Using branded and non-branded search terms in PPC campaigns.
Understanding the search engine user is a tricky proposition, to say the least, which is what makes search engine marketing a challenging and separate discipline in itself. Currently the basis for predicting future user behavior on which foundation a search engine marketing campaign is founded is past user behavior: mainly data about demand for particular keywords and discernible patterns in the results for those keywords.
A study by two search marketing firms, based on data gathered from about 5.1 million paid search advertising clicks from 3.9 million users in the first quarter of 2006, gives some insight into how search users function. The campaign was focused on Internet retailers that ran PPC campaigns so that the entire conversion scenario could be measured.
Key highlights from the survey:
- Search terms that had brand names in them converted better.
- Many users clicked more than one ad; in fact the conversion rate of users who clicked more than one ad was better.
- Users who switched from non-brand search queries to branded search queries tended to convert better than those who stuck with unbranded terms.
- A high proportion of users were still sticking to using simple search queries (one or two terms and not multiple word keyword phrases).
The implications for search marketers.
Some of the above aspects might seem quite obvious; however, there are significant implications for marketers.
While brand name conversions might be high, it simply means that search users already have a more definite idea of what they want and they are just trying to find the best place/ source to get it from. Such users have already made quite some headway in their vendor selection process.
However, the vast potential of search marketing lies in being found by potential customers who did not know about a company or its products and services. Search engine marketing is primarily about making oneself be found—catering to only those who already know would be turning the back on opportunity. Can any marketer with ambitious plans to acquire new customers afford to do that?
The long tail principle.
This calls for some strategic decisions as to how much a campaign should focus on acquiring totally new customers and at what cost. One of the most used terms in search engine marketing today (and in other aspects of business as well) is “The Long Tail”, a phrase coined by Chris Anderson.
The main premise of the long tail principle (when applied to search engine marketing) is that a very high number of keywords that individually may not contribute any significant volume of traffic or conversions can collectively contribute to a healthy volume of traffic and conversions. This principle of long tail can be applied effectively with branded and non-branded terms as well. Carefully selecting a high number of non-branded search terms can make a significant difference to the profitability and returns from a campaign.
The other aspect is related to the usage of simple terms versus multi-word phrases. Marketers cannot afford to forget that even today a very high percentage of search users don’t use search very effectively— or they don’t think very deeply before entering the search query. They put the onus of finding relevant results based on their vague search query on the search engines. This makes a marketer’s job extremely difficult, as it becomes almost impossible to gauge the intent behind that search query. Bidding for such keywords can often be a hit and miss; however, the sheer size of search engine users who input these extremely broad terms means that one cannot afford to exclude them from the search marketing strategy.
Experience & analytical ability are the only things that can help marketers in such a case, where they will have to make informed decisions and calculated risks while trying to optimize the campaign and maximize ROI. Professional search engine marketing firms, with their enormous reservoir of data, experience, the right tools and specialized personnel, make a difference there.
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