase our profit substantially due to Pardot’s long-term service and profitability. ROI and Payback Period: When calculating ROI, we extrapolated from prior information to reach a PPC Conversion Cost of $248.35. When dividing this number by our profit/monthly sale of $262.50, we get an ROI of 106%, which signals a positive campaign result. It is key to note that this may not be as high as some were expecting. When you step back though, the objectives of the PPC assessment were to generate awareness and engagement with the brand. Taking that into account, Pardot should be pleased with this result. Additionally, we calculated average CPC to be $12.42, which is less than our BEP CPC determined in the prior section. Finally, our team determined that Pardot serves 2000 clients per month, leading to monthly profit of $525,000. Additionally, our team estimated pre-implementation costs resulting from consulting fees, research costs, design costs, and advertising costs are equal to $5,000,000. Therefore, the payback period for this rollout is about 9.5 months, which is a quick turnaround. Also, this doesn’t take into account any new clients that may be added during that timeframe, so if Pardot adds more clients than they lose in this timeframe, the payback period would decrease further. Final Wrap-up: Throughout this assessment we have continuously stressed the need for a clearly defined and integrated set of objectives. The objectives we determined to have the greatest immediate
  • 21. and future impact for Pardot were awareness and engagement. Along with these objectives, we decided that the decision portion of the buyer journey would be a fruitless endeavor; therefore, we developed a strategy focused on the discovery and consideration portion of the buyer journey. With that as our foundation, we constructed a persona analysis that identified three markets that possess the greatest opportunity for Pardot as well as a competitor analysis that identified the strengths and weaknesses that we can learn from our competition. With the research portion of our assessment complete, we developed a list of 22 keywords that mostly focus on phrases that Pardot is not currently using as well as keywords that have future potential in the industry. Using these keywords, we created draft PPC ads as well as landing pages that were relevant to Pardot’s objectives. Finally, we performed a financial analysis that proved this would be a profitable venture not only regarding the amount of attention Pardot would receive but also financially. We fully recommend that Pardot implement our suggestions for a completely integrated PPC campaigns, as this will make them a pioneer in the field of automation and a significant partner of Salesforce.com.
  • 22. Works Cited: "Automating Marketing | Venture Atlanta." Venture Atlanta. Venture Atlanta, n.d. Web. 1 May 2015. "The Benefits of Using Video on Landing Pages." Unbounce Latest Posts RSS. Unbounce, n.d. Web. 1 May 2015. "Pardot B2B Marketing Automation by Salesforce." Pardot. N.p., n.d. Web. 1 May 2015. "Pardot Competitors." Pardot Marketing Software Competitors. CRM Search, n.d. Web. 1 May 2015. "Pardot Historical Financial Statements." Pardot Historical Financial Statements. SEC, n.d. Web. 1 May 2015. "3 B2B Content Marketing Tactics to Please Audiences and Stakeholders." The Content Standard by Skyword 3 B2B Content Marketing Tactics to Please Audiences and Stakeholders Comments. Skyword, 22 Sept. 2014. Web. 1 May 2015. "25 Jaw-Dropping Marketing Automation Stats [Data]." 25 Jaw-Dropping Marketing Automation Stats [Data]. Hubspot, n.d. Web. 1 May 2015.