january 2012.
tapping white spaces in search engine marketing.
NetElixirTM SEM
Ideabook
www.netelixir.com
Dear Search Engine Marketer,
I have great pleasure in presenting to you our 2012 SEM Handbook – Tapping White Spaces in Search Engine Marketing. Over the past couple of years, at various retail marketing forum, I have heard marketers complain about the declining efficiency of search engine marketing (SEM) and how it has become difficult to run profitable SEM campaigns.
We beg to differ. SEM is by far the most effective online customer acquisition channel.
NetElixir manages search advertising programs exclusively for retail industry. Since 2005, we have helped over 200 retailers run profitable SEM campaigns. We agree that SEM has become hyper-competitive and CPC’s have nearly doubled for many categories over the last 24 months. However, we also know that smart search marketers can still successfully grow their online business through SEM. They just need to tap the white spaces.
This handbook introduces the concept of white spaces in SEM and offers concrete ideas to tap these.
Wishing you a happy, healthy and successful 2012!
UDAYAN BOSE Founder & CEO NetElixir,Inc.
message from our CEO
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white spaces in SEM - definition:
A place where the search engine marketer may have room to maneuver in a crowded playing field.
White space is an opportunity – external as well as internal. As search advertising has become increasingly competitive, it has become imperative for a marketer to seize these opportunities.
The marketers who have been able to identify and tap the white spaces have seen their SEM revenues and profits soar.
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ability to tap white spaces can propel SEM revenuesto an entirely different level.
Ability to tap white spaces can propel SEM revenuesAbility to tap white spaces can propel SEM revenues
to an en3rely different levelto an en3rely different level
Revenue growthRevenue growth
Due to campaignDue to campaign
Management efficiencyManagement efficiency
Revenue growth dueRevenue growth due
To an ability to iden3fyTo an ability to iden3fy
And tap white space.And tap white space.
Source: NetElixir Retail Intelligence Research. Actual SEM Revenue data for a leading gourmet food client whose SEM campaign
NetElixir started managing from January 2011.
Revenue growth due to an ability to identify and
tap white space.
Revenue growth due to campaign management
efficiency.
Source: NetElixir Retail Intelligence Research. Actual SEM Revenue data for a leading gourmet food client whose SEM campaign NetElixir started managing in January 2011.
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how to identify white spaces in SEM?
External Factor Analysis: - What are the key industry trends that have the potential to impact your SEM
program? - Who are the key players in your industry? Who is the leader and who are the
followers? - What factors (new entrants, new channels, etc.) can disrupt your customer
acquisition model?
Internal Factor Analysis (Identifying Internal Sign Posts): - How strong is your SEM plan? Is your plan as relevant today as it was when you
developed it? - How strong is your execution process? What are the critical drivers? - How are you measuring success and progress? How relevant are the metrics?
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3 places where NetElixir has been able to identify and tap SEM white space.
SEM Plan(strategy)
Execution
Measuring Performance
White Spaces in SEM
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• How robust is your SEM plan?
• Using the GOSTA format to build your SEM plan.
SEM plan
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SEM plan
Are your SEM goals in line with overall marketing goals?
Do you have a concrete – shared plan of achieving your SEM goals?
What are the key strategic initiatives for your SEM program for 2012?
Who owns the strategic initiatives?
Is there a Plan-Do-Check-Act model in place to ensure your SEM program is progressing in the right direction?
how robust is your SEM plan?
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• The GOSTA (Goals/Objectives – Strategic Initiatives – Tactics – Analysis) model helps you connect your SEM goals to results in a planned way.
• The model can be (and should be) built collectively with various stakeholders within the Company.
• The model is progressive in nature and offers complete transparency and ac-countability for the total SEM program management.
using the GOSTA model to build your SEM plan.
SEM plan
SEM plan
the GOSTA model
• $10,000,000
revenue from new
online customers
• ROAS = 400%
• PPC Share of
Voice > 80%
Business Goals/
Objec3ves
Promote STAR
and ASPIRANT
categories
through PPC, CSE
and SMM
Out‐flank
compe3tors in
categories X,Y and Z
through strategic
promo3ons
5‐10% PPC SOV gain
for categories X,Y,Z
Strategic Ini3a3ves
• Category level
channel efficiency
analysis and budget
re‐alloca3on
• Use Compe3tor
Offering, Promo3on
and Messaging Grid
to iden3fy
opportunity gaps
• Track PPC SOV on a
monthly basis at
category level
Tac3cs
$X$X
$Y
$Z
Budget allocated
& ROMI
10
The GOSTA ModelThe GOSTA Model SEM PlanSEM Plan
Business Goals/Objectives Strategic Initiatives Tactics Budget Allocated & ROMI
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• the SEM program execution model.
• 3 “fresh ideas” to identify white spaces.
execution
- 9 -
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execution
SEM program execution model: basicStrategic Initiatives
People
Idea Forum SEM Execution Processes
Technology
execution
Execu3onExecu3on
Execu3onExecu3on
SEM Program Execu3onSEM Program Execu3on
Model: AdvancedModel: Advanced
Execu3onExecu3on
Execu3onExecu3on
SEM Program Execu3onSEM Program Execu3on
Model: AdvancedModel: Advanced- 11 -
SEM Program Execution Model:Advanced
Testing
Observation
Knowledge
Experience
3 “fresh ideas” to identify white spaces.
execution
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Execu3onExecu3onUsing Real Time Tweets to Build Smart Using Real Time Tweets to Build Smart
Search CampaignsSearch Campaigns
Extract Keywords from liveExtract Keywords from live
tweets using tweets using LXRRetailLXRRetail™™
Create ad groups with
these keywords
Analyze Performance and
Use Insights to drive results.
Real TimeReal Time
TweetsTweets
using real time tweets to build smart search campaigns.
execution
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Using the dual power of SEO+SEM to drive results
Idea Checklist Why is it Important Example
Create a list of keywords for
which you want to op9mize
search adver9sing (SEO+SEM)
ROAS (Total Search
Revenue/Total SEM Spend).
Track the ROAS for different
combina9ons of search lis9ng
posi9ons.
Improved SEM spend efficiency.
It is possible to gain an idea of
op9mal organic and PPC lis9ng
posi9ons.
12
SEM Spend
Optimal Listing Position for
Organic and Paid Ads
SEO/SEM Dashboard
using the dual power of SEO+SEM to drive results.
Using the dual power of SEO+SEM to drive results
Idea Checklist Why is it important Example
Create a list of keywords for
which you want to op3mize
search adver3sing (SEO+SEM)
ROAS (Total Search
Revenue/Total SEM Spend). Track
the ROAS for different
combina3ons of search lis3ng
posi3ons.
Improved SEM spend efficiency.
It is possible to gain an idea of
op3mal organic and PPC lis3ng
posi3ons.
17
SEM Spend
Op3mal Lis3ng posi3on for organic and paid ads
SEO/SEM Dashboard
Execu3onExecu3on
SEO/SEM dashboard.
execution
Execu3onExecu3on
Consumer Markets Compe9tors Occasion
Keyword Strategy
Ad Copy Strategy
Bidding Strategy
Landing Page
Strategy
External Business Factors
Use the Opportunity Matrix toUse the Opportunity Matrix to
iden3fy white spacesiden3fy white spacesuse the opportunity matrix to identify white spaces.
execution
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• the importance of building KPI’s that are relevant for your business.
• 3 powerful SEM KPI’s and why they are important.
measuring performance
measuring performance
KPI’s should be in line with your SEM goals and strategic initiatives.
KPI’s should offer you actionable insights.
Your business goals keep evolving. So should your KPI’s.
the importance of building KPI’s that are relevant for your business.
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measuring performance
3 powerful SEM KPI’s and why they are important.MeasuringMeasuring
PerformancePerformance
3 powerful SEM KPI3 powerful SEM KPI’’s and whys and why
they are important.they are important.
SEM KPI How is it calculated Why the KPI is
important
Comments
Profit Per Click
(Also called Value/Click)
(Revenue – Cost)/ Number
of Clicks
Helps you measure the
contribu3on from overall
account level down to
individual keyword level.
We recommend using this
KPI separately for brand
(trademark) and non‐brand
keywords.
New Customer Acquisi3on
Poten3al
Number of new customers
acquired through SEM/ All
customers acquired
through SEM
Helps in gauging the
efficacy of SEM as new
customer acquisi3on
channel.
We recommend using this
KPI for all the customer
acquisi3on channels. This
metric is useful in
comparing new customer
acquisi3on poten3al of
different channels.
New Customer Value Average First Time SEM
Order Value / New SEM
Customer
Helps in quan3fying the
true value of a new SEM
customer. This
marginalizes the impact of
various other factors (site
related and external) that
may influence subsequent
order composi3on.
This is a tough metric.
However, this metric
forces the search marketer
to think beyond the
obvious – to iden3fy white
spaces.
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key concepts: summary
• The Search Engine Marketing world has become hyper-competitive. However, it is still possible for a smart marketer to run exceptionally profitable SEM campaigns by identifying “white spaces”.
• We have presented questions that will help you identify white spaces for your SEM program.
• We have shared proven ideas at three levels – SEM Planning, Execution and Measuring Performance – for finding white spaces.
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NetElixir, Inc. is an online customer acquisition management firm headquartered in Princeton, NJ, with offices in London, UK; Hyderabad, India; Freiburg, Germany; and Copenhagen, Denmark. The company advises clients worldwide on achieving online marketing performance maximization using its proprietary technology, the LXR core platform, and employing a global service delivery model.
NetElixir’s suite of services includes paid search advertising management, search engine optimization, comparison shopping engine management, social media marketing management and search engine marketing analytics. Since 2005, NetElixir has helped more than 200 US online retailers run highly profitable search and shopping engine campaigns.
About NetElixir
Disclaimer
© 2012 NetElixir, Inc. All rights reserved.
This NetElixir report is intended for general information and is based on publicly available data available on the Internet at a particular point in time. NetElixir gives no guarantee regarding this information and accepts no liability for any inconvenience, or any direct or consequential loss, arising from reliance upon this information.
No part of this report may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying or otherwise without the permission of NetElixir, Inc.
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Global Headquarters 475 Wall StreetPrinceton, NJ 08540USAPhone: 609.356.5112
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Website: www.NetElixir.comPhone: 609.356.5112Email: [email protected]: http://netelixir.typepad.comTwitter: http://twitter.com/udayanboseTwitter: http://twitter.com/netelixir
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products & servicesOutsourced Service Solutions • Search Engine Marketing • Comparison Shopping Engine • Search Engine Optimization • Facebook Marketing
Technology Solutions • LXRRetail™: Integrated multi-channel campaign management platform for online retailers. • LXR100: Integrated multi-channel campaign management platform for interactive agencies. • LXRMarketplace™: Online Marketing Web Applications for Retailers.
Consulting Solutions • Web analytics consulting services. • Online Marketing Strategy consulting services.
For more information on the above solutions please email usat [email protected] or call us at 609.356.5112.