Optimize Your Paid Search Program CSE 197/BIS 197: Search Engine Strategies...

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Fall 2006 Davison/Lin CSE 197/BIS 197: Search Engine Strategies 14-1 Optimize Your Paid Search Program Optimize Your Paid Search Program In this section, we discuss: In this section, we discuss: - - Types of Paid Search Types of Paid Search - - Planning Paid Search Planning Paid Search - - Paid Search Optimization Paid Search Optimization step step - - by by - - step guide to implement a paid step guide to implement a paid search campaign search campaign

Transcript of Optimize Your Paid Search Program CSE 197/BIS 197: Search Engine Strategies...

Fall 2

006 D

avis

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/Lin

CS

E 1

97/B

IS 1

97:

Searc

h E

ng

ine S

trate

gie

s 14-1

Op

tim

ize Y

ou

r P

aid

Searc

h P

rog

ram

Op

tim

ize Y

ou

r P

aid

Searc

h P

rog

ram

��In

th

is s

ectio

n,

we

dis

cu

ss:

In t

his

sectio

n,

we

dis

cu

ss:

−−T

ypes o

f P

aid

Searc

hT

ypes o

f P

aid

Searc

h

−−P

lann

ing P

aid

Searc

hP

lann

ing P

aid

Searc

h

−−P

aid

Searc

h O

ptim

izatio

nP

aid

Searc

h O

ptim

izatio

nste

pste

p-- b

yby-- s

tep g

uid

e to im

ple

ment a p

aid

ste

p g

uid

e to im

ple

ment a p

aid

searc

h c

am

paig

nsearc

h c

am

paig

n

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CS

E 1

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IS 1

97:

Searc

h E

ng

ine S

trate

gie

s 14-2

Wh

y P

aid

Searc

h?

Wh

y P

aid

Searc

h?

��C

om

pa

re t

o S

EM

, w

ha

t a

re t

he

ad

va

nta

ge

s o

f p

aid

C

om

pa

re t

o S

EM

, w

ha

t a

re t

he

ad

va

nta

ge

s o

f p

aid

se

arc

h?

se

arc

h?

��E

con

om

icE

con

om

icadva

nta

ge

sadva

nta

ge

s

−−C

usto

mer

qualit

yC

usto

mer

qualit

y

−−C

usto

mer

segm

enta

tion

Custo

mer

segm

enta

tion

−−C

ost

Cost

−−T

imin

gT

imin

g

��T

echn

ica

lT

echn

ica

ladva

nta

ge

sadva

nta

ge

s

−−U

nlim

ited k

eyw

ord

sU

nlim

ited k

eyw

ord

s

−−F

lexib

ility

Fle

xib

ility

−−C

usto

mer

oriente

d d

esig

nC

usto

mer

oriente

d d

esig

n

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E 1

97/B

IS 1

97:

Searc

h E

ng

ine S

trate

gie

s 14-3

Wh

y P

aid

Searc

h?

Wh

y P

aid

Searc

h?

��W

ha

tW

ha

t ’’s t

he

ca

tch

?s t

he

ca

tch

?

��S

ho

w m

e t

he

mo

ne

yS

ho

w m

e t

he

mo

ne

y!!

−−R

em

em

ber

the c

lick f

rauds?

Rem

em

ber

the c

lick f

rauds?

−−P

aid

searc

h c

an b

e

Pa

id s

earc

h c

an b

e e

xp

ensiv

e

exp

ensiv

e if not

execute

d p

rop

erly

if n

ot

execute

d p

rop

erly

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97:

Searc

h E

ng

ine S

trate

gie

s 14-4

Typ

es

of

Paid

Searc

hT

yp

es

of

Paid

Searc

h

��F

ixe

d P

lace

me

nt

Fix

ed

Pla

ce

me

nt

−−T

he p

lace

The p

lace

your

ad a

ppears

rem

ain

s f

ixed

your

ad a

ppears

rem

ain

s f

ixed

−−T

he p

rice

The p

rice is u

sually

als

o f

ixe

dis

usually

als

o f

ixe

d

−−P

ay

Pay ––

per

per

––im

pre

ssio

nim

pre

ssio

n

−−Lon

g c

ontr

act tim

eLon

g c

ontr

act tim

e

��P

ros &

Co

ns

Pro

s &

Co

ns

−−P

lace g

uara

nte

ed.

Pri

ce p

redic

table

& f

ixed

Pla

ce g

uara

nte

ed.

Pri

ce p

redic

table

& f

ixed

−−N

ot

flexib

leN

ot

flexib

le

−−B

ott

om

lin

e: be

Bott

om

lin

e: be V

ER

Y S

UR

EV

ER

Y S

UR

Eab

out

what

you a

re p

urs

uin

g

ab

out

what

you a

re p

urs

uin

g

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on

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CS

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97/B

IS 1

97:

Searc

h E

ng

ine S

trate

gie

s 14-5

Typ

es

of

Paid

Searc

hT

yp

es

of

Paid

Searc

h

��““ T

rad

itio

na

lT

rad

itio

na

l ””P

aid

Pla

ce

me

nt

Pa

id P

lace

me

nt

−−T

he o

ne w

eT

he o

ne w

e’’ v

e b

ee

n d

iscussin

g t

he w

ho

le s

em

este

rve b

ee

n d

iscussin

g t

he w

ho

le s

em

este

r

−−G

oogle

& Y

aho

o s

till

ow

n 9

7%

mark

et

Google

& Y

aho

o s

till

ow

n 9

7%

mark

et

−−S

mall

pla

yers

: S

mall

pla

yers

: G

oC

lick.c

om

GoC

lick.c

om

& m

sn

& m

sn A

dC

ente

rA

dC

ente

r

��C

ha

racte

ristics

Ch

ara

cte

ristics

−−P

ay

Pay-- p

er

per --

clic

kclic

k

−−P

ay b

y b

iddin

g in k

eyw

ord

auction

Pay b

y b

iddin

g in k

eyw

ord

auction

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97/B

IS 1

97:

Searc

h E

ng

ine S

trate

gie

s 14-6

Typ

es

of

Paid

Searc

hT

yp

es

of

Paid

Searc

h

��““ T

rad

itio

na

lT

rad

itio

na

l ””P

aid

Pla

ce

me

nt

Pa

id P

lace

me

nt

−−K

eyw

ord

bid

din

g is a

com

plic

ate

d p

rocess

Keyw

ord

bid

din

g is a

com

plic

ate

d p

rocess

−−B

oth

Google

and Y

ah

oo n

ow

use a

B

oth

Google

and Y

ah

oo n

ow

use a

com

bin

ation

com

bin

ation

of

price

of

price

and c

lick

and c

lick-- t

hro

ugh t

o d

ete

rmin

e t

he w

inner

for

a b

idth

rough t

o d

ete

rmin

e t

he w

inner

for

a b

id

−−T

his

makes e

stim

ation o

f fina

l keyw

ord

cost

difficult

This

makes e

stim

ation o

f fina

l keyw

ord

cost

difficult

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97/B

IS 1

97:

Searc

h E

ng

ine S

trate

gie

s 14-7

Typ

es

of

Paid

Searc

hT

yp

es

of

Paid

Searc

h

��C

on

textu

al A

ds

Co

nte

xtu

al A

ds..

−−C

onte

xtu

al ad s

yste

m s

cans

Co

nte

xtu

al ad s

yste

m s

cans t

he text

of

the text

of

a W

eb s

ite f

or

a W

eb s

ite f

or

keyw

ord

s a

nd r

etu

rns a

ds b

ase

d o

n

keyw

ord

s a

nd r

etu

rns a

ds b

ase

d o

n w

hat th

e u

ser

is

wh

at th

e u

ser

is

vie

win

gvie

win

g

−−It is a

more

sophis

ticate

d f

orm

of

It is a

more

sophis

ticate

d f

orm

of

aff

iliate

d m

ark

eting

aff

iliate

d m

ark

eting

−−G

oogle

Google

’’ s

s A

dS

ense

AdS

ense

& Y

ah

oo

& Y

ah

oo

’’ s C

onte

nt

Matc

h n

etw

ork

are

s C

onte

nt

Matc

h n

etw

ork

are

exam

ple

s o

f conte

xtu

al A

d.

Ven

dors

exam

ple

s o

f conte

xtu

al A

d.

Ven

dors

−−G

oogle

: sam

e a

s

Google

: sam

e a

s A

dW

ord

AdW

ord

; Y

ahoo:

separa

ted

; Y

ahoo:

separa

ted

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CS

E 1

97/B

IS 1

97:

Searc

h E

ng

ine S

trate

gie

s 14-8

Typ

es

of

Paid

Searc

hT

yp

es

of

Paid

Searc

h

��C

on

textu

al A

ds:

Co

nte

xtu

al A

ds:

Pro

s &

Co

ns

Pro

s &

Co

ns

−−A

ud

ience

Aud

ience

: very

specific

custo

mer

gro

ups

: very

specific

custo

mer

gro

ups

−−C

ontr

ol

Co

ntr

ol : Y

ou

: Y

ou c

annot

cannot

choose t

he s

ite, th

e p

lace o

r th

e a

d.

choose t

he s

ite, th

e p

lace o

r th

e a

d.

−−C

ost

Cost :

should

conte

xtu

al ad.

Cost th

e s

am

e a

s p

aid

:

should

conte

xtu

al ad.

Cost th

e s

am

e a

s p

aid

pla

cem

ent?

pla

cem

ent?

Fall 2

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CS

E 1

97/B

IS 1

97:

Searc

h E

ng

ine S

trate

gie

s 14-9

Typ

es

of

Paid

Searc

hT

yp

es

of

Paid

Searc

h

��L

oca

l A

ds

Lo

ca

l A

ds

−−Loca

l searc

h is d

eem

ed a

s t

he h

oly

gra

il of advert

isin

gLoca

l searc

h is d

eem

ed a

s t

he h

oly

gra

il of advert

isin

g

−−U

se

d t

o b

e m

ain

ly o

fflin

e (

thin

k y

ello

w p

age a

nd loca

l U

se

d t

o b

e m

ain

ly o

fflin

e (

thin

k y

ello

w p

age a

nd loca

l ne

wsp

ap

ers

)ne

wsp

ap

ers

)

−−A

t in

fancy s

tage o

nlin

eA

t in

fancy s

tage o

nlin

e

−−M

ore

than

More

than ¼¼

searc

hes in 2

004 a

re n

ear

hom

e o

r w

ork

searc

hes in 2

004 a

re n

ear

hom

e o

r w

ork

−−70%

ha

d u

sed t

he I

nte

rnet

to s

earc

h f

or

a loca

l serv

ice

70%

ha

d u

sed t

he I

nte

rnet

to s

earc

h f

or

a loca

l serv

ice

busin

ess a

t any p

oin

t, a

nd 4

6%

had u

sed t

he I

nte

rnet to

busin

ess a

t any p

oin

t, a

nd 4

6%

had u

sed t

he I

nte

rnet to

searc

h o

ne

or

more

tim

es f

or

a loca

l serv

ice in 2

00

5searc

h o

ne

or

more

tim

es f

or

a loca

l serv

ice in 2

00

5

Fall 2

006 D

avis

on

/Lin

CS

E 1

97/B

IS 1

97:

Searc

h E

ng

ine S

trate

gie

s 14-1

0

Typ

es

of

Paid

Searc

hT

yp

es

of

Paid

Searc

h

��L

oca

l A

ds

Lo

ca

l A

ds

−−Y

ah

oo is t

he b

iggest

vend

or

Yah

oo is t

he b

iggest

vend

or

−−F

ree lis

ting

Fre

e lis

ting

Fall 2

006 D

avis

on

/Lin

CS

E 1

97/B

IS 1

97:

Searc

h E

ng

ine S

trate

gie

s 14-1

1

Typ

es

of

Paid

Searc

hT

yp

es

of

Paid

Searc

h��

Sh

op

pin

g S

ea

rch

Sh

op

pin

g S

ea

rch

−−S

pecific

ally

desig

ne

d s

earc

h e

ng

ines t

hat offer

one

Specific

ally

desig

ne

d s

earc

h e

ng

ines t

hat offer

one

-- sto

p

sto

p

shop

pin

g for

part

icula

r pro

ducts

shop

pin

g for

part

icula

r pro

ducts

−−C

usto

mers

: tr

ansactio

na

l searc

hers

ready to b

uy (

twic

e a

s

Custo

mers

: tr

ansactio

na

l searc

hers

ready to b

uy (

twic

e a

s

like

ly t

o b

uy a

nd b

uy tw

ice a

s m

uch)

like

ly t

o b

uy a

nd b

uy tw

ice a

s m

uch)

−−1%

of

all

Inte

rnet tr

affic

, 22%

gro

wth

rate

(2004)

1%

of

all

Inte

rnet tr

affic

, 22%

gro

wth

rate

(2004)

−−M

ajo

r pla

yers

Majo

r pla

yers

−−C

om

petito

rs in t

he s

am

e p

roduct

cate

gory

are

charg

ed t

he

Com

petito

rs in t

he s

am

e p

roduct

cate

gory

are

charg

ed t

he

sam

e p

er

sam

e p

er --

clic

k f

ee

clic

k f

ee

Fall 2

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avis

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CS

E 1

97/B

IS 1

97:

Searc

h E

ng

ine S

trate

gie

s 14-1

2

Pla

nn

ing

Paid

Searc

hP

lan

nin

g P

aid

Searc

h

��S

TE

P 1

: D

on

ST

EP

1:

Do

n’’ t

fo

rge

t yo

ur

GO

AL

S!

t fo

rge

t yo

ur

GO

AL

S!

−−W

hat

do y

ou w

ant?

Tra

ffic

or

convers

ion?

What

do y

ou w

ant?

Tra

ffic

or

convers

ion?

−−R

em

em

ber

to m

easure

them

!R

em

em

ber

to m

easure

them

!

��S

TE

P 2

: P

aid

Pla

ce

me

nt

Se

arc

h

ST

EP

2:

Pa

id P

lac

em

en

t S

ea

rch

––P

os

itio

n

Po

sit

ion

−−T

op p

ositio

n a

ttra

cts

40%

more

T

op p

ositio

n a

ttra

cts

40%

more

tra

ffic

traff

icth

an 2

than 2

nd

nd

positio

npositio

n

−−80%

of th

e lo

wer

dem

and k

eyw

ord

s s

how

hig

her

80%

of th

e lo

wer

dem

and k

eyw

ord

s s

how

hig

her

convers

ion

rate

sconvers

ion

rate

sfo

r fo

r lo

wer

slo

ts!

low

er

slo

ts!

��S

TE

P 3

: D

on

ST

EP

3:

Do

n’’ t

fo

rge

t lo

ca

l s

ea

rch

!t

forg

et

loc

al

se

arc

h!

Fall 2

006 D

avis

on

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CS

E 1

97/B

IS 1

97:

Searc

h E

ng

ine S

trate

gie

s 14-1

3

Pla

nn

ing

Paid

Searc

hP

lan

nin

g P

aid

Searc

h

��M

ark

eti

ng

Ba

sic

s (

an

d h

ow

th

ey r

ela

te t

o S

EM

)M

ark

eti

ng

Ba

sic

s (

an

d h

ow

th

ey r

ela

te t

o S

EM

)

−−S

carc

ity:

Scarc

ity: s

carc

e ite

ms c

ost m

ore

(le

ss s

up

ply

, m

ore

dem

and)

scarc

e ite

ms c

ost m

ore

(le

ss s

up

ply

, m

ore

dem

and)

��In

shoppin

g s

earc

h

In s

hoppin

g s

earc

h -

---pro

duct cate

gories w

ith m

ore

com

petito

rs c

ost

pro

duct cate

gories w

ith m

ore

com

petito

rs c

ost

more

m

ore

��In

paid

pla

cem

ent

In p

aid

pla

cem

ent

––m

ore

bid

ders

= h

igher

fees

more

bid

ders

= h

igher

fees

−−E

ffic

ien

cy:

Eff

icie

nc

y:

selle

rs w

ill m

axim

ize the p

rice b

ased o

n t

he v

alu

e

selle

rs w

ill m

axim

ize the p

rice b

ased o

n t

he v

alu

e

to the b

uye

rsto

the b

uye

rs

��In

oth

er

word

s,

In o

ther

word

s,

the m

ark

et price is a

nth

e m

ark

et price is a

nu

nb

iased

esti

mate

un

bia

sed

esti

mate

of th

e tru

e

of th

e tru

e

valu

e o

f th

e p

roduct

valu

e o

f th

e p

roduct

��In

the r

eal w

orld,

In the r

eal w

orld,

no

no

mark

et is

tota

lly e

ffic

ient

mark

et is

tota

lly e

ffic

ient

––in

form

ation a

sym

metr

yin

form

ation a

sym

metr

y

��In

paid

pla

cem

ent

In p

aid

pla

cem

ent

––better

unders

tandin

g o

f your

keyw

ord

valu

ebetter

unders

tandin

g o

f your

keyw

ord

valu

eis

the

is the

key to h

igher

effic

iency

key to h

igher

effic

iency

Fall 2

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CS

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IS 1

97:

Searc

h E

ng

ine S

trate

gie

s 14-1

4

Pla

nn

ing

Paid

Searc

hP

lan

nin

g P

aid

Searc

h

��M

ark

eti

ng

Ba

sic

s (

an

d h

ow

th

ey r

ela

te t

o S

EM

)M

ark

eti

ng

Ba

sic

s (

an

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CS

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