B1BLOG

Meet us in Stockholm, Oslo (and London)

It’s speak­ing sea­son at the Ban­ner search team, and over the next couple of months we’ll be speak­ing at con­fer­ences in Lon­don, Stock­holm and Oslo.

First out is SEM Kon­fer­ansen in Oslo (14−16 Septem­ber). Here we’ll run a couple of ses­sions with a main one-hour event ded­ic­ated to share our insights on B2B search marketing.

Fol­low­ing this we’ll con­tinue our Nor­dic jour­ney and ven­ture across the bor­der to Stock­holm and the world-renowned SMX (28−29 Septem­ber). With no-less than three speak­ing ses­sions penned in it’ll be a busy couple of days.  We’ll be dig­ging into the Google qual­ity score and how to integ­rate search and dis­play advertising.

Back in Lon­don we’re run­ning a retar­get­ing ses­sion at the always-excellent A4UExpo (12−13 Octo­ber). This is the premier UK event for affil­i­ate and per­form­ance mar­ket­ing, and a bril­liant oppor­tun­ity to under­stand more about this excit­ing mar­ket­ing model.

If you’re plan­ning to attend any of the above events, please write a line in the com­ments as we’re always happy to catch-up over cof­fee in-between ses­sions. Oth­er­wise you’ll surely find us net­work­ing in the bar.

Google Updates Trademark Policies

Google has announced that it is chan­ging its ad policies to allow advert­isers to use third party trade­marks in their ad cop­ies, even without approval from the trade­mark owner. The change is aimed at allow­ing reseller and com­pon­ent seller etc, to clearly com­mu­nic­ate the brands they sell or support.

The policy is already in place in the US, and will soon extend to the UK, Ire­land and Canada.

Fur­ther­more, as a con­sequence of Google’s recent win over Louis Vuit­ton in the European Court of Justice and also French High Court that allowed com­pet­it­ive trade­mark keyword bid­ding, this will now be opened up across the EU. This is already the case in most other mar­kets such as the UK.

Both policy changes are planned to come into effect on 14 September.

Read the full press release.

Search is about Humans, not Technology

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.

( Photo cc by Emelie Ogez )
( Photo cc by Emelie Ogez )

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.

The double-edged sword of PPC click-through

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.

Max bid CTR Qual­ity Score Actual CPC Con­ver­sion Rate CPA Volume
(at on 2k
impressions)
Ad 1 £5 3% 10 £3 5% £60 3
Ad 2 £5 2% 5 £5 10% £50 4

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.