Guiding Your Client Through Internet Marketing by Vern Wanner of First Webs Presented July 2005

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Guiding Your Client Through Internet Marketing by
Vern Wanner of First Webs Presented July 2005






First Webs of Rockford, IL is no longer associated with WSI
(World Sites International), and does not support the products
or programs offered by WSI.


First Webs provides Internet Marketing and web site
development services to the northern IL area. First
Webs operates
http://www.nilsem.com
,
http://www.firstwebsdemos.com
, and
http://www.firstwebsni.com

Posted by Vernon Wanner, First Webs Internet Consultant;
May 8, 2007

Guiding Your Client Through

Internet Marketing

by

Vern Wanner

Rockford, IL

Introduction:

Search Engines and Online Advertisers are
battling for share in this $100 billion local
search market.

Natural SEO? Local Search? Pay
-
Per
-
Click? Internet YP? Or Pay
-
Per
-
Call?

What’s an IC to Use?

Introduction:

In this Presentation . . .



Explain the Options for Internet Marketing


Compare SEO vs. PPC


Compare Local PPC for Google and Yahoo!Search


Define Internet Yellow Pages (IYP), Pay
-
Per
-
Call
(PPCall), and Local List


Outline a Process for Selecting a Program


Present an Application Example

Natural SEO: Also called Organic. The process of using
titles, descriptions, and relevant content to obtain site
listing in top 30 positions with major engines. Also “free”
or purist”.


Usually Long
-
Term Investment; Best ROI


1 Time Development & Then Monthly Updates


May Need to Recode Entire Site


Target Low Number of High Traffic Keywords


2
-
3 Keywords Max Per Optimized Page


Depending on Industry, Optimization May Last


Do it Right and Traffic Keeps Coming!

Detailed Description:

Engine

Natural (%)

Paid (%)

All

60.5

39.5

Google

72.3

27.7

Yahoo! (Eng)

60.8

39.2

AOL

50.0

50.0

MSN

28.7

50.0

Many companies engaged in SEO resist investing in Paid search. Many
companies investing in Paid search are not yet pursuing an SEO strategy.

Source: ClickZ Experts & OneUpWeb May 3, 2004

Detailed Description:

Pay
-
Per
-
Click is an Auction. Select a keyword or search
phrase, create a listing, select an amount advertiser is
willing to pay. Place the ad on relevant sites. When a
visitor sees the ad and clicks on it, the advertiser pays.


Compete With All Adv’r using Same Phrase


Get Can Traffic Immediately (<1 Hr)


Good Solution When Can’t Get Site Ranked


Good Solution for Flash or Dynamic Content


Easy to Measure and Track Results


Excellent for Seasonal Businesses

Detailed Description:

PPC Continued . . .


Excellent for Testing New Product or Campaign


Use for Many Phrases With Low Bid Costs


Time Consuming to Monitor; Expensive


Carries the Highest Long
-
Term Cost


Good for Researching Natural SEO Program


When You Stop PAYING Traffic STOPS!

Detailed Description:

There are 2 major PPC players


Yahoo! And Google.
MSN is entering the field. A little known player is
FindWhat (MIVA).


Yahoo! Search Marketing offers both Local Search and
National Search. There are slight differences in
program names. They are set up on separate
accounts.

Google’s AdWords program covers both Local

Search and National search. Selecting the

geography is part of setting up the account.

Detailed Description:

PPC search results
display on right side
and top; Similarly for
Google.

Detailed Description:

Detailed Description:

PPC Variation 2


Pay
-
Per
-
Call, not Pay
-
Per
-
Click!

Offered by Ingenio and
FindWhat (MIVA), PPCall is an
incredibly UNCOMPLICATED
product for SMBs.

98% of US businesses

Do Not use PPC. They

All have phones!

Detailed Description:

Detailed Description:

Merchants define key terms, choose categories, and
decide what area they want ad to appear. Then create
ad and provide a trackable toll free # which redirects
to advertiser phone #.


Merchants charged on a CPA basis when someone calls
the toll free #. Tracking and stats are available.

Let’s compare PPCall to PPC:

Detailed Description:


Bid Prices Higher
-

$2 to $20/Call Depending on
Category and Position



More Engaging
-

Conversions Improve Over PPC; Builds
Rapport



Easier to Track. 85% of SBs Can Estimate Phone
Conversion Rates, but not Web Conversion Rates



Easier to Set Up

Detailed Description:

Print Yellow
Pages

Internet Yellow
Pages

Local Commercial
Searches

Metric

References

References
(lookups)

Geo
-
targeted
Commercial
Searches

Source

Yellow Pages
Assoc

Yellow Pages
Assoc

Kelsey Group FC;
Ingenio Data

Customer
contact (%)

83%

67%

32%

Customer call
(%)

61%

73%

25%

Net Call Rate
2005, (%)

50%

49%

8%

Source:

Kelsey

Group,

2005

Detailed Description:

Print Yellow Pages are arguably the most important form
of advertising for small business. Now, Internet Yellow
Page advertising (IYPs) must be considered for online
business. YP listings are derived from traditional phone
book listings, and can not be ignored.

IYP databases feed many portal/directory sites.

Opportunity exists to enhance local presence.


2 Companies dominate IYP feeds
-

SBC SMART

Pages and Verizon Super Pages. Other data

comes from Axiom and InfoUSA.

Detailed Description:

Yahoo! Local Business Listings


Is not PPC, but a listing

from YPs. Details give info about business. Standard
listing free! Enhanced listing is $9.95 Intro. (Local

not
Yahoo! YP)

Yahoo! YP gets data from SBC SMART Pages and InfoUSA.

Basic listing free. Offers 3 tiers of enhanced listings.

Placement, geographic coverage, maps, driving
directions, and text vary. Tier 1 is top listing at
$60; Tier 3 at $25.


Google’s Locals are simpler and less complete.

Detailed Description:

Detailed Description:


Yahoo! Sponsored Search


Yahoo!’s national PPC
program for customers searching nationally. Yahoo!
Engine, MSN, All
-
the
-
Web, Excite, InfoSpace, CNN,
ESPN, United Online, Wall Street Journal


Yahoo! Search Marketing Int’l


Partnership network
for European/Asian Yahoo! global searches


Local Sponsored Search


(YLSS) Local PPC version
for customers searching online but buying locally


Google AdWords


Google’s PPC program


AOL, Ask Jeeves, Earthlink, Google, more . . .


Google AdSense is an ad program for web
-


masters. It is “Reverse PPC”.





Yahoo! Local Sponsored Search Advertisers . . .



Have or Service a Physical Location


Enables Business w/o Web Site to Participate


Offers Targeting 100 miles down to ½ mile


Can Use Multiple Creative Ads for Different Keywords


Can Have Multiple Locations Within 1 Account

Detailed Description:





Yahoo! Local Sponsored Search Advertisers (cont’d). . .



Can See Bids and Position at Set Up


Optional Max CPC and Cost (Budget On)


Conversion Tracking is Free


40 & 190 Character Title/Descriptions

Detailed Description:

Google AdWords Advertisers Will. . .



Display Ads Based on Search IP Address!
IMPORTANT!!!


Have Multiple Creatives for Same Keyword. Google
Will Rotate Them


Target by Broad, Phrase, Exact, or Negative Keywords


Have GEO Targeting by Country, Region, City (MSA),


and Multiples of Above


Have 25 Character Titles; 35 Character


Descriptions (2)

Detailed Description:





Google AdWords Advertisers Will (cont’d). . .



Have Position Determined by Daily Budget


Be Rewarded for Higher CTR Ads; Move Up in Position


Have Low Performing Keywords Removed


Conversion Tracking is Free!

Detailed Description:

Use the IBA and the IDA. List all the Client’s LGPs.


Establish an Average Revenue for a Sale from the


Leading, or Leading LGPs


Get the Client’s Gross Margin, or Use an Industry Avg.


Arrive at a Cost for Client to Get a Buyer. This is Cost


Per Action, or CPA






Definition: CPA=Cost Per Action for Each LGP


or


SWAG, i.e. Clients Costs/No. Buyers = Avg. CPA

How
Can You Do This in Your Business?:

WidgetWorks, Inc. does a Direct Mail Campaign to
3000 businesses. 45 leads are obtained. 15/45 are
converted to Buyers. The average sale from 15
purchases is $250. The Gross Margin is 50%. The
cost of each mail piece was $3.


CPA DM Campaign=(3000x3)/15=$600

CR DM Campaign=15/3000=.005=.5%

Profit Generated=15*250*.50=$1875





How do we apply this type of program to PPC?

How
Can You Do This in Your Business?:

WidgetWorks, Inc. has another product line with an Avg.
SP=$100. The line GM is 60%. Therefore, the Value
Buyer=$60. A great web site converts 2% of Visitors to
Sales. CTR=2%=.02. WidgetWorks get 4500 hits.

Wordtracker or Yahoo! Keyword Selector indicates
keywords Cost $.32 to $.48. Use $.40.





CPA=Advertising Costs/No. Buyers=4500*.40=$1800

No. Buyers=Hits (4500)*CTR (.02)=90

CPA=$1800/90=$20.
Note: Or Set KW Bid from $20

If CPA<Value Buyer, then Increase Bids. If CPA>Value
Buyer, then reduce bids and try more Keywords.

How
Can You Do This in Your Business?:

WidgetWorks, Inc. Cont’d.


Let’s look at Profit.

Revenue=Hits(4500)*CTR(2%)*Avg. Price ($100)=$9000

Costs=COG(40%)*Sales($9000)+PPC Costs ($4500*.40)

Costs=$5400

Profit=Revenue
-
Costs=$9000
-
$5400=$3600

ROI=Incremental Profit/Incremental Cost=$3600/$1800

ROI=200%





If ROI is Acceptable and Profit>0, then consider
increasing Bids. If ROI is Unacceptable and Profit<0,

the you must reduce bids and re
-
evalute your
Keywords.

How
Can You Do This in Your Business?:





Other Case Histories On


Northern IL Search Engine Marketing Site

at

www.nilsem.com


How
Can You Do This in Your Business?:





Practices I Like to Follow . . .



Understand Your Client. Do Your Up
-
Front Research


Understand Your Client’s Budget


Support Your Estimates with Sound Business Logic


Always Keep SEO in Mind; Lead with PPC. (Quality of
the Site Might be a Limiting Factor)


I Suggest Local Search With Yahoo! Unless the


Business is Clearly National. Local Keywords


Cost Less!!!


Use Google for Larger Clients


IMHO!

How
Can You Do This in Your Business?:





Practices I Like to Follow (cont’d). . .



Insure Your Clients are Listed in Yahoo!Local and Google


Local. Standard Listings are Free!


Take Advantage of Free Conversion Tracking on all PPC


Subscribe to Web Marketing Today, Planet Ocean, SE


Watch, or Other Excellent SEM sources. Stay Informed


Even Though You Choose to Outsource, You


Must Be Knowledgeable About the Industry


Whatever You Present to the Client


KEEP


IT SIMPLE!

How
Can You Do This in Your Business?:

Conclusions:





Thank You!



Time for Q&A