Along with max cost per click, Google AdWords employs a “quality score” to determine where ads will rank for certain keyphrases. The quality score factors in click-through rates, ad quality, and landing page quality with respect to the keyphrases being bid on. This system has serious flaws. It is common for ads that have little or no history that are circulating for very specific keyphrases not to show because of a low quality score. This means some of the most relevant ads won’t show for specific queries because they haven’t had a chance to establish a history to demonstrate their quality. Automating the analysis of ad text and landing pages leaves a large margin of error that AdWords doesn’t compensate for. Worse yet, the system often assigns higher quality scores to ads that are not relevant. This is more common in cases of geographically targeted keyphrases. Sites that have ads circulating for specific cities might have ads circulating for products and services they don’t offer because their landing pages are specific to the location being searched. For instance, a real estate site for Pleasantville, New York, might have a high enough quality score to have ads circulating for search terms such as “pleasantville new york daycare.” Even though they are obviously not relevant to daycare services.

Setting higher max CPCs can offset low quality scores, but for specific terms that may have only a few ads circulating, the max CPC might be well over a dollar and still not show. The max CPC should be closer to ten cents for keyphrases like this.

The Problem

AdWords treats terms that are broad matched the same as terms that are exact matched. This means that if a query broad matches a term being bid on it is treated on the same level as a query that matches exactly the term being bid on (Either term could be bid on as a broad match. The distinction here is how the query in fact matches the term being bid on, not the matching set for the term). This is not a good way to have the most relevant ads showing. If an advertiser takes the time to bid on a term, it is likely that their site is more relevant to the term than a site that is broad matching the term. This is because people can’t possibly think of every variation that their ad might show for when they broad match a term.

AdWords should start treating these types of matches differently. Not only would it improve the relevance of their ads, it would give small advertisers more of an advantage in AdWords. Claims about the benefits of the “long tail” in PPC advertising would actually have some support.

1. So what is your Search Engine Marketing Budget?
2. How much should you allocate?
3. What are your competitors doing?
4. Where do you start?

I am posed with these questions almost every work day of my life. And they are excellent questions!

The easiest and quickest answer is to take 1/2 of your print and tradeshow budget and shift it into search engine marketing. Measure the results. If it’s done right – you will be able to measure the conversions – which could be leads and/or sales. If you see an increase (which you most likely will if you are selling a service or product that is in demand) then allocate more of the budget and compliment it with print, tradeshow, and TV campaigns.

Yes! What I am suggesting is to dramatically flip your traditional marketing strategy upside down. I can say this confidently because it works – I have seen several companies do it and it’s amazing what can happen!

Everyone keeps asking me “What do you think about Google moving to Ann Arbor?” and I absolutely love this opportunity from several different angles.

1. I predict this to be a new movement for Michigan. From automotive to technology! Will that shake some boots up….Yes. But I come from a generation where I think the automotive community needs to move faster. Rev up their engines and focus on building for the future towards “Green” – Blue Tooth compatible vehicles. Not bigger Hummer’s! Hopefully the automotive community will embrace this opportunity to tap into the future.
2. For the Midwest – this will finally bring us up to speed. When I was in Seattle – for just a short visit – I fell in love with how “fast” and “forward thinking” everyone was.
3. Search rocks – and now Google will be tapping into the geekiest people in our Ann Arbor community – the University of Michigan. I am sure the SI group is beside themselves in excitement.:)
4. More technology companies will move to Ann Arbor just to get cozier with Google.
5. As for my search engine marketing company – I just love Google, all of our Pay per click managers are Google Adwords Certified and well…I just love Google!!

The announcement occured on my Birthday – it was the best birthday gift ever!

Based on the article below – could it be that when Google built this new contraption – is it optimized for the Google search engine?

“Google has launched Google Checkout, a payment system for online retailers that’s tightly integrated with Google AdWords. Checkout isn’t the rumored PayPal killer, but it does offer some compelling features for both merchants and online shoppers alike.” http://searchenginewatch.com/searchday/article.php/3617061

E-commerce shopping carts are quite an animal of its own. I can’t wait to try this one out!

I always knew that my laptop would have an affair with my TV.

Google’s new concept: Computer “hears” TV, serves up content
Under a new interactive concept being tested by Google, a computer could “listen” to its user’s TV, and serve up social networking, editorial and ad content relating to what’s being watched. The system is not based on new technology, but instead uses a computer’s microphone to receive the TV audio and match it to a database that serves up the related content. Advertising Age (free registration) (6/27)

Really innovative concept but I just don’t see mom’s and couch potatoes getting into it. It might be too much media coming at one person at one time. However, it does open a host of opportunities for marketers.

Could it be true? Could we really be speeding into a PPC bottleneck!

“McKinsey research finds that bottlenecks in supply could limit the pace of online ad growth and raise prices over the next 24 months.” http://www.mckinseyquarterly.com/article_page.aspx?ar=1811&L2=16&L3=16

Further more “they” say we have 24 months – could we be running out of options – do we need another search engine to give us more ‘supply’?

“This analysis revealed that the utilization of the most attractive digital-ad vehicles is already quite high and that, without large increases in the level of online advertising “inventory,” demand could outstrip supply over the next 24 months (exhibit).”

And finally, I completely agree with this:

“Marketers must build the capabilities necessary to thrive in an environment where audiences and vehicles are highly fragmented, prices change quickly, and advertising’s performance differs by customer, vehicle, brand, offer, and message. This transition will require not only new management skills but also a detailed understanding of the marginal economics of products, customers, and customer conversion.”

Will it happen – we’ll see!

Google is the new power that will rule the world!