03 - paid-search.pdf - Customer Events and Marketing...

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Prospects Early Buyers Core Customers Defectors Forced Churn Acquisition Campaigns Acquisition Campaign Response Inquiry Sales and Support Interactions Activation Initial Purchase Usage Cross-sell Campaigns Upsell Campaigns Forced Cancellation No more Usage Explicit Cancellation Winback Campaigns Collection Efforts Customer Events and Marketing Interventions Paid Search 1 Customer Acquisition through Search Engine Marketing Classifying Customer Acquisition Campaigns: Inbound versus Outbound The customer has a latent unexpressed (or even non-existent) interest, and the firm’s communications awakens (or creates) the interest and the customer initiates the purchase The customer explicitly signals interest in purchasing and the firm responds effectively Payment Structure of Contracts Direct mail/email/SMS: Pay per lead, and leads contacted, but not for response Paid search engine marketing and some display advertising: No pay for exposure, only for response Most display advertising: pay per exposure, no pay for response Paid Search 2
Search marketing serves like an inbound campaign: the search query provides great insight into the intent of the individual at the precise instant, and the firm is to respond to that query effectively. Remaining valid are the basic principles of customer acquisition and targeting in the digital age: Create Value Create value-communicating content Reach customers who seek that value, with that content Intuit and Brainstorm Scan and Refine Paid Search 3 Trust and Annoyance Engendered by Various Media Contact Form Trust Annoyed Word-of-mouth recommendations 61% 9% Print ads 47% 5% TV ads 42% 13% E-Mail subscriptions 39% 13% Radio ads 35% 11% Direct mail 21% 21% Outdoor ads 20% 11% Paid search engine listings 14% 29% Social Media Ads 8% 49% Web site banner ads 8% 53% Door-to-door solicitation 4% 78% Spam 3% 77% Pop-up ads 2% 83% Paid Search 4
Forms of Search Engine Marketing: Search Engine Optimization (SEO): success seen over months rather than immediately. 10% of total SEM spend. Paid Placement: Auction Model, best potential for high rankings, though for popular keywords costs exceed benefits. 70% of total SEM spend. Paid Search 5 Managerial Decisions for Paid Search Listings Campaign level specifications: Daily budget, Location, Language, Network for visibility, Platform, Day-part. Keyword Specification including match type. Organize keywords into ad group. Ad copy. One (though possibly more) per ad group. The ad copy consists of the title, the text, the stated web address, the landing page, and optionally some ad extensions content which will appear at the discretion of the search engine. MaxCPC (the most that the advertiser is willing to pay). Can be specified at the keyword level, though often inherited from what is specified for the ad group.

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