Rich Clark Marketing

Opinions from Rich Clark one of the UK's leading Marketing Professionals


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Affiliate Marketing (for Merchants) – Part 1

Affiliate Marketing (For the Merchant)- Part 1

Long gone are the days when affiliates used to solely be one man in his bedroom, hacking about with some clever code.  In addition most merchants are more savvy to the opportunities affiliates can present when working in partnership.  Gone are the easy pickings of brand bidding and in the main, gone are the days when merchants used to treat affiliates as a second-class channel.

Affiliate Marketing is one of the most established online marketing channels.  Affiliation can provide everything from volume of clicks or UVs, e-Mail address collection and most commonly sales or leads.  Part One of my guide is centred around the more novice internet marketing professional, call it a beginners guide if you like.

Working out the commercials

The main benefit the channel provides merchants is a manageable approach to customers where costs can easily be controlled.  Merchants should know their margins and in turn know how much margin they can afford to give in terms of a commission (commission being the operative word, more later).  If the programme operates on a CPA basis the maths are straightforward.  If my product makes retails at £100 and I make 20% margin, my profit is £20.  I then know that if I want a 4:1 return on my spend my CPA would be set at £5.  Simple.  Remember if you are using an affiliate network you need to account for their over-ride (standard industry practice is 30% of commission.  In this case it would be an additional £1.50 (which already negatively effects your ROI.

Tip 1 – When working out your CPA to hit ROI targets, build in any network over-rides or additional costs to understand a true Net CPA and ROI.

Tip 2 – The networks will hate me for saying this, but the over-ride can normally be negotiated (if you are a merchant of either perceived value or revenue potential).

Choosing a network or going direct?

This is an age old debate within the sector.  The majority of merchants use an affiliate agency such as Affiliate Window or Commission Junction.  The benefits of using a network (even if you have an internal affiliate team) are numerous.  The major ones from my experience are the fact that payment to affiliates and expensive programme admin are taken care of.  Affiliates are a networks business and as such the platforms are built to take into account affiliate needs (much cheaper than merchants doing it from scratch).  Finally, the fact that the networks know all the affiliates and should be able to guide you on who to partner with.  They can also do some of the lengthy selling-in and negotiation with both established and up and coming affiliates, that direct merchants may not be aware of.

But what about Amazon?  Yes Amazon are one of the key success stories in terms of going direct.  However their entire model (as a vanilla pureplay) meant that they could set the system up from scratch.  The prices and range are so broad that affiliates fight to work with Amazon, rather than the opposite way round with a majority of merchants.

The main benefit of the Amazon approach is that they know their categories better than any network ever can.  They also know their stock and pricing in real-time rather than relying on a third party to update feeds.  They can speak passionately about promotions and campaigns and the affiliates hear it directly.

Tip 3 – Take the best of both approaches. Use the networks to manage and administer the account but work jointly on relationships with key affiliates

That leads me neatly on to the point I told you to keep an eye out for in the earlier post.

Commission

Affiliates will always want more as this is their bread and butter.  Merchants will inevitably want to pay less as it hits their margins.

My view is that if you treat the outlay as commission you should hit a fair level.  I have always considered my top revenue driving affiliates as a virtual sales force.  They are my sales people out on the road that can get people’s attention and drive them to my virtual shop window.

Like a physical sales force, this virtual salesforce will be motivated by money.  However the virtual sales force may be even more motivated by the commission they can earn.  This isn’t due to greed but related to the fact that the majority of this virtual salesforce has to place their own investment in.  That may be monetary through Google adwords or through effort and opportunity cost through the likes of SEO or social media.

Whilst your virtual sales force will be reactive to the commission structures you put in place and any additional incentives, the majority are also pragmatic enough to realise that you can only reach a certain level, before it becomes impossible for you to maintain.

As with physical sales forces, incentives can prove extremely motivational.  A push to go the extra mile.  Whether that is by taking advantage of a sponsorship property you have and offering tickets.  Inviting affiliates to attend a bespoke event or cold hard cash.  All can influence an affiliate.  However with the more experiential incentives, you shouldn’t necessarily expect a parallel increase in revenue.

Tip 4 – Treat your affiliates as a virtual sales force. Reward them and the commission negotiations are normally easier and fairer all round.

Types of affiliates

As I said in the intro of the post, gone are the days of one man in his bedroom trying to earn a quick buck.  Nowadays, affiliates are some of the brightest online marketers or smartest developers.  You must define your strategy and decide what affiliates you should work with and to what level and on what basis.  Below are a few examples of different types of affiliates

Cashback – this is possibly the biggest area of growth within affiliate marketing.  Sometimes thought of as the pariah within the affiliate community, the growth is in part due to the economic climate.  Essentially, these affiliates pass on all or part of the commission you give them, directly back to the customer.  Sites such as Quidco and TopCashBack fit into this category

Loyalty – the name is slightly misleading in terms of the loyalty is normally with the affiliate and little loyalty will be passed on to the merchant.  Essentially working in the same way as Cashback, except rather than cold hard cash being placed into a customers bank account, points are awarded.  Examples of these are Nectar and Airmiles.

Voucher Codes – if Cashback sites are though of by some affiliates as pariahs, then voucher codes are seen as bandits.  Essentially these sites provide details of all the codes available, people click on a link to reveal the code and generally a cookie is placed on the customer’s PC, meaning that affiliate gets the commission.  Its at this point I feel compelled to say that these views are not my own.  Both Cashback and voucher code sites perform specific roles within a merchants mix.  Whilst I accept some cannibalisation will take place, there are a number of customers that wouldn’t buy without this bargain mechanic.  Examples of this type of affiliate include MyVoucherCodes and VoucherCodes.co.uk

PPC – there are some affiliates that specialise in PPC (sponsored terms in the search engines).  PPC can be a grey area in affiliates and you need to have strict control over who can bid and on what terms.  If you don’t have a PPC agency or any internal expertise, these affiliates can provide great top-up resource to your own PPC activity

Tip 5 – Understand your PPC strategy and place clear T&Cs in your programme on PPC restrictions, such as brand bidding, using your brand name in the URL, direct linking etc

Content – this is potentially where affiliates started out.  People generally with a personally interest, creating great content that they just want people to read.  These sites then realised that they could potentially make money from their sites and started selling advertising.  This could be anything from one person with their site on a topic of personal interest such as making orange food, to more established content sites such as The Sun.  Although blogs are rightly considered social media, I would place them in this section.  Nowadays blogs seem to be more geared towards providing useful content and information as opposed to the web log (diary) approach that was intended.

Price Comparison – another type of affiliate that isn’t normally relevant to all merchants is Price Comparison.  The standard of these types of sites are varied.  Some use bespoke software that allows them to scrape the web for up to date prices and deals.  The others (more akin to traditional price comparison engines) take a feed once a day and produce pricing information.  Networks have developed increasingly sophisticated tools to simplify the process for affiliates to add Price Comparison functionality to their content (the best example being Affiliate Window’s, Shop Window).  There are some broad price comparison engines available through affiliate networks, however the more successful ones for merchants tend to be the more focussed engines such as Whiteboxdeals, a Price Comparison engine specialising in large domestic appliances such as washing machines and ovens.

Social Media – with the low cost of entry of social media and the advances in affiliate technology from networks means a new wave of affiliates are emerging.  These are the ones that have embraced the newer technologies such as Twitter and Facebook.  Whilst all the research indicates that recommendation by a friend, either in person or online, is the most powerful tool, please be aware.  Some people using social media tools are not just making recommendations to their network but creating brand accounts.  This is especially true in Twitter where minimal dev work is needed.  That being said, there are a number of affiliates that have made social media work and come up with creative solutions or use an established network.

Tip 6 – If you consider using Social Media affiliates, ensure your T&Cs are very clear in terms of people using your brand name.  Also, vet applications very carefully.  Some people end up spamming contacts, which reflects badly on the merchant.

OK, so that’s it for Part 1.  In part 2 I get a bit more practical, rather than just an introduction.  I will look at what types of affiliates different sectors/merchants could be best placed using.  I will look at which affiliates and approaches you could use for different stages of a business of product lifecycle and I will also review the methods of building relationships and rapport with affiliates either directly or through the networks.  I may even explore the age-old debate about single Vs multiple network.  If there is anything else you would like me to cover leave me a comment here.

Finally, here is a recap of the tips

Tip 1 – Build in all costs to determine CPA (inc network over-ride)

Tip 2 – Negotiate your network over-ride

Tip 3 – Take a collaborative approach with your network to managing affiliate relationships

Tip 4 – Treat your affiliates as a virtual sales force

Tip 5 – Understand your own PPC strategy and reflect this in your PPC T&Cs

Tip 6 – Have clear T&Cs on affiliate use of Social Media and tightly manage applications

If there is anything else you would like me to cover leave me a comment here.


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Measuring Return On Social Media

Measuring Return on Social Media Presence

This has been the fear/worry/challenge/competitive edge of almost every company that has any form of social media presence.  From a simple company Facebook page to a fully integrated Social Media strategy.  Speak to a number of agencies or many online marketers and they will tell you it can’t be measured beyond the simple metrics such as number of fans or followers.  Perhaps at the incubation stage and to a degree the baby stage that was correct.  However now social media has grown up a little, into a healthy little toddler things have changed.

In theory you can’t directly measure the impact of a brand TV commercial, but companies do.  It is the same for social media.

Remember the strategy

A lot of talk is around the utopian idea of getting an ROI from your social media spend or presence.  However for some brands this isn’t just a case of pounds in the till Vs pounds handed out to agencies or media owners such as MySpace.  As with any channel development or Marketing activity, you need to understand what you want to get out of your social media presence.  Your strategy may be a simple one that only looks at your impact within the channel, therefore a basic upwards trending number of fans may suffice.  Your strategy maybe to increase UVs to your core website, as such you need to measure the referrals from your social media presence.  Like a TV ad you maye be trying to influence brand perception so you would look at traditional brand metrics such as awareness and consideration.  Some strategies require an emphasis on loyalty or ROI, these can be much more difficult to prove, however not impossible.

Just consider before developing any tactics or implementation, what your objectives and goals are.  Then measure.

Understanding the basics

When measuring against any goals you need to understand what is your norm or otherwise known as the baseline.  You need to look at any pre-strategy figures and work out your norm, or the contribution you can expect without implementing your strategy.  This baseline should be measured over a long period of time to take into account one-off fluctuations, seasonality and peaks – you should then use a trend line and determine your norm.

Once you have claculated your norm, it is easier to determine what the goals from your objectives should be.  If for instance your site has 10,000 UVs a week then to expect a 100% uplift from a strong social media strategy may not be impossible.  However if your site gets 100,000 UVs a week, it may be more difficult to gain a 100% uplift, although not impossible.  This seems really basic stuff but it is often forgotten. I have spoken to Managing Directors and Marketing Directors that think because there are millions of people on social network they should be talking telephone numbers in terms of traffic uplift, sadly it doesn’t work like that.  It may be easier to get a massive groundswell if your activity is in the channel the people use, you could get a massive following on Twitter as the people are already there and its their environment, rather than expecting them to come to you.

Anyway, once you know the norm of whatever metric you want to track you can more easily identify any uplift from your activity.  However it may not be all down to the new strategy, other factors might be in play, that is why it is advisable to implement a good web analytics tool.  Omniture is widely regarded as one of the better packages along with Coremetrics, however if you have your own site or limited budget then Google Analytics may suffice.

OK, but now what?

So you know what you want to get out of your strategy and you have worked out the basics, but now what?  Sit back and watch everything work away and drive you towards your goals or personal bonus.  Not eaxactly.  Sometimes people expect immediate results.  Stick it on Facebook and they will come.  If they don’t see an uplift straight away, the strategy has failed.  Wrong.  Well potentially wrong.  Remember when working in social channels you are entering the end users territory.  You have to earn the right to be there.  Give them something to talk about, make yourself interesting, but don’t make things up.

So what do I do?

Don’t look at things with immediacy in mind.  When you create a coupon for your affiliate network or raise your bid caps in Google you can often see an immediate (or quick) effect.  However you need a longer view with Social and you need to look at things outside of your specific influence.  A great area to explore is Social Media Influence or Buzz Metrics.  There are various tools and service with varying levels of robustness and credibility.  In the UK there are market leaders such as Market Sentinel and Nielsen Buzz Metrics.  There are also some freebie or cheaper tools such as Viral Heat and PostRank Analytics.  These cheaper tools are sometimes less robust or feature on a specific platform such as Twendz.  What all of these tools have in common is that to varying degrees they track what is being said about your brand or site on other platforms rather than just looking at core measures such as visits or upstream and downstream traffic.

The majority measure trends and SoV, some measure snetiment and others rank influence on brands and/or topics.  All of these are important as although your activity may not imemdiately increse traffic, it may improve the sentiment towards your brand, increasing peoples’ perception of your brand and in turn increase their potential to engage or buy.  These tools can also aid your search activity.  As product or brand experts you might think you know what people type in about your brand, however more comprehensive tools help you identify what people are typing or saying about your product.  Giving you more insight into which words you you optimise or focus on in paid search.

But can I make money from it?

Well as I wrote at the beginning of the piece remember what your objectives are.  The short answer is yes, you can make money from social media and yes social media can increase users propensity to buy, however your activity may not lend itself to that.  But various surveys have taken place that demonstrate you can specifically get an ROI from your social media presence.  According to a recent survey by eMarketer, c. 51% of US internet users are likely buy from at least one brand since becoming a fan on Facebook.   When it comes to would they recommend to a friend the number increases to 60%.  That is one indication of an increased propensity to buy.

Before you all clamber out and create or refresh your Facebook page, Forrester outlined a stark statistic.  More than one third of online users visit at least one brands social media presence, yet less than half rated the experience rated their experience as having a positive influence.  One method that the likes of Starbucks and Dell use within their social media presence is exclusive offers and promotions.  It is this sense of providing something special for fans that makes the experience positive and influence future buying behaviour.


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The Internet Landscape

NetImperative.com published a number of latest stats on internet usage this week.  But what does it all mean?

Rise and Fall of the Internet

So you probably thought that everybody that wanted to use the internet at home probably already has access.  Well according to the latest numbers from Nielsen (featured on NetImperative) there is still room for growth in major markets.  The US and UK saw significant growth, 10.4% and 3.1% respectively.    There was also growth of over 1% in Australia, Italy and Germany with more modest growths in Japan and Brazil.  Most startling isn’t the fact that some markets have continued to grow, more that some major markets have declined, including France, Spain iPhone 3GSand Switzerland. 

Whilst I don’t think the numbers should be read in pure black and white terms, it does demonstrate the issues of using data on such a small time frame and not looking at longer term trends.  The data was based only on May 09 Vs June 09.  If you were to read this on face value, it would seem USA is leading the way on the internet whilst some mainland European counties are turning their backs on the Internet, which obviously isn’t true.  I am not 100% certain but I can’t imagine the numbers Nielsen uses takes into account convergance and the growing move towards accessing the internet on mobile devices such as the Apple iPhone or the HTC Google phone.  This is also set to continue with newer style netbooks with mobile broadband capability built-in.

Top Social Networking Channels

So Facebook are the kings of social networking.  That is the widely held view and judging from the Hitwise numbers featured in NetImperative show that it represents 47% of all UK visits to social networking sites.  Interestingly Bebo has twice the traffic of Twitter and MySpace.  Another dark horseSocial Media Pic that many people completely ignore is Yahoo!Answers with 1.19% of all traffic. 

Whilst these numbers prove that Facebook cannot be ignored by marketeers, it does demonstrate the next tier isn’t as obvious and clear cut as many think.  All Marketeers should look at their target segments and choose which channel best suits their needs.  They should also consider what they have to offer each network and create firm reasons for being involved.  Despite Bebo‘s claims within their advertising sales packages, I doubt they are as big in the 25+ market as they would lead you to believe.  You must therefore determine if you have anything to offer a younger audience and if you brand belongs.

Top UK Online Retailers

Once again on NetImperative they list the Top 50 Online Retailers within the UK (listed at the foot of this post).  The list published in conjunction with IMRG and using Hitwise data is based purely on visits.   The list is fine as a benchmark but to label its output Top 50 Online retailers is somewhat over the top.  The numbers fail to recognise usability, conversion, online SoV or the obvious benchmark of turnover and profit.  If all these factors were incorporated, I am sure there would be some differing positions and maybe even some change of faces in the Top 50.

Withstanding the rationale of creating the list, the top 10 is made up predominantly of names you would consider when talking about Top 10.  Amazon (1st and 5th), Argos, Play.com, Next, Marks & Spencer, Tesco, Thomson, Expedia and EasyJet.  OK so the final few wouldn’t be in my list of Top 10 online retailers.  Despite this list IMRG claim a massive rise in spend online, largely driven by the fashion sector (none of whom really appear at the top of the list, with the exception of Next and M&S)

The most interesting element of the top 10 is that all are recognised brands.   This shows that Internet Marketeers also need to recognise the importance of brand and cannot base every business decision purely on immediate ROI or DM metrics.

Top 50 Online Retailers List  – August 2009

Source: NetImperative

1 Amazon UK http://www.amazon.co.uk/
2 Argos http://www.argos.co.uk/
3 Play.com http://www.play.com/
4 Next http://www.next.co.uk/
5 Amazon.com http://www.amazon.com/
6 Marks & Spencer http://www.marksandspencer.com/
7 Tesco.com http://www.tesco.com/
8 Thomson Holidays http://www.thomson.co.uk/
9 Expedia.co.uk http://www.expedia.co.uk/
10 easyJet http://www.easyjet.co.uk/
11 Apple Computer http://www.apple.com/
12 Ryanair http://www.ryanair.com/
13 ASOS http://www.asos.com/
14 Tesco Direct http://www.direct.tesco.com/
15 lastminute.com http://www.lastminute.com/
16 Thomas Cook http://www.thomascook.com/
17 B&Q http://www.diy.com/
18 John Lewis http://www.johnlewis.com/
19 Debenhams http://www.debenhams.com/
20 Littlewoods http://www.littlewoods.com/
21 HMV.co.uk http://www.hmv.co.uk/
22 River Island http://www.riverisland.com/
23 Currys http://www.currys.co.uk/
24 Ticketmaster UK http://www.ticketmaster.co.uk/
25 Topshop http://www.topshop.co.uk/
26 Odeon Cinemas http://www.odeon.co.uk/
27 New Look http://www.newlook.co.uk/
28 LOVEFiLM http://www.lovefilm.com/
29 O2 Shop http://www.shop.o2.co.uk/
30 Cineworld Cinemas http://www.cineworld.co.uk/
31 TravelRepublic.co.uk http://www.travelrepublic.co.uk/
32 Comet UK http://www.comet.co.uk/
33 Vue Entertainment http://www.myvue.com/
34 The TrainLine http://www.thetrainline.com/
35 British Airways http://www.britishairways.com/
36 ASDA http://www.asda.co.uk/
37 First Choice http://www.firstchoice.co.uk/
38 Dell EMEA http://www.euro.dell.com/
39 Halfords http://www.halfords.com/
40 Screwfix Direct http://www.screwfix.com/
41 PC World http://www.pcworld.co.uk/
42 GAME http://www.shop.game.net/
43 IKEA http://www.ikea.com/
44 Travelodge UK http://www.travelodge.co.uk/
45 Homebase http://www.homebase.co.uk/
46 Sainsbury’s http://www.sainsburys.com/
47 Boots http://www.boots.com/
48 ASDA Direct http://direct.asda.com
49 The Orange Shop http://www.shop.orange.co.uk/
50 QVCUK.com http://www.qvcuk.com/


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Google Adwords for Dummies – Pt.2

Understanding Adwords

Google for Dummies – The ad copy

So as with any advertising campaign the quality of message , its standout, relevance and content are all drivers of success.  Adwords campaigns are no exception.  In fact due to Google’s algorithm the quality of adcopy is even more important as not only will it assist in conversion it also has an impact on the money spent.

Simple Tip 1 – Keywords

Where possible include the keyword you are bidding on in your adcopy.  If you can include it in both your title and body copy your relevance should (in theory) be higher.  If you also have it or a derivative of in the destination URL, it should be even better.  The other added benefit is that your ads should be relevant to what searchers are looking for.

Simple Tip 2 – Multiple Ad Groups

Use multiple adgroups.  This will allow maximum flexibility in terms of keyword insertion/management in addition to managing if the product/service you are promoting is open to numerous changes of availability and price.

Simple Tip 3 – Dynamic Keyword Insertion

In theory this advanced Adwords technique cannot fail.  The ads are set up to insert the keyword into the ad, defaults can also be set if the keywords exceeds body copy limits.  This technique is done by including the following {keyword:}, the deafult keyword has to appear after the colon and before the bracket.  I would advise you keep on top of any activity using this technique.  We have had inconsistent results some really good, some no better than normal.

Remember to not use this technique when you have mis-spells in your campaign.

Simple Tip 4 – Test Creative

The good thing about Google adwords is that you can test ad copy side-by-side and optimise automatically based on performance.  Subtle differences can really change ad behaviour.  I would recommend having at least a rolling stable of two ads, although I would normally run three.

Simple Tip 5 – Don’t bid for top

A common failing for PPC beginners is the desire to aim for top spot.  This is fuelled sometimes by naivity and sometimes by senior management.  You may get higher CTR from bidding top, however it is unlikely your ROI will be any greater, in fact you generally lower ROI from being in top spot.  That is a very simplistic view and if you have the budget you should test your ads by targetting different positions to see your optimum point. 

When looking at defensive campaigns, e.g. your brand with extensions (Best Buy vouchers) you may want to bid up to ensure affiliates or other competitors aren’t trumping you.  If your sector is particularly aggresive and your rivals bid on your core brand terms, you obviously need to aim for top spot, especially if their proposition is better than your own.

Remember these tips are for beginners.  I am not trying to teach PPC specialists to suck eggs.  In further parts to this series I will look at bidding strategies, budgets, tracking and content.


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Is Online Display Advertising Dead?

Does Online Display Advertising Work?
Online display advertising regularly commands a high degree of concentration from online advertising professionals. It attracts a high proportion of many online advertising professionals time and in certain sectors, commands a high proportion of online advertising budgets.
As I have mentioned elsewhere in this blog, online is sometimes a victim of its own success. Because you can track almost anything, almost everything has to be completely accountable with no room for doubt or vagueness. Whilst this is powerful to help prove effectiveness, it is perhaps not the most effective way to manage integrated campaigns. After all, how long have advertisers spent millions on press and/or outdoor campaigns without being able to track effectiveness with any conviction.   For clarity, I am not saying these traditional channels don’t work, these can be effective but they need to be measured.
With the recession hanging over nearly the entire global economy, advertisers are evaluating all spend. If you are concentrating on purely ROI and not reach or frequency of message, online display often loses out.  There is often the argument that display is used to drive awareness or brand consideration, however how many advertisers actually measure this?  The other argument is that a different type of audience clicks on display ads, compared to other channels such as search or price comparisons. The latter is true, however as a recent study by Starcom, Tacoda and comScore illustrates that isn’t always a good thing.
The trio identified a group of individuals that they labelled “Natural Born Clickers”. Whilst this was a study in the US, it is more than likely similar here in the UK.
The study illustrates that these “Natural Born Clickers” represent c.6% of the online population. Disproportionally they account for 50% of all display ad clicks. This statistic alone illustrates that there is a small (yet not insignificant) proportion of the audience that skew display campaign results, this generally negates CTR and CPC as metrics. These audiences skew towards Internet users between the ages of 25-44 and households with a low to medium combined income. Heavy clickers behave very differently online than the typical Internet user, and while they spend four times more time online than non-clickers, their spending does not proportionately reflect this very heavy Internet usage. Whilst this audience also spends significantly more time online than the average user they are also more likely to visit auctions, gambling, and career sites.
The study obviously highlights that CTR (Click Through Rate) and CPC are not valid measurements for display advertising.  Whilst CPM is much maligned, because the impression does not necessarily mean the ad was seen, it is potentially more valid than CPC as a buying metric. In terms of brand building through display, if you are to buy on a CPM or CPC, I would suggest that you need to measure the impact on brand, awareness, consideration or actual shortlisting of your brand (dependent on your objectives).  If your primary focus is on sales at an efficient ROI, in most cases you should aim for CPA. This isn’t black and white as on a number of  occasions CPM can be more efficient than any other metric.  However, you should test different metrics on different channels.  To minimise risk, CPA is the best option.
Above all, remember anything is possible.  Don’t just think of display as banners or skyscrapers (although don’t ignore them).  Contextual, interactive ads are possible.  Sites like Facebook allow users to select or deselect the ads they show.  A site like MyDeco make the advertiser central to its contents and champions the advertiser.  You also have to be aware of some of the more interactive (intrusive) formats.  These often have high CTR, at times these are driven up by accidental clickers, sometimes trying to click off or close.  Cookies are often stored and your results are skewed to these formats if a sale is made on that PC.  I have always steered away from Pop-unders, subsites etc for this very reason.

MyDeco Example
The best lesson you can learn from this is, think differently.  Challenge your agency or the media partners you work with.  Above all, ensure you effectively de-dupe across all channels.  CPA can be fraught with issues on both post-impression and post-click sales, if you don’t de-dupe.  You won’t be able to evaluate if incremental sales were achieved as a consequence of your campaign.
Remember, I am not saying online display is dead.  To the contrary, just be careful with your metrics.  Ensure your tracking is robust and be think imaginatively with your placements and how you utilise the online opportunities.  Don’t just be another ME TOO.


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Meerkat PPC – Confused?

Compare the Meerkat PPC – Confused?

 

OK so I have referenced that I think Compare the meerkat has to be one of the top TV ads of the moment. 

Compare the Market are obviously bidding on their own campaign in Google, but hats off to Confused.com – they are also bidding on the terms.  As their ad copy also features the word meerkat, their ad is normally higher in the Google rankings.  Whilst we can’t be sure of the conversion off such terms or the ROI it is a good nudge to the team at Compare the Market.  Maybe its a little jealousy as Confused.com ads aren’t particularly inspiring.

Confused bidding on Compare the Meerkats

So the fact Confused.com is bidding on Compare the Meerkat, is amusing and slightly annoying to Comparethemarket.com and their Comparethemeerkat.com campaign.  However notice the top ranking on natural search – hardly inspiring, this is something that should have been spotted by either the creative agency or Compare the market.

Call me old fashioned but Copyright 2009 BISL Limited is not the most engaging opening to a search description I have ever heard.


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Google Adwords for Dummies

PPC – Guide to Google Dummies?

As I have mentioned previously, during these slow economic times people are striving to master the really transparent channels.  The ones that can be tracked.  The channels that produce a positive ROI.

When you think PPC, these days the majority of us think Google.  Even though I have called this a dummies guide, I could have easily said a guide to Google dummies.  Those marketeers that know they need to be on Google, but don’t have the first clue.  So what do they do?  Do they invest in learning? Do they invest in tools to make things easier?  Generally no!  These marketeers generally pump thousands, sometimes millions of pounds to an agency, with very little control or understanding of what is or isn’t possible.

Obviously there are some good agencies out there.  Even some very good agencies that add real value.  In certain sectors it also makes more sense to partner with an agency rather than invest internally.  This isn’t an attack on agencies, just an expression of thought that says before employing an agency you need to understand the basics yourself.

How long do things take?

Getting a campaign live – agencies often say it takes weeks.  In the main this isn’t true.  The basics can be live within minutes.  Obviously complex campaigns can take a period of time to set-up from scratch, but not weeks.

Getting a campaign up to full pace – agencies sometimes say it takes months to get a campaign fully up to speed.  Its no denying most campaigns don’t get up to full speed within the first couple of weeks.  However, there are quick wins.  Don’t accept ongoing claims of missing targets due to optimisation and unrealistic objectives.  A decent agency will challenge your objectives and targets it they aren’t achievable.  You should be able to get close to your targets within at least the first couple of weeks

Broadcast Vs Targetted

Don’t accept any old clicks.  Match type is incredibly important to quality score.  Your quality score is apparently reviewed after every 1000 impressions.  Broad match means your keywords and ads will be called on much less relevant content.  For instance, if I was bidding on desktop computer, my ad may appear when people search for desktop diaries, computer engineers, computer assisted design.  None of these keywords are related to our search term.  This means that in theory our quality score could go down and if people do click, chances are we will pay and it won’t convert.  Broad match is the defauly setting on adwords, great for Google to get away your budegt, not so good if you are on a tight budget or tight ROI KPIs.

I would personally recommend using broad match sparingly and concentrate primarily on Phrase and Exact match.  This controls both relevancy and costs and in-turn should improve quality score.  What this will obviously do is lower your potential traffic volumes, but it should all be more qualified traffic.

Be Negative

This isn’t asking you to be cynical of Google or PPC.  This is outlining that you must use negative keywords in your campaigns.  If bidding on Dixons, my negative keywords could include estate agency, this would ensure that when people are looking for Dixons.co.uk they don’t end up at Dixons Estate Agency.

Other things to look for

There are many other things the PPC beginner needs to look out for.  Consider your overall budget, your daily budget, how your campaign is structures, your ad copy, bidding strategy, landing pages, URLs.  I will cover these areas with tips for beginners in future posts.

Working with agencies

As I commented when I opened this post.  There is no problem working with agencies.  But you must adopt a challenging relationship.  You must challenge them to optimise to the fullest and you must encourage them to challenge you.  Above all learn yourself.  Even if you learn the very basics such as the points I have highlighted.  It gives you a better understanding and can help manage expectations.

Don’t forget

There are other search engines (Yahoo, MSN and Miva) that offer PPC, although they are much smaller they also offer good traffic.  It is also worth searching around if you are setting up an account from scratch, most of the major engines often run promotions for new customers giving sign-up bounties with Free credit.