january tapping white spaces in search engine marketing. NetElixir TM SEM Ideabook
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1 january tapping white spaces in search engine marketing. NetElixir TM SEM Ideabook
2 Dear Search Engine Marketer, message from our CEO I have great pleasure in presenting to you our 2012 SEM Handbook Tapping White Spaces in Search Engine Marketing. Over the past couple of years, at various retail marketing forum, I have heard marketers complain about the declining efficiency of search engine marketing (SEM) and how it has become difficult to run profitable SEM campaigns. We beg to differ. SEM is by far the most effective online customer acquisition channel. NetElixir manages search advertising programs exclusively for retail industry. Since 2005, we have helped over 200 retailers run profitable SEM campaigns. We agree that SEM has become hyper-competitive and CPC s have nearly doubled for many categories over the last 24 months. However, we also know that smart search marketers can still successfully grow their online business through SEM. They just need to tap the white spaces. This handbook introduces the concept of white spaces in SEM and offers concrete ideas to tap these. Wishing you a happy, healthy and successful 2012! UDAYAN BOSE Founder & CEO NetElixir,Inc.
3 white spaces in SEM - definition: A place where the search engine marketer may have room to maneuver in a crowded playing field. White space is an opportunity external as well as internal. As search advertising has become increasingly competitive, it has become imperative for a marketer to seize these opportunities. The marketers who have been able to identify and tap the white spaces have seen their SEM revenues and profits soar
4 Ability to tap white spaces can propel SEM revenues ability to tap white spaces can propel SEM revenues to an to entirely an en3rely different different level. level Revenue growth due to Revenue an ability growth to identify due and To an tap ability white to space. iden3fy And tap white space. Revenue growth due to Revenue growth campaign management Due to campaign efficiency. Management efficiency Source: NetElixir Retail Retail Intelligence Research. Research. Actual SEM Actual Revenue SEM Revenue data for a data leading for gourmet a leading food gourmet client whose food client SEM campaign whose SEM NetElixir campaign started managing NetElixir in started January managing from January
5 how to identify white spaces in SEM? External Factor Analysis: - What are the key industry trends that have the potential to impact your SEM program? - Who are the key players in your industry? Who is the leader and who are the followers? - What factors (new entrants, new channels, etc.) can disrupt your customer acquisition model? Internal Factor Analysis (Identifying Internal Sign Posts): - How strong is your SEM plan? Is your plan as relevant today as it was when you developed it? - How strong is your execution process? What are the critical drivers? - How are you measuring success and progress? How relevant are the metrics? - 3 -
6 3 places where NetElixir has been able to identify and tap SEM white space. Execution SEM Plan (strategy) Measuring Performance White Spaces in SEM - 4 -
7 SEM plan How robust is your SEM plan? Using the GOSTA format to build your SEM plan
8 SEM plan how robust is your SEM plan? Are your SEM goals in line with overall marketing goals? Do you have a concrete shared plan of achieving your SEM goals? What are the key strategic initiatives for your SEM program for 2012? Who owns the strategic initiatives? Is there a Plan-Do-Check-Act model in place to ensure your SEM program is progressing in the right direction? - 6 -
9 SEM plan using the GOSTA model to build your SEM plan. The GOSTA (Goals/Objectives Strategic Initiatives Tactics Analysis) model helps you connect your SEM goals to results in a planned way. The model can be (and should be) built collectively with various stakeholders within the Company. The model is progressive in nature and offers complete transparency and accountability for the total SEM program management
10 SEM plan the GOSTA model The GOSTA Model SEM Plan Business Goals/Objectives Strategic Initiatives Ini3a3ves Tac3cs Tactics Budget allocated Allocated Objec3ves & ROMI & ROMI Promote STAR and ASPIRANT categories through PPC, CSE and SMM Category level channel efficiency analysis and budget re alloca3on $X $10,000,000 revenue from new online customers ROAS = 400% PPC Share of Voice > 80% Out flank compe3tors in categories X,Y and Z through strategic promo3ons Use Compe3tor Offering, Promo3on and Messaging Grid to iden3fy opportunity gaps $Y 5 10% PPC SOV gain for categories X,Y,Z Track PPC SOV on a monthly basis at category level $Z
11 execution the SEM program execution model. 3 fresh ideas to identify white spaces
12 execution SEM program execution model: basic Strategic Initiatives People Idea Forum SEM Execution Processes Technology
13 Execu3on Execu3on execution Observation Testing SEM Program SEM Program Execution Execu3on Model: Model: Advanced Advanced Knowledge Experience SEM Pro Mod
14 execution 3 fresh ideas to identify white spaces
15 Using Real Time Tweets to Build Smart using real time tweets to build smart Search Campaigns search campaigns. execution Execu3on Real Time Tweets Extract Keywords from live tweets using LXRRetail Create ad groups with these keywords Analyze Performance and Use Insights to drive results
16 Using the dual power of SEO+SEM to drive results Execu3on Idea Checklist Why is it important Example Using the dual power of SEO+SEM to drive results using the dual power of SEO+SEM to drive results. Idea Checklist Why Improved is it Important SEM spend efficiency. Example It is possible to gain an idea of op3mal organic and PPC lis3ng Create a list of keywords for which you want to op3mize search adver3sing (SEO+SEM) Create a list of keywords for which you want to op9mize search adver9sing (SEO+SEM) ROAS (Total Search Revenue/Total SEM Spend). Track the ROAS for different combina9ons of search lis9ng posi9ons. ROAS (Total Search Revenue/Total SEM Spend). Track the ROAS for different combina3ons of search lis3ng posi3ons. SEO/SEM Dashboard SEO/SEM Dashboard Improved posi3ons. SEM spend efficiency. It is possible to gain an idea of op9mal organic and PPC lis9ng posi9ons. Optimal Listing Position for Organic and Paid Ads Op3mal Lis3ng posi3on for organic and paid ads SEM Spend SEM Spend execution SEO/SEM dashboard
17 execution Use the Opportunity Matrix to iden3fy white spaces use the opportunity matrix to identify white spaces. Execu3on Keyword Strategy Ad Copy Strategy Bidding Strategy Landing Page Strategy External Business Factors Consumer Markets Compe9tors Occasion
18 measuring performance the importance of building KPI s that are relevant for your business. 3 powerful SEM KPI s and why they are important
19 measuring performance the importance of building KPI s that are relevant for your business. KPI s should be in line with your SEM goals and strategic initiatives. KPI s should offer you actionable insights. Your business goals keep evolving. So should your KPI s
20 3 powerful SEM KPI s s and why Measuring 3 powerful they are SEM important. KPI s and why they are important. Performance SEM KPI How is it calculated Why the KPI is important measuring performance Comments Profit Per Click (Also called Value/Click) (Revenue Cost)/ Number of Clicks Helps you measure the contribu3on from overall account level down to individual keyword level. We recommend using this KPI separately for brand (trademark) and non brand keywords. New Customer Acquisi3on Poten3al Number of new customers acquired through SEM/ All customers acquired through SEM Helps in gauging the efficacy of SEM as new customer acquisi3on channel. We recommend using this KPI for all the customer acquisi3on channels. This metric is useful in comparing new customer acquisi3on poten3al of different channels. New Customer Value Average First Time SEM Order Value / New SEM Customer Helps in quan3fying the true value of a new SEM customer. This marginalizes the impact of various other factors (site related and external) that may influence subsequent order composi3on. This is a tough metric. However, this metric forces the search marketer to think beyond the obvious to iden3fy white spaces
21 key concepts: summary The Search Engine Marketing world has become hyper-competitive. However, it is still possible for a smart marketer to run exceptionally profitable SEM campaigns by identifying white spaces. We have presented questions that will help you identify white spaces for your SEM program. We have shared proven ideas at three levels SEM Planning, Execution and Measuring Performance for finding white spaces
22 About NetElixir NetElixir, Inc. is an online customer acquisition management firm headquartered in Princeton, NJ, with offices in London, UK; Hyderabad, India; Freiburg, Germany; and Copenhagen, Denmark. The company advises clients worldwide on achieving online marketing performance maximization using its proprietary technology, the LXR core platform, and employing a global service delivery model. NetElixir s suite of services includes paid search advertising management, search engine optimization, comparison shopping engine management, social media marketing management and search engine marketing analytics. Since 2005, NetElixir has helped more than 200 US online retailers run highly profitable search and shopping engine campaigns. Disclaimer This NetElixir report is intended for general information and is based on publicly available data available on the Internet at a particular point in time. NetElixir gives no guarantee regarding this information and accepts no liability for any inconvenience, or any direct or consequential loss, arising from reliance upon this information. No part of this report may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying or otherwise without the permission of NetElixir, Inc NetElixir, Inc. All rights reserved.
23 NetElixir Global Offices Global Headquarters 475 Wall Street Princeton, NJ USA Phone: Europe Offices NetElixir Limited Central House 1 Ballards Lane London, England N3 1LQ Phone: NetElixir Scandinavia Bernhard bangs Alle Frederiksberg Denmark Phone: Website: Phone: info@netelixir.com Blog: Twitter: Twitter: Asia Pacific Office NetElixir (P) Limited Jyothi Bhopal Chambers, #7-1-19/5, Begumpet, Hyderabad Andhra Pradesh. India Phone:
24 products & services Outsourced Service Solutions Search Engine Marketing Comparison Shopping Engine Search Engine Optimization Facebook Marketing Technology Solutions LXRRetail : Integrated multi-channel campaign management platform for online retailers. LXR100: Integrated multi-channel campaign management platform for interactive agencies. LXRMarketplace : Online Marketing Web Applications for Retailers. Consulting Solutions Web analytics consulting services. Online Marketing Strategy consulting services. For more information on the above solutions please us at info@netelixir.com or call us at
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