Joshua GlassVice PresidentPeoples Flower ShopsAlbuquerque, New Mexico

Unleash the Power of Online Advertising

Search Engine Marketing and What It Means to You

“I know half the money I spend on advertising is wasted” said John Wanamaker more than 100 years ago, “but I can never find out which half.”

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Today’s Topic: Search Engine Marketing• Search Engine

Marketing SEM is the placement of online paid text ads

• Also known as Pay Per Click advertising or PPC

Search Engine Marketing

1• What Is It?

2• Why Is It Important?

3• How Does It Work?

4• How Can I Do This?

5• How Do I Know If It Is Working?

What is Search Engine MarketingPay Per Click

Pay per click search engine advertising is a method that gets you leads from consumers searching on top search engines and directories

What Is It

What Is It• Millions of users every day

utilize search engines and directories to find what they are looking for online

• Search Engine Marketing is highly targeted as the ads are only displayed to the target audience based on what they are seeking in their query

• This provides advertisers with an opportunity to filter their audience to only individuals who are actively seeking their products and services

Where Do Consumers Find You Online

How much does it cost to be in the top position

Example of Google Ads• Paid ads on Google

will appear at the top of the screen and on the right hand side often below a map listing

• Paid ads are typically flagged with an indicator that lets the user know that this is a paid advertisement

• The number of ads that appear on the screen can vary based on location and search term

Example of Bing Ads

• Bing ads are similar in appearance to Google

• Ads appear at the top of the page and often on the right hand side

• While there may not be a flag indicating a paid ad the section featuring paid ads is shaded to distinguish the ads from organic results

• Like Google, the number of ads that appear on a page will vary based on location and search term

Why Is It Important?

The Shift to Online Marketing

Local Businesses Need an Online Presence

Consumers Spend a Lot of Time Online

What Consumers Do Online

Consumers Use Search Engines

Consumers Value Search

Search Engine Rank Matters

Consumers Are Always Connected

Consumers Love Mobile

Rise of the Smartphone

Consumers Search on Mobile

Consumers Shop Via Mobile

How Does It Work?

How Does It Work: User Experience

Florists

How Does It Work: Business Experience

How Does It Work: Behind the Scenes

7 Essentials of Search Campaigns

Keywords: How People Find Us

• Ads are served to potential customers based on keywords they enter into their search. As each segment is different, we create a unique keyword list for each segment and adapt it over time.

• Each campaign performs uniquely even compared to others within its segment. Although they are all different, often times there are distinct similarities with keyword performance.

Keywords: Match Types

In addition to identifying potential keywords for a campaign we must also specify how these terms will be interpreted. The match type of a keyword will determine how tightly or loosely keywords are related to a given search query.

Here’s what the results look like for the example keyword “vintage blue car”:

The significant difference between the three match types comes into play when we look at the search volume numbers. As you can see, it’s estimated that our example keyword gets over 12,000 broad match searches per month, but only a dozen exact searches. What does this mean?

Keywords: Match TypesIn this case, broad match indicates searches that include the words in the keyword phrase, as well as synonyms of those words, in any order with or without the addition of more words in the search. Examples of broad match searches for “blue vintage car” include:•blue vintage car•classic automobile blue•pictures of a blue vintage car•classic blue jeans jacket with car emblem

The phrase match search volume number only includes searches containing all of the words in the keyword phrase in that exact order, but can contain searches with extra words in them. Phrase match searches could include:•blue vintage car•pictures of a blue vintage car

Finally, the exact match search volume number only includes searches for the exact keyword phrase and nothing else. In other words, the number indicates the estimated amount of people who typed in the following phrase and then hit the enter key:•blue vintage car

Keywords: Trends and ChangesKeyword performance can sometimes change over time. Consider this example:In 2010 NBA All Star Lebron James announced that he had signed with the Miami Heat. In the days and ultimately years to follow basketball in Miami reached a new high in popularity.

The fallout from this change in the market had impacts in areas outside of professional sports. Heating and air conditioning providers in the area were suddenly unable to use any variation of the term “heat” especially in conjunction with the geo of “Miami” as competition skyrocketed for these terms and irrelevant traffic outnumbered viable consumers.

Heating and air conditioning providers had to turn to other terms such as “furnace” to replace these keywords or in some cases cut their losses all together. Business owners who were not aware of this change in the marketplace could suddenly find themselves spending a lot of money on irrelevant traffic.

Paying Up…When you bid on a keyword you are saying that that’s the

maximum that I’m willing to pay for somebody to click my ad.

While this is a blind auction, the highest bid does not always receive the highest ad rank.

Google’s rankings are slightly different as seen here.

Text Ad Contributing Factors• Ad click through rate

provides an indicator to publishers as to how well your ad is received relative to keywords

• Higher click through rates drive better quality scores

• Ad extensions and site links are good ways to increase visibility and enhance click through rate by providing a direct link to specific products or services

• Site links should land directly to the related products or services which reduces the steps from search to making a purchase

• Improve click through rate

• Link directly to special offerings

• Increased visibility

• Address extensions link to map

• Phone extensions provide a phone number in the ad copy

Keyword Contributing Factors• Highest bid does not always guarantee top page position

• Quality scores measure how relevant keywords, text ads, and landing pages are in order to serve relevant ads to the searcher

• Optimizing our ads into various ad groups with unique text ads and landing pages helps us maintain high quality scores and allows us to bid less for better page positions.

• Keywords that do not perform well are sometimes phased out of the mix so that they do not hinder the quality score of the overall group.

Keyword BiddingHow quality score impacts price

Keywords: Geo Modified Keywords•Publishers use a searchers IP address to target their location and serve relevant local ads and maps but what if you are looking for something outside of your current location?

•Adding a geo location to a keyword can be a great way to find relevant traffic even outside of your normal target area.

For Example:‘florists’ vs ‘Marco Island florists’‘flowers’ vs ‘Marco Island flowers’

Keywords: Geo Modified KeywordsFlorists

For example, a person currently living in Dallas but shopping in Florida were to search for ‘florists’ they would be directed toward florists within the Dallas area.

Keywords: Geo Modified KeywordsFlorists Marco Island

If they were to search for ‘florists Marco Island’ however they would see florists in the Marco Island area even though they are not currently in the Marco Island area.

Keywords: Geo Modified Keywords

Geo Filtering Techniques•Adding the state in addition to the city within the keywords or text ads.

•Strategically selecting cities based upon their population to avoid being mistaken for larger cities with the same name

•Add geos as negative keywords for all other areas to prevent the incorrect location being served

•Reduce targeting for the national publishers to a state level in some markets to reduce out of area traffic and avoid confusion.

Geo Targeting: Targeting Types

•Once we have identified our potential keywords we have to define where the ads will be shown by establishing targeting.

•The size of the target area will depend on locations of your business in the area as well as the number of people within the target area.

•Target areas should be large enough to have sufficient search volume but not so large that ads are shown to people who are not likely to convert into contacts.

Geo Targeting: Targeting Types

4 common types of targeting that we use:

•City –specific cities in an area•Radius – IP target searches within a set number of miles from a location•DMA – targets everyone within a designated market area•National – targets everyone across the country

How it Works: Text Ad & Landing Page

How Can I Do This?

Do It Yourself: Benefits• By managing your own PPC advertising you can work directly with

the publishers and have total control over your campaigns

• You make all changes and decisions regarding your campaign

• You are in total control over your campaign and its performance

• There are no additional fees on top of the media costs

Do It Yourself: Requirements• Google Adwords and Bing Ads Certifications suggested but not required

• Identify an appropriate keyword list

• Identify your target area

• Identify an appropriate budget that suits the needs of your market and industry.

• Know how to operate within each publisher environment

• Learn the terminology and best practices used for PPC advertising

• Invest the time to follow up and manage your campaigns regularly

• Educate yourself on trends and best practices specific to your industry

• Stay on top of industry trends and changes in technology that will impact performance

Do It Yourself: Conclusion• You absolutely can manage your own PPC campaigns but it will require

an investment of time on your part familiarizing yourself with a new trade, publisher environments, and industry information

• The industry is always changing. You need to stay informed on the latest developments in both advertising and technology in order to keep from falling out of touch with best practices

• While you are cutting out the middle man and working directly with the publishers, you may not always save yourself any money if you are unable to operate your campaigns efficiently

• Managing your campaign properly will require a consistent investment of your time.

Benefits of Using A Partner For Small/Medium Size Businesses

What You Get With A Partner

Also Consider Partners That Can:

• Serve multiple platforms that automatically serve ads and adjusts bids for all types of devices whether it be a desktop pc, tablet, or smart phones

How Do I Know If It Is Working?

Conversions: More Than Clicks

Going beyond clicks to the things that drive your business

Conversions: Reports Prove Results

A Visual Aid for Make Believe Inc.Let’s take a look at the numbers

Clicks 500 visits to your website from paid adsCalls 50 phone calls to your businessGood Calls 20 number of calls that were good sales opportunities (90 seconds+)Web Events 10 number of orders/prospective clients that filled out a request on your siteContacts 30 number of good sales opportunities (calls and form submissions)Orders 25 number of converted salesClick to Contact 6.0% rate of contacts per clickClick to Order 5.0% rate of converted business per click

Orders ÷ Clicks X 100 = Click to Order %

Contacts ÷ Clicks X 100 = Click to Contacts %

A Visual Aid for Make Believe Inc.Dollars and cents

Without PPC PPC Campaign With PPC

# of Sales 100 Budget $1,000 # of Sales 125 Avg. Sales Price $100 Visits 500 Avg. Sales Price $100 Total Revenue $10,000

Conversions (New Customers) 25

(5% rate x 500 visits) Total Revenue $12,500 125 sales x $100

Cost of Goods per Sale $50

Conversion CostsPer New Customer $40

(Budget ÷ by conversions) Cost of Goods $6,250 125 Sales X $50

Avg. Profit per Sale $50

Cost of Goods per Sale $50

Cost per Web Lead (PPC Budget) $1,000 $40 X 25 New Customers

Gross Profit $5,000 Gross Profit $250$10 per new

customer Gross Profit $5,250

ROI 25% Profit ÷ Budget

Lifetime Value of 1 New Customer 1st VisitNew Customer Purchase $100Pay Per Click Costs - $40 Cost of Goods - $50Gross Profit $10

2nd Visit Returning Customer Purchase $100Pay Per Click Costs - $0 Cost of Goods - $50Gross Profit $50

$60 150% ROI3rd Visit Returning Customer Purchase $100Pay Per Click Costs - $0 Cost of Goods - $50Gross Profit $50

$110 275% ROI

Direct Line: 855-976-3760

Website: www.reachlocal.com/contact-us

About ReachLocal

Resources

http://groups.google.com/group/adwords-help

www.google.com/adwords/learningcenter

http://searchenginemarketing.yahoo.com/rc/srch/eworkbook.pdf

www.searchenginewatch.com

www.webmasterworld.com

www.pandia/optimization/ppc.html

SAF

My contact information:josh@peoplesflowers.com505.359.1200

Joshua Glass