SMX Live: Ecommerce & Retail Search Marketing Tactics

Mar 9, 2011 - 7:50 pm 0 by
Filed Under SMX West 2011

Live Blogging Coverage SMXBelow is live coverage of the Ecommerce & Retail Search Marketing Tactics panel from the SMX West 2011 conference. This coverage is provided by Keri Morgret of Strike Models.

Disclaimer: The coverage is brought to you in real time, using a custom live blogging tool. Feel free to ask questions or leave comments for inclusion into the live coverage. During the live event, live notes will auto-scroll with newest entries at top. After the session is complete the archive version will have the oldest entries at the top. We ask you to please excuse any typos, as these are live notes.

Finished Auto-Refresh: Off
Keri Morgret: 5:05:59 pm
Kevin Lee is starting us off.
Keri Morgret: 5:06:18 pm
Tactics without strategies? If we don't look at strategies, tactics will fall flat.
Keri Morgret: 5:07:18 pm
Do you have the right KPIs?
Online in a silo? Or should you look at offline factors too?
Attribution or more importantly media mix modeling. Help to understand interaction with other forms of media.
DR media mix vs using branding metrics.
Keri Morgret: 5:07:53 pm
Do you want to be in a direct marketing mindset, or give some credit to branding metrics?
Keri Morgret: 5:09:01 pm
Managing to your metrics.

What metrics should you use?
Cost per order
Cost per action
Revenue per $ spent
Return on AdSpend
Lifetime Value Metrics
and more..
Keri Morgret: 5:09:33 pm
Should social media acquisition or buzz be an objective?
Keri Morgret: 5:10:41 pm
What does management want?

Things to think about.. Look at other media, analyze your business, predict lagged orders or cross-channel impact, predict value of other factors.
Keri Morgret: 5:11:57 pm
Tactics: Long Tail or Wrong Tail.

Long tail can be wrong tail. How granular do you need to be in kw research before it becomes ludicrous?

Is it worth doing a landing page for "timberland men's size 12 extra wide steel toe leather work boots"?
Keri Morgret: 5:12:29 pm
Tactics: creative leverage.
Not just better converting current traffic.

Conversion and great landing pages increase leverage.
Keri Morgret: 5:13:27 pm
Geotargeting: conversion rate differences.

Average conversion rate: 1.5%
New York City DMA conversion rate: 2.1%

You can bid over 25% more for NYC DMA clicks.
Keri Morgret: 5:14:42 pm
Geotargeting: higher spenders.

Raleigh-Durham DMA shopping cart: $178
Average shopping cart: $122

You can bid 45%+ more for Raleigh-Durham metro clicks.
Keri Morgret: 5:15:30 pm
If you're not dayparting, your bid is right as often as a broken clock is correct.
Keri Morgret: 5:16:28 pm
He acknowledges what we went over in four minutes can represent four hundred hours of work.
Keri Morgret: 5:17:12 pm
Using outside help isn't an admission of failure.
Using the best suited tech platform is important.
Figure out here your time is best spent.
Keri Morgret: 5:18:04 pm
Rick Galan is up now.
Keri Morgret: 5:18:38 pm
Incorporation of products in paid search.
Keri Morgret: 5:19:12 pm
He gives a brief info to his company, Mercent.
Keri Morgret: 5:20:06 pm
He's showing how products dominate the SERP. SERP is for the query [arch supports].
Keri Morgret: 5:20:33 pm
40% of the links on this page are for ONE MERCHANT. Either go to page on merchant's website, or page on google's site that have links to that merchant's website.
Keri Morgret: 5:21:04 pm
How did they dominate so much? They used the google shopping feed, though he's not going to talk much about that.
Keri Morgret: 5:22:17 pm
click for full size
Keri Morgret: 5:23:34 pm
Product Ads (types)

Product Extensions
- show in conjunction w/existing text ads
- enabled and controlled at campaign level
- cpc - the same as the ad it's shown with
- attributes cost to the original keyword that triggered the ad
- lands directly on product page

There was a lot of detail about this in the session yesterday.

Why do this? More SERP real estate, increased CTR, and it doesn't cost anything more (save for your time in setting this up -- km)
Keri Morgret: 5:24:49 pm
Product listing ads

- standalone ads that show _in addition_ to your text ads.
- flexible control -- set them up within single campaign or separate account
- CPC bidding on product groups, but CPA is available if you're big enough and Google likes you.
- Lands directly on product page.
Attributes cost to the product group - NO KEYWORDS
Keri Morgret: 5:26:29 pm
Steps to SERP domination.

Sign up for G merchant center
Send a properly formatted, structured, and SEO'd datafeed daily.
Link datafeed to AdWords account.
Keri Morgret: 5:26:48 pm
Product extensions.
Turn on under ad extensions for each campaign.
Keri Morgret: 5:27:25 pm
You can create one extension and apply it to all campaigns. Some merchants only do this, and it works to a point.
It's better to create unique extensions for each campaign to ensure relevant results.
Keri Morgret: 5:28:01 pm
He's talking about the different types of groups you can set up.
Keri Morgret: 5:28:39 pm
The datafeed allows you to do adwords grouping, and suggest (but only suggest) keywords for each product, and restrict products from being shown. He suggests doing this for highest, most awesome keywords likely to convert.
Keri Morgret: 5:30:24 pm
Product listing ads (PLA)

Start by creating a PLA-specific campaign or account.

Create ad group for each product line. It's optional, but important.

Under auto targets tab, add a product target, select the ad group, and (optionally) add product criteria. If you want, you could stop with one ad group and do it as all products. OK, but it's better to do what we did with product extensions and make things more granular.
Keri Morgret: 5:31:34 pm
Why create product-based ad groups?
View detailed metrics by product groups YOU define. You can do Boots, Ugg Boots, Ugg Boots on sale

No product level bids -- ad group is the most granular.

You can bid diff't to each product segment's profit margin. Can't do this if everything is lumped together!
Keri Morgret: 5:31:44 pm
He's showing a screenshot of how to create the ads.
Keri Morgret: 5:32:33 pm
Reporting and Tracking your product data. Starting in brief, Benny will talk more.

He doesn't like CPO, but that's really only good if you have just one product.
At least focus on ROAS or ROI at EVERY level of your campaigns.
Keri Morgret: 5:33:13 pm
Gain insights from Product Data.
You can "roll up" your metrics in different ways once you have this set up.

Keri Morgret: 5:34:41 pm
Types of insights:
Improve landing page selection based on profitability of products sold

Write more compelling ads to appeal to the prime brand/category.

KNow where to swap out ads and push bids during a promotion.
Keri Morgret: 5:35:22 pm
See what brands and categories are most popular for head terms, then expand accordingly.

Structure ad groups based on consumer intent

Track inventory changes...
Keri Morgret: 5:36:06 pm
click for full size
Keri Morgret: 5:36:23 pm
Key points:
plan ahead
run tests for messaging
use sitelinks for promotional messaging
Keri Morgret: 5:36:57 pm
Bonus tip: ACE
AdWords Campaign Experiments. Nothing to do with PLA, but nobody seems to have talked about it so far in this track.
Keri Morgret: 5:37:52 pm
Benny Blum is up now.
Keri Morgret: 5:38:27 pm
click for full size
Keri Morgret: 5:39:16 pm
What is gross profit margin?
How can you make as much money as possible? Take revenue from paid search, subtracting cost, how can you make it so you have the best margin.
Keri Morgret: 5:40:22 pm
When to use GPM optimization over ROAS or cost per order?

- wide variance between product costs
- majority of purchasers are new customers
- lifetime value isn't primary optimization metric

Keri Morgret: 5:41:18 pm
At the end, he'll touch more on lifetime value. For now, he'll focus on discrepancy in profits made from two different models.
Keri Morgret: 5:41:36 pm
Two models for optimization:
Lowering marketing costs
Increasing revenue (focus of this talk)
Keri Morgret: 5:41:41 pm
Keri Morgret: 5:43:28 pm
CPO = cost per order (cost/orders)
AOV = average order value (revenue/orders)

Optimize for revenue (max volume where AOV > CPO)

Optimize for efficiency vs margin
- Efficiency optimization: constant ROAS goal or easily calculated CPO goal per product sold
- Margin opt: maximizing profitability regardless of CPO

How to define metrics for optimization?
- price elasticity of demand.
Keri Morgret: 5:44:47 pm
Margin optimization: less concerned about CPO, secondary to amount of money you're making. Going to push for profit. Have to have a looser return on adspend goal.
Keri Morgret: 5:45:47 pm
click for full size
Keri Morgret: 5:45:49 pm
Price elasticity of demand is what this picture is showing. No way I'm going to be able to get all of this in text!
Keri Morgret: 5:46:43 pm
How to apply this theory back to your paid search initiative.
Keri Morgret: 5:47:39 pm
He's comparing two products, looking at efficiency vs margin.
Keri Morgret: 5:49:28 pm
I'm not able to write enough of this to do it justice. For attendees, his presentation should be online, and possibly available to non-attendees.
Keri Morgret: 5:53:15 pm
His email is [email protected]
Keri Morgret: 5:54:28 pm
Will try to get the Q&A here.
Keri Morgret: 5:55:03 pm
Question is about something like Best Buy, where a branded query could be someone buying a music CD or a whole stereo.
Keri Morgret: 5:56:21 pm
Kevin: not always best to use same KPIs across entire campaign.
Keri Morgret: 5:59:57 pm
Discussion about competing against people like Amazon, Target, etc. A bit hard to compete, back off on bids rather than try to outbid them.
Keri Morgret: 6:08:44 pm
click for full size
Keri Morgret: 6:09:44 pm
The panel is now discussing different ways to manage a campaign (go for highest volume of sales vs acquiring customers as long as you break even), looking at the cost of producing something, cost of selling more things, physical products vs software product.
Keri Morgret: 6:10:56 pm
Kevin Lee reminds us of data leakage, including things like people clearing cookies, people going from online to physical stores or phone calls. Don't get too caught up in exact measurements, because you can't get too precise.
Keri Morgret: 6:11:35 pm
How to compete in product listing ads if there are competitors that are priced lower than you?

You don't. Lower your prices, or PLA may not be right channel for you.
Keri Morgret: 6:12:21 pm
PLA: you're not competing against text ads, only against other PLA ads.
Keri Morgret: 6:13:33 pm
When you start on PLA, you have to start with a stupid-high bid to get some visibility, lower the bid in a week.
Keri Morgret: 6:16:06 pm
If you optimize your shopping feed really well for organic, it'll also help with PLA and product extensions in paid.
Keri Morgret: 6:16:34 pm
You have 25 characters of promotional text if you can't compete on price.
Keri Morgret: 6:17:19 pm
And the session is done. See you tomorrow.

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