By Rob Pierre

Is paid search widely used in the marketplace?

Interest in paid search - and the various fee models on offer - is growing. Marketers can use paid search to drive traffic to their websites and ultimately boost product sale – for example magazine subscriptions. And methods to do this include an upfront management fee model, where the brand pays an agency a flat-rate retainer to run every aspect of the paid search campaign, or Cost Per Acquisition (CPA) – an agreed fee paid to the agency for every sale made.

In terms of CPA, marketers benefit from buying into a cost-per-sale model which effectively makes the agency work harder to make a buck. But there is still an issue of agencies and clients failing to set realistic CPAs. Brands need to take into account the bigger picture. It’s not just about acquiring customers, but recognising that once search has brought new customers in successfully, you need to work out the lifetime value of that individual to your business. I don’t think there is enough emphasis put on that area at client companies, therefore marketers don’t always understand the real, long-term value of paid search as an acquisition tool. The problem is that search engines have almost become e-commerce sites, with people using them to compare and contrast prices and products, so customers are promiscuous. Marketers need to understand how search and all other forms of online marketing can work together better to sweat lifetime value from customer acquisition.

What forms of paid search work best?

Arguably it’s the actual network search engine searches that underpin the market. The best form of search can be to use the major search engines only. For example, with AdWords you can choose the ‘Google-only’ option, or another that allows you to also advertise through all of Google’s partners. The problem with the second option is that you aren’t necessarily told who these partners are or where the ads will show, so it’s often more successful to only use Google. This may have an impact on volumes but the quality of your campaigns is generally better.

What should firms consider before diving into paid search?

Guaranteed ROI, at a time when marketers are still looking to make every penny count, is attracting brands to use paid search. Consider carefully the paid search fee models on offer: the traditional agency model of charging a management fee (as a percentage of the client’s media spend), if you are not ready to commit to a CPA agreement. However, even if a client sets out on a search drive with a management fee agreement, it can then be migrated to a CPA when appropriate. This is the benefit of offering a hybrid paid search model. What CPA does allow is the ability to deliver greater volumes of acquisitions for our clients, thus eliminating the need for agency management / retainer fees.

Campaign management is also key. Delivery can be optimised by using a combination of human teams and automated software: neither should be mutually exclusive. There are many issues to consider when planning and running a campaign, including creating keyword groups (search terms sometimes running to hundreds of variations) and bespoke campaign landing sites.

What pitfalls should firms avoid?

The most frequent client pitfall is choosing an agency solely based on its fee structure. By doing this the client ignores the potentially huge savings it can make on overall media spend, by driving volume with the right balance of technology, methodology and human resource. Ignore the importance of end-to-end campaign management techniques, such as creation of bespoke landing pages, and balanced human and automated input, and the client risks losing value.

What are your top tips on how to make the most of paid search?

1) Seek specialist help

Successful campaigns take manpower and expertise, so employing an agency team is often the best option. Client companies should shop around to ensure they get the best value from their suppliers.

2) Consider your objectives and audience

Think carefully about what you are trying to achieve, and how search fits with your overall online activity and marketing strategy. Set clear goals as search is a highly measurable medium; any agency worth its salt should know instantly whether targets are being met.

3) Keywords are the key

With the rise of social networks, links that appear on natural search rankings can be subjective and unreliable. Conversely, because of the rigorous metrics and ranking systems involved, paid search must work hard to be reliable to reach the top. Keywords are a fundamental foundation for a campaign’s success. Ensure your search agency helps develop a comprehensive list of keywords around your brand, products and services, events, website content, competitor brand offerings and generic terms.

4) Agree fee models from the outset

Discuss remuneration from the moment you brief an agency. Your supplier should openly converse with you about this, and the best will offer alternative models.

5) Monitoring metrics

There are many campaign elements you need to monitor to manage the campaign within the agreed CPA, whilst maximising the volume of acquisitions. Know how elements such as keywords in ad copy, landing page destinations and keyword bidding strategies affect each other, and it is possible to manipulate page impression levels, average costs per click, click-through rates and, ultimately, optimise conversion.

6) The human touch

Although it’s good to have automated systems monitoring progress of your paid search campaigns 24/7, it’s crucial to have specialist teams overseeing the software. Programmes are still too rule-based to run paid search campaigns as effectively as a combination of humans and technology.

About the author

Rob Pierre is Jellyfish’s managing director. Jellyfish is the UK’s leading agency dedicated to paid search marketing.

www.jellyfish.co.uk