June 2007 Entries

So, You Really Want to Integrate Search?

The Ontario tourism board and I have been butting heads a little bit in the blogosphere as of late.  It all came about from an article I wrote a few weeks ago saying that perhaps Canadian advertisers have their "heads up their ass" with search marketing.  I used the Ontario Tourism Board as an example of a major organization that was not doing search and was quickly corrected by Nick Pedota from the board, who indicated that they were in fact doing a search campaign.  My problem was that I couldn't find them for any of the keywords I thought they would typically appear for.  It seemed to me that there was a disconnect here.  This week I published a follow-up column indicating that perhaps there was a mismatch between the objectives and the allocation of budget in the Ontario Tourism strategy. In a follow-up comment to the column, Nick graciously complemented me on my research and admitted that perhaps there was room for improvement in their integrated search strategy.  My suspicion is that the cracks in the strategy don't lie exclusively with either the Ontario Tourism board or their agency but likely fall somewhere in between. And it's not uncommon to find these cracks when major advertisers move into trying to integrate search in their overall campaign strategies.   Kudos are in order for Ontario Tourism's recognition of search at all.

In the spirit of improvement, I'd like to offer Nick and other marketers a few tips for successfully integrating search into an overall marketing campaign.

Search should be your first dollars in

Typically, search is added as an afterthought in most marketing campaigns.  In fact, search should be the foundation of the campaign.  This should be the first allocation of funds. Searchers are often your best prospects. They're the ones that are actively involved in trying to find you.  In the case of the Ontario Tourism Board the entire campaign objective was to drive people to their website.  Therefore, it didn't make much sense to not fully utilize search as a channel and to steer dollars instead to less efficient branding channels such as print and television.

In this case, the first thing that should have been done was to accurately assess the size of the potential search market.  This would've been done during the keyword analysis, when the prime keywords were identified and the corresponding search volumes were discovered.  A smart search marketer would be able to determine the key phrases most likely to convert and would start with these, but would then work outwards to determine the total size of the keyword basket. Going hand in hand with this is the determination of the average click cost for these keywords.  The search marketer has to make the determination if the cost per click is justified, given the likelihood to convert.

Once the total available search inventory that meets the quality threshold is established, this should form the core of your marketing budget. These are prospects are raising their hand, indicating that they're looking to find you.  They should be the first ones captured in your marketing strategy. Then you can extend the campaign with other branding intiatives.

Realize that branding dollars will drive search volume

Even after you extend your budget into areas other than search, quite often the dollars spent here will translate into search activity.  In the case of Ontario Tourism, they ran their website address in all their ads.  But much of this activity would have translated into searches on the primary search engines.  Therefore, you need top of page presence to capture these navigational searches.  Ontario Tourism also did some national advertising, primarily on television, and in this case in particular there is a high likelihood that search would be used to find the site.  Unfortunately with Ontario Tourism's geo targeting and other limits on maximizing their search presence, it's unlikely that searchers would be able to find a site to click through to.  So, in effect, you lose two ways here.  You're spending the money on branding to drive traffic and then you're not capturing that traffic by ensuring you have an adequate search presence.

Bid on the head words if budget allows

A common mistake with many first-time search marketers is to compare click costs on different keywords against each other, rather than against other lead generation channels.  Head words, the high traffic key phrases that generally form the bulk of the potential traffic, typically cost much more than the long tail phrases.  The neophyte search marketer, in an attempt to be price conscious, often deletes the head words from consideration because of the expense, relative to more niche phrases.  But this is often the wrong comparison.  What the marketer should do is compare the cost per acquisition against the typical cost per acquisition of other channels.  In the case of Ontario Tourism, even their most expensive potential phrases would've cost under two dollars per click.  Even under the most optimistic of conversion scenarios, much of their print advertising would have been costing 15 times that.  It was a false economy to delete the head words from the budget consideration, as it would've closed the loop on their search strategy and ended up bringing highly qualified prospects at a much lower cost per conversion than their other channels. If you've truly allocated as much as possible to your search budget and the head words are still not within reach, then bidding on long tail phrases is really your only option.  But until you've made sure that you're putting your first dollars in the search, don't eliminate the head words from consideration.

Remember, if it isn't clicked you don't pay

It's typical to use targeting extensively to make sure that traditional marketing is aimed at the right prospects.  You would pick your media channels based on their target demographics.  Often, this thinking is transferred into search but again this could prove to be a false economy. Ontario Tourism decided to use geo targeting to target their primary markets, which was the province of Ontario and the neighboring US border states.  They also put budget caps in place and put time parameters on their campaign. All of these moves would have made sense if budget were extremely limited.  It always makes sense to buy your best clicks first.  But as I mentioned above, in this case search should have been the first dollars in and this would've allowed Ontario Tourism to extend their search campaign to capture all of the potential traffic.  One of the beauties of search is that you can gain visibility with relatively little risk.  Unlike television or newspaper advertising, you only pay in search if the ad is clicked.  This eliminates much of the risk and allows you to relax your targeting to ensure that you're capturing all the potential search traffic.

Understand the visibility dynamics of the search results page

Another source of false economy is the position you choose to occupy on the search results page.  There is generally five times the interaction with ads in the top sponsored position as opposed to ads on the right rail.  And in the case of Ontario Tourism, the official tourism site for the province of Ontario, this would be a site you would expect to see in the top sponsored ads for searches like Ontario vacations. By reinforcing this inherent trust with eye catchers like "official site" the Ontario tourism board would have been able to take advantage of quality scoring to reduce their bid price and maintain their top position. They would also have to use a close variation of the actual key phrase in the title to reinforce information scent. This relevance should, of course, carry through to the landing pages well.  This was an area that could lead to substantially increased conversions for the Ontario Tourism Board as well.

I embarked down this path in order to wake up Canadian advertisers and hopefully make them smarter about integrating search into their strategies.  It's in that spirit that I offer these suggestions for those that are looking to seriously tap into the potential of search.

Semel Says So Long..Yang's Back.

Well, the other shoe dropped. Terry Semel's stepped down and Yahoo is dusting off co-founder Jerry Yang and bringing him back as CEO. Sue Decker steps in as President.

There's a whiff of desperation here. I've often said that one of the reasons Google has excelled in search is the hands on involvement of Sergey Brin and Larry Page. They had an intimate interest in the Google user experience and made it a sacred cow at Google, closely watched by Marissa Mayer. The entire Google empire has been financing solely by the strength of that user experience, so don't ever underestimate the power of it.

The Yahoo or MSN (Live..etc) user just never had as highly a placed champion (or champions). The fact that Jerry Yang and David Filo cashed in relatively early at Yahoo and watched from the sidelines allowed the search also-ran to drift and be run into the ground by bean counters and those who had dreams of an online media empire. The waffling back and forth came close to killing Yahoo, and may yet.

Sue Decker is a fiscally responsible executive (a.k.a. bean counter) and Jerry Yang, who still has a garage full of Yahoo stock, is probably a little worried about slipping down the Forbes list if the share price continues to erode. So he's stepping back into the ring, full time.

Will this have much of an impact on the Google/Yahoo rivalry? No, I don't think so. Jerry cashed in and eased back, where Sergey and Larry would have never dreamed of it. The motivations are different. And Sergey and Larry take an engineer's proprietary interest into the nitty gritty minutiae of Google, where Yahoo was never really an engineering brain child. It was a collection of links, the manifestation of a online community. It embraced technology because it had too.

To me, this seems like it's buying time, to keep share prices propped up until a deal can be inked, nothing more. The faces have changed, but the look of desperation remains the same.

Coincidentally, I was just in Toronto last week and talked on Bloomberg TV about the need for leadership and focus at Yahoo.

The cranky Canadian is back from Toronto

Apparently I stirred the pot a little bit when I was in Toronto. Yahoo invited me to give a breakfast talk to the handful of Canadian advertisers and I managed to hijack the session for 10 to 15 minute rant about how Canadians don't get search.  I quickly followed this up with a column in  the SearchInsider to the same effect. I did make one mistake.  I did mention that the Ontario government doesn't do search for their official tourism information site.  I was quickly corrected in that.  There is in fact the search campaign going on.  It just wasn't registering for any of the searches I did.  I think I'll follow up on this a little more for next week's SearchInsider column.

I apologize to show chair Andrew Goodman for breaking the cardinal Canadian rule of politeness.  Andrew is shipping a case of generic cola with a Canadian politeness serum cleverly mixed in to try to return me to the accepted norms for Canadian behavior. I noticed another blogger who picked up on my rant indicated that as a Canadian living in the US, I would be well advised to escape back south of the border. I don't know if this is good news for Canadian advertisers or not, but I actually am a resident Canadian.  I call Kelowna, B.C. home.

You know, the funny thing is, other than poor Nick at the Ontario Tourism Board who I mistakenly said had his head up his ass, most everyone else has agreed with me.  Perhaps being a cranky Canadian pays off.  To my knowledge there's nobody who really is filling this role currently, although Canadians have a long tradition of being cranky.  Notable cranky Canadians in the past included Gordon SinclairPierre Berton and Jack Webster.

If it makes you feel any better, Canadian advertisers weren't  the only ones I turn my sights on in the past week.  I also took a few shots at Yahoo during an interview on Bloomberg TV. Maybe it's the fact that I've been traveling for past 2 1/2 months and I think the last time I actually got seven hours of uninterrupted sleep was back in March. This weekend I think I'll have a stiff shot of Canadian whiskey (we call it rye up here), have a good night's sleep and maybe I'll come back next week kinder, gentler and more polite.  Or not.

China is so Last Week: Welcome to Seattle!

This is my first post since returning from China. I have to say that it was good to be home. In the plane flying over British Columbia, I had a new appreciation for the vast amounts of land with nary a human in sight.

So now I'm in Seattle, attending the first SMX, and it's fair to say it's a hit. I'm at the end of day one, the show is a complete sell out and everybody I've talked to seems to be generally pleased with the content and quality. It's always tough programming the first show of it's kind, but there's been a lot more hits than misses. I think it may take a couple of cycles for the level of content and the level of expertise of attendees to completely mesh, but it's a hell of a good start.

I'm particularly enjoying the size of the show. I've got to chat and meet more people here than any show I've attended previously, including many of my favorite people in the industry. There's a great showing from all the engines, and everyone is very accessible. If you choose to work this show (not just in the sessions, but in the networking events) you can walk away with a lot of valuable take aways. One of the problems with many search shows is they outgrow their original appeal and loose a lot of their value in the process. I hope Danny, Chris and the Third Door crew keep the show size about where it is.

The experience of the attendees is also coming through in the Q&A. There's a lot of experience sitting in the room and it's coming across in some very savvy questions. Generally, I find the attendees to be high level practitioners, and as more of a strategy guy, I'm finding the show a little tactical for my taste, but I really believe that's what the audience is looking for. The personalization panel I was on was more of a strategic look at the future, and the number of questions was noticeably less than some of the other more tactical sessions (i.e. dupe content or social media optimization) but it was interesting none the less.

The experience of the Third Door team has come through with a very smooth show there. So far, everything has gone off with almost no hitches (save for a little trouble with internet access earlier today) and no box lunches! A hot meal for lunch..imagine!

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