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Effectively Managing Online Marketing Programs The webcast will review several different models for managing your online marketing, as well as discuss the technology, skill sets, and processes needed to have a successful paid search program. Presented by: Eric Waldinger, Practice Leader, Aquent Craig Macdonald, Senior VP & CMO, Covario

Effectively Managing Online Marketing Programs

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Search marketing continues to grow in importance as an advertising channel for businesses of all kinds. Even during the past 12 months, as the Great Recession has taken its toll on other advertising channels – from display to TV, and most decidedly to print – search advertising has continued to grow. As the paid search advertising market has grown and matured, the cost of entry for new players has increased, and for those who have been doing search for some time, the cost of being successful and driving optimal results from paid search continues to go up. The sophistication of the market requires constant investment. Advertisers have several choices as to how they choose to deal with building and maintaining their programs, each with different pros and cons: • Hire a search agency – according to Forrester Research, approximately 52% of companies elect to leverage agencies to do their paid search work, with that percentage increasing as more money is spent • Manage in-house – this is most common in retail and travel, as well as with small and mid-sized firms • Build-Operate-Transfer (BOT) – a hybrid model by which advertisers begin with an agency, with the intention of managing risk until the program can be brought in-house in order to manage costs more effectively The webcast will go through each model, as well as discuss the technology, skill sets, and processes needed to have a successful paid search program.

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Page 1: Effectively Managing Online Marketing Programs

Effectively Managing Online Marketing Programs

The webcast will review several different models for managing your online marketing, as well as discuss the technology, skill sets, and processes needed to have a successful paid search program.

Presented by:Eric Waldinger, Practice Leader, Aquent Craig Macdonald, Senior VP & CMO, Covario

Page 2: Effectively Managing Online Marketing Programs

Thank you for attending this Aquent sponsored webcast

Aquent is the global marketing and design staffing company.

Specialized Agents focused on a single marketing or design discipline

Connect with a specialized Agent in:

Online marketing Marketing Interactive design Graphic design

Find an agent at aquent.com

Page 3: Effectively Managing Online Marketing Programs

Effectively Managing Online Marketing Programs

Presented by:Craig Macdonald & Eric Waldinger

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Page 4: Effectively Managing Online Marketing Programs

Driving Leads is the High Priority in Marketing

• The economy is forcing a focus on lead generation …

• … and SEO is one of the top priorities in driving leads

Page 5: Effectively Managing Online Marketing Programs

Organic Search – The New Old Thing

• SEO is the leading tactic in lead gen in 2009

• Moreso than PPC, Display or email

• This is particularly true for larger companies

Page 6: Effectively Managing Online Marketing Programs

Search Continues to be Lead Interactive Media Channel

Page 7: Effectively Managing Online Marketing Programs

Major Issues Facing Advertisers

• Search continues to be a key interactive marketing channel

• However, it is becoming “expensive”

• Major issue is integration of search into all other forms of media

• Major issue is that the alignment of incentives with agency model is becoming problematic

• Leading to insourcing

Page 8: Effectively Managing Online Marketing Programs

Three Options for Managing Search Programs

1. Leveraging a search agency

2. Manage program in-house

3. B-O-T: Build Operate Transfer

Page 9: Effectively Managing Online Marketing Programs

Majority of Firms (54%) Outsource To Agencies – Stand Alone Software Represents 21% of Market

Page 10: Effectively Managing Online Marketing Programs

1. Agency Model

• Pro’s• Agency manages the headcount risk• Fast time to market with programs• Agency brings expertise and technology (?)

• Con’s • Loss of control over IP for important advertising panel• Requires governance – few global agencies• Misalignment of incentives

• Pricing• 5-15% of media spend (PPC)

• Application• Brand companies (Pharma, CPG, Tech, Telco, Auto)

Page 11: Effectively Managing Online Marketing Programs

2. In House Management

• Pro’s• Direct control over program• IP around program remains inhouse• Aligned incentives

• Con’s • Headcount and technology procurement risk• Slower time to market (long time to build program maturity)• Difficult to scale

• Pricing• Headcount – 3%• Technology 2-4%

• Application• Direct commerce (retail, ecommerce, FS, travel)

Page 12: Effectively Managing Online Marketing Programs

3. Build-Operate-Transfer

• Pro’s• Time to market is controlled• Risk for headcount and technology is mitgated• IP around program remains in-house

• Con’s • Ongoing execution risk• Transfer may never happen• Initial pricing for agency is high

• Pricing• Year 1 – 15%• Year >2 – 2-5%

Page 13: Effectively Managing Online Marketing Programs

B-O-T Examples

• Media company – Technology setup, recruiting, and training• Job site – 6 month project to do media buying, documentation of process• Travel site – 6 month project to setup technology, do media buying, hire and train

Page 14: Effectively Managing Online Marketing Programs

In-house and BOT Considerations

• People• Senior director • Media buyer (1 FTE per $1-5M in

media spend)• Support for WA team internally (IT

support)• Landing page control (IT support)

• Technology• Bid mgmt system• Reporting system• Web analytics• LP testing

Page 15: Effectively Managing Online Marketing Programs

Bid System Vendor EvaluationWeb Analytics Systems Agency Systems

Technical Capabilities

Covario Importance Weighting

Web trends

Omni ture

Core metrics iProspect iCrossing Did-It 360i

Search Rev

Efficient Frontier

Decide DNA Impaqt Reprise Resolution

Direct Transactional API Integration 20% 70.0 87.5 70.0 70.0 70.0 70.0 70.0 82.5 70.0 70.0 87.5 87.5 87.5Campaign Management 30% 95.0 83.8 72.5 31.8 30.5 22.8 53.0 42.5 45.5 43.8 36.8 47.3 44.3International Capabilities 5% 35.5 62.0 31.5 29.5 33.5 21.5 21.5 31.5 27.5 66.3 21.5 27.5 27.5Analytics Capabilities 25% 85.0 56.3 57.5 54.5 54.5 43.0 74.5 62.8 66.8 43.3 35.0 59.8 57.8Reporting Capabilities 20% 48.8 62.5 52.5 37.5 37.5 37.5 37.5 37.5 37.5 37.5 37.5 37.5 37.5Total Relevance 100% 75.3 72.3 62.2 46.1 46.0 40.2 57.1 54.0 53.2 48.8 45.9 55.5 54.1Pricing (% media) 2-4% 1-2% 2-3% NA NA NA NA NA NA NA NA NA NAOther FactorsVenture Backed Venture Public Venture Aegis Public Private Private AKQA Private WPP Private IPG OMG

Search Engines Enterprise Independents Mid Market Independents

Technical Capabilities

Covario Importance Weighting Google

Google-DART Yahoo MSN

MSN-Atlas Marin

Search force

eSearch Vision Clickable Kenshoo Acquisio

Direct Transactional API Integration 20% 57.5 87.5 60.0 55.0 87.5 90.0 77.5 70.0 85.0 72.5 85.0Campaign Management 30% 62.8 70.5 39.0 29.8 63.8 51.8 37.0 94.5 21.3 31.8 45.0International Capabilities 5% 82.5 77.5 76.5 50.0 70.0 27.5 27.5 54.3 37.5 50.0 37.5Analytics Capabilities 25% 29.8 62.8 22.0 16.0 37.5 55.0 63.0 71.8 31.5 31.5 31.5Reporting Capabilities 20% 47.5 62.5 47.5 47.5 62.5 37.5 37.5 42.5 42.5 42.5 46.3Total Relevance 100% 51.4 70.7 42.5 35.9 62.0 56.2 51.2 71.5 41.6 42.9 49.5PricingPricing (% media) 0% 2-5% 0% 0% 2-4% 1-2% 3-5% 4-5% Low Low LowOther FactorsVenture Backed Public Public Public Public Public $25M Venture Venture $20.5M Sequoia ???

CONFIDENTIAL, Covario, Inc. DO NOT DISTRIBUTE

Page 16: Effectively Managing Online Marketing Programs

Conclusions

• Search continues to be a key interactive marketing channel

• Major issue is integration of search into all other forms of media

• Being good at search is becoming more complex

• Trend toward in-sourcing is moving from retail/ecomm to other fields

• B-O-T model offers a way to bring search inhouse with lower risk

Page 17: Effectively Managing Online Marketing Programs

What should a in-house resource do?

• Branded vs. Non Branded Key Word• Bidding Strategy• Copy Audit• Account Structure Audit• Landing Page Audit

Page 18: Effectively Managing Online Marketing Programs

Key Roles: SEM Manager

• Promote websites by increasing search engine visibility

• Manage day-to-day search marketing efforts - keyword bidding, copy, & optimization

• Manage & execute operations across various media

• Develop & sustain relationships with advertising partners

• Report & analyze advertising performance on a monthly basis

• Prepare & monitor annual advertising budget

• Propose new advertising ideas

Page 19: Effectively Managing Online Marketing Programs

High-level requirements for a successful centralized supply model

• Resources involved in strategy, planning and analytics should be core staff.

• Leverage data management/content management

• Focus on performance indicators with media suppliers – build direct relationships and compensation based on key performance indicators.

• Centralized strategy functions must include centralized SEM/ SEO

• Brand building (internet space) will be the result of effective execution not a standalone goal

Page 20: Effectively Managing Online Marketing Programs

Key Activities

• Develop, implement and continuously optimize online marketing strategy and specific online marketing campaigns for enterprise initiatives

• Ensure strategic alignment, documentation, cross-team and business community understanding and effective ongoing analytics and success measurement.

• Leverage existing web assets and content delivery methodologies to conceive, develop and deliver packaged interactive marketing initiatives.

• Develop and manage conversion measurement methodologies and develop reporting for all online marketing activities.

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• Assess your current situation

• Identify your landing pages and check that they are indexed

• Check you and competitors’ search rankings

• Check keyword demand via search engine keyword tools

• Discover missed opportunities

• Project future traffic

• Project future conversions

Developing & Measuring Successful SEM Program

Page 22: Effectively Managing Online Marketing Programs

• Keyword planning to drive the most qualified

• Types of keyword bidding (gap surfing, bid jamming, friendly URL)

• Selecting your bid strategy

• Managing keyword bids

• Optimizing ad copy and landing pages

Optimizing & Reviewing Program Results

Page 23: Effectively Managing Online Marketing Programs

SEM Best Practices

• QA landing pages with the Campaign Approval Worksheet before going live.

• Read industry articles, take classes, attend conferences to stay on top of trends and changes.

• Cross-train and discuss day to day successes and struggles.

• Ban frames, pop-up windows, "meta refresh" tags from landing pages.

• Do not allow pages to exceed 100K.

• All web pages must completely load within 10 seconds.

• Create and maintain centralized keyword management database

• Create and maintain a database of all paid search requests to check for keyword conflict between business units

Page 24: Effectively Managing Online Marketing Programs

• If you run a geo-targeted campaign, then you should run a separate national campaign to ensure full visibility in all markets.

• If you run a search and content campaigns for the same group of keywords, then they should be separate campaigns in order to accurately monitor progress.

• If you see a consistently high CTR but a low conversion rate = possible landing page issue

• If you see a high number of clicks and a low CTR = possible ad copy issue

• Maintain 3 versions of ad copy per ad group and rotate highest performing versions through a monthly ad copy audit.

SEM Best Practices, cont.