PPC Site Links - Here to stay?

A dynamic new method of displaying PPC ads was recently revealed by Google, a method they believe would improve CTR and mainly (as it is a Google tool) will continue to improve the user experience. I am ofcourse talking about site links.

Site links were well documented on their general release in mid November. There was quite a ‘buzz’ from the digital world about site links and the potential huge effect on sponsored links. We saw a few mentions, particularly early on, such as “will enhance your online presence”, “you don’t want to miss this” and “the future of paid search”.

....Really?

If you haven’t seen site links before (and that could well be a few of you), here is an example below:

Let’s first look at the positives of this. By opting into site links and having them shown, your ad will automatically take up a larger proportion of the sponsored link area. It allows you to further advertise your products in more detail than in ad text and also makes the ad appear far more ‘official’. The site links themselves are also easy to change, meaning you can change products or offering as and when products change with limited effect on ad quality score. All these factors contribute to a much improved CTR. For every client we have initiated site links for, we have seen consistently, a very strong improvement in CTR. Undeniably highlighting and solidify Google’s claims that site links will improve performance.

However, the stipulations controlled by Google limit the opportunities for site links to make a considerable difference. These stipulations, which are fair for competition reasons, are quite strong and mean only certain searches and clients can initiate them.

One stipulation is you need to have a far greater CTR than other advertisers on your keyword landscape to be allowed to show site links. Does anyone really have this on any other terms bar their brand? I doubt it. In a market where the landscapes are getting busier and more competitive, can any advertiser honestly say they have a far stronger CTR than their competitors? Obviously position remains a strong indicator of CTR but P1 ad will not have FAR stronger CTR than P2.

So you use it on your brand. Perhaps because competitors, affiliates or aggregators are bidding on your brand term and it’s a way of distinguishing yourselves. Would appear perfectly reasonable! However, many strong brands have equally strong SEO. Many brands are already position 1 in organic traffic and strong brands utilise the site links provided in organic traffic. By adding site links to your PPC ad, you are making this ad more enticing. But on brand terms, where are these extra clicks coming from? Are these clicks being taken from organic traffic since you are in P1? The last thing you want to be doing is taking originally free volume and start to pay for it. Simply put, (and as one of my colleagues enjoys saying) site links can have a negative effect and cannibalise your organic traffic and raise incremental costs. Beware!

Furthermore, another stipulation is you have to have consistent P1 for a particular search term over a sustained period of time. As I discussed in a previous post, position and the cost for this position is not always the most effect method of driving spend. It will very much depend on the CPC to reach this P1 and if driving this P1 is not a drain on your budget.

In conclusion, when it comes to site links, the jury is still out on this one! Yes they do provide an increase in click volume with pushes on CTR. That is inevitable due to the nature and position of the site links within sponsored search. But where are these extra clicks coming from? There is a strong argument that as realistically you can only initiate site links on brand terms, that they cannibalise organic traffic. Not to mention that the consistent P1 required can drain budget.

But site links are very much still in their infancy. Having only been released for less than a month and still no proper method to measure them through Adwords, they could turn it around and make this tool a ‘must’ for all PPC advertisers. However, I doubt it and this is likely to fall away to a forgotten 00s phenomenon like Big Brother or T.A.T.U!

What's in a Position?

The main objective for most companies operating on PPC is to ensure maximum profits for minimal costs. Of particular interest to clients is the position. It can determine the amount of click volume you receive but equally can determine the amount you can spend. There is generally a scramble for that lucrative position 1; but with that competition comes a price. It’s imperative to understand when position is important and when spend per click needs to be a priority.

Position is a strong quality and on a brand term it’s always advised to reach that top ranking. You know the conversion rate should be strong and the traffic to be of good quality so you can push those CPCs up knowing it will be worth it. Furthermore, the quality score you should have on the brand will ensure you pay as minimal CPC as possible for the top ranking. And let’s face it, despite the changes in trade marking on Google, the majority of brands have managed to create “gentlemen” agreements in an effort to keep huge competition on their brand.

But in regards to most other keywords such as generics and products, which top position could be too much cost per click to be worth that position. CTR may well be up but so will costs and conversion increases probably wont follow the same increase.
There has been some discussion on which position actually does ensure a strong CTR at a fair CPC. It is generally accepted that a top 3 position is a must for most keywords, particularly the important keywords within your account. Interestingly, I have found in some accounts an improved CTR when dropping from position 2 to position 3. After talking to my colleagues, others have seen similar odd increases in CTR despite the drop in position. Is this because the advert is closer to the organic listings, where the majority of users look?

Unsurprisingly, Google is very quiet on this subject and continues to stress the important of position. Of course they may have a slight reason behind their silent display on the best position. So, when you hear that all that is important is position 1, I would definitely question the truth of that statement!

I read recently that “unless you are in the top, it is impossible to get the best PPC CTR.” I won’t mention the names behind this rational but they followed this statement with this…


I think this may be the very best example of how false that statement is! In this instance, DKI, improved creative and better usage of the landscape highlights how much better position 2 ad is than position 3. Its interesting that the blog this was taken from is also the blog which stated the “Position one or nothing” statement mentioned above. Just looking at this landscape I can almost guarantee that position 2 ad has the strongest CTR, despite the “free” USP from position 1 advertising.

So, what’s in a position? Simply put – not a lot. I believe you need to be in the top 3 positions for those key terms but from there it’s a straight shoot out with USP and use of Google tools such as DKI or (as we head into 2010) site links. Admittedly, on those competitive landscapes, position may be the overall winner as all on the landscape use tactics and tools to improve CTR. But even then, you need to consider how much the CPC increase will effect the inevitable overall spend increase and against your clients targets.

I want it now! Online Travel Market Information to your door!

Having worked in the online travel market for some time now, one thing is clear, you have to be up on the latest information and ready to utilise it before your competitors do. And let’s face it, with the online market so strong and competitive, there is always someone who will use it. In the travel industry, the internet is now becoming the number one market place for holiday seekers. You need to keep up to date with online changes as much as you need to read the brochures and check the high street.

On that note…

…here is a list of those sites you NEED to be part of to keep that competitive edge.

TravelMole

This is one of the major sites in travel and tourism. TravelMole is an online community and allows users to post relevant news as well as the regular news generators. Sign up to the newsletter for the latest information in regular updates.

http://www.travelmole.com/signout.php


Revolution

Revolution is the UK's only monthly magazine dedicated to digital marketing. Since its launch at the height of the dotcom boom it has been synonymous with industry defining insight and editorial excellence. It provides business intelligence and insight to those working within the UK’s fastest moving communications sector. Lots of offers and even job listings if you so wish!

http://www.revolutionmagazine.com/


Eye For Travel

Well the clue is in the title. It’s a bit more messy and not as well regulated as travelmole and revolution but you still receive the same information. It also gives you a bit more insight into the USA market.

http://www.eyefortravel.com/


Travel Weekly

A great website for different news! News travels fast and regularly the previous websites drive the same news to your inbox. I have found travel weekly takes news from different sources and uses more examples than generic articles.

http://www.travelweekly.co.uk/Home/Default.aspx

There are literally hundreds of travel industry news sites across the internet, often highlighting the same stories in varying formats. The travel industry has a strong presence online. Make sure you are at the top of it!

Top 5 PPC Tricks to Boost Performance

The current market situation means getting those conversions at minimal costs is ever more important. That means that more companies are pushing online budgets to drive those conversions. Nothing more is highlighting that then the huge news that online marketing spend has (finally) overtaken TV.

http://www.revolutionmagazine.com/news/942047/Its-official-online-bigger-TV-ad-spend-figures-show/

Of course this now makes an already competitive landscape a feeding frenzy with all advertisers scrambling for that click.

PPC is a popular method of building a market presence on search engines. Which other method can push you to the top of the first page on some of the most competitive keywords in the market? So here are my top 5 tips on driving your company up the landscape whilst keeping costs at a minimum.

Number 1: Negatives

So regularly over looked but so vital and also so unique to PPC. Negatives can prevent your site from appearing against unwanted traffic. When you pay for each click, it is vitally important that each click has the highest chance of conversion. PPC gives you a unique opportunity to prevent unwanted clicks by adding terms that you don’t want to appear against. Whether it’s terms that are nothing to do with your company, or even a product you don’t have. By preventing your ad appearing you prevent a wasted click, wasted spend. Even more so, this aids your quality score because your ad is relevant to the searches you appear against and this can push up your position on the landscape. Regular SQR reports will highlight which terms you are broad matching against and should be added as negatives.


Number 2: Landing Page URL

So many times you see every keyword land on the homepage, forcing the user to find the product they are after. Trawling through web pages on your company site may look impressive on bounce rates but realistically searchers do not enjoy this and conversion rates are generally low. Make your destination URL as relevant as you possibly can. If your keyword is a product, land it on the product page. This will increase conversion rates and create a pleasant user experience. They will look for your ad again knowing that it directs straight to the product they want. However, be wary! Destination URLs are very much a judgement call: of course you want to be specific but don’t make it too specific. Make sure if you have alternative products, a user can see them!


Number 3: Use Exact Match

This seems like an obvious one but PPC agencies often don’t think about the greatness which is using exact match as well as broad match. Simply put, exact match you will appear only for this exact search term. And this can be hugely beneficial. If you know that you will only appear on this term, you can push your CPC up! You can push yourself higher on the landscape confident that your conversion rate will be higher because of the relevancy. Let a keyword perform on all matches, but ensure that your CPC on exact is always higher. It’s almost guaranteed that spend will be lower but conversion rates higher. Do a match type analysis on your account and I bet exact match (if you have it) out performs others. That is not to say you should only run on exact match, just ensure every keyword is at least on exact and broad match.


Number 4: Make Your Ad Text Relevant

This is generally the one attempt you have to lure searchers into your site. And let’s face it, if you have a relevant ad, Google will help you drive users to your site. Using the keyword in your ad text is always a key way of ensuring it stands out from the landscape “crowd”. Dynamic Keyword Insertion (DKI) is an effective way of doing this when you have many keywords in an ad group. But realistically, your ads performance is based on the landscape. You want your ad to stand out. Price points and Discounts are always strong but can be overused and potentially they may not be competitive. Similarly, DKI can be extremely useful but if everyone is utilising this, no ads differentiate. Look at the landscape for your strongest keywords and make a decision based on this. Sometimes breaking away from the normal can be the key to success.


Number 5: Optimisation

PPC is an every changing landscape. With quality score and your competitors CPC differentiating continuously, if you leave a well managed PPC account alone, when you return it will be in disarray. Optimisation is a difficult technique and is one that takes a lot of training and experience. It’s not a simple case of pushing CPC. It’s about the impact it has on your account and the reaction to your position. Of course CPCs are an important aspect of that but reviewing ads, CTR, negatives, landing pages, conversion rates and competitors actions are also very important. All these need to be checked and changed regularly as a reaction to the landscape. PPC is a fantastic way of driving volume and conversions but is also an easy way to drive costs if you are not careful. This can happen even to the longest serving PPC companies. Never, ever, relax. You are part of the most volatile market in the world. Respect it!.