Five Mill Tree Method 1208

David Szetela
David SzetelaVP of Search Marketing Operations
The Five Mill Tree Method Search Marketing Lost its Tail Five Mill Marketing San Francisco, California
History - The Beginning ,[object Object],[object Object],[object Object],[object Object]
History – Search Marketing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
History – Keyword Mapping “ Keyword”: california socks Note: These are just examples and keywords may not have mapped exactly as depicted. Search Queries:  “ California wool socks” “ California blue socks” “ California SOX compliance”
History - Keyword Landscape (‘98-’02) Search:   socks Result: Head Overture Inventory Tool Keyword Searches socks 5,000 red socks 400 wool socks 300 pink  socks 250 toe socks 200 socks  compliance 190 sock fetish 180 Tail multiple definitions unrelated unrelated
History - Building Ad Campaigns ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Google Changes the Game  (1/2) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Google Changes the Game  (2/2) ,[object Object],[object Object],[object Object],[object Object]
“ New” Keyword Landscape  (1/2) Head Tail Keyword Searches socks 5,000 red socks 400 wool socks 300 pink  socks 250 toe socks 200 socks  compliance 190 sock fetish 180 Then socks Now All words related to “socks”
“ New” Keyword Landscape  (2/2) Legend socks [red socks] Match Type Example Broad socks Phrase “ wool socks” Exact [socks] Geo-Targeting GT: CA [socks] GT: CA “ wool socks”
Bidding Methodology Revisited ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],KW5 KW1 KW2 KW 4 KW6 KW7 KW3 Then Now: “Five Mill Tree Method”
“ Five Mill Tree Method” socks $2.50 CPC [socks] socks (- [socks]) $3.00 CPC $2.20 CPC GT: California [socks] (-GT: CA) $2.00 CPC $3.25 CPC GT: Los Angeles, CA GT: California (- Los Angeles,CA) $2.50 CPC $1.90 CPC
Barriers of Entry – Geo-targeting  (1/2) ps. My apologies to Hawaii and Alaska residence, whom I chose not to include in this example.  I promise it was for no other reason than fitting the map on the page.  I love you both. CPC: $2.50 YOU “ But, why optimize!?  I am already #1 everywhere!!!”  ,[object Object],[object Object],Avg. Position:  1 Keyword:  [socks] CPC: $3.50 Competitor Avg. Position: 1 2
Barriers of Entry – Geo-targeting  (2/2) YOU CPC: $5.00 CPC: $1.00 Avg. Position:  1 Avg. Position: 1.5 ,[object Object],[object Object],[object Object],YOU Competitor Keyword:  [socks] Competitor CPC: $3.50 1.5
Barriers of Entry – Optimized CPC: $6.00 CPC: $5.00 CPC: $1.50 CPC: $1.00 CPC: $ .50 CPC: $ .20 CPC: $ .10 pos.: 1 pos.: 1 pos.: 1 pos.: 1 pos.: 2 pos.: 4 pos.: 10 ,[object Object],[object Object],[object Object],2.  Optimization will protect  your margins   from competitors who start to bid more aggressively.
Added Benefits of Optimization ,[object Object],[object Object],[object Object]
Rules about “Five Mill Tree Method” ,[object Object],[object Object],Optimization with the “Five Mill Tree Method” will nearly always lead to… ,[object Object],[object Object],[object Object]
Dan Soha Principal & SEM Specialist dan [at] fivemill [dot] com San Francisco, California Who are we?:  We are a  team  of Search Marketing  experts   that utilize  math  and  computer science  with a  hands-on approach   to solve  complex  Search Marketing  problems  with  customized  Search Marketing  solutions .
Appendix Techniques/Tricks to Slice and Dice
Techniques/Tricks to Slice and Dice ,[object Object],[object Object],[object Object]
Match Type “Trumping” ,[object Object],[object Object],[object Object],socks Match Type: Broad CPC: $3.00 [socks] Match Type: Exact CPC: $1.00 User Query:  [socks] This query is mapped to this keyword because Google sees that the query is a closer match to the keyword  and  match type  despite the lower bid.
Geo-Target “Trumping” ,[object Object],[object Object],[object Object],[object Object],[socks] Match Type: Exact Geo-Target: USA CPC: $3.00 [socks] Match Type: Exact Geo-Target: New York CPC: $1.00 User Query:  [socks] User Location: Brooklyn, New York This query is mapped to this keyword because Google sees that the geo-target is a closer match,  despite the lower bid.
Ad Competition  (1/2) ,[object Object],[object Object],Problem: I think the  first ad  is performing better for  some keywords  and the  second ad  is performing better for  the rest .  How do I optimize without analyzing my web logs?
Ad Competition  (2/2) Resolution: Let Google do the work for you! Step #2:  Duplicate adgroup and run 1 ad in each 1 Adgroup 10 Keywords 2 Ads 1 Adgroup 10 Keywords Ad #1 1 Adgroup 10 Keywords Ad #2 Step #1:  Make sure bids are targeting current metrics of success Step #3:  Let ads run until they have ample conversion history Step #4:  Re-bid to current metrics of success Wrap your head around it : Due to  Google’s CTR model  designed to make them the most money possible and  your re-bidding  designed to hit your metrics, you will  maximize conversions  and the  best keyword-ad combination  will naturally occur. Step #5:  Wait and repeat Step #4
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Five Mill Tree Method 1208

  • 1. The Five Mill Tree Method Search Marketing Lost its Tail Five Mill Marketing San Francisco, California
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  • 4. History – Keyword Mapping “ Keyword”: california socks Note: These are just examples and keywords may not have mapped exactly as depicted. Search Queries: “ California wool socks” “ California blue socks” “ California SOX compliance”
  • 5. History - Keyword Landscape (‘98-’02) Search: socks Result: Head Overture Inventory Tool Keyword Searches socks 5,000 red socks 400 wool socks 300 pink socks 250 toe socks 200 socks compliance 190 sock fetish 180 Tail multiple definitions unrelated unrelated
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  • 9. “ New” Keyword Landscape (1/2) Head Tail Keyword Searches socks 5,000 red socks 400 wool socks 300 pink socks 250 toe socks 200 socks compliance 190 sock fetish 180 Then socks Now All words related to “socks”
  • 10. “ New” Keyword Landscape (2/2) Legend socks [red socks] Match Type Example Broad socks Phrase “ wool socks” Exact [socks] Geo-Targeting GT: CA [socks] GT: CA “ wool socks”
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  • 12. “ Five Mill Tree Method” socks $2.50 CPC [socks] socks (- [socks]) $3.00 CPC $2.20 CPC GT: California [socks] (-GT: CA) $2.00 CPC $3.25 CPC GT: Los Angeles, CA GT: California (- Los Angeles,CA) $2.50 CPC $1.90 CPC
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  • 18. Dan Soha Principal & SEM Specialist dan [at] fivemill [dot] com San Francisco, California Who are we?: We are a team of Search Marketing experts that utilize math and computer science with a hands-on approach to solve complex Search Marketing problems with customized Search Marketing solutions .
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  • 24. Ad Competition (2/2) Resolution: Let Google do the work for you! Step #2: Duplicate adgroup and run 1 ad in each 1 Adgroup 10 Keywords 2 Ads 1 Adgroup 10 Keywords Ad #1 1 Adgroup 10 Keywords Ad #2 Step #1: Make sure bids are targeting current metrics of success Step #3: Let ads run until they have ample conversion history Step #4: Re-bid to current metrics of success Wrap your head around it : Due to Google’s CTR model designed to make them the most money possible and your re-bidding designed to hit your metrics, you will maximize conversions and the best keyword-ad combination will naturally occur. Step #5: Wait and repeat Step #4