Archive for June, 2010

How Many AdWords Competitors Are There?

Wednesday, June 30th, 2010

A reader wonders:

Since Google has removed the "More Sponsored Links" button, can you give me a specific explanation on how to find out the number of advertisers for a given keyword?

My response:

There are a couple of ways to get this information. Unfortunately, none of them is accurate. Fortunately, the exact number isn't important. 

First, how to determine the number of advertisers?

1. Use the Google Keyword Tool

You can use the free Keyword Tool within AdWords to see the relative competition for a keyword (relative, that is, to all other keywords in Google's database.

In the example below, I use the keyword Canon battery charger.

As you can see, these keywords are all very competitive. Compare them with keywords related to buying vuvuzelas, the plastic horns that are blaring at the soccer World Cup in South Africa this summer:

Not quite the same supply (or demand, I dare say ;)

2. Free Spyfu lookup

You can go to www.spyfu.com and enter a keyword and receive a pretty good chunk of information about it.

Here you can see 11 PPC competitors listed, and a month by month analysis of their tactics below.

3. The Paid Keyword Spy Tool

For $140/month, you can get the Rolls Royce of Competitive Analysis tools, Keyword Spy. (Full disclosure: that's my affiliate link, which means I get paid if you click it and subscribe. To keep things clean, you can click this link – www.keywordspy.com – and go there without giving me a penny.)

Here's what Keyword Spy says:

OK, so now we've got 54 advertisers, not the 11 that Spyfu claims. Which one is correct? No idea.

You can also see Keyword Spy's assessment of the trend over time, from the previous 10 months (red arrow).

Why Don't You Need to Know the Exact Number?

Because it isn't actionable information. 

Are you going to choose a different ad or bidding strategy for 11 competitors than for 54? No.

The number of competitors is interesting only when you are assessing the market, seeing if it's robust enough to support advertising. Once the competition has filled up the first page of Google search results, you've got to do enough things right to get into the first page affordably, given what a visitor is worth to you.

What are the Right Things?

  1. Writing an ad that attracts your ideal customer and repels non-buyers
  2. Taking them to a landing page that immediately converts their attraction into interest, so you can harness their desire and turn it into action
  3. Bidding just-right for each conversion, so you're neither underpaying nor overpaying for clicks

Once you've committed to a market, you go in with the intention of being the most successful advertiser on the page. Regardless of whether you have 11 or 54 or 230 competitors. If you aren't in the top 10, you're not in business. If you're not in the top 3, you're not profitable.

(And by "top" I don't mean position, but effectiveness. You might be in position 7, and still cleaning up for that keyword by virtue of a perfectly tuned ad and website.

How Does Google Work?

Wednesday, June 30th, 2010

This image might need updated in the years to come, but it does a great job laying out how Google works when you type a query into their search engine. Search is so easy to do that it is hard to appreciate how complex it is unless you take a look under the hood. Which is exactly what this graphic does :D

Click the image to get the full sized beefy image :D
How Google Works.

A side benefit of this graphic is that it should help prospective clients realize how complex SEO & PPC campaigns can be. So if anyone is trying to be an el cheapo with their budget you can use this to remind them how complex search is, and thus how time consuming and expensive a proper search marketing campaign is.

The Inside Line On SEO

Wednesday, June 30th, 2010

There are so many blogs on search marketing.

Then there are so many forums.

And Tweets.

So much SEO noise, and so little time.

So how does anyone make sense of it? The deluge can be overwhelming for the experienced SEO, let alone the poor beginner. If you are just starting SEO, here are the ten areas you should spend most of your time on when you're starting up.

1. Stop reading Blogs/Forums/Tweets/Facebook. Too much noise, takin' all your time :)

"SPAM = Site's Positioned Above Mine" - Greg Boser

2. Before you do any SEO, define your niche. What service does your website provide? Who are your readers/customers? What can you provide that your competitors don't? How are you going to deliver your services and make a profit? There's no point ranking well for a business that doesn't work at a fundamental level.

"Search is a "reverse broadcast system." In a broadcast system, advertisers spend lots of money to reach a mass audience, hoping to build desire for a product or service. But most of the audience is not interested in their pitches. Search is the reverse. Each search is an expressed desire, something that someone at a particular time actually wants. Advertisers can tune in to the "desire-cast" that’s going on." - Danny Sullivan

3. Set business-specific goals and include a time frame. "I want to make x in 12 months". "I want 20,000 RSS subscribers in 6 months". It's important to be specific. It's difficult to measure goals that aren't specific i.e. "be popular".

Never let your ads write checks that your website can’t cash. - Avinash Kaushik

4. Create interesting content. If you know your audience, you already know what content they will find interesting. If you don't, revisit #2.

I’m not even sure myself - Matt Cutts

5. Links. You need links Not just the Google-juice, PR-passing kind. Links are the arteries of the web, Traffic travels across links, so all links, crawlable or not, no-followed or otherwise, are valuable. Asking for links from people you don't know is pretty much a waste of time. It's a better idea to create fantastic content, then link out to the popular people who can spread the word. They'll follow their inbound links back to you. Make sure that what they find is remarkable.

The urgent can drown out the important. - Marissa Meyer

6. Do SEO. All that stuff you're no longer reading in #1? It all boils down to this: put keywords in your title tag, write on-topic content, make sure your site is crawlable, get links to that content, get people to talk about you. Repeat.

We're trying hard to find user needs that aren't being met at all- Larry Page

7. After a month, look at your keyword referral logs. Take those terms and plug 'em into keyword research tools. Create a list of 30 keyword terms that your audience would find interesting. Those are your article headings. Write 30 articles. Repeat.

8. Look at your competitors. Your competitors are ranking well for a reason. They're being mentioned elsewhere for a reason. What are they doing that you're not? Reverse engineer their sites i.e. who links to them, find out what articles they publish and find out who is talking about them, and why. Emulate them, then go one better. Either that, or stop competing with them directly i.e. define a slightly different niche.

We are currently not planning on conquering the world - Sergey Brin

9. Get social. Social media is often over-hyped, but the principles, and numbers behind it, are sound. Getting mentioned is the new link building. It's about building connections between people. Google has a problem. Using links as a measure of relevant content doesn't work as well as it used to, so you can be sure Google will be using an ever-more complex set of signals. These signals will involve the connections people make with your site. That's really what Google wants to know - who is most relevant. Consider the many different ways people can connect with you, and enable those connections.

10. Start reading the blogs/forums/twitter. The irony, of course, is that I've linked to some truly great resources and thinkers :)

If you've followed the ten steps above, you're 80% of the way there. The final 20% will take a while longer, and that's where the minutae comes in.

Keep in mind that some of the most lucrative SEO information isn't likely to be published in the public domain. Cultivate personal networks to get this information. This is true of any business endeavor.

Network :)

Headless Body In Topless Bar

Monday, June 28th, 2010

That was a New York Post headline.

It was a great headline for the New York Post. I think it’s fair to say they understand their readers.

Is it a good headline for a post on PPC Blog?

Maybe :)

You tell me.

In a minute.

But first….

A Post About Headlines

Today we’ll look at the headline in the context of PPC. This topic is probably nothing new to PPC veterans, but if you have a background in traditional media and copy writing, hopefully it will give you a way to approach PPC, and search marketing in general.

We can think of text ads as being headlines. They serve a similar purpose to headlines in traditional media. Their purpose is to grab attention. Unlike traditional media, text ads lead to a second headline, and copy, on a separate landing page. So the two need to work in tandem in order to be most effective.

In traditional media, the headline writer simply wants to grab attention from a reader who may not have been interested in the topic a second ago. They want you to read and, at best, recall a message, but there’s not a great deal of jeopardy involved if you don’t. The PPC headline leads the reader to take a specific action, and that action typically involves handing over cash.

In this respect, the stakes are higher for the PPC copywriter.

The Role Of Headlines In Our Culture

All our media has been reduced to the headline.

The sound bite. The lead story. Digg. Reddit. Social media. Our inbox. Our feed readers. Everything is being aggregated and reduced to headlines. Our culture has infinite messages, yet there are still only 24 hours in the day. What media you consume, and what you buy, is typically “directed” by the few words that make up a headline.

No wonder marketers place such importance on headlines. Those few words lead to everything else.

Brevity

Our media has been reduced to headlines because time is short. Headlines summarize. Headlines must be both brief, and loaded with meaning. They must hint at something deeper.

Relevant

Ad text and the landing page headline must resonate with your audience. The key to writing a good headline is to first know your audience.

PPC is a great test bed for getting to know your audience. Tim Ferris, the author of the book “The Four Day Workweek” used PPC to test a range of title ideas for his as-yet unnamed book. The ad text that generated the most clicks became the title of his book. The audience “told” him the name they deemed most interesting by clicking.

Confirmation Bias

Confirmation bias is a tendency for people to favor information that confirms their preconceptions.

Search is a hunt and find medium. Unlike the newspaper or magazine, PPC is not about grabbing disinterested, passing attention. It is about being directly relevant to the searcher who knows, of thinks she knows, what she wants. It’s about reflecting the searchers own perception of what is good and relevant.

Any headline (link) not directly relevant to the search phrase will likely be ignored. This is why repeating the keyword term in a PPC advertisement is important. It’s a confirmation that the searcher is in the right place. This is why traditional attention grabbing headlines, like “Headless Body In Topless Bar” don’t work so well in search.

They aren’t specific enough.

Be Specific

Google sees PPC links as being information. Google reasons that advertisements are information in the same way an organic search results are information in that their function is to answer queries. This is especially true when searches have a commercial imperative.

Google rewards you for being specific.

A PPC headline isn’t a place to get clever. “Headless Body In Topless Bar” would not work in PPC. Whilst it might grab attention because it’s different, people would not see it is as being relevant to them, because it’s not specific to their search. It would also fall foul of Google’s relevancy algorithms, and is unlikely to be shown at all.

A Headline Must Lead Somewhere Even More Interesting

The ad text needs to hint at something deeper. Just like the purpose of the headline is to lead people to the first line of copy, our PPC ads need to hint at something unseen, yet valuable, beyond the link. When the visitor lands on the landing page, the landing page headline must confirm what was hinted at in the PPC ad.

Uniqueness Is Rewarded

If you’ve read this far, my headline probably worked. It got your attention, and led you to the second line, and you kept reading.

But you and I both know that shock tactic isn’t going to work in PPC. It probably worked in the context of a feed reader, because it stood out in that context. Typically, the titles for PPCBlog articles don’t involve headless corpses in topless bars! But it’s not a great headline. It’s over-played. And it is unlikely to work again. Any shock/curiosity value has now gone.

However, I want to make a point about context. In a crowded environment, like a feed reader or search results page, uniqueness is often rewarded.

As a species, we’re conditioned to notice what changes in our environment. The new. The different. Likewise, our text ads must be more compelling than any other link on the page. That includes the organic results. Look thought the search results, not just the PPC ads, to see what is, and more importantly, what isn’t there.

Your ad should be unique in this context. Uniquely relevant. This comes from understanding your audience, and specifically addressing their needs.

Eight Questions To Ask Before You Start A Business

Thursday, June 24th, 2010

Are you thinking of starting a web business? Starting a PPC Management agency? Setting up your own site and selling things, or building a web publishing empire?

Before you start, ask yourself the following eight questions. The advantage of this Q&A is that you can quickly see if the idea you’re going to throw your money and soul into is likely to work.

1 . What Do You Do?

Define what service the business provides. Many entrepreneurs make the mistake of trying to be all things to all people. They may well have a wide range of skills, but resources spread too thinly often leads to failure.

Try to focus.

McDonalds could, no doubt, provide up-market meals, but they focus on selling quick, cheap food.

That is what they do.

2. Who Do You Do It For?

Who are your customers?

Create a mental image of your typical customer. Make a note of their income levels, and particularly their “itch” i.e. that problem they really need solving, and will gladly pay money for you to solve.

3. What Makes You Different?

What is your unique selling proposition?

If your customers can buy the same services for less elsewhere, or more easily, they will. Your customers will compare you against others. What is that one thing you can do, that offers considerable value, that no-one else can do? What makes you special? What makes you remarkable?

There is a tendency to model yourself on others. To copy existing models. Try to avoid doing so. The people who come up with these models are probably already onto the next stage i.e. refining their service, changing direction, heading somewhere else. You’ll always be the person in their rear-view mirror, one step behind. Why be Bing when you can be Google? :)

This is not to say doing something wildly new or different is any guarantee of success. One winning strategy is to take a successful business model, and twist it a little. You have the ready-acceptance of a proven model (safe), and the opportunity to talk about something a little new (interesting). For example, Steve Jobs did not invent the PDA, but he put a new twist on it in the form of the iPhone. He took something that most people were already familiar with (safe) and made it more approachable (interesting).

4. Do You Know What Cashflow Is?

This point is so important, it really should be number one. Cashflow is the movement of cash into or out of a business. It sounds like the dullest thing in the world, and many budding entrepreneurs overlook it, but it is the one thing most likely to kill your business.

Businesses may have great ideas. They have customers signed up. They execute well. They’ve even sent the bills out. Growth is happening, and all is well with the world.

Then the bank manager calls.

The overdraft has hit its limit and you can’t meet payroll this week. You can’t make rent. At this point, you’ve out of runway.

Running out of cash stops you dead and makes you utterly vulnerable. Address cashflow from the start. How much capital will you need? How much overdraft will you need? How long will it be before client money appears – cleared – into your bank account? How much do you need to operate each week?

There is no fooling cashflow. The score of any business is the bank account balance.

5. What Employees Do You Need?

Will you be doing all the work yourself? If you’re doing the work yourself, when will you have time to sell new work? Should you be wasting time doing menial clerical tasks?

Consider outsourcing all non-core tasks. Whilst you may be able to do everything, often it doesn’t make sense to do anything other than the things that bring you the most money.

6. How Will You Manage Customers?

Keeping existing customers is a lot cheaper than finding new ones. How will you manage your customer relationships? How will you structure your activities to ensure repeat business? Do you have a process whereby you can find out customers wants and needs?

Create a process that allows you to adapt to your customers.

7. What Are Your Goals?

Set company goals. Set personal goals. How much do you need to earn, and in what time frame? How will you exit your business? Who will you sell to?

Use the SMART system when setting goals. Using the smart system, goals must be:

S = Specific
M = Measurable
A = Attainable
R = Realistic
T = Timely

For example, a goal might be “to gain 20 new customers in one year”. The specific, measurable nature of the goal means your planning will be more effective. Specific goals beg questions i.e. “Where will I find 20 new customers”? and lead to specific actions.

Failure to be specific results in vague goals such as “to operate a successful business” or “to be happy”. It’s difficult to decide on actions that will lead to such goals.

8. Do You Really Want To Run Your Own Business?

Having gone through these questions, you’re may be a) raring to go or b) feeling a little overwhelmed.

Ask yourself why you want to be in business for yourself? It’s more work than being a staffer, there is more risk involved, the money is non-existent to start with, you swap one boss for many bosses, and each new contract becomes a job interview.

On the plus side, it is enormously satisfying, you are responsible for your own destiny, and all benefits return to you.

Taking one hour to consider these questions can save you a lot of time, money and grief if you jump in unprepared.

Jump in. With due consideration :)

Those who have made it through your first year of business, what things do you wished you’d considered before you took the plunge?

Building a Business by Focusing on Angry Overly Important Individuals?

Thursday, June 24th, 2010

I just read a WSJ article about how some hotel chains are trying to woo people leaving negative remarks publicly about their brand.

'I Hate My Room,' The Traveler Tweeted. Ka-Boom! An Upgrade!

Generally speaking, the idea is crap.

In essence they are spending resources trying to make the most unsatisfied segment of their market happy, and rewarding people for trashing their brands with free upgrades & other perks. And so it teaches more people to complain & to find arbitrary things to complain about. Hence the friendly article offering the tip on how to get free room upgrades, with tips like: "Have a lot of online friends or followers. Hotels will pay more attention to your requests."

Hey Ritz-Carlton & Shangri La ... we have 10,000's of readers and you suck! Please save my complimentary upgrades for the next time I am in town. :D

Does anybody think those leading brands got to where they are by tracking complaints on Twitter? The customers who have complaints actually worth listening to will probably give it to you directly rather than Tweeting it.

The people who are unhappy are often the type of people who shop by price and have 0 brand loyalty. And no matter what you do it is never enough. About two days after opening up our membership site (nearly 2 years ago) I got a phone call while on the road by someone who couldn't figure out how to log in. I pointed out where it was. That wasn't good enough. I spent about 6 hours digging through the PHP to try to make the login even more intuitive for them. The next day they asked for a refund because I didn't provide 24/7 phone support. The login wasn't the problem. It was just a handy excuse. The problem was that they were cheap and nothing was going to be good enough for them. And just to put a bit more salt in the wounds, about a week later someone else complained about how the login was changed. FAIL! :D

Since then we have increased our price 200% (as we have added more tools, more staff, and the value of my time keeps going up every day) and we still have many people who are happy as longterm customers at a higher price point. In fact when some people accidentally cancel their account I can get 3 to 5 emails in an 8 hour period when I sleep because they miss the site that much.

But there is the opposite end of the spectrum as well: potential "customers" who demand a free trial, beg for aggressive discounts, or have 50 "one more question" questions before joining. They probably are not sold enough on the solution to be worth the effort of selling to. No matter what you offer them its probably not going to be enough. Their lack of internal value is reflected into their perception of the works of others, and if they buy from you without being sold on you they will probably ask for a refund, or find a way to be abusive to make you want to can them.

In our support suite many non-paying non-customers mark their messages as critical. Whereas the people who are paying customers use a less extreme level, like normal. The levels that people can select are almost a filtering mechanism. Have you spent $0 with us & you mark your issue as critical & you use caps lock & rude slurs? Shift-delete.

I didn't intentionally plan it, but our old programmer even built another filter into our business model. The people who join and then cancel right away get locked out right away. We then send them refunds, but this level of filtering filters out a major type of potentially abusive customer. The type who generally won't read or research but will ask 5 different questions 8 different ways each every single day until they have annoyed your members so much that you are forced to boot them to lessen the noise. The person who makes over 100 posts in their first 2 days isn't taking any time to read or listen or implement, so they would just harm your community without getting any value out of it.

This leads to my theory of filtering: if a person needs lots of support becoming a customer (or before they become a customer) then they probably are not going to become a good customer. And if you take them on as a customer (or spend any money pushing in that direction) you will probably lose money.

The person who sends me an enraged email about "why should I install Firefox" just wasted 5 seconds of my life & will never spend a penny with me. And that is fine.

Many of the best companies aim to be polarizing. They pick their spots and define what they do, and work hard to make that market segment happy. That is how Steve Jobs views flash, and it is how Marc Andreessen likes to invest.

Find out what people smarter than you are doing and find a way to incorporate those themes into your business strategy. The smaller you are the more polarizing you can be, because you don't have to create something that feeds thousands of employees to be profitable.

You could spend every day trying to make any unhappy person happy with your offering.

... OR ...

What if you took those same resources that were spent trying to appease the angry and spent them on making those who are happy that much happier? Does the free upgrade go further when it is given to an enraged steroid addicted customer, or does it go further when given to someone who has stayed with your hotel multiple times in the past? Where are they on this circle?

The concept to think about here is that if someone is already fairly loyal it doesn't take much more marketing or attention to make them *super* loyal. And then they spread the word.

There is a concept of fairness which is preached in school, but you should overweight your business toward your best customers.

The person who has been a paying subscriber for years is worth thousands to tens of thousands of Dollars to our future business interests.

And for clarity purposes, I agree with Chris that their can be great value in being a guide & helping people out. But angry high-maintenance people are rarely where sustainable profit margins come from (unless, of course, you are a divorce lawyer OR a PR firm who gets paid to give hotels bad advice).

From the above WSJ article's comment section

It wasn't enough. It never is. :D

Project Management Tips For PPC

Thursday, June 24th, 2010

Whether we work for ourselves, or we work as part of a bigger business, we should always be accountable for what we do. Clients, bosses, and bank managers will always want to see us demonstrate that we are working steadily towards achieving goals.

Project management has become a specialized task in it’s own right. Dedicated project managers delegate tasks, ensure people complete those tasks, and generally keep projects on track. However, project management should permeate all we do. We’re all project managers, especially those of us involved in long and complex tasks, like PPC campaigns.

The principles of project management are simple. A complex task is broken down into a series of manageable, measureable steps leading to a desired outcome, achieved in an acceptable timeframe. If we manage ourselves – or others – well, we free up time, and save ourselves a lot of grief.

Here’s how to manage a PPC project:

Define The Outcome

Whether you’re dealing with a client, or undertaking your own project, you have to know exactly what you’re aiming to achieve.

Write the objective down down, as clearly and succinctly as possible. If a client is vague about outcomes, it’s best to push them to get clarity at this point. Once a project is underway, it becomes difficult – and time consuming – to change course.

Define The Process That Delivers The Outcome

Once you have an outcome – a destination – defined, you should now plot a high-level course showing how you’ll get there. If the project is short i.e. a day or two, then your don’t really need to define a process. However, if the project takes a while – and most PPC campaigns do – then a process becomes important, because the client will want to see you demonstrate that progress is being made.

The benefits of having a clearly-defined process is that it shows the client what is involved, and when things are likely to happen. It reassures the client that things will happen in an orderly, accountable fashion i.e. there is less chance of being surprised, and that the client is in control of the process.

For example, a PPC process might look like this:

  • Establish and define objectives
  • Create written reporting plan, setting out milestones. Client to approve reporting plan and milestones.
  • Report on each milestone. Client to review and provide feedback at each stage.
  • Deliver final milestone. Provide final project report.
  • Sign off

Break The Project Down Into Steps

Climbing a mountain begins with a single step. And then another. And then another. Eventually, we’ve scaled the mountain.

Likewise, a project is made less intimidating if broken down into a series of small steps. The client doesn’t need to know each technical step. However, the steps lead to each milestone.

The benefits are two-fold. One, a complex task becomes a lot more manageable. Two, reporting is built into the process. Clients almost always appreciate progress reports, which also provides you with an opportunity to seek valuable feedback and clarification.

Say What You’ll Do, Do It, And Tell Them You’ve Done It

If you do what you say you’ll do, even if it’s a small thing, you will build trust.

Sometimes, it’s easy to think that because you know what you’re doing, that the client will automatically perceive it. This isn’t necessarily so. Demonstrating competence, at regular intervals, is often required in order to build trust.

Integrate Feedback

No matter how well we plan at the early stages, there will always be tweaks and adjustments that need to be made.

By integrating multiple opportunities for feedback, we can also alter and add steps we may have missed, or didn’t define clearly enough.

Focus On The Next Step

After the first step, comes the next step, and so on. At each stage, we keep the client informed, integrating feedback, redefining and adding tasks as necessary. Each stage leads us closer to our goal, and everyone is clear about what needs to be done, and what the outcome will be.

Repeat

Repeat the steps/reporting/integrating process until the desired outcome is achieved.

Tips:

Consider making the first milestones easy-wins, especially if the client is new. This helps create trust, which may be needed if other milestones become difficult.

Make a note of which tasks require other people, and get buy-in from them as soon as is practicable. In many ways, other workers are like clients in that they benefit from feeling they have an element of control.

The more complex a project – especially projects that require multiple people to hit time targets before others can start – the more useful project management software becomes, however a lot of project management software is simply overkill for PPC.

No surprises – for anyone :)

Should You Outsource PPC?

Tuesday, June 22nd, 2010

Should you hire an external PPC consultant? Or can you do the job better and/or cheaper inhouse?

Large companies – companies with over 1,000 people – typically have less need to outsource than smaller companies. Existing in-house teams can often adapt in order to provide extra services, with a little extra training required. Smaller companies typically benefit the most from outsourcing, as the overheads for each added employee can be considerable. However, the decision whether to outsource really comes down to a cost benefit analysis, regardless of size.

Which option would suit your company best? Let’s take a look at the issues.

PPC Outsourcing:

Consider the following:

Data security – PPC data is valuable. If your business is driven by marketing, particularly internet marketing, then how comfortable are you with this data being in the hands of a third-party?

Control – If the internet marketing function brings in a significant chunk of your business, then your choice of partner is critical. For some, the risk cost will simply be too high.

Incentives – ensure that the performance incentives are appropriate. For example, some PPC agencies bill a percentage of spend. The problem with this model is that it encourages high bidding for clicks, which are only ever likely to increase. The incetives should align with your business case. Be sure to implement a means of tracking PPC traffic to measurable business goals.

Low Spend – small campaigns are relatively straightforward to manage in house if you have existing marketing resource i.e. spending in the thousands per month. The function is typically a part time role, and the time cost can be minimized further by using third-party semi-automated campaign management software and tools.

A PPC agency starts to make sense when the monthy spend is in the tens of thousands and higher, as such campaigns can quickly become complex and/or can be regularly optimized to drive down total campaign cost. We’re talking about good PPC agencies, of course. There are plenty of lousy ones. Which brings us onto…

Management Overhead – third party suppliers need to be managed. They need to have objectives set. They need to report on a regular basis. Performance needs to be monitored. This is also true of inhouse PPC management, of course, however the proximity of an inhouse employee, and the fact they’re engrained in the culture and process, often makes this function easier.

Business Knowledge – any marketing function needs to be closely aligned with business goals. Tyically, PPC managers work on multiple accounts and have a tendancy to focus on numbers, as opposed to wider company objectives. This remoteness can make external consultants less effective than someone who lives and breathes your business and culture each day.

PPC Inhouse

Expertise – PPC management is specialized and ever changing. This requires on-going training and adaptable employees who can wear hats of both marketing and technical expertise simultaneously. PPC agencies are specifically geared for this task.

Lack Of Resource – PPC takes time, and your existing employess may not have it. PPC invariably grows more and more complex, especially if the return on investment grows. Whilst it’s easy to manage basic campaigns – low budget/low numbers of keyword terms – it can become time consuming to manage large campaigns. PPC agencies use economies of scale and specialized tools that may not be readily available elsewhere.

Poor Results – If you’re new to PPC, then you may not have adequate benchmarks to quantify performance. An external agency may have years of experience in your market sector, and be able to provide a wealth of market data.

High Costs – not only is there the cost of hiring extra staff, there is the opportunity cost of having that staff not focus on something else. Obviously each businesses cost structure is unique, but generally the bigger the PPC spend, the more value you’ll get from outsourcing to a good agency.

Summary

Consider inhouse PPC if:

  • You require high levels marketing/business integration.
  • The function can readily be absorbed using available staff and management resources
  • The level of complexity is manageable. Typically, campaigns in the tens of thousands per month featuring thousands of keywords are best managed by a dedicated specialist.

Consider Outsourcing PPC if:

  • You have a high level of spend i.e. in the tens of thousands per month and above
  • You don’t have readily available resources
  • The PPC function is not a mission critical part of your marketing mix.

Is Your Local Business Getting Smothered on Google?

Tuesday, June 22nd, 2010

Google has just made it easier for you to connect your business location or locations with AdWords.

If you're a local business, you need to know about these features if you want to stay competitive:

www.youtube.com/watch?v=UVYJTkNJatE

An Interview with Johns Wu

Monday, June 21st, 2010

Internet success stories rarely get any sexier than the story of Johns Wu. 

In 2006, while still an undergraduate research student in neuroscience, Johns started a Wordpress blog he named Bankaholic.com. A one-man-show, Johns used an SEO/SEM-focused approach to build traffic and revenue. Just over 3 years later, he sold Bankaholic to BankRate for a reported $14.9 Million.

He was 22 years old.

Recently, we caught-up with Johns. This proved to be a bit of a challenge, as he is currently enjoying the ability to travel all over the world. He graciously stopped just long enough to answer some questions about his success and what it takes to create a multi-million dollar website these days.

So what leads a guy like you from studying neuroscience into SEO?

My original inspiration was the story of Anand Lal Shimpi and Anandtech.com. When I was in middle school, I saw a news report about how he became a media-tycoon when he was only in high school. Since then, I have always been fascinated by online media. In college, I was originally on track go to medical school, but the deeper I got into science, the more I realized that I hated it! I explored some computer and business classes on the side, and in 2005, I started a stock blog called thebulltrader.com. I had a good time blogging and running the site, and a year later, in 2006, I started Bankaholic. After getting my first AdSense check of $50+, I became interested in getting more traffic, and the rest is history! ;)

Online affiliates tend to do really well in areas that are either directly or closely tied to finance. Do you evaluate the proximity to finance when considering an area or niche where you'd like to build?

Not at all. The Internet is huge and there are tons great niches out there.

Is topical expertise required to compete in a valuable market?

It definitely helps, but it isn't 100% required.

What are specific things you feel might substitute for topical expertise?

Being Internet savvy definitely helps. More specifically, understanding how SEO and SEM works will grow your business and give you a shot even if competitors have more topical expertise.

Do you like to operate in markets where there is passionate competition, or markets where people tend to approach it with less passion?

I always steer clear of competitive niches. Always. There is so much money out there that you shouldn't be wasting your time chasing over-saturated/impossible niches like ringtones and online poker.

Let's talk a bit about how you grew Bankaholic. What was your original vision for the site?

In 2006, it was the peak of the financial bubble. Banks were very aggressive with marketing so they were paying easy sign-up bonuses to new customers. Any average Joe with a social security number could make a couple hundred bucks a month by taking advantage of these deals.

My goal was to aggregate the best deals and create a SlickDeals/Fatwallet kind of site that was exclusively about banking. My vision was to create an online cult of "bankaholics" that would come to my site every day for the latest deals.

Great domain name, BTW. What led you to create a uniquely brand-focused name opposed to using a direct-match or keyword-rich domain within the finance sector?

Picking a domain name was incredibly frustrating because (as you can imagine) all the good names were taken. I remember the day I thought of the word "Bankaholic" very clearly. I was in the neuroscience lab waiting for one of my lab experiments to finish, so I went on the computer and used NameBoy.com to brainstorm some names. I saw the word "Bankaholic" and I thought hey, this sounds alright...so then I quickly registered it on GoDaddy.

Given the size of the sale {$14.9 Million}, it would seem you were quite ambitious and narrowly focused to build that much market leverage so quickly. Were you always focused on reaching that level of success?

Yes, after I graduated college, Bankaholic became my life. I knew that I was sitting on a goldmine and that it was my one shot in life to make it big, so I took it very seriously and spent every free moment obsessing over how to grow and improve my business.

Did you employ any offline strategies to help drive your success?

The only offline strategy I ever attempted was printing Bankaholic t-shirts and giving them out. Since the ROI was so dismal, I never did this again!!

Did you have any specific priorities that you feel contributed in a meaningful way to your success?

Measure and optimize. You can't optimize what you don't measure.

Are you still writing regularly on the site? (One of the current authors in particular seems to share your love affair with culinary treats).

LOL! I continued writing for a few months after the sale, but after the transition, Bankrate has totally taken over.

The social media scene was emerging as Bankaholic grew, but is a much stronger presence today. Has this changed the way you are approaching new ideas or projects?

I'll be honest. I HATE social media. I admit, it can be powerful, but it is so unpredictable and uncontrollable that it is more of an afterthought for my online strategy. I personally would much rather spend my time on SEO since it is predictable, measurable, and (most importantly) 100% profitable.

However, Twitter and Facebook are valuable tools because they allow you to reach a fresh demographic that hasn't yet descended into the 'conversion funnel'... So in that respect, yes it is important to have a level of fluency in SMM depending on your niche and business model.

If new to a niche with limited resources, how does someone tackle bigger, more challenging markets?

Experience is everything. Learn from your mistakes, and don't be afraid to fail your way to the top.

Do you feel a success story like yours is something that anyone can do, or what makes the difference?

Not just anyone can do it, but there are many who can. To be a successful affiliate marketer, you need to be a jack of all trades. You gotta be able juggle and excel at many disciplines: creativity, design, business, project management.

You can only pick one: which is the most valuable asset for a young webmaster starting a competitive website (with all things being magically equal):

  • capital to invest,
  • passion for the subject matter,
  • expertise on the subject matter,
  • SEO savvy,
  • technical/graphic/content development skills

Definitely expertise. If you are a true authority in your niche and you create remarkable content, your website will naturally attract links, advertisers, and business development opportunities.

How has the money affected the way you're approaching new business interests?

I'm very active in domaining because it is a great place to put my money. I think premium domain names are great for my situation. Since I understand the Internet better than anything else, I know what valuations are attractive. Buying domains also leaves me the option to get into more web development in the future.

You've created an amazing "Rags to Riches" story with this entire effort. How does this affect the way you're viewing future challenges?

Unfortunately, I have a lot less motivation these days. I am a lot less 'hungry' for success but it's okay... eventually I will get back into my Internet marketing groove.

So what's next for Johns Wu?

These days, I've just been traveling and relaxing. Once I get the travel bug out of my system, there is no doubt that I will continue chugging away at domain acquisitions and development.

Thanks for taking a moment to talk, Johns - safe travels, and here's to your continued success!

Marty Lamers owns a Freelance SEO Copywriting company you can visit at Articulayers.Com. Since 2001, Articulayers has been fixing the world, one word at a time.