Gord Hotchkiss has spoken and written on many occasions about internet speed and what this means for organizations trying to adapt to a rapidly changing competitive landscape. The question regarding internet speed is how fast are you willing to move to adapt to the changing online landscape, but the question also has to be asked; how fast are you willing to fail?

To determine the most effective marketing mix online, at some point a failure must be encountered. The question regarding optimization of paid search campaigns may come down to complacency. If everything is working well, ROAS is good, CTR is good, Quality Scores are good, then why mess with a good thing? Well, the quickest way to being overtaken by your competition is to stand still, and yet the problem is that when we optimize, we risk failure.

Not too fast, not too slow
Starting to optimize conservatively can lead to long, drawn out failures which can do longer-term damage, and yet going to the other extreme can lead to some very large disasters. It is more about balancing speed and risk with optimization testing. When starting testing it is important to define the scope of the test and determine what the acceptable rate of failure would be (i.e. negative impact to the bottom line) versus time needed to realize statistically relevant information. For example, when testing new ad copy or a new landing page, it is important to measure the volume of traffic you will direct to the landing page compared to the amount of potential loss of business due to that change. The margin of error associated with the test can also come down to the size of the change. The more significant the change, the faster you will see results (positive or negative).

Test markets
As with traditional marketing, definition of the test market will help to control the scope of the testing as well as the amount of volume exposed to the test. Limiting the scope of the test to selected ad groups or specific campaigns, or leveraging geo-targeting to isolate markets exposed to the test, can assist in balancing quick results and risk. The selection of test markets will also assist in providing a comparative bench mark for the test; although it is less of an issue with A/B testing.

Avoid the knee-jerk reaction. Testing and seeing results quickly is great, but ensure the statistical relevancy of those results is accurate. Before declaring a test a success, determine exactly what degree of data is required to see an effect from the test. Remember Statistics 101: what size of result is required to determine a 90 or 95% confidence interval with the test? The confidence intervals are going to be directly impacted by the amount of data; the more data, the smaller the interval required for statistical relevancy. There are two ways to increase the amount of data: time or scope. Increasing the duration of a test will assist in driving towards statistical relevancy or increasing the scope of impacted ad groups/campaigns will increase the amount of data.

Where do you want to go?
Testing in marketing is 70% science and 30% art. Even the most lackluster creative developer can design a highly successful campaign with enough iterations and testing. Before implementing a test, start with a hypothesis. I know, its high school science all over again, but without an idea of what the expected outcome of your testing could be, it’s going to be like going flying without a destination; you’re going to end up somewhere, just maybe not where you would like.

Knowing what works is only valuable if you know why something didn’t work and therefore failure is the only real way to drive success. Failure is only really a bad thing when nobody learns from it, which is why when implementing a testing framework, recording specifics about how each change affected the campaign’s performance is imperative to a successful testing strategy. Each test should be followed up with a detailed analysis as to how the test impacted the results. What was it about the test that caused the specific result?

The key to a successful optimization and testing program is designing successive tests and constantly challenging the status quo. Just remember you’re going to fail once in a while, but you can learn a lot from failure and take what you learn to help you succeed that much more next time.

This is the final installment of the 4-part series on key PPC best practices (PPC Best Practices Part 1, Part 2, and Part 3).

Speak Their Language

There has been constant debate as to what to use for keyword analysis with regards to long-tail versus head phrases and which yields the better results. Head phrases are the very generic and broad search queries where there is enormous search volume, but costs associated with the keywords are quite high. Torso keywords are the more-specific keywords; the 2- to 4-word search queries that still have lower search volume compared to the head phrases, but also tend to be cheaper. Long-tail keywords are the keyword phrases over 4 words where the costs tend to be minimal, but search volume is also sparse.

When doing keyword development, first look at the torso phrases and develop your keyword strategy using 2- to 4-word search queries to develop the keyword basket. Once you have the torso phrases, run the account and closely monitor the performance of the individual keywords down to your most granular KPI (ideally ROI or cost per conversion on the keyword level).

Once you know which keywords are driving highly-qualified traffic in the torso, it is then possible to look at the longer-tail keywords associated with the high converting torso phrases. Accounts with literally millions of keywords are not necessary when only a small percentage are actually working; spend where the ROI is made.

When developing your keyword basket, make sure you step into the mind of the searcher. Which keywords is your target market most likely to be using when searching for your product/service? Ensure you are not simply bidding on the marketing language you use internally, but also the language with which your market is most likely to initiate a search. (Hint: Talk to your sales department. They know the language your customers will be using.)

We recently took over a PPC campaign from a client doing it in-house and our first step was to look at the keywords. By refining the keywords based on user intention we decreased the Cost Per Click (CPC) by 23% and doubled the Click Through Rate (CTR). The conversion rate also increased substantially.

It is also possible to break out keywords by the Purchase Decision Process (PDP). By paying close attention to the keyword refinement process, it is possible to determine which keywords are being used at the beginning of the research phase, in the consideration and comparison phase and in the purchase intent phase of the PDP. By allocating these keywords into appropriate campaigns, you can then control the budgets associated with those keywords and effectively increase ROI, awareness, brand reach or whatever your PPC goals are.

Quality Score Is an Indicator, Not a Destination

There has been lots of debate around quality score and what it means to PPC advertisers. The long and short of a quality score is that it is designed to assist the customer. Google and Yahoo (with MSN just coming on board) have been using quality scoring to increase the quality of ads to improve the user experience. That being said, quality score should not be managed.

If you, as the advertiser, are looking to provide the consumer with the best experience possible (a good idea if you’re looking for conversions), then your quality score should naturally be good. A colleague of mine, Chris Davies, gave the perfect analogy for quality score: "It’s the ‘check engine’ light." If you have a poor quality score it serves as indication that it’s time to look under the hood and see what’s causing the issue. Look to your ad copy, landing pages and keywords, or reassign ad groups to adjust your quality score.

Ultimately, if you have a poor quality score and conversion rate is good and cost per conversion is good, then the few cents difference a better quality score can make is irrelevant.

Stop Measuring Cost Per Click; Start Measuring Cost Per Conversion

Ultimately, every change made to a PPC campaign should be to lower the cost per conversion. Therefore, don’t be afraid to bid aggressively on high-converting, high-quality, traffic-generating keywords and bid lower on the other 90% in your campaign if at the end of the day you are achieving the end goal.

Plan to Measure; then Measure the Plan

As you move forward with your PPC campaign, ensure you are able to effectively measure your KPIs through your analytics tracking. With several of our clients, we are using keyword-level ROI to ensure we can accurately spend the budget where we are making the highest returns. This measurement includes being able to merge data from several sources in order to accurately measure the effect of each keyword on the business.

B2B sales in the online environment are really no different than in the offline environment: The sales process is much longer than in B2C, and relationship development is a primary concern. Knowing this fact, it is important to ensure your analytics are set to measure the multitude of conversions that may occur and assign ROI values to each conversion.

Tip: Ensure your cookie duration is enabled to match the average sales cycle timeline at a minimum.

K.I.S.S Rule Applied to Conversion Path Optimization

Once you have a set of clearly defined goals and are able to effectively measure the necessary KPIs, it’s time to turn to the conversion path. The traditional thought is that the path to conversion starts on the landing page, when, in fact, it starts with the moment the user interacts with your ad on the SERPs (Search Engine Results Pages).

All of the tactics you use (including ad copy, targeting, landing page messaging and the subsequent site conversion path) must be dictated by the end goal. Every interaction or step in the conversion process should take the user in one continuous motion towards the intended conversion. Messaging and offers should maintain a consistent theme to gain the conversion and nurture the lead into a prospect for the sales department. The conversion path should provide all of the information the user needs along the way to make the decision whether to purchase or not.

Enquiro’s own research on B2B purchase decision behavior provides valuable insight as to what content to place on your site and in your conversion path. Ensure that traffic, once on the site, can convert on landing pages quickly and easily. Ask yourself several questions:

1. Is the conversion path simple and intuitive?
2. What is the intention of the users on this page?
3. What information are they looking for (pricing, competitive comparisons, product specs, company information)?
4. What goal do you want users to complete?
5. Are there any distractions or unnecessary information on the pages in the conversion funnel?
6. Are your calls-to-action conspicuously positioned?
7. Is your offer (whitepapers, podcasts, eBooks, demos, complimentary trials, etc.) relevant to users’ needs?

 Please check back next week for PPC Best Practices – Part 3 of this Series.