Power Segmentation for Search Marketers

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Power Segmentation for Search Marketers Steve
Baldwin Did-it Search Marketing
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Listings You are Willing to Fight For
Top listings drive volume in Google, MSN, Yahoo
and the rest. Position delivers scale. Targeting
can help you afford higher bids against the right
audience.
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The ever more crowded SERP Google
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The ever more crowded SERP Yahoo
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The ever more crowded SERP MSN
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Why Targeting Matters

• Better targeting brings us closer to the holy
  grail of advertising beneficiaries include
• Marketers, who get to put more of their budgets
  towards their best prospects/customers.
• Searchers (surfers/viewers), who only see the ads
  that the marketers really want seen, the relevant
  ones.
• Publishers, who get a higher yield on their
  search and impression inventory.

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The Key is the Power Segment
The key to increased profits and revenue though
the use of targeting is the identification and
exploitation of segmentation. Identify
your Power Segments!
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What is a Power Segment?
A Power Segment is where several segments
(demographic, geographical, behavioral) overlay.
They are more valuable to you, more important to
reach, and worth so much that you can afford to
bid more to reach them.
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How To Target By Demographics MSN

• MSN adds increased targeting options by allowing
  you to raise your bid (bid boost) by
  demographics
• Age (five age ranges)
• Gender (M/F)
• Geography (DMA)
• Plus Dayparting and Daily scheduling. The
  additional targeting might be EXTREMELY
  applicable to your business.

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How To Target By Behavior Google, Yahoo, MSN

• One way to target based on behavior is though the
  control you have over listings allowing you to
• Use Dayparting (Time of Day)
• Day of Week
• MSN includes dayparting and day of week
  selections in AdCenter. Google added it in June
  2006 dayparting in Yahoo requires the use of
  third-party technology.

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Targeting By Behavior

• Behavior Segmentation
• Which behaviors correlate with increased profit?
• Better conversion from click to lead/sale
• Higher immediate value
• Better lifetime value of the customer
• Offer responsiveness
• Look at your data and determine if behavioral
  targeting makes sense.

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Targeting by Demographics
Its a lot of work to re-structure campaigns to
market differently to segments. Why bother?
Better conversion from click to lead/sale For
example if the conversion of non-identified
(mixed traffic) is 1.5 and the conversion rate
of men aged 26-35 is 2.1 then you can afford to
bid more than 25 more for this segment. Higher
bids may get you additional volume.
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Targeting by Demographics
Higher Immediate Value Does one segment order
more expensive items or larger quantities? If
Women aged 18-25 have a shopping cart with 178
vs 122 for the average shopping cart, you can
afford to bid more for this Power Segment. Higher
bids may get you additional volume.
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Targeting by Demographics
Higher Lifetime Value Does one segment order
more over time or stay with your company longer
creating annuity revenue? Whats your 90-10 rule?
If Women aged 18-25 have ordered your hair care
product every three months for 4 years, you can
afford to bid more for this power-segment. Higher
bids may get you additional volume.
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Targeting by Demographics
Offer Responsiveness Does one segment respond to
a different offer? If women aged 36-50 are
willing to buy three if they get one free, this
Power Segment should have a unique user
experience. Tuned user experience may increase
conversion and revenue, simultaneously.
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Targeting by Demographics Google
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Targeting by Demographics Google
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Geographic Segmentation

• Geographic segmentation may be the most powerful
  method of segmentation you have
• Clicks are worth different amounts
• Customers have different profit profiles
• Prospects respond to different messages (think ad
  creative and landing pages)
• Why manage only on a national basis when you can
  segment?

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Geographic Segmentation in Google
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The Perfect Storm Power Segments

• What happens if the same segment has a
• Better conversion from click to lead/sale?
• Higher immediate value?
• Better lifetime value of the customer?
• The Power-Segment drives a dramatically higher
  ROI and profit.
• Each segment with scale should be considered for
  separate bidding targeting (landing pages and
  offers)

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Choosing Demographics and Behaviors

• How do you determine the optimal demographics and
  behaviors?
• Look at your immediate conversion rates by geo or
  time of day
• Do an analysis of your current customers as they
  convert for M/F and age (if you ask age)
• Use your CRM or business data to determine your
  power-customer. What does a power customer look
  like?

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Dayparting Conversion Behaviors
Major differences in conversion.
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Dayparting Conversion Behaviors
How do you determine the optimal demographics and
behaviors?
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Dayparting in Google
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Dayparting in MSN
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Dayparting How Much More to Bid?
Assume average conversion to 100
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MSN Keyword Research Learning About Searchers
MSN has provided demographic data by keyword
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MSN Keyword Research Learning About Searchers
MSN has provided demographic data by keyword
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MSN Keyword Research Learning About Searchers
MSN has provided demographic data by keyword
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MSN Keyword Research Learning About Searchers
MSN has provided demographic data by keyword
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Targeting By Behavior

• The engines are also targeting text and graphical
  ads behaviorally based on
• Prior search behavior
• Prior click behavior
• Content preferences
• The future will likely allow for more targeting.
• Targeting and segmentation go hand-in-hand.

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Using Keyword Behavior to Buy Media

• There are several ways you can buy RECENT
  SEARCHERS
• Revenue Science (Search Retargeting)
• Tacoda
• Did-it (Search Connect)
• Yahoo
• AlmondNet
• RightMedia
• Most of your visitors dont convert in the
  initial session. You may be able to get the
  visitor as they surf the net.

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PPC Auctions, Two Types at the Top

• There are only two kinds of marketers at the top
  of the PPC search results
• Brilliant Marketers managing to ROI or buying
  scale intelligently, often though segmentation.
• Total Lunatics emotional bidders no data
• What does it really mean to be at the top? At
  the top for which searchers, when, where?
• Use the Power Segments to drive business

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Strategies Combine to Grow Profit

• Targeting strategies and the Power Segments allow
  you to
• Reduce waste
• Target the best customers
• Increase profit
• Improve your messages and offers
• Be more aggressive when it matters
• Questions? e-mail Steve Baldwin, Marketing
  Manager of Did-it.com. sbaldwin_at_did-it.com
• Copies of PPT? Send me an e-mail as well.