How to Turn Online Marketing Into a Profit Center

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1 How to Turn Online Marketing Into a Profit Center Sheila Frugé, About Sheila 10+ years technology marketing experience 7+ PPC & B2B Online Marketing Specialty AdWords Certified Partner Bing Ads Accredited Professional Google Analytics, GAIQ Certified UC Berkeley Extension Digital Marketing Instructor 1

2 Overview Introductions, Specific Interests Name Why are you taking this class Specific interests Online Marketplace Introduction How Paid Search Works Demand Planning & Opportunity Scoping Web Traffic = Money 2

3 Online world: Search & Display Networks Source: Organic & Pay Per Click (PPC) Organic results receive 75% of clicks. Paid search receives 25%.* Organic is free, perceived as more credible and enables competition with competitors that have larger PPC budgets. Search engine optimization only impacts organic search results. 6 3

4 Paid Search Value Prop Reach Relevancy ROI Reach Online Users Source: https://www.engageforagencies.com 4

5 Reach- Online Users Using Search Source: Industry Landscape It s a big marketplace, there are nearly 17.7 billion explicit monthly searches in the USA alone There were 1.1 trillion display ad impressions in Q It s a highly targeted and accountable medium. There are over 200 search engines. Search Display Source:http://www.comscore.com/Insights/Press_Releases/2011/5/U.S._Online_Display_Advertising_Market_Delivers_1.1_Trillion_Impressions_in_Q1_

6 Top Advertisers AT&T, Experian and Scottrade were the top advertisers in Q1, 2011 Source:http://www.comscore.com/Insights/Press_Releases/2011/5/U.S._Online_Display_Advertising_Market_Delivers_1.1_Trillion_Impressions_in_Q1_2011 Most Expensive Keywords Source: 6

7 Why Paid Search Reach Relevancy ROI Know Thy Audience. Searcher s Intent 7

8 Ad Drilldown- Search Source: From the ebook: An Introductory Guide to Paid Search Best Practices Ad Drilldown- Display Source: 8

9 How Does Paid Search Work? Source: Paid Search Auction Overview Source: 9

10 Paid Search- Ad Rank Source: Paid Search Auction Results Source: 10

11 Paid Search Auction Overview Source: AdWords Settings Source: 11

12 AdWords Content Structure Source: AdWords Content Relationship Source: From the ebook: An Introductory Guide to Paid Search Best Practices 12

13 Why Paid Search Reach Relevancy ROI PPC Industry Facts Source: 13

14 PPC Key Metrics Half the money I spend on advertising is wasted, and the problem is I don't know which half John Wanamaker, Marketing Pioneer Focusing on the right metrics will enable fact based decision making, no more guessing!!! Clicks = keywords, relevancy, ranking CTR = keywords, ad copy Conversion rate= landing page, offer Impression Share= market presence Cost per action (CPA)= landing page, offer Revenue per acquisition, click, impression PPC Key Metrics Source: From the ebook: An Introductory Guide to Paid Search Best Practices 14

15 Return On Investment Know how much a prospect is worth to your business Know lifetime value of a customer Set target CPA price Review ROAS regularly and adjust bids based on profit data Getting Started 1. Identify marketing goals 2. Research keywords 3. Scope opportunity & budget 4. Get a website & analytics 5. Develop valuable content/offers 6. Start PPC campaigns or hire SEM pro 7. Execute SEO & Social Media & 8. Review, Optimize, Repeat

16 Why Hire a Professional SEM? Steep learning curve Limited in house resources/expertise Leverage their experience to ramp up faster More strategic management & tools & deeper access to the engines How to Find Demand 16

17 Regional Interest & Related Terms Keyword Research/Demand Planning 17

18 Scope Opportunity & Budgets Use Google Traffic Estimator tool to determine cost of traffic Always scope based on exact match Cheaper to fail online than offline Class Exercises Keyword Research & Opportunity Scope Monthly budget: $600 Monthly impressions: 9518 Monthly clicks: 439 (multiple daily clicks by 30.4) Assumed conversion rates and cost per action (CPA) 4% conversion rate= 18 event registrations, $33 CPA 6%= conversion rate=26 event registrations, $23 CPA 10%= conversion rate=43 event registrations, $10 CPA *calculate conversions by # of clicks by assumed conversion percentage 18

19 Thank You For questions or comments: (650)

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