Webinar – How to Manage Your Agency
Posted on | September 4, 2011 | No Comments
Agency Metrics That Matter
In paid search marketing, one thing is painfully clear: success relies on good data, and good data can be hard to find. Search marketers use data points to understand trends and make optimization changes, but lots of data can make it hard to focus. When you understand paid search objectives combined with metrics that matter, you’re better equipped to make profitable decisions. So get back in the driver’s seat — learn the basics of important and misunderstood metrics to propel agency relationship results.
Important Metrics
When online marketers talk about paid search metrics, they are referring to different measures of data generated from paid online marketing campaigns such as Pay Per Click (PPC) campaigns for Google Adwords or the Search Alliance of Yahoo! and Microsoft Bing.
Sales
Average Cost per Click. Conversion Rate %. Cost Per Conversion. Average Order Value. These four factors track campaign success by profitable conversions. Leverage exact and broad match keywords for highly targeted click through rates to qualify shoppers and take you deeper into the sales funnel.
Leads
Conversion Rate. Cost per Conversion. Total Conversions. These three factors are the primary drivers of lead creation strategy. Drive qualified traffic to convert without skyrocketing costs. More importantly, track your target volume by making certain your bid prices are competitive to get the number of conversions your business demands.
Brand
Ad Copy. Keywords. Ad Position. When you advertise with PPC, you get instant feedback on the effectiveness of your marketing messages. To reach a wide audience, develop and leverage massive keyword lists with broad and phrase match terms. By targeting competitive keyword pricing and top ranking ad positions you will drive awareness and brand recognition.
Misunderstood Metrics
You’ve got a handle on the basics, but proceed with caution — the misunderstood metrics below can endanger your paid search efforts.
eCPM (effective Cost Per Thousand Impressions)
Impressions costs are the de facto standard. But are you comparing apples to apples? Don’t be fooled — comparing offline CPM to eCPM can lead to poor management decisions. After all, paid search impressions are FREE, so comparing a $100 eCPM Google SEM buy to a $75 CPM New York Times buy does not provide any value to marketing managers.
CPC (Cost Per Click)
We all hear of the perils of cost per click, but don’t be fooled: high CPC does not imply that the keyword is or is not working. If a marketing program requires an ROI of 4, then it should not matter if the CPC is $1 or $10, as long as the revenue is $4 or $40 respectively.
Focus on conversions to make every cent count.
Average Position
Hooray! Your search listing has reached #1. But don’t celebrate yet — in the long run, position is a poor metric of success. Instead, focus on ROI and profit to accurately measure success. And use average position to increase share of voice.
Number of Keywords
Think additional keywords cost more? Think again. Because you pay for the clicks keywords receive, each additional keyword does not cost more. The correct number of keywords is different for each campaign/product. Therefore, they should be measured by campaign profit and number of impressions received by an exact match search.
Brand vs. Generic Breakdown
Don’t give up on generic terms…often, they can introduce your brand and products to users. A user who searches for a type of product may not have a brand in mind, and that search creates the consideration set. While that user may not convert on the first visit, that click may ultimately be responsible for the final sale.
Improve Your Game
Whether you’re new to the paid search game or are bruised and battered from a consultant or agency relationship that went south, don’t give up the fight. Re-enter the game armed with the objectives and metrics you need to gauge the profitable results of your paid search investments.
Don’t go it alone. With Trada, your PPC campaign is cared for by a crowd of experts working together — writing ads, managing bid prices, and building massive long-tail keyword lists. Trada’s PPC experts already know all the strategies for driving brand, sales and leads, while giving you insight into the metrics that matter. This certified crowd displays a diversity of thinking that a single person could never achieve alone. And best of all? They’re paid on performance.
Trada.
Ridiculously easy. Measurably better.
Powered by people.
We’d love to show you our crowdsourced PPC marketplace. Contact sales@trada.com for a tour.
Duration : 0:56:35
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