Posts Tagged ‘pay-per-click management’

Google and MSN’s AARF managing PPC accounts?

Thursday, August 28th, 2008

I read an article yesterday in AdAge (printed version) that was discussing how MSN is trying to unload Avenue A Razorfish (AARF). I won’t go into detail on the article, because it wasn’t as interesting as the article about Sanjaya (American Idol’s popular black sheep) being spotted in AdAge’s Manhattan offices.

The article, however, did spark a severe issue with me and a colleague.  If AARF is managing PPC accounts and so is Google – but yet they are actually the ad venue, isnt’ this a conflict of interest? It’s like going to your car dealer and asking them to finance your loan.  You might as well club yourself over the head.

I’ve heard so many times how easy it is to setup a Google Adwords Account, and well, yes it is.  You just need 5 minutes and a credit card because Google will select your 20 keywords for you. And into the lions den you go.  Consider this, why would Google only say you need 20 keywords? Well, because they are making $600 million dollars a year off of their keyword advertising. So naturally any smart ad venue is going to tell you that you should be bidding on the most broad and expensive keywords available.  Do they mention anything about conversion rate or conversion tracking? No. But, they do tell you how important click-through (CTR) is.  That’s because they get paid when someone clicks on your ads.

My point really is – I can’t believe there aren’t any regulations around Google managing client PPC accounts, in addition to MSN having purchased an agency as a part of a bigger collective but also manages their accounts.  How can this be good?

Hire us to manage your pay-per-click campaigns.

Why aren’t my PPC ads showing?

Tuesday, July 8th, 2008

While this is one of the most basic concepts of PPC search engine management, it seems to be one of the least understood, and quite possibly one of the hardest to explain to folks unfamiliar with the process. The easiest way to explain this situation is mathematically.

The answer lies within the paid search venues. This includes Adwords (Google), Yahoo! Search Marketing and MSN adCenter. These are the main three so we’ll focus on these for now. When setting up a PPC campaign we go about choosing the right keywords, writing persuasive ad creative, putting the finishing touches on our landing page(s), installing and testing our tracking code, etc.

Once that laundry list of to-dos is completed you assign a budget to your campaign. Now you are ready to flip the switch and the fun part begins. The paid search venue uses its NASA math to analyze your keyword list and the CTR (Clickthrough Rate) that those keywords have received across an unknown [to us] time period. Using this historical performance data, the search volume for that term is analyzed, and then the result is applied against your budget.

For example: Assume you are running 1 keyword (nobody is doing this I hope) and your CPC (Cost Per Click) is $1 to keep it simple. If Google determines that the search volume for your keyword is 1,000 queries per day, with a historical CTR of 10%, you could receive as many as 100 clicks or spend $100. Now assume that your daily budget is $20 a day, or 20 clicks. Google will then show your ad [impression] at an interval of approximately once every 5 searches. There are a lot of other factors involved in reality, but we are keeping things simple for example purposes. Then, based on the actual CTR of YOUR campaign Google will decide how often and when to show your ad in an effort to make sure they spend your entire budget while maximizing their CPC and CTR (since this is how they get paid, and handsomely I might add). Keeping in mind that the goal of search engines is to show the searcher the most relevant results (paid and organic).

That was a simple example based on 1 keyword, now imagine that you are running 20, 50, 100, etc. keywords, using different match types across multiple search partners, you can see how complicated it can get.

So why aren’t your PPC ads showing every time you search your favorite keyword? Realize that the more often you search and don’t click on your ad the less likely you are to see it the next time. So either click on it and spend the money to support your CTR or step away from the keyboard and grab a Fresca. I recommend the latter.

If you’ve got questions or comments about ppc search engine management please contact us or comment below and we’ll be happy to respond.