Biases as a Barrier to Good Business Decisions

February 18, 2010

It has come to my attention that when selecting a PPC provider, a good amount of marketers have what I would refer to as a “blind bias”. The blind bias refers to comments such as “we like Agency X because they seem to be an industry-leader” or “we want to work with Agency Y because we are familiar with them” or “we really like Company Z because they really dominate the PPC space.” I have to wonder, what do these comments even mean? While there might be something to be said for the idea of familiarity as it invokes a certain amount of trust, there isn’t much to be said for allowing basic hearsay to drive crucial SEM decisions. I call this type of bias blind because that’s what it is. There are no numbers or authentic experience attached to these claims, yet they seem to drive the PPC selection process for many advertisers. Read the rest of this entry »


PPC vs SEO

January 20, 2010

Why pay for clicks when you can get them for free?

This question often comes up when facing relatively inexperienced advertisers deciding between PPC and SEO. While I cannot refute any argument based solely on this logic (organic clicks are free and paid clicks are not), I can make a case for PPC even when SEO is at its best – which certainly is not the case for the majority of sites out there.
There are three distinct advantages that paid listings have over organic listings, and as a result these are the three most compelling arguments for integration of SEM into any marketing scheme:

1. If you don’t use SEM, your competition will poach your traffic. Read the rest of this entry »


eTail West 2010

December 11, 2009

Visit us at eTail West 2010! Call 415.814.1001 & mention this post for a conference pass discount when you register as a friend of eSV.

The conference takes place at the JW Marriot Desert Springs, in Palm Desert, CA from February 22nd – 25th. The theme of this year’s show is Take Advantage of the Next Phase in the Retail Cycle and the agenda is packed with sessions and panels to help you plan your retail strategy. On February 22nd, our own Marc Wendling will participate in the Search Summit interactive roundtable discussion covering every aspect of SEM. The day will also include keynote presentations with speakers from multi-channel to pure play and promises to leave you with actionable means to maximize your SEM dollars.

We hope to see you there!


It’s your Algorithm!

November 6, 2009

Most SEM professionals will agree that a solid SEM program strategy is multi-faceted. The program should focus not just on bidding, but also on Quality Score, data gathering and reporting, and aggressive testing of all aspects of the program. That being said, the great promise of bid automation remains a viable, debatable, and important topic.

There is no doubt that autobid algorithms are important to a well-rounded SEM bidding strategy but they can also be detrimental. Success with autobid depends on a number of factors. Obviously, one crucial factor is how well constructed the algorithm is. Perhaps more important, though, is the level of customizability made available by the algorithm. Does it treat core and long-tail terms similarly, or is it specialized for success with a particular kind of keyword? Is it customizable in terms of defining quantity of data analyzed, statistical relevancy, convergence speed, and data tolerance leading to a bid change? Can you influence bid security, day parting, data aggregation? Find out more!



Tug-of-War

October 2, 2009

by:  Joshua Krafchin

The beauty of paid search marketing is that results are highly trackable. We can trace revenue back not only to the keyword and match type level, but also by the hour or even by the geography of the original search queries typed into any search engine.  This extensive tracking provides us the opportunity to understand not only revenue and cost implications, but a whole host of other criteria from visitor interaction with our website to offline conversions and gross margin. With this surplus of data and choice though, many marketers run into the dilemma of how exactly to define success. Shifting general business priorities outside of search, whether or not they relate to search specifically, can directly impact how we manage a search program.

One of the big tug-of-wars is between ROI and volume. Because search is so measurable and trackable, companies have come to expect hitting and surpassing ROI numbers. In turn, this ability to consistently hit ROI makes paid search revenue highly desirable, and executives will push for more and more revenue volume from paid search.  Read the rest of this entry »


Heads vs Tails

September 17, 2009

Traditionally, search marketers base their search results on a “last click wins” basis. This means that the last click a consumer makes always gets attributed the sales revenue or conversion, regardless of how many other searches were made prior. The result is that brand terms often appear hugely profitable and costly generic terms appear to offer an extremely low ROI, if any at all. This makes it difficult to correctly classify “head” vs “tail” terms.
To combat this discrepancy, whenever we estimate performance for a keyword, we also calculate a confidence interval related to that prediction. When the confidence interval is too large, it means the prediction is useless (typical for keywords with very low traffic). We then need to aggregate in a relevant way (which is usually different from the way keywords are structured in ad groups) to get a critical mass of stats.

For this reason, we offer two different algorithms for automated bid management: Read the rest of this entry »


Taking Technology for a Test Drive

September 3, 2009

Many advertisers and agencies looking for an SEM Campaign Management technology are taking advantage of testing platforms before moving into a long-term contract. This makes a lot of sense.

The question though, is how to know if a test is successful.

Criteria for success fall into two categories: Usability and Performance.

Usability

Pros: You can get a sense very quickly of whether the platform fits your day-to-day management needs. Is the platform fast-loading, intuitive, and flexible? Does it cut down the number of hours typically spent doing routine work? Does it provide easy access to reports and the ability to manipulate large chunks of data with minimal struggle? Within a couple weeks of a test, you will naturally get a good sense of whether the technology is making your life easier or more stressful.  Read the rest of this entry »


Breaking through the clutter – choosing the right SEM agency

August 20, 2009

“Best in class”, “We drive results”, “Industry leader”.
These are just a few of the things SEM agencies claim as their identity. Like everything else, advertisers are flooded with messaging demonstrating that each agency is better than the next but the question is, “why?” What makes Agency X the leader? What makes Agency Y the best? Agencies are great at calling themselves the All-star, but don’t always make it clear for advertisers just why they are deserving of these titles. As SEM is all about numbers, it is particularly important for advertisers to gain clear insight into the pros and cons of each agency and not just rely on a glamorous marketing pitch. Below are a few things to consider when researching SEM companies:
1. Technology. While agencies will usually provide information on their technological capabilities, it is a good idea to dig deeper than this. Find out if they developed their own technology or if they license it from another SEM company. If they license it out, what made them choose this specific technology? Do they plan to change anytime soon? Why or why not?  read more…