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Posts Tagged ‘Direct Response’

There’s a continuous debate in the search marketing industry about which is the more effective and efficient use of resources: pay per click or natural search engine optimization. Obviously, I’ll be supporting the PPC side of this argument. Our trusty sidekicks over at www.SEOBoy.com can be counted on to back the natural optimization horse in this race, and the good people at Search Engine Watch have provided a good breakdown of both sides of the discussion that took place last week at Search Engine Strategies Chicago 2009.

Before discussing the benefits of PPC vs. SEO, I must make a few things clear: 1. My experience and expertise is in direct response, and my arguments will focus on that industry. 2. I’m certainly not recommending that organic search optimization be ignored. It is an extremely important and effective marketing tool, and can sometimes offer benefits that PPC does not. 3. Whenever possible, PPC and SEO should complement each other rather than compete for resources.

Now, that the disclaimer’s out of the way, why should you devote your time and money to PPC?
According to data discussed at SES:
PPC traffic converts at 2.03% versus 1.26% for natural traffic.
PPC visitors spent about 10% more money on sites than natural visitors.
PPC visitors stayed on sites approximately 29% longer than organic visitors.

So, what are some of the reasons for those numbers?

Speed
PPC campaigns are FAST. While it can take months to push a site up into a useful position in the organic results, PPC listings can hit the top of the page as soon as your ads are approved. This is especially important for short term holiday offers, new domains and time-sensitive campaigns (e.g., training or finance seminars, that are generally locally targeted and only active for a week or two).

Testing
PPC search offers more specific testing, allowing for a detailed analysis of the effectiveness of ad copy, keywords, landing pages, CPC’s, ad positions and the relationships between all those things. PPC campaigns make it easier and faster to determine what works and what doesn’t, and makes it far easier and faster to optimize for those things.

Control
PPC campaigns allow for total control over the product’s message. Ad titles and copy can be tailored precisely to specific keywords and/or product benefits. Ad positions can be easily maintained and budgets can be strictly adhered to. Along with ensuring top positions for effective keywords, it’s very easy to avoid ineffective keywords through the use of negative match.

While good SEO is a valuable tool and an important piece of any long term marketing strategy, my answers to a client’s question “Why should I use PPC search for my product?” generally begin with the conversion & ROI averages, and then focus on speed, testing and control as the main reasons for those numbers.

Check out The Adventures of PPC Hero: Heroic Feats of Pay Per Click Management at http://www.ppchero.com/. Copyright © 2007-2009 Hanapin Marketing, LLC.

After reading the second half of Ron Jones’s article, Measuring Success, on Search Engine Watch, I was struck with an overwhelming urge to blatantly steal his ideas. However, my more noble tendencies forced me to merely reference them, while giving him credit for the inspiration.

Mr. Jones’s article discusses the methods for planning and measuring success in SEO efforts using SMART goals:
Specific
Measurable
Attainable
Realistic
Timely

These principles can also be applied to PPC campaign optimization.
 

Specific – The tendency for PPC campaigns always seems to be more, more, more. More clicks, more orders, more revenue… And, while “more” isn’t an unreasonable goal, it’s an extremely vague plan. Starting with a specific goal – e.g. “improve campaign click through rate by 3% over last month,” or “increase SEM orders by 5%.” – makes it much easier to focus.

Measurable – Obviously, the ability to track traffic and sales is essential to running a successful sponsored search campaign. Regular ad group and keyword analysis is necessary to be sure you’re getting the most out of your campaigns. Along with maximizing the keywords and ads that do lead to conversions, it’s equally important to limit, or completely eliminate, the ads and keywords that do not lead to orders.

Attainable & Realistic – These two points go together. Is it realistic and possible to increase orders by 25% in any given time period? Maybe, but there are many outside factors that contribute to it. In the direct response industry, sales are still largely driven by television and/or radio exposure. If there’s no change in the media exposure for a product, it’s very difficult to significantly increase the impact of paid search efforts. It’s important to realize that marginal improvements in click-through or conversion rates can drastically affect the bottom line (i.e., net revenue) only if there’s a corresponding bump in relevant traffic.

Timely – Timing is particularly important for direct response campaigns, where products typically have a relatively short lifespan. Whether those product lifespans are dictated by seasonality – i.e., gardening products, which are mainly viable in the spring and summer – or by market demands – i.e., there’s a 6 month period before the next generation technology is available – it’s important to maximize efforts when they can be most effective. Increases in click through and conversion rates when a site is getting 500 searches per day are far less useful than when that site is getting 5,000 per day.

Ultimately, as in many other aspects of life, the key to creating and successfully managing effective PPC campaigns is to be as SMART as possible.

Check out The Adventures of PPC Hero: Heroic Feats of Pay Per Click Management at http://www.ppchero.com/. Copyright © 2007-2009 Hanapin Marketing, LLC.