Here are some surprising facts:
- 75% of online searchers never scroll past the first page
- 60% of all organic clicks go to the top three organic search results
- Click-Through Rate for the number one paid result is 9.7%, while the number four result is only 1.9%
How can someone learn Search Engine Marketing and break through all the advertising clutter to win customers?
John Gagnon, a Bing Ads Evangelist, released the following video in cooperation with Stukent.com to provide a framework by which to learn about and improve your search engine marketing efforts. If you have the time, watch it! If not, continue to my highlights below:
How a searcher uses a search engine in 4 steps
Why do you go to a search engine? You’re looking for an
answer, looking to make a decision, and/or looking for a product or service or
information. Notwithstanding, the typical searcher journey is as follows:
- Searchers first arrive at a search engine page, type in the content they are seeking, and hit
"Enter". - The browser then loads a Search Engine Results Page (commonly referred to as a SERP). Every searcher who sees an ad is counted as an "impression".
- Searchers who select a link are logged as a "click". These clicks load a landing page.
- Searchers who continue past the landing page to make a purchase within the website are "converts", and are counted as "conversions".
Click-Through Rate is a common measurement in SEM and is determined by dividing Clicks / Impressions. It reveals the effectiveness of your ad copy.
Conversion Rate is another common measurement and is determined by dividing Conversions / Clicks. It reveals the effectiveness of your landing page.
The 3 Minute Drill
Whether you are new to SEM or a veteran, this exercise can help you immensely to evaluate how effective your ads are or will be:
- What products or services make the most sense to sell online? This should clue you in on to what Keywords you should use.
- What makes you different? This should give you guidance on what Ad Copy to write.
- How much is a lead/sale worth? This should inform your Bidding amount.
Let's break some of this process down:
Keywords
This is foundational to your part in the rest of the searcher's journey. You can have a great landing page and ad copy, but if your keywords are off it will all be for naught.
A few key questions to ask are:
- When am I communicating with the customer in their purchase process?
- What is the right next step for them?
As an example, someone searching "advertise my business" may be just at the cusp of expressing interest in a topic. "Online marketing tips" shows increased interest and a desire to learn. "Search marketing" reveals that the searcher is looking for methods to accomplish a goal. Finally, "Advertise on Bing" demonstrates that the customer is ready to make a purchase.
Keywords surrounding each of phase of the customer journey should be created to correspond to a landing page that serves that purpose. If your intent as a business is not to educate would-be customers, then consider avoiding these terms altogether.
Ad Copy
Like traditional advertising, online ad copy should have a Call To Action and a Unique Selling Proposition, as well as the keywords that will drive the ad to show up in the paid search results. After that, it's anyone's guess as to why some ads work and others don't! As such, testing ads becomes critically important. Both Bing Ads and Google AdWords provide A/B Testing to help with this effort. Additionally, MarketingExperiments.com is a valuable resource to help you understand how to create effective tests to begin with.
Bidding
This topic receives a lot of attention but it is actually a lot simpler than it looks. You only need to know two numbers to make an intelligent bid that won't lose you money:
- Cost Per Action - this is a funny name that internet marketers use for margin. If, for example, you sold an umbrella for $35 that cost you $10 to make, your CPA would be $25.
- Conversion Rate - okay, I lied, this one will actually take more work to acquire. If you remember from what we discussed above, conversion rate is determined by conversions / clicks. While this sounds easy in theory, you will need to setup up your webpage with analytics software. In the Google ecosystem, it is called Google Analytics. It will allow you to track conversions by giving you code to insert on an "Order Complete" page that counts hits. This isn't difficult to do but it is more work than simply setting up a Bing Ads or Google AdWords account. Let's say in our umbrella example that our conversion rate is 4%.
Once you have these two numbers, you simply multiply one against the other. If you earn $25 per umbrella, and 4% of site visitors convert, then you shouldn't bid more than $1 per click, because it will take 25 clicks to get to a $25 sale. Pretty intuitive, no?