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Win&Mac-Tight / Winning Results with Google AdWords / Goodman / 656-4 / Chapter 11 CHAPTER 11: Increasing Online Conversion Rates 327 Win&Mac-Tight / Winning Results with Google AdWords

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Be wary if your developer seeks to reinvent the wheel by throwing together his own “homemade”

search engine Product search and the ability of a site search tool to suggest related items can be a complex matter

Amazon.com is one of the world’s top search technology companies The ability for users to browse their huge catalog without getting lost is an important driver of Amazon’s current profitability, since this increases the average order size.

If you want to maximize your conversion rates and you have more than a few pages on your site, you need quality site search Some low-cost and free site search options are offered

by companies like Atomz and Google, but make sure that you investigate fully The lowest-end products might not be sufficient for your needs Unfortunately, Google’s dominance in search makes the average manager think that site search is easy A strong domain-specific vendor or developer (someone well versed in e-commerce) can build good site search relatively easily

But as you stray into open source platforms and custom programming for a variety of more complex types of website, don’t underestimate the complexity you may face Search is a cost, and searching a large database well may require programming resources as well as a budget for improving site performance, database performance, and server capacity

Factors Outside Your Control

Don’t confuse luck with brains Sometimes, you don’t have total control of how users will behave from day to day However, while you may not be able to control these factors, you can plan for them

Seasonality

Every market has up and down seasons Housing, taxation, and retail gifts are three of the most obvious examples Unless you have at least two years’ worth of conversion data at your disposal,

it can be difficult to know whether your site is converting well or not, adjusted for season

What appears to be a drop-off or an increase might simply be normal activity How well do you understand your own business?

Hot Sectors

If you’ve begun working on a campaign for a product that is just hitting the market and is hard to find, you could wind up reaping windfall profits, because that’s what search is really good for: connecting users with niche areas quickly GPS phones were hard to find not long ago One site owner in this area reaped windfall profits as a result The design of the site had very little to do with the high conversion rates, and the drop-off in ROI that will inevitably occur as more competitors move in can’t be blamed on AdWords campaign techniques or site design

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Hot sectors will eventually cool off Users in more mature industries know that they can comparison shop You need to allow for that The reason people don’t comparison shop when

something is brand new is likely because early adopters come to the table with a status-driven

“must have” mentality If the iPod cost $1,500 and sold out very quickly from retail stores,

you can bet that there would be a few bleeding-edgers who would buy from the site that could

promise them fast delivery regardless of price

360-Degree View: Create a Good

Conversion Environment

The popularity of the TV show What Not to Wear has convinced a certain segment of the population

that no matter how comfortable you may be in ripped jeans and a 30-year-old hairstyle, your career

could suffer if you wear these to work I wish more site owners—especially smaller businesses—

understood that principle as it relates to the conversion rate on their paid traffic

Online, more than anywhere else, you suffer from a need to prove yourself to skeptical prospects in an environment that feels very “cold” to those prospects They haven’t met you

face-to-face They may not have heard the positive word of mouth that you’ve generated They

haven’t sampled the quality of your products They can’t see the line of customers outside your

store In short, unless you take particular steps to position yourself as a business with some kind

of status, prospects may assume you’re third rate

A large part of how status is conveyed online is visual Recall that in the studies by Fogg’s Stanford Persuasive Technology Lab, a “site that looks professionally designed” scores as one of

the strongest means to increase “surface web credibility” for an online business or organization.19

That’s obviously a very general goal “Professionally designed” means different things to

different people In Selling the Invisible, Harry Beckwith argues, “Prospects look for visual clues

about a service If they find none, they often look to services that do have them So provide

clues.”20 Beckwith’s examples include visible company “front men,” which can be real men such

as Joel Hyatt (Hyatt Legal Services) and Dave Thomas (late founder of Wendy’s Restaurants), or

the pillars at law offices, an accountant’s conservative attire, or a financial adviser’s

prosperous-looking leather portfolio I’d prefer it if we didn’t stick with the dated examples of Beckwith’s

choosing, so let’s add the late Anita Roddick of The Body Shop to the example list Online,

though, what people see is not just images, but how those images are presented They see your

design Good design isn’t cheap, but you should buy as much as you can afford, rather than as

little as you can get away with

Leveraging Feel and Brand in Small Retail Operations

Let’s look at an example of how small companies can create a brand with a quality feel, in spite

of not having a nationwide chain of retail stores or the budget to hire a top ad agency

Jeff Braverman is a savvy businessperson His site does very well, and has become a leading online provider of nuts, confections, and specialty snack items There are two primary reasons

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First, Braverman has humanized his site and injected web credibility into it NutsOnline is “real.”

The site contains not only contact information, but a whole history of the family business, a roasted nut stand in New Jersey (Figure 11-15) “In 1929, on the brink of the Depression,” begins Braverman’s heartfelt sales copy, “my grandfather Sol took a bold step.” There’s even a picture of Sol in front of the shop in the 1930s It would be hard to say that the Braverman family doesn’t care about nuts

Braverman also obsesses about the quality of his site The checkout process and other details

are important to him If you’re lost and use the site search box to look for almonds, you’ll be

served a page with a couple dozen product options Everything on this website seems to work the way it’s supposed to

Perhaps the most impressive detail Braverman has obsessed over is the look and feel It looks simple and straightforward, but that doesn’t mean it was easy to put together Rather than posting stock photos of nuts, he hired a food photographer to take proper photos of the products the Bravermans actually deliver to their customers (an example is shown in Figure 11-16) Nothing keeps it more real than accurate photographic images But more than that, a professional food photographer knows how to make food look appealing

FIGURE 11-15 Web credibility and personal accountability create a good backdrop for

customer loyalty

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Summing Up

To improve conversion rates, think in terms of four broad priorities First, make it smooth

Remove the most obvious barriers getting in the way of the user performing a desired action

Clutter and lack of focus are the subtlest, most insidious barriers Broken links and nonworking

checkout processes will literally kill any chance of a sale

Second, test copy and layout elements that may serve to persuade a skeptical prospect that you deserve her business—but do so with a valid testing protocol That includes overall page

feel; matters as basic as improving product descriptions on a retail site; testing different sizes of

“purchase now” or “add to cart” buttons; or expanding on and clarifying too-brief, jargon-laden

sales copy on a business-to-business site Don’t use the “aimless tinkering” method Rather,

employ powerful methods: best practices or A/B/C to start, and multivariate testing only if you

have high volumes of sales

Third, make sure that you don’t blow your web credibility when a hot prospect starts to scrutinize you more closely Have contact information available; spell everything correctly; don’t

look desperate by hitting him with pop-ups; keep the material fresh; and so on This whole area

FIGURE 11-16 Jeff Braverman employed a food photographer to convey the quality of his

products

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is now part of Google’s Quality Scoring algorithm, so stay in tune with the zeitgeist on areas such as disclosure and privacy policies

Fourth, be image conscious in the broadest sense: heed Harry Beckwith’s advice in Selling

the Invisible. In business, companies have always been judged on superficial matters Beyond mere web credibility, the visual impact and basic architecture of your site can make the difference between becoming a real player with brand appeal, or just another peddler with a story

to tell and stuff to unload If taking control of your image means you need professional design

or professional information architecture advice, you’ll need to go out and find some Don’t let your business suffer just because you’re afraid of offending your loyal “web person.” There is always someone local, or in your family, willing to give you “web” advice But are they bona fide professionals?

Conversion science can’t fix it if your product or service stinks At a certain point, your marketing will fail if you don’t deliver the goods If people don’t seem to embrace your sales pitch or your page layout, it may be time to stop worrying so much about pitching and formatting, and “get better reality.”21

Endnotes

1 Jakob Nielsen, “Do Interface Standards Stifle Design Creativity?” Alertbox, August 22,

1999, archived at http://www.useit.com/alertbox/990822.html

2 In Survival Is Not Enough (Free Press, 2002), mDNA is Godin’s term for the makeup

of ideas in your company; he is following scientists in the tradition of Richard Dawkins

(The Selfish Gene, 1976) positing cultural ideas or “memes” as similar to genes, in that

they are “replicators.” Memetic (similar to genetic) mutations are seen as a positive by Godin insofar as they prevent companies from stagnating, and closed, hidebound, or hierarchical corporate cultures don’t produce enough mutations

3 For background try Don Norman, The Design of Everyday Things (Doubleday, 1999).

4 The real answer seems to be that it was discovered and developed by researchers at Xerox’s Palo Alto Research Center According to Spool et al., these researchers hypothesized and proved several elements of a theory that posited searchers in “a large information space” such as a website as “‘informavores’ on the hunt for information.” See Jared

Spool, Christine Perfetti, and David Brittan, Designing for the Scent of Information (User

Interface Engineering, white paper, 2004), 1, available at www.uie.com

5 A grandiose economic philosopher might at this point attempt to caution against the diminution of national potential that might accompany any reduction of the marketing and web production communities to a mere “nation of shopkeepers,” given the growth potential associated with the full capabilities possessed by creative classes of our ilk

Or to state it another way, the danger of putting snobs in charge of marketing, design, and online experience production is that the snobs will dismiss the task of marketing

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to consumers as “creating a big ol’ catalogue, and making it more accurate,” precisely because they think of marketing and consumers as afterthoughts, and do not much care for them If snobs work on complicated things, then it must follow that they rule over lesser beings and require those lesser beings to work on things less complicated and less sublime

6 Persuasive momentum is a term coined by Bryan Eisenberg et al.

7 Bryan Eisenberg and Jeffrey Eisenberg, Call to Action: Secret Formulas to Improve

Online Results (Wizard Academy Press, 2005), 175

8 Eisenberg and Eisenberg, Call to Action, 175.

9 For some interesting perspectives, see Holly Buchanan and Michelle Miller, The Soccer

Mom Myth (Wizard Academy Press, 2008)

10 Paco Underhill, Why We Buy: The Science of Shopping (Simon & Schuster, 1999).

11 In And Now a Few Words From Me (McGraw-Hill, 2003), Garfield writes: “In the

ordinary course of events, the effect of advertising falls smack between Vance Packard’s

The Hidden Persuaders and Randy Rothenberg’s scenario of extraneousness; it influences our buying decisions but by no means dictates them For every ‘Where’s the beef?’ deployment of poison gas there is a benign bicarbonate like Alka-Seltzer, which provided campaign after delightful, memorable, hilarious campaign and lost market share the entire way” (p 191) Although the discussion in this chapter considers your landing pages and website as a whole, rather than just your ad, the argument seems fair to apply

to your entire sales process The original and current (lazy) critics of advertising, from

Vance Packard to Adbusters magazine, probably should have been considering the entire

sales process, too When I see an ad for Harry Rosen’s menswear in the newspaper or on

TV, no matter how bamboozled I am by the promotion, I still need to go into the shop and interact with a suit salesman, find a garment that fits, and budget enough money to make a purchase By rights, then, the “hidden persuaders” critics ought to be going far beyond looking at the ads They should be following me into the store and watching as

I take a follow-up sales call on my home phone six months later By that time, though, they might have to conclude that I actually like the suit I bought and appreciate the service provided to me by this retailer, including the time the sales rep offered to drive to the airport to deliver my recently altered overcoat

12 Thanks to Mona Elesseily for contributing to this pocket summary of landing page

planning

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13 “Web Analytics 2.0: Putting the Marketer Back Into Marketing,” keynote address to the Canadian Marketing Association National Convention, May 12, 2008

14 For this, see Bryan Eisenberg and John Quarto-vonTivadar, Always Be Testing: The

Complete Guide to Google Website Optimizer (Sybex, 2008)

15 Jamie Roche, “A Redesign Worthy of Google De-listing,” iMedia Connection, March 13,

2007

16 B J Fogg, Persuasive Technology: Using Computers to Change What We Think and Do

(Morgan Kaufmann, 2003), 149

17 Persuasive Technology, 152 Fogg notes that the 2002 study was a “snapshot,” conducted

in collaboration with a private research lab He is not as clear as he could be about the methodologies or sample sizes of various studies This area cries out for more funding and more definitive, up-to-date research

Next Big Marketing Idea (Portfolio, 2004); Seth Godin, All Marketers Are Liars: The

Power of Telling Authentic Stories in a Low-Trust World (Portfolio, 2005)

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Chapter 12

Online Targeting 1995–2015: Fast Start, Exciting Future

In recent years, the practice of “futurism” has inspired oft-deserved derision An IBM

commercial, wherein the consultant has supplied the cantankerous CEO with “business goggles” that require the user to “put in another quarter” if he wants to see the future, comes to

mind My personal favorite is The Simpsons’ portrayal of the Epcot Center as how “people in

1965 thought things would look in 1987.”

In this chapter I’ll be trying to take a look at Google’s future, in particular Given the size of the company and the pace of their innovation, this is a little bit like trying to film a speedboat race by running after the boats with a Flip video camera around your neck On one hand, you can only run about 29.7 miles per hour before your quadriceps muscle tears off the knee tendon;

on the other, you’ll sink before you even get going that fast Given the lightweight nature of the video camera, at least you’ll be able to swim back to shore

The only phenomenon that regularly attracts as much scorn as futurism is futurism coupled with bullishness about the contributions the Internet will make to the economy It is indeed possible to oversell the contributions made by the Internet as compared with progress in other fields Because I don’t work in those industries, I find the ability of BMW to use more and more robots to build cars with fewer and fewer design flaws more mind-boggling than I find a client’s ability to find a customer I’m more impressed by the huge increases in the survival rates for some types of cancer than I am in an e-commerce site’s ability to sell a tooth whitening system.But let’s not underestimate the contribution of online functionality to the global economy, either Internet models can either add layers to the economy or remove them, making it possible for a buyer to work through an intermediary or an aggregated form of information if they choose,

or to gain more direct access to information related to a transaction than they might have had 20 years ago The Internet offers a postmodern form of choice, which means we needn’t feel trapped

by a particular unidirectional macrotrend in any given industry (getting rid of intermediaries versus the rise of new intermediaries, for example) Increasingly, we can actually choose more or less of a given attribute (such as how “raw” or “packaged” we want information to be)

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Halfway into the writing of this second edition, I became deeply involved in HomeStars,

a website that offers user reviews of home improvement companies In this process, which

involved far more in-depth planning than my usual routine of marketing project implementation,

it became evident to me just how radical the shift is in the way that consumers access

information Those of us who participate in actually shaping new ways of accessing trusted

information, and new ways of completing transactions, hold just a piece of the online future in

the palms of our hands

It’s all too easy to trivialize the shift in how we spend our leisure time and our workdays, and changes in the forces and communications media that shape our beliefs and choices Isn’t it

all just killing time? Of course not Frankly, it’s mind-blowing to think about the rapid growth in

usage of something like Facebook The joy of creation is what drives innovators like Facebook

founder Mark Zuckerberg to dream up entirely new patterns of interaction that will transform

social patterns and information retrieval and advertising as we know them It’s been a long time

since Marshall McLuhan was quoted as saying the medium is the message We know that’s not

literally true, perhaps, but we downplay the rapid shifts in communication patterns at our peril

The focused intellectual curiosity that leads developers like Zuckerberg to build new ways of disseminating and sharing knowledge is no less revolutionary than the innovations in developing

a computer operating system and taskflow environment by Apple and Microsoft in the 1980s;

no less worthy than the invention of the “back and forward button” dashboard design of the

Netscape web browser in the 1990s; and no less economically powerful (potentially) than the

laser focus on clean, fast, accurate search and targeted ads perfected by the Google guys in the

period 1998 to date

Zuckerberg didn’t need maverick cartoonist Hugh McLeod to tell him how to be creative.1

He just built a system he thought would be interesting for Harvard and other college students

to use But for those of us a fair bit older than Zuckerberg (he’s 24 as I write this), McLeod’s

reminder is worth listening to If you have a vision and it’s something you truly feel strongly

about, you can make it come alive You You can do it You don’t need a million dollars or the

most elaborate tools or the flashy lifestyle of a Soho artist or Web 2.0 hipster You can build

something that changes the world—by just getting started, and continuing to pursue it

What world-changing stuff am I talking about? In my state of heightened awareness honed

by investor pitches for HomeStars, I’ve come across a lot of interesting statistics Citizen trust in

the information found in mainstream media is at an all-time low Nearly more Americans believe

in UFOs than believe that CNN and the Washington Post provide unbiased information Part of

the reason for this is that for all of the admirable big media investment in investigative reporting

and thoughtful analysis, the “professionalization” of journalism feels to the public like the media

elite talking among themselves or siding with the subjects of their stories.2

Even online “influencers” like “well-known bloggers” are losing their luster Survey data also shows us turning more to peer groups and trusted sources that we can really verify, to access

opinions, hard data, and experiences Some of the subject matter is of a political or medical

nature Other times, it’s more practical, relating to getting things done, or making a purchase

Some of the buzzwords for describing these phenomena include the “Wisdom of Crowds”

(James Surowiecki), or the “pro-am movement” (Chris Anderson)

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It’s purely reactionary to claim that the rapid shift in information retrieval and knowledge sharing methods in our Wikipedia era are leading to a dramatic increase in the noise-to-signal ratio Rather, there has been a massive increase in both noise and signal This will lead to new challenges in information retrieval that will require, on one hand, ever more powerful and scalable technologies and, on the other, innovative social and organizational solutions, open standards, and new kinds of communities

Dr Andrew Tomkins, Yahoo’s Chief Scientist, includes in his speeches data about the exponential increases in potentially findable user-generated content (UGC) online Already, we see glimpses of the enormity of the growth in Google’s search product designs, which integrate ordinary web search with attempts to search all kinds of separate and distinct databases These include your computer desktop, your instant message chats, and your email Eventually, voice communications and video pattern recognition will be part of that searchable universe; today, one startup is already using voice-to-text technology to annotate some YouTube videos with textual metadata Your car trips and air travel will perhaps be logged in detail, and much more besides

The zeitgeist of “what’s my status now?” currently embodied in the unreliable but popular microblogging service Twitter, is going to be built into our lives from a variety of angles You won’t have to Twitter to tell your “followers” what you’re up to now A variety of technologies may well do that for you—with or without your knowledge or permission

Tomkins remarked in one recent speech that the total amount of UGC being produced today

is not that far removed, in order-of-magnitude terms, from the maximum possible amount of UCG that could be logged if everyone on the planet sat in front of their computer and just typed away, 24 hours a day (Sort of feels like what I’m doing right now.) I believe Dr Tomkins! There has been an explosion in the production of information that is feasibly findable and classifiable

When Google says their mission is to make the “world’s information” universally accessible, they’re not kidding That will open up new opportunities for marketers, and lead to serious privacy debates A real value will come to be placed on sharing data with just your immediate circle, your wider trusted circle, or the public at large As an Internet user, and as a user of various applications and technologies, marketers will want to pay you for your willingness to share more of your personal information

Survey-based data mining and database marketing is old-school and well known to many marketers, but in a new era of surveillance-style data mining, will companies like Google

be able to draw a line in the sand and resist the general trend towards deeper snooping?

Marketing companies that failed in part because they were out of step with the respectful intrusion ethos championed by companies like Google—spyware firms such as Gator/Claria, for example—may come to seem nearly quaint by comparison with the full-scale surveillance capabilities of the larger communications and media companies, from Google, to Microsoft, to Facebook But depending on how things evolve, these big companies might be able to find a way to thrive precisely by enacting systems of respectful “permissions,” attempting to balance profitability with users’ willingness to share only with those they trust

anti-While the past decade or so has seen many innovators focus on finding what you need online, the coming decade will feature a growing focus on how to verify and productively use that information, and how to connect with trusted peers and virtual friends whose opinions we truly value The first wave of this trend was clumsily called “peer to peer” (or P2P) search, but

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we weren’t quite ready for it yet The next wave will tackle the peering and sharing issue with

renewed vigor The old media will let out a few remaining squawks about the dangers of trusting

“online information,” but by and large, they’ll continue to diversify their holdings into the kinds

of media they once feared and attacked

No, online innovation isn’t always rocket science, but it can create cracks in old armor that eventually transform whole industries Online stock trading precipitated huge changes in the

retail securities brokerages, for example, driving commissions way down on routine transactions

Online marketplaces using a variety of exchange models have put significant pressure on old models It isn’t just people’s used junk anymore, or even just ordinary retail Did you know that

eBay Motors is perennially one of the top two revenue-generating product categories on eBay?

That’s because folks hate dealing with traditional face-to-face automotive purchase processes

And that trend has only just begun You can look at such developments any way you like You

can yawn, cringe, or just try to adapt and profit

The growth in e-commerce surely can’t be hurt by the backwardness of offline retail More often than not, consumers come to a store ready to buy, armed with product information Because

many interactions with both the salespeople and the categorization systems in retail stores are

often an information-poor embarrassment compared with (at least a well produced) website, the

vanguard of hybrid retailers who welcome digital search and persuasion right into their offline

spaces will be poised to “keep it real” with a new, information-hungry breed of consumer

Businesses that don’t get the Web—and even those that don’t understand how consumers’

hunger for information, transparency, and context is being driven by their ability to search

online—are going to face a lot more dissatisfied customers in the coming years Inertia can

be costly

As entrepreneurs create new ways of putting buyers and sellers together online, thousands

of new business practices are emerging today that will need to be studied by economists decades

hence Revolutions in fields like high finance, where pioneers invented ways of packaging

and pooling almost any financial asset or risk category to be bought and sold, have unleashed

massive efficiencies on the global economy, and are duly studied Massive losses in wealth

brought about by over-eager application of “sound” financial maneuvers will no doubt lead

to checks and balances that ought to have been in place in the first place It seems that painful

reckoning episodes are a prerequisite for coming to grips with the potential for any powerful

multiplier of wealth and efficiency to turn sour

Many of the changes wrought by Internet entrepreneurs are humbler than the big trades overseen by Wall Street Masters of the Universe But when you add them all up, some powerful

math is lurking behind what seem to be modest changes in how consumers behave and how

businesses interact The improvements in our ability to communicate, target, and transact

business are far reaching Reductions in “economic friction” predicted by writers in

then-avant-garde publications like Wired and Business 2.0 in the mid-to-late 1990s are now coming to

pass The real challenge becomes how to manage these surges in economic productivity so that

they don’t consume us Many have already arrived at the point where “always on” is more of a

curse than a badge of honor In other words, if a little bit more information or a little bit more

efficiency is helpful, how do we know when to stop? Is it OK if I get the third-best price on a

printer, or the fourth-best available mortgage rate? Might there be some more, just a few more,

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profitable keywords lurking in the nearly infinite dictionary of AdWords inventory? Or should

we strive for balance in our pursuit of business growth?

More than the economy, these changes are about widespread access to specialized communities and freedom of information Citizens and consumers have unprecedented access

to information and sources of enlightenment that were once the province of a few Many will not have the initiative or the educational background to take advantage of those opportunities

Someday, proponents of Internet community, Internet research, and Internet business will need

to take a breath and go back over the knowledge utilization literature to remind themselves that the availability of information effects change in less than obvious ways, and sometimes not at all

Experts argue that rather than directly informing decisions, a growing body of evidence is often brought to bear on a specialized field over a period of years or decades and informs decisions

in the background by replacing what was once thought of as common sense with a new kind of common sense.3

The Internet has become synonymous with sweeping economic change And so should it be

As you read in Chapter 2, search-centric companies like Google and Yahoo—and the per-click model—have surged ahead of traditional online advertising brokers Things may look quite different in a couple of years, but for now, the proportion of Google’s revenues derived from advertising is closer to 100% than it is to, well, 95% The world’s leading search company

pay-is the world’s leading online advertpay-ising vendor

While the successes of these new leaders aren’t possible to be ephemeral, it is likely that the dominance of a relatively narrow form of online advertising—Google AdWords and Yahoo paid search results charged “by the click”—will give way once again to a wider variety of targeting methods Just as email, banners, and other forms of online targeting lost ground and suffered bumps and bruises, paid search faces key challenges such as click fraud, bidding wars, and low volume As a result, the leaders will be forced to innovate

The exciting thing for companies like Google is that they’ve made a name for themselves

by providing a highly efficient platform within which advertisers can manage targeted, measurable campaigns As the search metaphor insinuates itself into various aspects of people’s lives—online and off—advertisers will be able to reach more customers in more ways using an AdWords-like bidding platform Thus your efforts to learn the ins and outs of AdWords will be applicable to future developments in marketing and advertising generally

Google AdWords: Emerging Trends

While it’s interesting to speculate on longer-term transformations in the marketing landscape, from a practical standpoint, most of us need to keep an eye on near-term developments that may affect our campaign strategy What lie directly ahead for Google AdWords advertisers are advances in campaign management and ROI tracking

There have been subtle shifts in Google’s philosophy on providing advertisers with additional tools to manage their campaigns In the early days of AdWords, I was told that Google believed strongly that in certain areas, especially reporting and tracking ROI, third parties were better suited to help their advertisers Over time, this shifted to “we’ll try to offer our advertisers more tools that will help them manage their campaigns in less time.”

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