Managing Search in a Crowded Market

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Managing Search in a Crowded Market Kevin Lee
Executive Chairman Did-it Search Marketing
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Positions You are Willing to Fight for
Unlimited budget? Top listings drive volume in
Google, MSN, Yahoo. Position delivers scale.
Targeting can help you afford higher bids against
the right audience.
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Who am I and why are we talking PPC Search
Auctions

• I founded Did-it.com in 1996 no one knew what
  search engine marketing was. Since the Google
  IPO the SEM industry has thrived. What does my
  team of 100 really do for clients? Maximize paid
  search profit and revenue using a combination of
  proprietary technology, proven strategy and
  tactical superiority. Technology and smarts are
  both necessary to win in a dynamic marketplace.
  Passion helps too.
• Do you think click prices for your keywords are
• Still low and reasonable?
• Right at my maximum willingness to pay?
• Completely crazy insane high?

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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 types of searchers, when, which
  geos?
• With a limited budget or even as a pure direct
  marketer you cant affort to be at the top in
  every SERP.
• Today we will talk about how to use the Power
  Segments to drive your business forward
  efficiently maximizing the results per dollar
  spent.

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Make Search Fit Your Business

• Most of the time we focus on Google, Yahoo and
  MSN thinking about what to do playing by their
  easy rules
• Figure out how to use all the options you have
  available. Simple doesnt work.
• Search media is different. Searchers are
  interested and if you dont get the click that
  searcher may be gone forever.
• What is unique about your business that will
  allow you to get high position when it matters
  and give the less important clicks to your
  competition

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Why Targeting Matters

• Better targeting brings us closer to the holy
  grail of advertising
• Marketers get to put more of their budgets
  towards their best prospects/customers
• Searchers (surfers/viewers) only see the ads that
  the marketers really want seen, the relevant ones
• Publishers 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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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 Behaviors 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 and Google include dayparting and day of week
  selections in the AdCenter AdWords interface.
  Effective Dayparting in Yahoo requires the use of
  third party technology.

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Paid Search Success Metrics for DM

• Base your search success metrics on business
  realities the other channels available as well
  as what you know about your business
• Cost Per Order (CPO)
• Cost Per Action (CPA)
• Revenue Per Dollar Spent
• Profit Per Dollar Spent
• Return on Ad Spend (ROAS)
• Lifetime Value Metrics
• Blended Success Metrics
• Branding Metrics (measuring lift based on
  experiential branding and the listing itself) Is
  brand lift a DM metric when it can be attributed
  to a media?

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When To Target 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 Behaviors

• 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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When to target by demographics
Its a lot of trafficking 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 over than 25 more. Higher
bids may get you additional volume.
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When to target 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 the power-segment. Higher
bids may get you additional volume.
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When to target 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 order 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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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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The Perfect Storm the Power Segment

• What happens if the same segment has a
• Better conversion from click to lead/sale
• Higher immediate value
• Better lifetime value of the customer
• COMPOUNDING EFFICIENCY and DRAMATIC SCALE and
  ROI.
• The Power-Segment drives a dramatically higher
  ROI and profit while growing scale.
• Each segment which can deliver scale (increased
  click volume) should be considered for separate
  bidding targeting (landing pages and offers)

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Choosing Demographics - 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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Whats in your media plan?

• Do you buy offline media, other online?
• Whats the target market in the offline media
  plan? Where did you get your demographic customer
  profile?
• Age
• Gender
• Geography
• Income
• Lifestyle

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How To Target By Behaviors 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. Dayparting in Google and
  Yahoo require the use of third party technology.

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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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MSN Keyword Research Learn About Searchers
MSN has provided demographic data by keyword
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MSN Keyword Research Learn About Searchers
MSN has provided demographic data by keyword
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Using Keyword Behavior to Media Buy

• There are several ways you can buy RECENT
  SEARCHERS
• Revenue Science (Search Retargeting)
• Tacoda
• Did-it (Search Connect)
• Yahoo (impulse)
• ValueClick
• AlmondNet
• 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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Pre-conclusion note

• Im working on my Friday Clickz column regarding
  the Google Doubleclick acquisition. Id love
  quotes and perspectives on the following
• Loss of DFA as a true Third Party Ad server.
• Impression and conversion data potentially being
  available to Google.
• 3) Concern (if you are an agency) that Performics
  will be pitching against you to manage media
  spend.
• 4) Concern that other publishers will be
  under-supported Dart products, in comparison to
  Google.
• 5) Concern that the GooglePack software partner
  programs might suddenly treat DoubleClick cookies
  less harshly

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Segmentation efficiency Strategies combine to
grow profit

• Targeting strategies and Power Segments allow you
  to
• Reduce waste
• Target the best customers
• Increase profit
• Improve your messages and offers
• Be more aggressive when it matters to drive
  volume/scale
• Is this stuff easy? NO! Is it worth it? The
  bigger your spend the harder it is but the
  greater the payout. Put in place a
  power-segmentation strategy.
• Questions, Copies of PPT? e-mail
  kevin_at_did-it.com