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May 19, 2010

Lessons Learned From PPC and Fantasy Baseball

Filed under: Advertising, Internet Marketing, Pay Per Click, Search engines — Tags: , — Chris Leone @ 3:00 pm

I love baseball. Unfortunately for me, I’m a Met fan. This typically means seasons of high expectations followed by disappointment. Heart-breaking season after season aside, I can’t help but stay involved in a sport I grew up loving. Fantasy baseball has become a great way for me to do this. Not to mention it forces me to learn and stay up to date with individual players from different divisions and leagues.

I also really like search engine marketing. Specifically, pay-per-click marketing, or PPC. While it does sound nerdy to love something like search engine advertising, there’s something about the strategy, data, and freedom to experiment while receiving almost immediate results that can just perk up my day.

In my time managing countless PPC campaigns and my (much more) limited time managing fantasy baseball teams, I’ve begun to notice a lot of similarities between the two. While there’s not a perfect overlap, there are several practices and strategies I find myself applying between both my PPC campaigns and fantasy baseball teams that lead to successful results. Below are my top five strategies for managing a successful PPC or fantasy baseball team.

Key Metrics:
PPC – First thing’s first. What are the macro level goals, the micro level goals, and how do they relate? Clicks, click-through-rate (CTR), cost-per-click (CPC), average position, conversions, cost per conversion, bounce rate, pages per visit, time on site and submissions. These metrics represent some of the many dials on the dashboard I need to pay close attention to. Generally speaking, each metric has a good and bad direction. High CTR is good, low CTR is bad. Low CPC is good, high CPC is bad. But it isn’t exactly fair to say I’ve failed because CPC is higher this week or if CTR is lower this month. There could be a bigger, more important story happening that offsets the movement of these individual dials.

Fantasy Baseball – In my league, like any other, there are key statistics identified by the league manager in the beginning of the season that our teams will compete head to head against each week. This includes hits, home runs, RBI’s, ERA, Saves, and several more. While it would be great to sweep in each category every week, the reality is that in order for your team to compete in many categories, it can be very difficult to build your team around winning EVERY category.

Principle: It’s ok to sacrifice one metric for another in order to achieve a greater result. Low CPC is good, but sometimes you need to bid more competitively to show in a spot that will earn you conversions. This could raise your CPC, but the higher conversions will offset the cost. Winning the triples category is good, but trading for the (slower) power hitter will make you more completive in more categories. Your team now has less speed, but winning the power categories could offset your weakness in the speed categories. Only judge success by the outcome of one metric if that’s the one metric for which you’re responsible. Otherwise, you must be willing to look at the bigger picture!

Competition:
PPC – In most cases, your ads won’t show by themselves (especially if you’re only showing on the search network). Research to see who your competition is and how/what they’re advertising. You are competing to earn the searchers’ click. In order for this to happen, your ad needs to be more attractive and more relevant than the others. Period.

“You are competing to earn the searchers’ click.”

Fantasy Baseball – In most leagues (including mine), your team goes head-to-head against a different team every week. This means to win this week, your guys need to beat his guys. To win the following week, your guys need to beat someone else’s guys.

Principle: Don’t live in a vacuum! Know and adjust to your competition. A PPC campaign in a can that doesn’t adjust for your market and your competitors won’t have the magic touch to set itself apart. Likewise, finding the holes and weaknesses in your competitor and modifying your roster accordingly could be the deciding factor in that week’s matchup. Know everything you can about your competition and do it better.

Let The Data Decide:
PPC – Between your PPC interface, your web analytics, and any other internal tracking you may be using, we have oodles and oodles of data that tells us which keywords, ads and landing pages work and don’t work. This doesn’t always mean we live by it, though. Often times, we’re pressured by clients or the people who are paid more than us to “include this!” and “include that!” What we end up with is a campaign full of keywords the data says should go, but we’re pressured by someone NOT looking at the data to keep them in.

Fantasy Baseball – We all have our favorite teams and our favorite players. The temptation will be to take some players with which you have some sort of association. For example, the mediocre shortstop of your favorite team, the guy who’s foul ball you caught 3 years ago, the prospect you’re been following that just got called up but will only see limited action at best. Before you know it, you prevented yourself from filling your roster with the most qualified players and instead with the players you like.

Principle: Let the data drive the decisions. Hunches can be a good starting point for PPC and deserve their fair shot, but be prepared to cut them out if they’re spending your money without producing. Likewise, sentimental favorites can add a more personal element to your fantasy baseball roster or may make you more tuned to potential outbreak seasons, but the chances are they won’t carry your team. Heck, they may not even contribute their fair share. If the data doesn’t say they’re producing, cut them loose.

Give It Some Time:
PPC – While we can literally get feedback on campaign changes the same day, there are several reasons to let your changes sit for at least a week (or two) before coming to a decision. 1) the system takes several days to recognize and understand your changes, 2) quality score is estimated by the system until it has enough data to calculate a truer quality score, 3) the longer you let a change sit, the more data you’ll have when making a decision, 4) brief irregularities in demand or competition could influence the results of your changes.

Fantasy Baseball – Like PPC, we have updated stats to check pretty much every day. Having different match ups every week along with a surplus of players may tempt us to release and sign on new players every day based on the performance in only a handful of games. The reality is players goes through slumps and streaks. Even the hottest players go 0-4 and even .125 hitters will have 4 RBI 4-4 games. In baseball, this is normal and shouldn’t (entirely) influence whether or not the player is right for your roster.

Principle: Give your changes some time. Between how a pay-per-click system operates and the human element of a baseball player, make it general practice to wait AT LEAST one week (two weeks if you can stomach it), before deciding whether or not you made the right call. (The exception being if your changes are having Godzilla-like devastation. In which case, act fast!)

Be Active:
Of all the principles that overlap between these two, this has to be the most important. Running a PPC campaign or managing a fantasy baseball team is not a passive activity (if you want to succeed, at least!). Both require you to get in the trenches and test, read, watch, compare, experiment and create. Staying active in fantasy baseball means you know when a valuable free agent is about to come off the DL, making him ripe for the picking. Staying active in PPC means targeting keywords and ads around a temporary event or occasion that’s relevant to your business. Staying active in fantasy baseball means benching the outfielder who is 3-30 against the starting pitcher he is facing that day. Staying active in PPC means adding a new set of ads based on your two week experiment’s results. Strategic moves like these often make or break the success of a campaign. But like anything organic, it requires nurturing and attention to grow and succeed.

Review:

  1. You can’t always win in every category! Be willing to look at the bigger picture
  2. Know what your competition is doing and do it better!
  3. Let the data decide
  4. Give your changes time
  5. Be active

While I haven’t covered all the bases (pun intended!), I think the above 5 represent key principles anyone with a PPC campaign or fantasy baseball team should consider, nay, live by. If you don’t agree, I’d love to hear your counter argument in the comments.. If there’s anything important I may have missed or you have your own quirky analogy, I’d love to hear that too. In the meantime, here’s to many keyword homeruns and Cy Young caliber conversion rates!

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April 13, 2010

Will Apple’s iAd Be Successful?

Filed under: Advertising, Internet Marketing, Mobile — Tags: , , , , — Chris Leone @ 4:09 pm

As the world becomes more mobile, tech companies are finding ways to shift their technology, software, and revenue platforms. Apple continues to take on Google following Google’s jump into the smartphone market with the Android operating system and Nexus One hardware. Following Google’s recent purchase of the mobile advertising platform AdMob (which is still waiting approval by FTC), Apple had to develop its own mobile advertising platform to exist within their mobile application marketplace. Enter: iAd

What is iAd?

  • Mobile advertising within iPhone applications (apps)
  • Content based advertising – ideally, the ad shown relates somehow to the content being viewed or the person viewing the content
  • CPM model (cost per thousand views). The advertiser pays a set amount for every thousand times their ad is shown

Who Will Use It?

  • Advertisers pay to have their ads show in iPhone applications
  • The developer of the app showing the ad makes 60% of revenue
  • Apple takes the remaining 40%
  • The user potentially gets more free apps but with (intrusive?) ads

Why?

Apple has sold 50 million iPhones to date (85 million with the iPod touch included.) As of April 2010, there are over 185,000 apps in the App Store with downloads exceeding 4 Billion. This equates to a lot of eyeballs. The increased technology and capacity in smartphones coupled with the increased adoption by consumers puts more smartphones in more hands and more eyeballs on third party apps. For this, market analysts anticipate mobile advertising revenue to rise sharply as the smartphone and mobile computing industry rapidly expands.

In the OS4 announcement, Steve Jobs billed this as a way for more developers to provide free apps because now they can monetize what was previously free. So whether or not the app has a price tag, the developer still stands to make money.

Likewise, Apple monetizes the previously non-existent revenue channel of free apps. While only 25% of iPhone apps are free, that’s nearly 50,000 apps that now have a way to generate revenue. Developers are excited because they can make money on free, impulsive-prone downloads. Meanwhile, Apple has found a way to turn a quarter of their app store into potential money makers.

The Economics

What is better for Apple? Someone paying a couple dollars for an app or downloading free app with iAd impressions? Clearly, it’s a win/win either way. Either they get revenue from the purchase or impression revenue. But how significant could iAd revenue be?

According to Apple, they’ve sold 50 million iPhones to date. Consider 6 million of those are the original iPhone and another 4 million are newer models that have been damaged, replaced, or lost and you get 40 million active iPhones in the world today.

Now consider app usage. The number of apps downloaded as of April 2010 comes in around 4 billion. Rough estimations put the number of apps that people continue to use after downloading around only 10% (we’re all guilty of downloading useless apps for the novelty only to delete or remove them shortly thereafter).

So 4,000,000,000 downloads x 10% retention rate* = 400,000,000 retained apps

*retention rate is likely much higher for paid apps and conversely much lower for free apps

Divide the 400 million retained apps out over the 40 million active iPhones around today and this comes to 10 downloaded apps per person that stay active on an individual’s iPhone.

About 25% of App Store apps are free, so assuming iAd will be present exclusively in free apps, 25% of those 10 apps (2-3 apps total) stay on the iPhone and show iAd ads (iAds?).

The adoption of iAd among developers is still unclear, but let’s assume mass adoption by the dev community. If 2-3 apps per iPhone are eligible to show iAds, this could mean 5-10 ad displays (or impressions) per iPhone per day.

With 40 million active iPhones seeing 5-10 ads a day, this would amount to 200-400 million impressions/day through iAd. That’s 73 to 145 billion impressions per year.

CPM is predicted to go as high as $15 for the most premium content. Multiply the number of impressions times potential CPM, consider Apple’s 40% share, and you’re well into the billion dollar range (8.7 billion based on the above numbers) in yearly revenue just through iAd.

And, oh yeah, this doesn’t even take into account iPods and iPads.

Should We Be Excited?

If you’re Apple, you should be. This could potentially be a new multi-billion dollar revenue channel.

Should advertisers be excited? In the end, it’s just content advertising. Will it lead to better ROI than Google (search or content) or Facebook advertising? I don’t believe so. If Apple really expects CPMs as high as $15, it would be more than tempting to abandon iAd for other content based platforms.

Should consumers be excited? Yes and no. While advertising on your personal smartphone is intrusive and could take away from the user experience, iAd could lead to bigger and better apps as developers find it more economical to stay involved in app development.

Apple is working with what they have: a ton of eyeballs holding their hardware using apps for which they control distribution. It is a CPM model – which takes total focus off the consumer taking action and instead charges money for every thousand times it interrupts and shouts at someone not asking to be interrupted. Jobs happily talked down the search advertising (CPC) model during the OS4 keynote, but it is still the most effective (and measurable) online advertising model today.

Most agree Mobile is the future. Is this a winner for monetizing the shift and will it pay off enough to keep advertiser’s wallets open? That has yet to be seen. But the potential for a huge payoff certainly exists.

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April 2, 2010

Tracking Offline Marketing Campaigns In Google Analytics

Filed under: Advertising, Offline Tracking, Web Analytics — Tags: , — Chris Leone @ 7:33 pm

What makes online marketing so appealing is we can track every action and nearly every interaction on our website.

If you have an SEO program, we can show you how many visits you get for each keyword and how that traffic meets a desired objective on your site. If you run a PPC campaign, we can see the ROI for each individual keyword you target in your campaign – for example, bidding on “richmond widgets” has cost you $20 in clicks and given back $75 in revenue.

But even in 2010, businesses and brands are still putting money into offline marketing channels – be it radio, TV, or print. Fortunately, you don’t have to be left in the dark as to whether or not these campaigns are having a meaningful impact on your business.

The following is a simple, but a very powerful way to measure an offline campaign as it relates back to your website.

The inherent problem with offline campaigns is there isn’t a unique condition associated with the visitor once they land on your site. With online campaigns, Google Analytics has built in tracking to automatically segment visitors based on the condition with which they arrived – i.e. from pay-per-click, search engine, etc. Since there is no inherent condition for someone who saw your advertisement in the Sunday paper and then went to your site, we need to create a condition for them. Here’s a scenario:

You are the owner of Acme Widgets & Doodads, Inc. Your website is http://www.acmeproductsinc.com. Up until now, every advertisement you’ve run offline uses the acmeproducts.com web address. The issue here is when someone sees the advertisement and types acmeproductsinc.com in their browser, they automatically get dropped in the bucket with everyone else who directly visits acmeproducts.com.  Regardless of whether they saw your advertisement, were referred to the site by a friend, saw it on a business card, or already knew the web address some other way, they all look the same in the data.

same2

This time around, you really want to see the effect of a new widget advertisement in this month’s trade magazine and how it impacts site traffic and online sales. So what do you do? You send them somewhere else.

Kind of…

As we already covered, giving everyone your standard web address dumps them into the very large category of Direct Traffic. To break away from this, you can implement a vanity URL in your advertisement. A vanity URL is nothing more than a separate web address that automatically redirects back to your primary site.

So for your widget advertisement, you advertise the URL UseAcmeWidgets.com instead of AcmeProductsinc.com. You have your web guys set it up so when someone visits this address, they automatically get redirected to acmeproductsinc.com.

vanity2

(Note: This is NOT sending them to a mirror site. They are seeing the same site at the same address – acmeproductsinc.com. They are simply passing through a different URL before arriving at the main site.)

The user experience hasn’t changed, but by passing them through the faux web address, ultimately sending them back to the main site, we can break down everything they do on the site and credit the advertisement for generating the traffic. When we redirect a vanity URL to your main site, we can add special tracking that makes Google Analytics process the data the way we want to see it. By creating this condition, we can then break down the data to only show those who passed through the vanity URL. This let’s you see how much revenue print advertisements contribute to your bottom line and by using the same technique with radio or TV (using a unique address in each case), you can compare conversion rate and see which has been most effective.

goal2

If you run an ecommerce site, you can tie it directly back to purchases and order value:

ecomm2It’s a relatively simple method, but it’s very effective – so long as you have the right tools in the right place. The possibilities don’t end here as there are ways to dive deeper and deeper into time and geography. If for no other reason, this is a testament to the power of implementing an effective website with the proper web analytics in any marketing campaign – online or off.

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February 11, 2010

Simple Tips For Measuring Print Advertising

In these lean times advertisers must ensure they get a good return on every advertising dollar spent.  Print advertising is often the most difficult to evaluate impact but with a little thought, it becomes easy, especially if you are using your website the way you should.

Here’s an add I saw in the newspaper (yes, I still read the newspaper while having breakfast – it satisfies my need to always do more than one thing at a time).  Finks Jewelers is a great jewelry store and this add is simple, elegant and tasteful.  But, how will Finks know if it had an impact or if what they paid generated a reasonable return on investment.  Notice in the ad they are using their standard home page url.  They are also using their standard phone number.  There’s just know way to determine if they get any phone calls or website visits from the ad.

"Newspaper Ad for Finks Jewelers"

Here’s a way to measure if the ad had an impact.  Finks could:
1) Purchase a unique url – something like finkscharmset.com.  Even if they didn’t create a unique landing page for this url within their regular website, they could code their web analytics to track how many people come to the site using this unique url.  Additionally, they can
2) Purchase (or use) a unique tracking phone number and with the right technology, can get a report that tells them how many people called specifically from the ad.  That’s how you can measure whether the ad has its desired impact – and best of all it is pretty inexpensive to do.
Finks likely spent a couple thousand on this ad, and that’s a meaningful enough investment to make sure they understand how it performed.  With the right combination of phone tracking and/or web analytics, Finks can measure the impact and evaluate the frequency and method of future newspaper advertising.
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January 20, 2010

The Maturity of the Tail

Filed under: Advertising, Internet Marketing, Search engines — Tags: , , — Gerald Glickman @ 2:55 pm

Years ago, the internet was kind of this untapped void that we were all excited about.  As industry, business, and culture have absorbed more and more of the internet into our daily life and processes, we have a better sense of what the internet might be able to do for us.

We’ve searched, and found.  If we don’t find exactly what we’re looking for, we have a decision to make.  Do we change the search term in general or perhaps make it more specific?  Research shows us that over the years we have done both.

In 2000 I might have searched for “pizza Blacksburg Virginia”.  In 2010 if I want pizza I search for “pepperoni pizza specials 23221”.  Why?  Because in the last decade we’ve all grown more and more accustomed to being able to find what we are specifically looking for.  If the search is too specific we can always make it more general – but this model has flipped as usage and growth of the internet has taken place.

Take a look at the average amount of keywords per search query over the last few years. Between 2004 and 2005, 1 and 2 word search terms comprised more than 50%.  Since January of 2009, more than 50% of all search terms are 3 words or more.  Not surprisingly, research also tells us that user satisfaction increases with the length of a given search term.  People know that they can look for whatever they want and most likely find it.

Keywords per Search

Keywords per Search

The implications involved with this to me aren’t always apparent to most business owners.  To me, this is what that means for any business (especially niche businesses or B2B): whatever you do – it’s no longer a niche because the world has the ability to look for exactly what you do at any moment – and they are!  If you have one single competitor, you should probably look into making sure you are in front of the people that are looking for you regardless of how your business has been successful in the past.

Sources: http://ils.unc.edu/~dianek/belkin-sigir03.pdf

http://www.trendsspotting.com/blog

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December 7, 2009

Risk Tolerance: Proven Vs. Accountable Advertising

Filed under: Advertising, Internet Marketing, Web Analytics — Tags: — Gerald Glickman @ 8:58 pm

Does not being able to measure your ROI for a given investment make other, more accountable advertising options the smarter choice?  You would think so, but there is a reason why businesses have been investing in traditional methods of advertising for decades (and still do).  Maybe it’s because it was the only thing available years ago, but in today’s world understanding your own personal tolerance for risk is the greater issue.

Your billboard, television, print, and radio consultants will most assuredly provide you with metrics relating to visibility and penetration, making broad assumptions relating to conversions or actual sales.  But at the end of the day most business owners that I talk to answer with “I’m not sure” when I ask them what their ROI is for their creative advertising.  Now I’m not here to say you shouldn’t be investing in creative advertising; for most businesses the right portfolio should really be the goal.

A lot has been lost when it comes to the argument between web advertising and creative advertising.  Creative consultants say that web advertising is expensive and complicated.  Web consultants say that creative isn’t accountable and can also be extremely expensive.  I’m here to say that business owners need to come to terms with the strengths of both.  Make a decision to effectively manage the risks involved and diversify your portfolio (just like any other investment).

If I know that television advertising isn’t going to provide me an exact ROI for my dollar, but I know it helps grow my business, that’s fine.  I’m not saying any traditional business should be doing 100% web or 100% creative; my submission would be to decide how much of your portfolio you want to be accountable and how much of it you want to be simply “proven”.  Come to terms with your comfort level regarding how measurable you’d like your investments to be and make smart decisions.

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July 10, 2009

It's Curtains for Web Pages

Filed under: Advertising, Web Design — Tags: — Chris Walke @ 6:41 pm

Here is a short video demonstrating a commercial application introduced this week by Eye Wonder Labs of their PageMorph technology.  It can be used to feature an underlying ad from a web page using a technique very different from the more standard pop-up.  In this video I recorded a BMW ad that ran on a European moto sports website.  The user clicks on a button and the page divides with the halves moving back in a curtain effect to reveal the underlying ad.

The actual instances where this technique could be used may be limited, but it just demonstrates the almost daily advances in web technology.  Effective websites are dynamic, meaning it is important to maintain fresh content and use website design techniques that attract targeted traffic and convert business.

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