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Even if search has matured incred­ibly over the last few years, both from a tech­nical point of view and as a chan­nel that gains board room level atten­tion, a lot of the basic issues remain the same. I’m not talk­ing about cross-channel click attri­bu­tion and life­time value, but cam­paign coördin­a­tion and achiev­ing the appro­pri­ate buy-in at all levels of the organisation.

Earlier this year Ban­ner organ­ised a Search Huddle. This was an intim­ate ses­sion for B2B mar­keters with speak­ers from Autodesk, Avaya, and Microsoft.

While the event was roun­ded off by Cedric Cham­baz, mar­ket­ing man­ager at Microsoft and myself, by look­ing at the latest devel­op­ments of search and what lies ahead, what gen­er­ated the most debate was how to get the fun­da­ment­als right; what can you do today, to make a tan­gible dif­fer­ence to achieve your objectives?

Dominic Jukes, web mar­ket­ing man­ager at Autodesk shared his exper­i­ence of man­aging inter­na­tional paid search cam­paigns, and high­lighted recent cor­por­ate struc­tural changes that had helped facil­it­ate increased own­er­ship and sub­sequent coördin­a­tion of their search mar­ket­ing efforts.

Avaya, rep­res­en­ted by editor-in-chief Jerome Toulorge, used paid search in a dif­fer­ent innov­at­ive fash­ion. With the object­ive of gen­er­at­ing sales through their chan­nel part­ners, together we had cre­ated a paid search reseller pro­gram that was rolled-out with selec­ted part­ners across Europe. The chal­lenges faced where not so much about tech­no­logy as it was about com­mu­nic­a­tion and education.

The event clearly high­lighted that although search can many times be per­ceived as a highly tech­no­logy focused mar­ket­ing chan­nel; the biggest factor to suc­cess is still the people driv­ing it.

With search engines char­ging for clicks and not impres­sions and typ­ic­ally being con­sidered a dir­ect response chan­nel, you may be for­given to think that there’s little need to optim­ise for click-through rate (CTR). How­ever, since CTR is the major­ity factor to determ­ine the so-called qual­ity score, which impacts the cost-per-click (CPC), this will affect the suc­cess of the cam­paign; regard­less of if object­ives are sales, leads or traffic.

Why are search engines doing this? The adverts CTR is an import­ant sig­nal of “qual­ity” for search engines. The logic is that if the advert matches the users query, they will click it. There­fore the higher the CTR, the more rel­ev­ant the advert is assumed to be. And of course, since the search engines charge advert­isers per click, their rev­enue increases.

The fol­low­ing chart out­lines the main factors that determ­ine the qual­ity score for a keyword on Google Adwords. This qual­ity score is then used in an algorithm that determ­ines click-cost and pos­i­tion.

Due to this, it’s very pos­sible that an advert appear­ing in top pos­i­tion is pay­ing less per click than the one below. The search engines are of course max­im­ising their rev­en­ues by the higher num­ber of aggreg­ate clicks that the top CTR advert is producing.

To make things more com­plex for advert­isers, con­sider the fol­low­ing scen­ario: an advert with lower CTR is con­vert­ing very strongly on the web­site, as it effect­ively pre-qualifies the traffic. In com­par­ison a high CTR advert for the same cam­paign con­verts poorer, as it doesn’t seek to fil­ter out unwanted traffic at the ad level, but instead on the land­ing page. Which should you run?

At this stage you would need to cal­cu­late the actual cost-per-action and volumes that can be achieved, depend­ing on objective.

In prac­tise, it’s dif­fi­cult to make this type of dir­ect com­par­ison on a live cam­paign, due to the ever-changing nature of com­pet­i­tion, qual­ity score, pos­i­tions and costs. How­ever, from exper­i­ence, typ­ic­ally for b2c the bene­fit of a higher qual­ity score from optim­ising ad cop­ies towards CTR (with res­ult­ing lowered CPC and higher pos­i­tion) out­weighs the altern­at­ive, whereas for B2B it might not be the case.