November 2006 Archives

Whether you run a Fortune 500 company or a sole proprietorship, effective search engine marketing (SEM) programs begins the same way. Surprisingly, companies often dive in prematurely--and develop severe headaches when they discover they've dived into an empty pool. Solid SEM requires solid--but simple--preparation.

1. Bring the big picture into focus. What are you trying to accomplish with SEM? The trick is to develop objectives with the right degree of precision--

Too broad--"More business."

Too specific--"20% more unit sales of Product X to new customers in the Pacific Northwest by December 31."

About right--"By 2008, annualized sales growth in Category Y products that exceeds overall sales growth by 5-10%."

2. Bring the small picture into sharper focus. While example #2 above is probably too specific for the big picture goal, it's about right as a tactical objective. The more clearly you define your tactics, the more precisely you can target keyword selection, pay-per-click campaigns, and other SEM activities.

3. Establish an annual budget. How much are you ready, willing, and able to spend? What level of ROI is acceptable? If you have long-term objectives and clear tactical goals, these calculations become much easier to work out. Without a budget, a company encounters two serious risks--

--Agonizing over monthly expenditures and giving up too early; or,

--Ignoring monthly expenditures and sticking with ineffective programs too long.

An attractive feature of SEM is its measurability. Campaigns can be monitored and improved along the way, but in order for that to happen, there must be something to measure. Obectives and budgets don't guarantee success, but they do guarantee you'll recognize it when it occurs!

In our last post we mentioned a fascinating statistic--

While 56% of marketers say the Internet is key to their business, only 15% of them actually measure results.

A common misconception about marketing is that it is all art and no science. In reality, most types of marketing programs are measurable to one degree or another. True, the ROI for a billboard designed to enhance brand recognition might be difficult to quantify. But at the other extreme, search engine marketing is highly quantifiable--one reason for its popularity and rapidly improving effectiveness.

There is no shortage of data available for analyzing Web site traffic, user demographics, customer behavior, and pay-per-click campaigns. To make full use of Web analytics, companies should employ techniques that drive the right kind of data. For example--

1. Newsletters always seem like a good idea, but how do you know if they work? Try sending out two versions in an A/B split test and see which one produces a higher conversion rate. Repeat the process with every newsletter release.

2. Use A/B split testing for PPC campaigns, creating multiple landing pages to test which message is more effective.
(When split testing, take care to change only one variable at a time. Otherwise, it becomes difficult to determine what caused user behavior to be different.)

3. For Web pages having a steady stream of fresh content, offer RSS feeds to encourage subscriptions (that can be tracked and analyzed).

4. Speaking of Web pages, make sure each one has a specific purpose, and as much as possible, only one specific purpose. If users hit a particular page with high frequency, it will be hard to determine why if the page contains several types of information.

Apply a little "scientific method" to the creative work of building Web sites and search campaigns. The customer insights you'll gain down the road are indispensable!

We mentioned in our last post that companies may not be fully aware of the power of Web analytics. As promised, here are some places to learn more.

Google Analytics now offers its program at no charge.

Statcounter, another popular provider, offers a free demo on its site.

ClickTracks, a third key player, offers a free trial and a good deal of useful information.

Read a thorough overview of the importance of Web analytics from the Web Analytics World blog.

This article from Digital Web Magazine runs through the nuts-and-bolts of Web analytics in easy to understand terms.

A recent post from Dianna Dilworth reveals this startling fact: While 56% of marketers say the Internet is key to their business, only 15% of them actually measure results!

Applying Web analytics to e-mail might be the next breakthrough. David Baker gives a look into the (near) future.

Other ideas or comments? Please let us know!

Need help developing a Web analytics strategy? Contact us today.

Web analytics has come a long way from the days when a Web site's traffic report consisted of page after page of inscrutable and largely meaningless data. Today's Web analysis tools deliver readable and meaningful information that enable companies to continuously improve site programming, site design, and search engine marketing (SEM) programs.

Besides being highly useful, Web analytics programs are getting less expensive all the time. In fact, Google Analytics, a major industry player, now offers its programs free.

Why then, do so few companies use Web analytics?

1. Unawareness. Some companies simply may not realize how much useful information is available to them--perhaps just for the asking.

2. Indifference. Building a new Web site is fun! Creating fancy new graphics and site applications is energizing! Studying large quantities of data, for many, is neither. If an organization lacks detail-minded marketing personnel, it may fall into the trap of launching exotic applications that never get cost-justified on the back end.

3. Not connecting the dots. Some organizations are well aware of Web analytics, and care deeply about measuring results. However, they may lack the expertise to convert site data into action. This is where the Whoast team can assist--by helping clients craft better Web sites and search campaigns with changes based on facts, not perceptions.

4. Inadequate resources. There are organizations where Web development is permanently on the back burner. When internal resources for Web marketing are limited, Web analytics tends to fall the bottom of a very long to-do list. Here again, a strong SEM partner can fill the gap.

Who is visiting my site? When are they visiting? Why are they visiting? Where are they from? Why are they leaving?

If any of those questions are on your mind, an exploration of Web analytic tools will lead to answers. In our next post we will share some helpful resources.

As we recommended in our last post, companies should review legal issues with their legal team before launching a blog. Here are a few places to get background and a fuller view of some key points.

The Electronic Frontier Foundation is a Web site dedicated to free speech and contains information on all important Internet legal issues.

Who owns the Internet? The United States thinks it does, but some beg to differ. This article from TecWeb lays out the debate--the outcome will determine how much legal oversight and governmental interference bloggers will be confronted with.

The Privacy and Security Law blog runs down two recent legal decisions on the privacy of electronic information. An excerpt from the "Apple Blogger" decision--

"Judge Cardamone's and the California court's opinions show that, as technology advances and the risks of government intrusion increases, judges are increasingly sensitive to privacy concerns, even in the face of allegations of theft of trade secrets"

From CSOonline, a thorough rundown of intellectual property law. Understanding these laws helps businesses protect valuable assets, not only in blogs, but in many other respects.

This post from the Social Networking blog about security and privacy on My Space demonstrates how vague and unsettled Internet law can be. Considering the enormous popularity of My Space, how these issues get sorted out will influence the direction of privacy and security law for other blogs.

Comments or ideas? Please let us know!