It’s All Relative

Since CPC prices are often closely linked to the potential profitability of a sale from that keyword, the CPC price is often a mute point. A ‘bad credit history remortgage’ could be worth $15,000 profit to a remortgage broker, so having CPCs in excess of $50.00 can deliver a strong return on investment.

On the other hand, the keyword ‘New York weather’ has little commercial intention, so keywords such as this tend to benefit from low CPCs.

While this relativity of CPC prices makes CPC comparisons across sectors rather meaningless, most PPC advertisers would jump at the chance to pay lower CPCs. So below are 4 strategies I’ve found useful for achieving lower CPCs, while still maintaining a strong conversion rate.

Source: Wordstream

1. Use Long Tail Keywords

Long-tail keywords are those highly-specific, infrequently searched-for phrases such as ‘all inclusive holidays to Paris from Sydney’, which turn up in your search query report. Since they tend to have less advertiser competition, they can be considerably cheaper than more generic keywords such as ‘Paris holidays’.

What’s more, since people making long-tail searchers have arguably carried out the large majority of their pre-purchase research, and are often further along in the buying cycle, long-tail searches can have a considerably higher conversion rate.

Cheaper CPCs and higher conversion rates were exactly what I found when analysing search queries containing different numbers of words. Searches containing 4 or more words performed consistently better than searches containing fewer than 4 words.

Recommendations:

• Use Google’s Keyword Tool to research keywords which have approximately 100 searches/month. These tend to get overlooked by a large number of PPC advertisers.
• Take advantage of the ‘more like these’ feature in Google’s Keyword Tool to continue to build your list of long-tail keywords.
• Run a search query report to look at the search queries which get matched to your keywords. If they are relevant, and have a decent click volume, add them as new keywords and give them their own tailored ads. This way, instead of long-tail searches being matched to your more generic keywords, they will now be matched to longer keywords, giving you more control over ad messages and bid optimisation.

2. Research Uncompetitive Themes

Keywords which have less competition often have lower CPCs. Finding keyword with less competition often requires you to think outside the box, although with the right tools and approach you can be diversifying your keyword portfolio in no time.

Recommendations:

• Plug the URL of a competitor’s website into Google’s Keyword Tool and see what comes up. If their products and services are worded differently to yours, it can uncover some previously-overlooked terminology.
• Mine your search query report to uncover themes which you previously overlooked. Don’t worry if a search query has only a handful of clicks –you’re trying to research new themes from searches which have matched to your existing keywords, so click volumes would likely be much greater if they are added as new keywords.
• Look for numbers which frequently crop up in your search query report. If you’re selling holidays, consider how people type the dates into their search, such as ‘France holidays December 2011′, or ‘winter 2012 skiing deals Queenstown’. If you can provide tailored ads which cater for these date searches, you will likely receive high click through rates (CTR), high Quality Scores, and low CPCs.
• Use Google Insights for Search to find breakout searches. These are searches which have recently increased in popularity by at least 400%, and can be excellent opportunities for highly-profitable keyword targeting due to their relatively low competition and relatively low CPCs.
• Ask friends or family how they might search for your products and services.

3. Use Modified Broad Match

Modified Broad Match is a variation of broad match, but allows you greater control over the types of search queries which trigger your ads. By placing a plus (+) sign in front of certain words in your keyword, Google will only match your keyword to searches which contain all of the words with a preceding plus sign.

So if your keyword was ‘+cheap +deals to +Rome’, you can be sure than any searches matching to your keyword must contain the words ‘cheap’, ‘deals’, and ‘Rome’.

Modified broad match is a great way to improve the quality and profitability from your AdWords campaigns. In some recent research I carried out on modified broad match keywords, keywords with a greater amount of broad match modification tended to have considerably higher CTRs and significantly lower CPCs.

Recommendations:

• Take advantage of modified broad match. It allows you greater control over the types of searches which trigger your keywords.
• Be mindful that restricting the match types of your keywords may reduce your click volume, so compensate for this by researching additional keywords and themes.
• Broad match generation can also be a useful tool to allow your more generic non-modified broad match keywords to catch relevant search traffic which have not yet been added as modified broad match keyword.

4. Be Relevant

Despite PPC often being dubbed as saturated and highly-competitive, the truth is there are massive opportunities everywhere for PPC advertisers to achieve high profitability by providing highly-relevant and helpful ads, which engage with their target audience.

Searches on Google are now becoming increasingly diverse, complex, and unique, and users are expecting a higher degree of relevancy and helpfulness from search results. If you can be the advertiser which caters for the specific needs and requirements of searchers, visitors will reward you with their wallets. And since click through rate (CTR) is a large component of Quality Score, if you can achieve a high CTR, low CPCs will naturally follow.

Recommendations:

• Create hundreds of highly-granular ad groups, each containing only a handful of very similar keywords.
• Tailor your ad messages to your ad group’s keywords. If the ad group contains keywords related to ‘Winter 2012 Queenstown holidays’, ensure your ads also mention cater for Queenstown holidays in Winter 2012.
• Run an ad group report and find your ad groups which receive a large number of clicks. Changes are those ad groups are being matched to a large number of very different searches, so could benefit from being split out. The 10% Clicks Rule is a useful tool for quickly and efficiently identifying your ad groups which could benefit from being split out. Follow the 3 part guide for step-by-step instructions of how to do this.
• Examine your ad groups with high CPCs and low CTRs. Consider how closely your search queries match to that ad group’s ads. If a gap exists between the ad group’s searches and the ad group’s ads, consider how you can make changes to boost your relevancy.

Return on Investment is the Goal

Quality Score doesn’t sell anything. Click through rate doesn’t sell anything. CPCs don’t sell anything. Improving these metrics should not be the objective of your campaign. Improving ROI should be.

All other things equal, if you reduce your CPCs by 20%, great!

But are all other things equal? In trying to reduce your CPCs, have your sacrificed volume? Have you sacrificed quality? Are paying lower CPCs simply because visitors are now less relevant and less likely to convert? Are you now missing out on more relevant and potentially more profitable searches?

CPCs or Quality Score or CTR should not be the end goal of your PPC campaign. Return on investment should be. There’s no harm in paying 50% higher CPCs if your profit increases by 60%. So only use CPCs as a guide.

By all means use long-tail keywords, search query reports, and modified broad match as a means to lower your CPCs. But make sure your sales volume and ROI also rises as a result.

Alan Mitchell is a Google AdWords certified PPC specialist based in Melbourne, Australia, with over 4 years running successful PPC campaigns for businesses in Australia and overseas. Find out how the specialist PPC management such as the 4 PPC strategies above can help you improve your return on investment from PPC marketing, or get in touch for more information.

But while ad scheduling in Google AdWords can be extremely powerful in boosting campaign performance, it is essential that ad scheduling decisions are reliable and informed. Since so many internal and external factors can bias your day of the week analysis, advanced ad scheduling strategies are best reserved for mature and relatively stable PPC campaigns with a large amount of conversion data.

Below are three tips for getting the most out of ad scheduling, and suggestions to help you make reliable and informed decisions to take advantage of this powerful feature of Google AdWords.

1. Beware of Diluted Data

You’re dividing your conversion data across 7 days, so each day will considerably less data than if you look at your campaign on the whole. Keep this in mind, and avoid jumping to conclusions based on insufficient data.

Recommendations: If you’re identified Friday as being a high-performing day, only make slight adjustments to your ad scheduling. Just because Friday has worked better than Saturday does not mean Friday should have bids 100% higher than Saturday. Exaggerated changes to ad scheduling can turn an otherwise high-performing campaign into a poor-performing one.

2. Look for Trends

Avoid getting caught up in the detail. You’re right – Wednesday did perform better than Thursday, but is it really significant? A handful fewer sales on Wednesday and a handful more on Thursday would result in both days performing exactly the same.

Recommendations: Take a step back and look for more general and reliable insights. It is clear that Mondays – Fridays performed much better than Saturdays and Sundays, so make that your only finding from your analysis. Trying to distinguish between individual days where performance is so similar is unnecessarily complicating and confusing your ad scheduling strategy.

3. The Past is Not the Future

Just because Saturdays and Sundays have performed poorly in the past, and Thursdays have performed well, does not mean they will continue to do so in the future. Perhaps a PR campaign caused a sudden increase in sales one Thursday which is biasing the results? Perhaps you tested some new high-volume keywords one weekend which were paused after the weekend due to few sales?

Recommendations: Where possible, repeat your analysis using different date ranges, to see if your findings are recreated. If certain days consistently and significantly outperform other days across different periods, then feel free to incorporate that into your ad scheduling. But avoid making changes to ad scheduling if too many external factors could have influenced day of week performance.

Slow and Steady Wins the Race

Ad scheduling can be extremely useful for mature PPC campaigns which have benefited from a steady period of ad visibility, with limited changes to keywords, bids, ads, and landing pages. If a PPC campaign is in its early growth phrase, where multiple testings and optimisations make reliable day of week analysis difficult, keep day of week analysis for another time.

Does ad scheduling help you boost PPC profitability? Do weekdays consistently perform better than weekends? Share your thoughts and comments below.

1. Identify irrelevant keywords which can be added as negatives
2. Identify new keyword opportunities for keyword expansion

The difficulty, however, is efficiently and reliably pulling out trends and insights from a raw search query report. According to Google, 25% of searches made each day are completely unique, and 70% of searches lie outside of Google’s Keyword Tool. While this suggests that the large majority of your search queries will have received only a handful of clicks (making trend-spotting extremely difficult), it also presents a great opportunity for identifying new keywords outside of the Keyword Tool.

This article will explore the techniques which can be used not only to identify negative keywords from a search query report, but also identify new opportunities for practical keyword expansion.

Not Enough Data

The main problem with a raw Google search query report is the sheer variety of searches. Each search query has minimal data, making it difficult to spot trends and insights. Suppose we had the following search queries amongst the mass of other search queries in your report:

• holiday paris for winter 2011
• holiday in winter 2011 to paris
• paris winter 2011 package holiday

It is hard spot the opportunity ‘winter 2011′ amongst the noise of the search query report. It is hard to see the wood through the trees.

Something more is needed.

Search Query Aggregation

If instead, search queries were pulled apart into their individual words, and click data was then aggregated based on these individual words, we would be able to make more sense of search query reports. For example, suppose we could now identify the following search query themes:

• holiday
• paris
• winter
• 2011
• package

We can now see that ‘winter’ and ’2011′ are popular themes within our search query report. And by aggregating click and conversion data for these search query themes, we can quickly and easily identify the types of themes which are converting well, and those which are converting poorly.

Similarly, if the word ‘free’ was hidden amongst multiple search queries, it would have been difficult to realise that the word ‘free’ was a drain on your AdWords budget. But being able to look at the aggregate click cost and conversion data for all searches containing the word ‘free’, you could quickly and easily determine whether ‘free’ should be added as a negative keyword.

If you’re willing to hand over your search query data, Query Miner has developed a tool which allows you to see the words which are converting poorly, and should be added as negative keywords.

But search query analysis shouldn’t stop at identifying negative keywords.

Oh no.

The real power of search query is in identifying new keyword opportunities – the 70% of searches outside of Google’s Keyword Tool. Although looking at one-word phrases can be useful for identifying negative keywords, doing so would ignore other words in the user’s search query which may be crucial to determine the searcher’s intent.

For example, suppose you identified the following themes within your search query report:

Aggregating your click, cost, and conversion data for each of these themes would suggest that the words ‘cheap’, ‘discount’ and ‘weather’ are prime candidates for negative keywords, due to their poor conversion rates.

Similarly, such analysis might show that keywords containing the words ‘kids’ or ‘children’ are converting extremely well, and suggest that keywords containing the words ‘kids’ or ‘children’ should be expanded or have their bids increased.

But while this insight may be interesting, it is of little use in helping you expand your list of keywords. Just because searches which contained ‘kids’ or ‘children’ performed well for your existing keywords, does not mean they would perform well if you added new keyword variations of ‘kids’ and ‘children’.

Something more is needed.

Multiple Word Search Query Aggregation

Suppose that instead of analysing performance for each 1-word theme, you analysed performance for search queries containing 2-word phrases:

Looking at longer phrases, you are now able can now better understand the searcher intent. You can now see that the performance of search queries containing ‘kids’ and ‘children’ is not universal among different searches, but instead depends on other words they are next to. When someone searches for ‘with kids’ or ‘with children’, conversion rate is extremely poor, but when someone searches for ‘without kids’ or ‘without children’, conversion rate is very high.

Similarly, with 1-word analysis, you may have jumped to the conclusion that the word ‘cheap’ is a poor-performer, and should therefore be added as a negative keyword. But by observing 2-word phrases which contain ‘cheap’, you can immediately see that not all ‘cheap’ search queries are poor-performers. Searches which contain the phrases ‘cheap vacation’ or ‘cheap holiday’ have in fact performed extremely well; it is only the search queries which contain the phrase ‘cheap flights’ which have converted poorly.

That’s all very interesting…

But while 2-word theme analysis might help you make more reliable observations about your search query themes, especially for negative keywords, it still is rather impractical for identifying tangible new keyword opportunities which can be added to your campaigns. Knowing that searches which contained the phrase ‘cheap vacation’ performed well, does not mean that adding the keyword ‘cheap vacation’ would deliver equally promising results. If you specialised in Paris holidays, you would get all sort of non-Paris visitors. You are once again ignoring the other crucial words in the search query which are essential for identifying the searcher’s intent.

Even carrying out a 3-word or 4-word search query theme analysis, you would no doubt uncover useless phrases such as ‘cheap holiday deals to’, ‘cost package for october’, and ‘in paris april 2012′, which would not be sensible to add as new keywords:

We need a way of highlighting new keyword opportunities which can quickly and efficiently be added to the account.

Something more is needed.

Filters

We need filters. Once we have identified our promising 2-word, 3-word, and 4-word phrases from our search query report, we need to filter them to ensure they contain essential qualifying words.

Exactly what words you will use as qualifiers will obviously depend on the specifics of your individual campaigns, but here I have filtered to only show phrases which contains the words ‘paris’ and ‘holiday’:

I now have a list of sensible 4-word themes which I can add to my campaign as new phrase match keywords. And since each of these new keyword suggestions contain the words ‘paris’ and ‘holiday’, I can be confident that these keywords would deliver highly-targeted traffic.

Conclusion

There is a huge amount of data available to PPC advertisers via the search query report. Although we are seeing tools which help advertisers mine their search query reports for negative keywords, the real gold is in identifying new opportunities for keyword expansion. Being able to do so efficiently and reliably is surely the Holy Grail of search query analysis, and can be the difference between a mediocre and successful PPC campaign.

What techniques do you use to mine search query reports for new keyword opportunities? How do you ensure new keywords are qualified and relevant? Share your comments and experiences below.

Alan Mitchell is an experienced Google AdWords manager helping businesses in Australia increase their return on investment from PPC marketing. To find out how search query keyword expansion can benefit your business, get in touch today for a free consultation.

We all know first impressions count. First impressions are crucial for forming beliefs and expectations about a business and its product and service offering. And since your pay per click (PPC) ads are one of your first touch points with online potential customers, and one you have massive control over, your PPC ads are your first opportunity to mould a positive image of your business to potential customers.

Just like it makes sense to invest in a shiny new lobby or reception area to create a positive first impression to new prospective clients, so it also makes sense to ensure your PPC ads portray professionalism, trust and credibility. Below are 9 suggestions of how to appear more credible on Google to better engage with potential customers and increase your conversion rate.

1. Spelling

Make sure spelling in your ads is correct – even when matching to mis-spelt keywords. Avoid dynamic keyword insertion (DKI) for mis-spelt and highly-generic keywords. Export your PPC campaigns to Excel and run a spell-check – you’ll be surprised how easily typos can crop up in ads.

2. Grammar

Make sure your messages are grammatically correct and read clearly as a sentence. Stay away from over-abbreviated ‘txt msg’ style wording which looks amateur and unprofessional. Avoid ‘keyword stuffing’, especially when it is at the expense of message flow. Instead, try including words such as ‘the’, ‘and’, ‘of’ and ‘to’, which can help your messages read more elegantly and portray a better image of your brand.

3. Capitalisation

Be consistent with capitalisation. Whether you’re using start case or only capitalising open-class words, make sure it’s consistent. Experiment with capitalisation to find the style which works best for your business.

4. Punctuation

Avoid over-use of hyphens, commas and other unnecessary punctuation. Special characters can draw the eye, and achieve a higher click through rate, but it can make you look rather amateur and can affect conversion rates. Google only allows one exclamation mark in PPC ads, but that doesn’t mean you have to use an exclamation mark in every ad. Sometimes subtle is better.

5. Closure

Unless your ad is written as a single sentence across both lines of ad text, make sure description line 1 and description line 2 end in a full stop (or exclamation mark). If your ad does not contain full-stops because you’ve reached your 35 character limit, choose a shorter message to close off the sentence with a full stop. Think about how your ads will read now that Google are implementing longer headlines, where both your headline and description line 1 are displayed as a single headline. Does it read well? Does your message make sense in this format?

6. Equality

Try to make both description lines of your ads equal in length. Neatly-formatted ads look clear, concise and well-considered, so avoid having one line of text significantly longer than the other. Try to use 30-35 characters where possible, but also experiment with shorter messages of 25-30 characters. Words such as ‘Now’, ‘Today’, and ‘Online’ are often useful buffer words for creating ad descriptions of equal lengths.

7. Clear Message

Don’t waffle. Have a clear message and give the impression you understand your product. Be specific, state your unique selling points (USPs), and use prices and numbers to quantify your claims. Ads with a clear and confident focus will look and perform considerably better than those with a highly generic message.

8. Display URLs

Avoid ‘keyword stuffing’ your display URLs. Including search terms in display URLs might make your ad more visible and may improve CTR and Quality Score, but since longer URLs are often considered less credible, conversion rates may suffer. Sometimes a shorter display URL looks better than one which tries too hard.

9. Relevancy

No-one likes irrelevant amateur-looking ads, and ads which look like they understand customer needs portray a sense of credibility and authority. Ensure your ads are personalised to users’ search queries and include keywords in headlines and descriptions where possible. Take time to invest in a granular ad group structure.

Conclusion

First impressions count. No more so than on Google, with a huge number of people using Google to carry out initial research about a product or service. Your Google AdWords campaigns are often your first contact with new potential customers, so it’s essential to portray your business in a positive light to maximise your chance of conversion.

Don’s be like eBay and find your PPC campaigns being talked about for all the wrong reasons. Ensure your PPC campaigns give off a message to be proud of.

Alan Mitchell is an experienced Google AdWords consultant helping businesses in Australia increase their return on investment from PPC marketing. For more information on how specialist PPC marketing can benefit your business, get in touch today for a free consultation.

PPC advertisers have abided by this relevant approach since the dawn of PPC, knowing that to maximize PPC profitability, ads should be shown for highly-relevant keywords, and not for irrelevant keywords. If you are a synthetic grass manufacturer, for example, you should only show ads for highly-relevant searches such as ‘artificial grass’ and ‘synthetic grass suppliers’, but not for less relevant searches such as ‘real grass’ or ‘buy grass seed online’. Showing ads for these less relevant keywords would achieve a low conversion rate and yield a poor profit.

Or so the theory goes.

But maybe there is a way to still achieve great results from these less relevant keywords? Maybe there is a way to reach a greater number of potential customers, while still achieving a strong profitability?

There is. But it involves a different way of thinking. It involves a different approach to simply bidding on a range of keywords, showing your best performing ads, and waiting for the sales to come flooding in.

Capturing less relevant search traffic and achieving a good return on investment involves 3 crucial steps – separation, qualification, and persuasion.

1) Separation

“Keywords of differing levels of qualification should be separated into their own campaigns”

Start with your most relevant and highly-qualified keywords. These are your cream of the crop keywords in terms of relevancy. If you are selling luxury apartments in New York, for example, keywords in this highly relevant campaign may include a descriptive qualifier (e.g. ‘luxury’ or ‘exclusive’), a property qualifier (e.g. ‘apartments’ or ‘real estate’), a purchase qualifier (e.g. ‘for sale’ or ‘buy’), and a location qualifier (e.g. ‘New York’). People searching for ‘luxury apartment for sale in New York’ would be an extremely high quality of visitor, so these keywords must be kept separate in their own campaign.

In your next campaign, create keywords which are slightly less relevant. Keywords in this campaign might contain a descriptive qualifier (e.g. ‘luxury’ or ‘exclusive’), a property qualifier (e.g. ‘apartments’ or ‘real estate’), and a location qualifier (e.g. ‘New York’), but not a purchase qualifier (e.g. ‘for sale’ or ‘buy’). Keywords such as ‘world class property NYC’ is still relevant, but since it does not contain the words ‘for sale’ or ‘buy’, they need to be kept separate so they can optimized separately.

Next, create a campaign for keywords which do not contain a descriptive qualifier (e.g. ‘luxury’ or ‘exclusive’) not a purchase qualifier (e.g. ‘for sale’ or ‘buy’). Keywords such as ‘New York property for sale’ or ‘buy an apartment NY’ are still somewhat relevant, but since they don’t contain any descriptive or purchase qualifier, they need to be kept separate.

Then create yet another campaign for keywords with a descriptive qualifier (e.g. ‘luxury’ or ‘exclusive’) and a purchase qualifier (e.g. ‘for sale’ or buy’), but without a location qualifier (e.g. ‘New York’). This campaign will include keywords such as ‘exclusive apartments to buy’ or ‘prestigious real estate for sale’), which although are somewhat relevant, do not contain any mention of location so need to be kept separate. To increase the relevancy of keywords in this campaign, you might want to geo-target the campaign to a particular geographic area (e.g. searchers located in New York).

Keep creating campaigns, each with keywords of slightly less relevancy, until you start getting very generic and ambiguous keywords such as ‘New York apartments’. By now you should have a few different campaigns, each identifiable by the amount of qualification their keywords contain. Your campaigns may look something like the following:

• DESCRIPTIVE | PROPERTY | PURCHASE | LOCATION
• DESCRIPTIVE | PROPERTY | PURCHASE
• DESCRIPTIVE | PROPERTY | LOCATION
• PROPERTY | PURCHASE | LOCATION
• DESCRIPTIVE | PROPERTY
• PROPERTY | PURCHASE
• PROPERTY | LOCATION

As you move from one campaign to the next, keywords in your campaigns become less qualified and more ambiguous.

Now comes the exciting part – qualifying your ads.

2) Qualification

“Ad messages should be qualified to cater for different types of searchers”

While showing your best performing ads might work for your highly relevant keywords, using the same ads for less relevant keywords will have very different results. Using the same ‘tried and tested’ ads for less relevant keywords is a major reason why many PPC advertisers complain about the poor profitability of less relevant keywords. It’s not the keywords which are to blame; it’s the poorly qualified ads.

To achieve a strong return on investment from less relevant and more ambiguous keywords, such as ‘apartments in New York’, you need to qualify your ads. The less relevant your keyword, the more qualification is needed in your ads. When a user searches for something generic and ambiguous like ‘apartments in New York’, you are not able to tell whether she is looking to buy or rent an apartment in New York, nor are you able to determine the type of apartment they are seeking (whether it’s luxury, spacious, cheap etc). You therefore need to qualify your ad messages, providing clarity on the crucial missing information your searcher failed to include.

For your keywords which do not include a purchase qualifier (e.g. ‘buy’ or ‘for sale’), make it clear you are selling apartments (rather than renting apartments) by including words such as ‘buy’, ‘for sale’, ‘now selling’, or ‘from $3.5m’. When a searcher sees a price or a purchase qualifier in your ad, they will immediately know you are selling apartments (rather than renting apartments), which will reduce the number of rental seekers clicking on your ads.

Similarly, for your keywords which do not include a location qualifier, make your location extremely clear in your ad messages to minimize wasted clicks from people searching for properties in irrelevant locations. And for your keywords which do not contain a descriptive qualifier (e.g. ‘luxury’ or ‘world class’), ensure the searcher understands you are selling high-end property by using words such as ‘luxury’, ‘world class’, and ‘from $3.5m’ in your ads. This will help to filter out first time buyers or property seekers looking for low cost properties.

Qualifying your ads need not be a difficult task. One of the main reasons why you separated your keywords into different campaigns in step 1 is to make ad qualification all the more easier. By keeping keywords of differing levels of qualification spate, you should be able to quickly and easily create ad messages with the appropriate amount of message qualification.

Next comes the interesting part that is crucial to achieve profitability from less relevant keywords – persuasion.

3) Persuasion

“Ad messages should make it clear you are not offering the product or service the user has searched for, but provide clear messages as to why they should consider you as a substitute”

If you are an artificial grass manufacturer, for example, and you wanted to show ads for ‘real grass’ or ‘buy grass seed online’, you need to persuade searchers why they should change their mind and consider purchasing artificial grass instead. Messages such as ‘Grass that never needs watering’ or ‘Find out why you should go artificial’ might do the trick.

Similarly, if you’re a 4* hotel in Manhattan, New York, and want to reach people searching for hotels in the close by Midtown, New York, don’t just bid on the keyword ’4 star hotels midtown’ and show a generic Manhattan ad. Don’t just include the word ‘Midtown’ in your ads either, as that would mislead potential customers, and result in wasted clicks and few conversions. Mention the word ‘Midtown’ in your ad, but instead point out how far your hotel is away from Midtown. An ad such as the following would do nicely.

You’ve made it clear your hotel is not in Midtown, but clearly suggested why they should consider you anyway. You will filter out those people who must stay in Midtown, but encourage people who are flexible to consider your hotel. And since you’ve pre-qualified your ad messages, you’ve set their expectations at the right level which will help to deliver a strong conversion rate.

Relevancy Is Still King

While separation, qualification and persuasion can help to deliver strong profitability from slightly less relevant keywords, relevancy is still essential for paid search success. There is little point bidding on the keywords ‘apartment decorating’ or ‘the apartment film review’ to sell New York apartments, so keywords must still be somewhat relevant to your offering.

That said, if it’s approached intelligently, the three-pronged attack of separation, qualification, and persuasion should enable you to target less relevant keywords and still achieve a good return on investment. Separation allows you to keep your different keywords separate, qualification helps you reduce wasteful clicks, and persuasion helps you increase your conversion rate. Use all three strategies together, and they can be extremely powerful at increasing conversion volume within your cost budgets.

Are you a fan of the mid-tail? Have you found it possible to achieve a good return from slightly less relevant keywords? Share your thoughts and comments below.

Alan Mitchell is an experienced Google AdWords consultant helping businesses in Australia increase their return on investment from PPC marketing. For more information on how a strategic approach to PPC can benefit your business, get in touch today for a free consultation.

Sometimes, if conversion data is scarce, click-through-rate (CTR) is instead used to evaluate a keyword’s performance. If a keyword generates only 5 clicks from 1,000 impressions, it has a CTR of 0.5% so is deemed irrelevant. The keyword is then paused or relegated to the second page of search result obscurity.

This is not the right approach.

Beyond the Click

There is more to paid search management than optimising keywords based only on conversion rates and click-through-rates. A more intelligent approach also considers what happens once a user clicks on your ad:

• How many pages are they viewing?
• How long are they spending on your site?
• How many people are immediately bouncing?
• How many people are returning at a later date?

If a keyword has a poor conversion rate and a poor click through rate, but people are viewing a large number of pages, spending a long time on your site and returning regularly, the keyword may be doing a great job at creating awareness of your products or services. Even though conversion rate may be low, the keyword may not deserve to be paused or have its bid reduced – instead it may be beneficial to increase its bid to allow the keyword to flourish and user engagement to increase.

Similarly, if a keyword is converting well but 80% of people are immediately bouncing, finding out why – perhaps by looking at search queries being matched to the keyword – could help the keyword convert even better.

How to Optimise a Campaign Intelligently

Analytics software, such as Google Analytics, are incredibly useful in helping to understand what people do after they click on your ad and land on your site. If your Google Analytics account is linked to your Google AdWords account, it is possible to see page views, time on site and bounce rate for each of your AdWords campaigns, ad groups and keywords (select Traffic Sources > AdWords > AdWords Campaigns).

Once you’ve logged into Google Analytics, look at each of your campaigns:

• Which campaigns are engaging users with a high time spent on site? Why?
• Which campaigns are bringing in untargeted users who immediately bounce back and go elsewhere? Why?
• Which campaigns are persuading users to come back later? Why?

Next, drill down to ad group level and keywords level (if you have enough data) and ask yourself the same questions. 100 visits is usually significant to make reliable, informed decisions – but be careful about drawing conclusions for keywords / ad groups with less than 30 visits.

Make a note of those campaigns, ad groups and keywords which stand out, both positively and negatively. Look for common words that regularly appear in unusually high or unusually low metrics, such as ‘cheap’, ‘discount’ and ‘free’. How have they performed? Probably very different to your more generic keywords, you would imagine, but in what way?

Look for locations, product names and other qualifiers – can you notice any trends? Are there certain keywords with a high bounce rate? Could any negatives be added to reduce bounce rate?

Record any trends and resulting changes in a log. This is your insight on user engagement, and will not only help you develop a improved paid search campaign which will better connect with users, but will also help you better understand your audience and make more informed, strategic business decisions.

How to Optimise a Campaign Even More Intelligently

If you’re feeling more ambitious, export the keyword data to Excel and VLOOKUP each keyword’s Analytics performance to its AdWords performance (select Traffic Sources  > AdWords > AdWords Campaigns > “dimension” = “keywords” > export > CSV for Excel).

That way, when you’re looking at each keyword’s costs, CTR, conversions and ROI, you can also consider page views, time on site, returning visits and bounce rate, and better understand each keyword’s impact on creating awareness and interest.

Look at keyword 8 in the example below. It has a low conversion rate and a high cost per conversion, so based on conversion performance it should perhaps be paused. But notice how page views, time on site and bounce rate are all exceptionally good. Should the keyword really really be paused? It seems to be engaging users well, so why not instead find out why its conversion is so low?

Similarly, keyword 9 is converting well, but if it’s bounce rate could be reduced, it could become even more profitable. Play around with new ideas and experiment optimising bids based on different metrics.

It’s All About Engagement

The next time you optimise your campaign, remember there’s more to paid search management than conversions. If, like the majority of Americans, you’ve ever researched your next holiday, browsed that DVD player or shortlisted those birthday presents on your lunch break at work, only to buy online when you get home (on a different IP address), you will appreciate that keyword conversion data can only get you so far.

Conversion optimisation is naturally biased towards converting keywords, so will tend to ignore keywords at earlier stages of the buying cycle, which may play an essential role in creating awareness, generating interest and engaging users with your products, services and brand.

Conversion data – and automated tools which optimise keywords based on conversion data – are not the be all and end all of paid search management. Understanding user engagement could well be, and the tools to get you started are right at your fingertips.

Alan Mitchell is an experienced Google AdWords consultant helping businesses in Australia increase their return on investment from PPC marketing. For more information on how an analytical approach to PPC marketing can benefit your business, get in touch today for a free consultation.

Long-tail keywords are those low-volume, obscure, infrequently searched-for keywords that turn up in your search query reports. ‘Cheap remortgage for bad credit history’ is one example of a long-tail keyword. ‘Remortgages’ is not.

The theory goes like this:

• Long-tail keywords, en masse, can provide significant search volume (high impressions)
• Long-tail keywords have less competition than generic keywords (lower cost per click (CPC), higher click-through rate (CTR))
• Long-tail keywords are more specific than generic keywords, so ads can be better tailored to match the searcher’s needs (higher CTR, higher Quality Score, less wastage from irrelevant searches)
• People making long-tail searches are often further along in the buying cycle and more willing to buy than people making generic searches (higher conversion rate)
• These lower CPCs, higher CTRs and higher conversion rates mean long-tail keywords can be extremely profitable (lower cost per acquisition (CPA))

So are long-tail keywords all they are cracked up to be? Are they worth all the time, effort and commitment they require?

In short: yes.

Over the course of this article you’ll see exactly how search volume, CTR, CPCs, average position, conversion rate and CPA differs for searches containing different numbers of words, and how long-tail keywords can benefit your business immensely. Using three months of real Google AdWords campaign data, you’ll see that long-tail searches outperform generic short-tail searches on almost every measure, and provide a great opportunity to connect with customers which is generally not being taken by the majority of advertisers.

1. Search Volume (Impressions)

Let’s start with search volume. Do people make long-tail searches in any meaningful volume?

Look at the example below. Although 1 and 2-word searches may be under-represented in the example (the account has a natural bias towards keywords of at least 3 words), it is clear that as the number of words in a search query increases beyond 3, the number of searches made using that that number of words falls.

This isn’t surprising. You would of course expect search volume to drop as searches start becoming obscure and lengthy. It is little surprise that more people are making shorter searches such as as ‘cheap televisions Brisbane’ (3 words) instead of longer searches such as ‘low cost Sony Bravia television shops in Brisbane’ (8 words).

What is worth noting, however, is the power of these long-tail keywords en masse. Added together, searches of 5 words or more accounted for 21% of all impressions. While long-tail keywords may be individually insignificant, a PPC campaign with thousands of long-tails can be a serious source of additional traffic.

Fact: Long-tail searches have significant search volume

2. Click-Through Rate (CTR)

Another common belief among search marketers is that click-through rate (CTR) is higher for long-tail keywords. Their reasoning being:

1. Long-tail keywords have less competition, so there is a higher chance someone will click your ad
2. Long-tail keywords are more specific in their requirements, so you can write a more targeted and relevant ad to encourage the searcher to click

While the first point is perhaps rather tenuous (Google’s broad-matching mechanism often sends long-tail searches to advertisers’ short-tail keywords), the second point is definitely true. If someone searches for ‘cheap Sony Bravia 46 inch televisions’, and your ad mentions the words ‘Sony Bravia’, ’46 inch’ and ‘televisions’, perhaps with latest prices for that model, it makes sense that your ad will be more appealing than a generic ‘Sony televisions’ ad.

Let’s have a look at CTR for searches of different word counts. While searches of 1, 2 and 3 words have a relatively low CTR, CTR appears to increase significantly for searches of at least 4 words. CTR, it seems, is considerably stronger for long-tail keywords.

Fact: Long-tail keywords can achieve a higher CTR, as long as ads are tailored to the search query

3. Cost Per Click (CPC) & Average Position

Many search marketers also believe long-tail keywords are cheaper. They have less competition, fewer people bidding on them to drive up their prices, so CPCs will be kept relatively low.

So are long-tail keywords cheaper than generic keywords?

To answer this question, it is important to bring average position into consideration. Since CPCs and ad rankings are closely connected (a higher CPC typically means higher ad ranking), both average position and CPCs need to be considered together.

First, let’s look at CPCs. For searches of 13 words or more, CPCs do tend to be cheaper. For searches under 13 words, however, CPCs tend to be very similar. A 9-word search query costs pretty much the same price as a 4-word search query. CPCs do fall very slightly as word length increases from 3 to 12 words, but I would hardly call that significant.

Now let’s look at average position (a higher bar represents a higher ad ranking). For 1, 2 and 3-word searches, ad ranking is relatively low, and ads are appearing near the bottom of the first page. As word length increases, however, ads are shown significantly higher. They are appearing in the top positions.

So although CPCs were relatively similar for searches of all word counts, long-tails were often shown in a higher position.

When you think about it, this makes perfect sense. When you set a maximum CPC bid for each keyword, Google will show you as high as possible without going over your maximum bid. If long tail keywords are cheaper, Google won’t necessarily charge you less. It is in their interest to charge you as much as possible, so they will instead keep your CPCs close to your maximum bid but show you in a higher position.

Fact: Long-tail keywords are cheaper for the same ad ranking, or the same price for a higher ad ranking

4. Conversion Rate

So we’ve seen that long-tail keywords have a significant search volume. They exhibit a strong CTR and are often cheaper than their short-tailed rivals. But clicks are no good if people don’t engage with your site or part with their cash. It’s often conversion that really matters.

So are long-tail searches more likely to convert?

Many search marketers seem to think so – their reasoning being that people who make longer, more specific searches have already done their research and know exactly what they want. They are further along in the buying cycle so are more likely to open their wallet.

Let’s have a look at conversion rate for searches of different word counts.

It’s a pretty convincing trend. As the number of words increases, so does conversion rate.

Fact: Long-tail keywords have a higher conversion rate

5. Cost Per Acquisition (CPA)

Finally, what does this mean for CPA, profitability, return on investment (ROI)? Is it cheaper to acquire a customer through the long-tail?

Let’s have a look at the CPA column.

Again, there appears to be a clear trend between word count and CPA. Conversions from long-tail searches seem to be cheaper than conversions from generic, short-tail searches.

And it’s not just one or two conversions which are coming through long-tail searches, either. Remember how long-tails of 5 words or more accounted for 21% of all searches? Well, those 21% of long-tails generated a massive 40.5% of all conversions.

Fact: Long-tail keywords have a lower cost per acquisition and can be extremely profitable

Long-Tails Are Your Friend

As we have seen, the benefits of long-tail keywords are many:

1. Significant search volume
2. Higher CTR
3. Cheaper CPCs (or higher ad ranking)
4. Higher conversion rate
5. Lower CPA

Quite simply, they outperform generic, short-tail keywords on every measure.

Don’t get me wrong, long-tails shouldn’t replace your short-tail keywords. Short-tails, if used wisely, are great for building interest and awareness at the early stages of the buying cycle. Your long-tail keyword strategy should complement your short-tail strategy.

So by all means continue showing on your high-volume keywords – after all, they may be your bread and butter that keep your business afloat. But the next time you work on you AdWords account, spend some time researching relevant long-tail keywords. Try to think what people are actually searching for and use keyword tools to help. Structure your keywords into closely-themed ad groups and tailor your ads and landing pages to cater for these specialised long-tail searches.

Your Moment to Shine

Of course, researching thousands of keywords and structuring them into hundreds of closely-themed ad groups, each with tailored ads and landing pages, is by no means easy. It will take considerable time, effort and dedication, not to mention the many hours of keyword and search query analysis, ad group expansion and ad copy testing once your keywords are live.

But think about your target audience for a minute. They are calling out for someone to meet their needs in a personalised and relevant way. It’s the age of social interaction, and people are sick of seeing generic ad after generic ad. And despite many advertisers claiming they are “doing this already”, consumers are not currently getting a personalised and relevant service (see Relevancy: The Holy Grail of PPC).

If you can be the advertiser who understands your audience using search query analysis, if you can cater for their individual needs with relevant ads and landing pages, if you can be the one who makes a mark in your industry, customers will reward you with their wallet. It’s your opportunity to stand out from the competition. So take it.

Alan Mitchell is an experienced Google AdWords consultant helping businesses in Australia increase their return on investment from PPC marketing. For more information on how a strategic long-tail approach to PPC can benefit your business, get in touch today for a free consultation.