Guiding Your Client Through Internet Marketing by Vern Wanner of First Webs Presented July 2005

First Webs of Rockford, IL is no longer associated with WSI (World Sites International), and does not support the products or programs offered by WSI.

First Webs provides Internet Marketing and web site development services to the northern IL area. First Webs operates http://www.nilsem.com, http://www.firstwebsdemos.com, and http://www.firstwebsni.com

Posted by Vernon Wanner, First Webs Internet Consultant; May 8, 2007

Guiding Your Client ThroughInternet Marketing

by

Vern WannerRockford, IL

Introduction:

Search Engines and Online Advertisers are battling for share in this $100 billion local search market.

Natural SEO? Local Search? Pay-Per-Click? Internet YP? Or Pay-Per-Call?

What’s an IC to Use?

Introduction:In this Presentation . . .

•Explain the Options for Internet Marketing•Compare SEO vs. PPC•Compare Local PPC for Google and Yahoo!Search•Define Internet Yellow Pages (IYP), Pay-Per-Call (PPCall), and Local List•Outline a Process for Selecting a Program•Present an Application Example

Natural SEO: Also called Organic. The process of using titles, descriptions, and relevant content to obtain site listing in top 30 positions with major engines. Also “free” or purist”.

•Usually Long-Term Investment; Best ROI•1 Time Development & Then Monthly Updates•May Need to Recode Entire Site•Target Low Number of High Traffic Keywords•2-3 Keywords Max Per Optimized Page•Depending on Industry, Optimization May Last•Do it Right and Traffic Keeps Coming!

Detailed Description:

Engine Natural (%) Paid (%)

All 60.5 39.5

Google 72.3 27.7

Yahoo! (Eng) 60.8 39.2

AOL 50.0 50.0

MSN 28.7 50.0Many companies engaged in SEO resist investing in Paid search. Many companies investing in Paid search are not yet pursuing an SEO strategy.

Source: ClickZ Experts & OneUpWeb May 3, 2004

Detailed Description:

Pay-Per-Click is an Auction. Select a keyword or search phrase, create a listing, select an amount advertiser is willing to pay. Place the ad on relevant sites. When a visitor sees the ad and clicks on it, the advertiser pays.

•Compete With All Adv’r using Same Phrase•Get Can Traffic Immediately (<1 Hr)•Good Solution When Can’t Get Site Ranked•Good Solution for Flash or Dynamic Content•Easy to Measure and Track Results•Excellent for Seasonal Businesses

Detailed Description:

PPC Continued . . .

•Excellent for Testing New Product or Campaign•Use for Many Phrases With Low Bid Costs•Time Consuming to Monitor; Expensive•Carries the Highest Long-Term Cost•Good for Researching Natural SEO Program•When You Stop PAYING Traffic STOPS!

Detailed Description:

There are 2 major PPC players – Yahoo! And Google. MSN is entering the field. A little known player is FindWhat (MIVA).

Yahoo! Search Marketing offers both Local Search and National Search. There are slight differences in program names. They are set up on separate accounts.

Google’s AdWords program covers both LocalSearch and National search. Selecting the geography is part of setting up the account.

Detailed Description:

PPC search results display on right side and top; Similarly for Google.

Detailed Description:

Detailed Description:PPC Variation 2 – Pay-Per-Call, not Pay-Per-Click!

Offered by Ingenio and FindWhat (MIVA), PPCall is an incredibly UNCOMPLICATED product for SMBs.

98% of US businessesDo Not use PPC. TheyAll have phones!

Detailed Description:

Detailed Description:Merchants define key terms, choose categories, and decide what area they want ad to appear. Then create ad and provide a trackable toll free # which redirects to advertiser phone #.

Merchants charged on a CPA basis when someone calls the toll free #. Tracking and stats are available.

Let’s compare PPCall to PPC:

Detailed Description:

•Bid Prices Higher - $2 to $20/Call Depending on Category and Position

•More Engaging- Conversions Improve Over PPC; Builds Rapport

•Easier to Track. 85% of SBs Can Estimate Phone Conversion Rates, but not Web Conversion Rates

•Easier to Set Up

Detailed Description:

Print Yellow Pages

Internet Yellow Pages

Local Commercial Searches

Metric References References (lookups)

Geo-targeted Commercial Searches

Source Yellow Pages Assoc

Yellow Pages Assoc

Kelsey Group FC; Ingenio Data

Customer contact (%)

83% 67% 32%

Customer call (%)

61% 73% 25%

Net Call Rate 2005, (%)

50% 49% 8%

Source:KelseyGroup,2005

Detailed Description:

Print Yellow Pages are arguably the most important form of advertising for small business. Now, Internet Yellow Page advertising (IYPs) must be considered for online business. YP listings are derived from traditional phone book listings, and can not be ignored.

IYP databases feed many portal/directory sites. Opportunity exists to enhance local presence.

2 Companies dominate IYP feeds - SBC SMARTPages and Verizon Super Pages. Other data comes from Axiom and InfoUSA.

Detailed Description:

Yahoo! Local Business Listings – Is not PPC, but a listing from YPs. Details give info about business. Standard listing free! Enhanced listing is $9.95 Intro. (Local–not Yahoo! YP)

Yahoo! YP gets data from SBC SMART Pages and InfoUSA.Basic listing free. Offers 3 tiers of enhanced listings.

Placement, geographic coverage, maps, driving directions, and text vary. Tier 1 is top listing at $60; Tier 3 at $25.

Google’s Locals are simpler and less complete.

Detailed Description:

Detailed Description:

•Yahoo! Sponsored Search – Yahoo!’s national PPC program for customers searching nationally. Yahoo! Engine, MSN, All-the-Web, Excite, InfoSpace, CNN, ESPN, United Online, Wall Street Journal•Yahoo! Search Marketing Int’l – Partnership network for European/Asian Yahoo! global searches •Local Sponsored Search – (YLSS) Local PPC version for customers searching online but buying locally

•Google AdWords – Google’s PPC program AOL, Ask Jeeves, Earthlink, Google, more . . .•Google AdSense is an ad program for web- masters. It is “Reverse PPC”.

Yahoo! Local Sponsored Search Advertisers . . .

•Have or Service a Physical Location•Enables Business w/o Web Site to Participate•Offers Targeting 100 miles down to ½ mile•Can Use Multiple Creative Ads for Different Keywords•Can Have Multiple Locations Within 1 Account

Detailed Description:

Yahoo! Local Sponsored Search Advertisers (cont’d). . .

•Can See Bids and Position at Set Up•Optional Max CPC and Cost (Budget On)•Conversion Tracking is Free•40 & 190 Character Title/Descriptions

Detailed Description:

Google AdWords Advertisers Will. . .

•Display Ads Based on Search IP Address! IMPORTANT!!!•Have Multiple Creatives for Same Keyword. Google Will Rotate Them•Target by Broad, Phrase, Exact, or Negative Keywords•Have GEO Targeting by Country, Region, City (MSA), and Multiples of Above•Have 25 Character Titles; 35 Character Descriptions (2)

Detailed Description:

Google AdWords Advertisers Will (cont’d). . .

•Have Position Determined by Daily Budget•Be Rewarded for Higher CTR Ads; Move Up in Position•Have Low Performing Keywords Removed•Conversion Tracking is Free!

Detailed Description:

Use the IBA and the IDA. List all the Client’s LGPs.•Establish an Average Revenue for a Sale from the Leading, or Leading LGPs•Get the Client’s Gross Margin, or Use an Industry Avg.•Arrive at a Cost for Client to Get a Buyer. This is Cost Per Action, or CPA

Definition: CPA=Cost Per Action for Each LGP or

SWAG, i.e. Clients Costs/No. Buyers = Avg. CPA

How Can You Do This in Your Business?:

WidgetWorks, Inc. does a Direct Mail Campaign to 3000 businesses. 45 leads are obtained. 15/45 are converted to Buyers. The average sale from 15 purchases is $250. The Gross Margin is 50%. The cost of each mail piece was $3.

CPA DM Campaign=(3000x3)/15=$600CR DM Campaign=15/3000=.005=.5%Profit Generated=15*250*.50=$1875

How do we apply this type of program to PPC?

How Can You Do This in Your Business?:

WidgetWorks, Inc. has another product line with an Avg. SP=$100. The line GM is 60%. Therefore, the Value Buyer=$60. A great web site converts 2% of Visitors to Sales. CTR=2%=.02. WidgetWorks get 4500 hits.Wordtracker or Yahoo! Keyword Selector indicates keywords Cost $.32 to $.48. Use $.40.

CPA=Advertising Costs/No. Buyers=4500*.40=$1800No. Buyers=Hits (4500)*CTR (.02)=90CPA=$1800/90=$20. Note: Or Set KW Bid from $20

If CPA<Value Buyer, then Increase Bids. If CPA>Value Buyer, then reduce bids and try more Keywords.

How Can You Do This in Your Business?:

WidgetWorks, Inc. Cont’d.

Let’s look at Profit.Revenue=Hits(4500)*CTR(2%)*Avg. Price ($100)=$9000Costs=COG(40%)*Sales($9000)+PPC Costs ($4500*.40)Costs=$5400Profit=Revenue-Costs=$9000-$5400=$3600ROI=Incremental Profit/Incremental Cost=$3600/$1800ROI=200%If ROI is Acceptable and Profit>0, then consider increasing Bids. If ROI is Unacceptable and Profit<0, the you must reduce bids and re-evalute your Keywords.

How Can You Do This in Your Business?:

Other Case Histories On

Northern IL Search Engine Marketing Siteat

www.nilsem.com

How Can You Do This in Your Business?:

Practices I Like to Follow . . .

•Understand Your Client. Do Your Up-Front Research•Understand Your Client’s Budget•Support Your Estimates with Sound Business Logic•Always Keep SEO in Mind; Lead with PPC. (Quality of the Site Might be a Limiting Factor)•I Suggest Local Search With Yahoo! Unless the Business is Clearly National. Local Keywords Cost Less!!!•Use Google for Larger Clients – IMHO!

How Can You Do This in Your Business?:

Practices I Like to Follow (cont’d). . .

•Insure Your Clients are Listed in Yahoo!Local and Google Local. Standard Listings are Free! •Take Advantage of Free Conversion Tracking on all PPC•Subscribe to Web Marketing Today, Planet Ocean, SE Watch, or Other Excellent SEM sources. Stay Informed

•Even Though You Choose to Outsource, You Must Be Knowledgeable About the Industry•Whatever You Present to the Client – KEEP IT SIMPLE!

How Can You Do This in Your Business?:

Conclusions:

Thank You!

Time for Q&A