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Google (and Search Engines in General) getting into the Affiliate Game?

Saw this post today that some AdSense advertisers have received information about a new alternative to AdSense that is based on cost per action (CPA). This essentially turns AdSense into an affiliate program, where the publisher gets paid on a per lead basis. Some observations:

1. This has to be a response to the major click fraud problems that advertisers experience in AdSense and contextual advertising in general;

2. Google should do affiliate programs MUCH BETTER than CJ, etc. in terms of payments, reporting, policing the network, etc. so I would agree with the original poster that this is big trouble foor CJ and the other affiliate program providers;

3. We always think in terms of optimization, and given that an advertiser can eventually pay for ads through CPM, CPC or CPA, there are that many more opportunities for testing to find the optimal ad, bid and method, so analytics tools will be that much more important.

Of course if Google expands the lead generation market even more with this, lead quality measurement will become that much more important, because all the click fraud guys will move to “lead fraud”….

Update: Help-U-Sell and Yahoo! Panama

Long time since my last post, reflecting many changes at BetterPPC. The highlights:

We are now managing over $2.5M in monthly spend, some of the largest PPC advertisers have become customers!

We have developed a “packaged click” product that allows small businesses and franchise organization to programatically buy PPC advertising and create coordinated campaigns between the parent company and individual offices. Our first customer in this business is Help-U-Sell(R), a national real estate franchisee with over 800 offices across the country.

Yahoo! is now testing their new platform, code name “Panama” and will finally allow multiple ads to be run automatically. We intend to take full advantage of this new functionality and bring the power of BetterPPC to Yahoo!

Optimization for Conversion

At long last, we have completed an upgrade to BetterPPC that allows our customers to optimize ad copy for conversion.

Prerequisites: You must be using Google tracking (or Google Analytics) and You must desire to increase your ROI!.

Simple select the option “Optimize for conversion” when you are analyzing your test results and BetterPPC’s patent pending software will do the rest.

When (Some) SEM Agencies Waste Clients’ Money

I had a very telling phone call with a prominent SEM agency today. I’ll leave names out to protect the guilty. On the call, we were discussing the results of this agency’s free trial of our testing platform. The individual in charge of the evaluation was concerned that our system would not allow her to isolate an individual element of the ad. Apparently, she wanted to be able to find the ULTIMATE headline, for example, so that she could go back to her client and report that she had found the best possible headline for their AdWords effort.

There is, of course, some poor logic behind that target deliverable.

Point 1- Get Granular

Firstly, all AdWords efforts are, by nature, very granular. The beauty, and at times the frustration, of Internet advertising is that every interaction can be broken down to an individual click, a single search string, or a particular visitor. There is inherent frustration there, because nobody has the time or attention span to evaluate their marketing effort manually at such a granular level. Of course, if you can harness technology toward this end, there are tremendous gains to be made. The idea that you might find one King Kong headline, or ad for that matter, that you can then roll out to your entire account is, to say the least, inaccurate. If every keyword responded in the same way to any given ad, there would be no reason to break up your account and your campaigns into different ad groups. The reason that Google encourages you to break up your effort into different ad groups is that you will attain much better results if your ads are actually TARGETED to specific keywords. Much to my surprise, this very basic AdWords best practice seems to be lost on many of the so called “experts” that companies are entrusting with their marketing dollars.

The only way to know for certain which ads are going to perform well in which ad groups is to TEST TEST TEST. Of course, you want to break up your ad groups right off the bat with your best guess on themes, geography, etc. After that, you HAVE TO TEST. If your SEM agency is running only one or two ads in your ad groups, please, FIRE YOUR SEM AGENCY. The best SEM agencies test with fervor, but they are in the minority.

Of course, no one wants to test dozens of ad groups manually, writing hundreds of ads and tracking for statistical significance. That is why BetterPPC exists.

Point 2- PLEASE, PLEASE, PLEASE Manage to a Number

You should always inform your SEM Agency of what number you would like to manage to, either CTR or Conversion. In most cases, the performance of your SEM should be directly tied into your bottom line. Furthermore, if your SEM is managing to a conversion event, CTR should be a part of the equation, as Google will penalize you if your ads receive a low CTR and your conversion work may thereby be for nought. If your SEM agency is not managing your AdWords efforts from an ROI standpoint, or if they are not at least managing to CTR, FIRE YOUR SEM AGENCY. 50% of SEM agencies are giving “AdWords Experts” a bad name.

If someone is managing your marketing budget, make certain they are clear on what the objectives are of the effort. They should be spending your money as if it was their own. At BetterPPC, we take on a very limited number of SEM projects, and they are ALWAYS on a performance basis. Paying someone 25% of your PPC budget to manage your effort and then not putting any performance metrics in place just doesn’t make sense.

If your SEM agency is not testing your ad copy rigorously, they are leaving YOUR money on the table.

Conversion Confusion

Asking whether BetterPPC can optimize for conversion is the right question for many advertisers. If you have some type of conversion tracking in place, whether you are utilizing Google Conversion Tracking, some 3rd party system, or your own in-house proprietary system, you should certainly be writing and testing ad copy to optimize your ads for conversion. What many amateur AdWords advertisers lose sight of, however, is the importance of maintaining a high CTR while also attempting to optimize for conversion.

Let’s suppose that through some rudimentary A/B testing you are able to arrive at an ad that yields a 20% conversion rate. If that ad has a lower CTR than an ad with a 15% conversion rate, you may, in the end, be reciving a lower ROI with your optimally converting ad. Optimizing your ads for conversion alone will typically yield a signifianct increase in traffic and a reduction in CPC, and your conversion will typically remain fairly stable (controlling for other outside influences.) If you optimize only for conversion, you will miss out on all of the benefits of having what Google deems a “relevant” ad. If conversion is your primary concern, the goal should be to optimize ad copy for the maximum number of conversions. The right question, the wrong reasoning.

In time for SES NY at the end of this month, we will be releasing BetterPPC Conversion Optimization, available immediately for all Google Conversion Tracking users and soon thereafter for all users of 3rd party and proprietary conversion tracking systems.

Matt Munson

Sales woes

One of the toughest parts of living and breathing paid search, and attempting to market a testing platform in the paid search space, is watching people make the same mistake time and again. It is a basic lession of Sales 101 that you should always be trying to answer a question that the prospect is already asking. If you have to educate the prospect to the point of actually asking a different question entirely, even if it is the “right” question, you have paved for yourself a much more challenging road.

When we released the very first version of BetterPPC, over a year ago now. we were forging into unchartered territory. No one had ever attempted to build a testing platform that focused on testing AdWords ad copy (that is, the text that an AdWords ad is composed of.) We had to build the entire concept from scratch. When choosing which performance metric to manage toward, the first obvious choice was click-through-rate (CTR). Any AdWords user can tell you that Google rewards you for what they deem the “relevancy” of your ads, broadly defined as the percentage of people that click on your ad when your ad appears on the page. Your position on the page, and therefore how much traffic you receive via your AdWords ad, is loosely determined by how you fall out in comparison to your competition when multiplying your maximum bid by your CTR. Writing an ad that achieves a higher CTR therefore enables you to achieve a higher position on the page, more traffic, a decreased cost-per-click (CPC), and a better ROI.

To date, BetterPPC has focused on optimizing for CTR, and we have met with tremendous success. Looking back on the data from over a year in production, we have achieved an increase in CTR in over 90% of the tests that have been run on our system, and our average increase in CTR across the board is 38% (after only one week of testing!)

Those are powerful numbers, and we have been thrilled with the success our early customers have been able to achieve utilizing our testing platform.

One complaint that we get day after day is, “Why don’t you guys optimize for conversion?” Well, the good news is that (although it is still a bit hush-hush) we are launching BetterPPC Conversion Optimization in time for the Search Engine Strategies show in New York at the end of February. Now, before I get to the details on that, allow me to share a few thoughts on why I find this question to be so interesting.

We have the unbelievable privilege to work with some of the best minds in Internet marketing. Some of these guys have been writing dozens of ads by hand for every one of their ad groups and tracking and optimizing every ad for maximum conversion. That’s impressive. It’s also an impressive amount of manual labor. What really surprises me, however, is that of the people that come to us clammoring for conversion optimization, at least 90% have, to date, only been running one single ad in every one of their ad groups. This tells me two things:

1) At least they are asking the right question

2) They don’t really understand why that’s the right question.

Tomorrow I’ll share my reasons why.

Matt Munson

PPCMemo.com - New Site that Aggregates PPC Articles and Information

Check out PPCMemo.com - it is an aggregation (user generated content) site that we are contributing to. If you are a pay per click advertiser or work in the field, we think this is going to become the source to finda all your information in one place.

Joe Agliozzo

Gearing Up For SES NY - New Product Announcements

We are preparing to exhibit and speak again at SES NY and also to announce that we will be unveiling a new product that optimizes ad copy for conversion! The caveat is that you need to use Google Tracking (for right now).

Customers have been clamoring for conversion optimization for quite a while, and we feel that testing ad copy for conversion optimization is the great unexplored realm in SEM. We have some customer testing underway in an early beta and look forward to releasing results soon!

Joe Agliozzo

End of Radio Silence

The end of 2005 was hectic, resulting in a lack of posts.

Quick update:

1. We closed funding that will allow us to grow to keep pace with our customer demands!
2. SES Chicago was awesome - now it is almost time again for SES NY.
3. We expect to release a conversion optimization product soon. For customers using Google tracking, you will be able to optimize ads to result in the highest conversion level. Of course, we have to balance CTR optimization in order to get the whole thing right, but that is what we are working on.

More details shortly - in the meantime, you can also check a daily excellent source of information on the entire Pay Per Click universe - www.ppcmemo.com.

SES Chicago

Looking forward to another great Search Engine Strategies event in Chicago next week. BetterPPC will be there in the exhibit hall at Booth 424, at the Advertiser’s Forum Session and also on the Ad Copy and Landing Page Clinic panel (Thursday morning).

Stop by and say hello, ask questions, etc. We will also be providing free trials of the BetterPPC software at the show.

See you in Chicago!

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