Category SEM

Paid Search Ad Copy Research Study

In early 2008, the AdGooroo research team set out to create an algorithm which could identify the top performing ads in any industry without relying upon panel data or having access to competitors campaign reports. The algorithm was refined and patented.  Using it, they analyzed over 5,500 popular keywords to determine what techniques the best search copywriters were using to boost their clickthrough rates. Thier findings are outlined below.

Why Study Ad Copy?
Because no comprehensive study of PPC ad copy has ever been published (to the best of our knowledge).

While countless articles have been written on this subject, no one has (to our knowledge) assembled a database of ad copy to determine what, if any, best practices can be gleaned from analyzing this data systematically.

They set out to do just this. They structured their study with two goals in mind. First, they wanted to identify the most effective ads currently being displayed on Google. Second, they wanted to examine these ads to determine if there were general rules that search marketers could follow to write better ads.

Methodology
The best way to measure an ad’s effectiveness is to simultaneously measure its clickthrough rate against other ads, keeping average position and keyword the same. However, this is a challenging task due to a lack of publicly available clickthrough rate data.

They solved this problem by relying only on measurements that could be easily observed and standardized across keyword and position. If these measurements are chosen properly, they should serve as a suitable proxy for clickthrough rate data. It is then a simple matter to apply them to a historical archive to determine the most effective ad copy.

A database containing most of the world’s ad copy was readily available via AdGooroo. They devised a complex algorithm that analyzes past impression data to determine which ads are the most effective. This method eliminates about 95% of the ads which they know aren’t top performers. The remaining ads can then be easily split tested to optimize your clickthrough rate.

How you can use this special report. 
They’ve included a list of these 17 general best practices: Read the rest of this entry »

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eBrand Media Research Brief: SEO or PPC? Which converts better and delivers highest AOV?

According to a new study by Engine Ready, based on traffic to 26 e-retail sites in a 12-month period that ended June 30, visitors who arrive at a retailer’s site from paid search ads are 50% more likely to buy than those who come from clicking on a natural search link. The conversion rate from paid search is 2.03% versus 1.26% from organic search, according to the study as reported by Internet Retailer.

From Wikipedia:

Pay per click (PPC) is an Internet advertising model, used on websites, in which advertisers pay their host only when their ad is clicked. With search engines (SEO),  advertisers typically bid on keyword phrases relevant to their target market.

The current study is a follow up of a completed two year study in 2008 to identify the magnitude of any visitor behavioral trends based on traffic source in a way that could help marketers adjust their strategies to maximize value. Although there can be an almost endless number of individual traffic sources, notes the study, this study, identified and measured 4 primary traffic source categories that encapsulate all source origins:

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Search Wars – Google offers up a taste of “Caffeine”, its new search engine.

By Tom Polanski, EVP, eBrand Media and eBrand Interactive 

The “Search Wars” heat up as Luke Googlewalker escalates his battle with Darth Binger.  At stake is the future of search and untold billions of dollars.  What does this mean for SEM managers?  What will happen the intrciate formula that Google uses to rank companies in bidded search?  What will happen to advertisers?  Stay tuned for “The Attack of the Clones”. 

The Associated Press reported today that Caffeine will be faster, more accurate, and more comprehensive.

 

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What the Microsoft-Yahoo deal means to users

By Suzanne Choney

Consumers would see improved Web search efforts by all major players as a result of a proposed search partnership between Microsoft and Yahoo, experts said Tuesday.

“It’s a negative in that we’re going from having three major search competitors to two, but it may be better to have two strong competitors rather than one strong competitor and two weak ones,” said Danny Sullivan, editor-in-chief of Search Engine Land, a site that monitors the search engine industry.

Google, which dominates search with 65 percent of the market, according to online measurement firm comScore Inc., “may be driven to improve their (consumer) offerings somewhat” as a result of the partnership, said David Smith, a Gartner analyst who covers the Web.

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eBrand Media Research Brief: E-commerce grows using SEM to acquire and e-mail to retain

By Tom Polanski, EVP, eBrand Media and eBrand Interactive

According to the first installment of of Retailing Online 2009: Marketing Report from Forrester Research and Shop.org, e-commerce sales, including event and movie tickets, will grow about 11% to $156.1 billion this year from $141.3 billion in 2008. Online sales will account for 6% of total retail sales this year, up from 5% last year. Retailers report that their conversion rates continue to hover between 3% and 3.5%.

While Internet sales growth continues to outpace traditional retail sales, 54% of online retailers expect overall retail growth to slow during the next 12 months, and 57% acknowledge the economy is hurting their bottom line, according to the survey.

Although many retailers expect lower sales, however, four out of five surveyed online retailers think the web is better suited than other channels to withstand the recession and one-third say the downturn has helped them capture greater market share, the study found

Scott Silverman, Shop.org Executive Director, says “… Online retailers are trying to weather this economic storm by doing more with less, making smart spending decisions, and leveraging effective, affordable tactics like e-mail to grow their businesses.”

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