Intelligent Performance Marketing

Paid Search Best Practices: Divide and Conquer for Optimal Marketing Performance

By Julianne Bohl

When we take on a brand new paid search account or start to manage an existing paid search account, the immediate and most fundamental task the Search team undertakes is hashing out the account structure. Solid and consistent account architecture makes campaign management easier and more efficient while enhancing the campaign’s performance, and the program’s growth.

The NetX Paid Search Team has developed a list of best practices to apply when evaluating account structure. Of course, every advertiser is unique and therefore every account will vary. But these are the best paid-search practices that we stick by, no matter what the account:

  1. 1. Separate your campaigns by device: Keep the desktop campaign separate from the mobile campaign, which is separate from tablet campaign (which is separate from whatever comes next!)
  2. 2. Separate campaigns by channel: Run search ads and display ads in independent campaigns
  3. 3. Split Brand and Non-Brand campaigns: Keep brand terms in one campaign and non-brand terms in another.
  4. 4. Use geo targeting: Set up the account to take advantage of localization, whether it’s international, national, regional, etc.
  5. 5. Mirror the advertiser’s website: This ensures keyword scalability, simplifies destination URL implementation, and creates a consistent brand message
  6. 6. Use standard campaign-naming conventions: This is critical for efficient management, cross-team knowledge transfer, reporting and analysis, and scaling
  7. 7. Create tightly themed ad groups: This increases ad relevancy and click through rate (CTR), increases conversion rates, and allows for precise and targeted ad testing
  8. 8. Have a back-up ad running: You never want to go dark if an ad gets disapproved
  9. 9. Remove duplicate keywords: This decreases intra-account competition and increase your search ad campaign’s efficiency
  10. 10. Separate ad groups by match types: This creates easy-to-tier bids and improves both campaign management and account efficiency

Jump ahead a few years and I anticipate that these 10 best practices remain just that: best practices for setting up your paid search accounts. If anything, as new products, targeting capabilities, and ad format are introduced, I believe this list will grow. It’s critical that our paid search accounts are capable of changing and expanding at the speed of the industry. This list is a great start to ensuring that your paid search architecture creates efficient campaign management, optimizes paid search performance, and enhances campaign growth.

Julianne Bohl is the Director of Search Advertising for NetX.

Affiliate Marketing Best Practices: Setting Goals

By Salvatore Conca

Setting goals for your affiliate marketing channel sounds so simple. But the reality is there are a number of factors to consider when setting goals and choosing KPIs (Key Performance Indicators) for your affiliate marketing channel. Elements to consider include how established your brand is, the maturity of your affiliate program, and the other marketing efforts both online and offline that may influence your affiliate channel.

The most popular KPIs for retail advertisers with an affiliate program are Revenue, Sales and ROAS (return on ad spend). If you’re a new brand or launching a new affiliate program, revenue will be your easiest measure of success. How much revenue? That will depend upon factors such as brand awareness, how competitive your industry is, and seasonality. Mature brands should consider other factors, or secondary KPIs, such as whether affiliate sales are coming from existing customers or new customers. As your affiliate program grows, your goals and KPIs should evolve.

Affiliate marketing is generally known as the most efficient online-marketing channel because of its pay-for-performance model. That means it should have a high ROAS. Before calculating your ROAS, make sure you clearly define all of your cost variables. Affiliate commissions are obvious, but there are also network fees, paid placements and agency fees. If you operate your affiliate channel with a fixed budget, make sure you have allocated funds properly to hit your revenue goals and still meet your ROAS objectives. I also recommend keeping a small budget set aside for paid placements, additional exposure and testing.

For subscription products and services you’ll be looking at a whole different set of metrics, in fact revenue may not even be relevant. The number of subscriptions and your CPA (cost per acquisition) will be the means by which you grade performance.

Once you have your goals in place and you’re ready to measure your KPIs, it’s time to use these goals to build your strategy. One of the most important things to remember is that your goals are there to measure your success. If you didn’t hit your goals, make sure you understand why. You should also revisit and readjust your goals regularly depending on growth and other factors you may not have accounted for in your initial plans.

Salvatore Conca is the Director of Affiliate Marketing at NetX.

Attribution Management: We Need Industry Standards

By David Herscott

Attribution Management is the latest attempt by marketing technology companies to provide advertisers and their agencies with a solution for tracking and valuing the slew of advertisements that lead up to an Ecommerce sale. Attribution Management has a more complete definition, but beware: this site is a ClearSaleing blog, one of the early technology leaders in the space.

Currently the default methodology is “last click,” meaning that regardless of the marketing messages that a consumer is exposed to, the last click – whether it be search, display, affiliate, email or other – gets the credit for the sale. In some ways not much has changed since the advent of modern advertising – brand marketers are still fighting it out with direct marketers to get the kudos (and the lion’s share of the budget). However, thanks to technology we can now create an entire picture of brand interaction prior to sale – well, sort of.

The technology has come a long way in a relatively short period of time, and attribution management can be an effective tool for Ecommerce marketers on the hook to show ROAS/ROI. However, the current challenge has less to do with technology and more to do with developing industry-accepted methodologies.

If you look at the early leaders – ClearSaleing (now a GSI/ebay company), C3 Metrics, Convertro and Adometry (you can even check out Visual IQ and Atlas) – you’ll notice that they all use similar attribution models. These models loosely include last click, equal attribution (eg 25/25/25/25); and a weighted-model that looks something like this: 60% credit to first exposure, 30% split among the second, third and/or fourth exposures and 10% to the last click. These companies also offer “custom models” which are algorithms based on prior results.

A Weighted Attribution Graph
Attribution Management companies often use a weighted model to track a buyer’s steps to make a purchase.

Whats wrong with the current models? Last click provides no real value – any basic web-analytics solution will give you that. Equal attribution is not based on anything other than indecision. The weighted model is interesting but I have yet to see any compelling consumer-behavior data that supports this model. The custom model obviously has the most promise but I think that technology providers need to be more transparent about how the model works so that we, as marketers, can make better decisions.

David Herscott is a Managing Partner at NetX. Contact David at David@netx.com.