7 advanced paid search strategies used by leading direct marketers

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ClearSaleing Confidential October 3, 2007 The ClearSaleing Webinar Series 7 Advanced Paid Search Strategies Used by Leading Direct Marketers Presented by Adam Goldberg a former Google Insider and Co-Founder of ClearSaleing

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For those Direct Marketers who did not have time to attend this webinar, we have this presentation. It will be very useful as you move to a more sophisticated online marketing environment. Created by an ex Google insider, Adam Goldberg. For more information, visit http://www.clearsaleing.com/blog/archives/2007/12/05/7-advanced-paid-search-strategies-used-by-leading-direct-marketers/

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Page 1: 7 Advanced Paid Search Strategies used by Leading Direct Marketers

ClearSaleing Confidential

October 3, 2007

The ClearSaleing Webinar Series

7 Advanced Paid Search Strategies Used by Leading Direct Marketers

Presented by Adam Goldberg a formerGoogle Insider and Co-Founder of ClearSaleing

Page 2: 7 Advanced Paid Search Strategies used by Leading Direct Marketers

ClearSaleing Confidential

Strategy #1

Connect your offline back office

to your online advertising

Page 3: 7 Advanced Paid Search Strategies used by Leading Direct Marketers

ClearSaleing Confidential

Integrate online advertising to your back office

Proprietary Back OfficeDirect Hits

Keyword = Mortgage

Source = Yahoo

Page 4: 7 Advanced Paid Search Strategies used by Leading Direct Marketers

ClearSaleing Confidential

Tie your inbound calls to your online advertising

Strategy #2

Page 5: 7 Advanced Paid Search Strategies used by Leading Direct Marketers

ClearSaleing Confidential

Offline sales tracking

1. Assign an ID to each keyword

2. Dynamically insert keyword ID on your website

3. Have sales person capture keyword ID along with other contact information

4. Run a sales report that shows sales with keyword ID’s

5. Determine if those keywords are profitable

Keyword = mortgage = ID 3378

Page 6: 7 Advanced Paid Search Strategies used by Leading Direct Marketers

ClearSaleing Confidential

Strategy #3

Use profit as your guiding metric

Page 7: 7 Advanced Paid Search Strategies used by Leading Direct Marketers

ClearSaleing Confidential

PPC metrics are flawed

» Leads can increase…Profit can decrease

» Revenue can increase…Profit can decrease

» Conversion Rate can increase…Profit can decrease

» CPA, CPL or Cost/Conversion can decrease…Profit can decrease

» Sales can increase…Profit can decrease

» ROAS can increase…Profit can decrease

Page 8: 7 Advanced Paid Search Strategies used by Leading Direct Marketers

ClearSaleing Confidential

Pick the best lead

30 year mortgage

Lead Cost: $48

Fixed mortgage

Lead Cost: $104

Mortgage

Lead Cost: $75

Leads/Sale 66.67

Ad Cost/Sale $3,200

Leads/Sale 20

Ad Cost/Sale $2,080

Leads/Sale 33.33

Ad Cost/Sale $2,500

Sale Price $3,100

Profit ($100)

Sale Price $4,100

Profit $2,020

Sale Price $4,900

Profit $2,400

Page 9: 7 Advanced Paid Search Strategies used by Leading Direct Marketers

ClearSaleing Confidential

Strategy #4

Look at the cumulativeLook at the cumulative

effect of your advertisingeffect of your advertising

Page 10: 7 Advanced Paid Search Strategies used by Leading Direct Marketers

ClearSaleing Confidential

Never underestimate the value of air conditioning

Should I close the doors to save on my electric bill?

Page 11: 7 Advanced Paid Search Strategies used by Leading Direct Marketers

ClearSaleing Confidential

November 15, 2006Most common Purchase Paths

Average # of clicks to sale: 3.75

Path

Purchase Path 1 AdWords (4 year university) > AdWords (top business program) > AdWords (XYZ University) > Sale

Purchase Path 2 Moving.com > AdWords (company name) > Sale

Purchase Path 3 AdWords (enterprise software) > AdWords (CRM) >AdWords (CRM property mgmt) > AdWords (Real Page) > AdWords (company name) >Sale

Purchase Path 4 Nextag (Hot tub) > Nextag (10 person hot tub) > Nextag (Concerto) > Sale

Page 12: 7 Advanced Paid Search Strategies used by Leading Direct Marketers

ClearSaleing Confidential

How can I use the Purchase Path?

AdWords (mortgage) > AdWords (30 yr mortgage) > (80/10/10 loan) > $9K Sale

ROI Type First Last Even

Credit Allocation $9K mortgage $9K 80/10/10 loan $3K mortgage

$3K 30 yr mortgage

$3K 80/10/10 loan

Page 13: 7 Advanced Paid Search Strategies used by Leading Direct Marketers

ClearSaleing Confidential

Strategy #5

Use search queries as a basis for

new keywords and negatives

Page 14: 7 Advanced Paid Search Strategies used by Leading Direct Marketers

ClearSaleing Confidential

What’s the ideal recommendation tool?

Ideal =

Sorry, this does not exist…but

a recommendation tool that can accurately tell you the ROI on a new keyword prior to adding it to your campaign

Page 15: 7 Advanced Paid Search Strategies used by Leading Direct Marketers

ClearSaleing Confidential

Use the information available to you

» Search query = reputable moving company

» Keyword = moving company

» Keyword match type = broad

» Conversion = $4,700 sale

» New keyword = reputable moving company

» New keyword match type = exact

» Advantages = Know it works, cheaper CPC, higher QSR, more targeted

Page 16: 7 Advanced Paid Search Strategies used by Leading Direct Marketers

ClearSaleing Confidential

Continued…negatives

» Search query = rent truck moving company

» Keyword = moving company

» Keyword match type = broad

» Conversion = $0

» Negative keyword = rent and truck

» Advantages = target right audience, don’t waste ad dollars

Page 17: 7 Advanced Paid Search Strategies used by Leading Direct Marketers

ClearSaleing Confidential

Strategy #6

Implement an alert system

Page 18: 7 Advanced Paid Search Strategies used by Leading Direct Marketers

ClearSaleing Confidential

Why use alerts?

» Impossible to keep your eye on 1,000’s of keywords all the time

» Saves time by allowing you to focus

» Insurance against human error

» Ability to automate responses to alerts

Page 19: 7 Advanced Paid Search Strategies used by Leading Direct Marketers

ClearSaleing Confidential

Types of Alerts

» Compare date range A to date range B and alert me if…– Sales – Profit– Leads

» Alert me when a metric increases by X or decreases by Y– Ad Spend– Conversion rate– Ad position

» Alert me if goal X will not be reached– 1000 leads in next 30 days– Spend $250,000 in advertising this month– Close 100 new deals this month

* Make sure you are being alerted only when data is statistically sound

Page 20: 7 Advanced Paid Search Strategies used by Leading Direct Marketers

ClearSaleing Confidential

How to set up alerts

» Directly from the ad sources in some cases (Google, Yahoo, etc)

» Make use of the API

» Build internal tools

» Buy an off the shelf product

Page 21: 7 Advanced Paid Search Strategies used by Leading Direct Marketers

ClearSaleing Confidential

Strategy #7

Follow the sophisticated methodology used by direct marketers to earn the maximum profit

Page 22: 7 Advanced Paid Search Strategies used by Leading Direct Marketers

ClearSaleing Confidential

5-Step methodology for increasing profit

Ad Spend

Profits

20K

40K

Identify Ad Waste Eliminate Waste Buy Maximum Clicks Add Ad Sources

TimeOptimize Business

Page 23: 7 Advanced Paid Search Strategies used by Leading Direct Marketers

ClearSaleing Confidential

The 7 advanced strategies

1. Connect your back office to your online advertising

2. Tie your inbound calls to your online advertising

3. Use profit as your guiding metric

4. Look at the cumulative effect of your advertising

5. Use search queries as a basis for new keywords and negatives

6. Implement an alert system

7. Follow the sophisticated methodology used by direct marketers to earn the maximum profit

Page 24: 7 Advanced Paid Search Strategies used by Leading Direct Marketers

ClearSaleing Confidential

Adam S. Goldberg

[email protected]

1.800.592.0463

Blog: www.clearsaleing.com/blog