Using Web Analyticsto Measure Your

SEM Success

SES San JoseAugust 10, 2006

Let’s Get Acquainted

About me: Hi, I’m Matt, I’m a number-holic.

Managing Partner at Prominent Placement, an Atlanta-based search marketing firm primarily focused on the SME B2B market.

15 Years audience, program, online and marketing research experience.

College degree in TV-Film production with an Art minor.

About you: Who…, Involved with search marketing for less than a year? Can add, subtract, multiply and divide numbers? Can use Excel? Has a web analytics program? Uses their web analytics to assess their search marketing efforts? Uses their web analytics to develop future search marketing goals?

Topics for Today

• Fundamental orientation

• Basic Concepts

Why measure

What to measure

How to measure

Interpreting your measures

Operationalizing your measures

• Real Life Examples

With pretty charts for those who are numbers-averse

Measuring Success FAQ #1

Why measure? SEM is strategy and planning.

• Using keywords in sites.

• Bidding on keywords with search engine providers.

Web traffic analysis is proving that your SEM strategy works as planned.

• Driving targeted traffic to your site.

• Persuading visitors to take the desired actions you want them to take.

Measuring Success FAQ #2

What measures are the most important for tracking search and site success?

It depends.

• Same Key Performance Indicators (KPIs) for?

– B2C vs. B2B

– Publisher vs. Retailer

– Big brand vs. Boutique

It’s all relative.

• Same business goals and objectives for?

– Established company vs. Start-up

– Growth-industry firm vs. Declining-industry firm

– Web-centric vs. Web as minor part

What to Measure

Two critical questions to ask yourself: What do we really want to know?

• Identify the metrics that have a significant impact on the viability of the business or the program.

What will we do with it?

• Only measure and report on metrics that you would take action on if they materially changed.

Determining Your KeyPerformance Indicators

• Have a clear understanding of the company or project goal. Key stakeholders agree upon the KPIs that support the goals and objectives.

• Insightful: Is actionable. Something you can influence. Help set expectations. Help determine future goals. Serve as the yardstick by which success and progress are measured.

• KPIs can change per initiative and/or over time. Some aren’t applicable or have become outdated. Newer metrics and/or methods.

• Don’t: Let existing data over-influence you in creating KPIs. Worry about what your competitors use.

Measuring Success FAQ #3

Where do I start? Start small – do a little, learn a lot.

Start with a specific goal, any goal, and work backward.

The chief goal:

Revenue = Traffic X Conversion X Consumption

Traffic

100

67

50

200

Consumption

1.0

1.5

1.0

0.5

Conversion

1.0

1.0

2.0

1.0

Revenue

100

100

100

100

What Appears Do-able?

• Determine the shortest path to your goal.

Prioritize options

Allocate human and financial resources

+20%

--

--

+5%

--

+20%

--

+8%

--

--

20%

+6%

+20%

+20%

+20%

+20%

Traffic ConsumptionConversion Revenue

2,000

2,400

2,000

2,000

2,100

1.3

1.3

1.6

1.3

1.4

$19.23

$19.23

$19.23

$23.08

$20.41

$50,000

$60,000

$60,000

$60,000

$60,000

Analyzing Your Stats

• Set a time to look at your reports.

Avoid analysis paralysis

Focus on actionable data

Maintain a diary

Create a checklist

• Don’t rely on one number or snapshot.

Trend

Compare

Correlate

Tracking, Comparison andCorrelation

When Does Your“Check Engine Light” Come On?

When Does Your“Check Engine Light” Come On?

Tracking, Trending andCorrelating

0

10

20

30

40

50

60

70

7/06

6/06

5/06

4/06

3/06

2/06

1/06

12/0

5

11/0

5

10/0

5

9/05

8/05

7/05

6/05

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

1st 30 Total Traffic SE Traffic

0

10

20

30

40

50

60

70

7/06

6/06

5/06

4/06

3/06

2/06

1/06

12/0

5

11/0

5

10/0

5

9/05

8/05

7/05

6/05

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

1st 30 Total Traffic SE Traffic

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

3/0

5

4/0

5

5/0

5

6/0

5

7/0

5

8/0

5

9/0

5

10/0

5

11/0

5

12/0

5

1/0

6

2/0

6

3/0

6

4/0

6

5/0

6

6/0

6

7/0

6

Total Traffic SE Traffic

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

3/0

5

4/0

5

5/0

5

6/0

5

7/0

5

8/0

5

9/0

5

10/0

5

11/0

5

12/0

5

1/0

6

2/0

6

3/0

6

4/0

6

5/0

6

6/0

6

7/0

6

Total Traffic SE Traffic

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

3/0

5

4/0

5

5/0

5

6/0

5

7/0

5

8/0

5

9/0

5

10/0

5

11/0

5

12/0

5

1/0

6

2/0

6

3/0

6

4/0

6

5/0

6

6/0

6

7/0

6

0:00:00

0:00:43

0:01:26

0:02:10

0:02:53

0:03:36

0:04:19

0:05:02

Total Traffic On Site Per Page

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

3/0

5

4/0

5

5/0

5

6/0

5

7/0

5

8/0

5

9/0

5

10/0

5

11/0

5

12/0

5

1/0

6

2/0

6

3/0

6

4/0

6

5/0

6

6/0

6

7/0

6

0:00:00

0:00:43

0:01:26

0:02:10

0:02:53

0:03:36

0:04:19

0:05:02

Total Traffic On Site Per Page

Putting the Numbers to Work for aSite Re-launch

• Traffic = Search traffic trending positive, know the seasonal trends.

• Time on Site = Healthy, consistent.

• Page Views = Healthy, consistent.

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

3/0

5

4/0

5

5/0

5

6/0

5

7/0

5

8/0

5

9/0

5

10/0

5

11/0

5

12/0

5

1/0

6

2/0

6

3/0

6

4/0

6

5/0

6

6/0

6

7/0

6

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

Total Traffic Avg Pg Views Avg 2+ Pg Views

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

3/0

5

4/0

5

5/0

5

6/0

5

7/0

5

8/0

5

9/0

5

10/0

5

11/0

5

12/0

5

1/0

6

2/0

6

3/0

6

4/0

6

5/0

6

6/0

6

7/0

6

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

Total Traffic Avg Pg Views Avg 2+ Pg Views

• Priorities with new site launch:

Monitor rankings

Monitor site KPIs

Be prepared to implement and monitor enhanced PPC strategy and program, if needed

Concentrate on conversions

Using Analytics to Minimize theSpaz Factor

Prominent Placement’s average monthly “Bounce Rate” is 57%!!!

High visibility for “Atlanta Placement Firm” variations.

Our site as surrogate IYP / Rolodex card.

Highly visibility for “Atlanta Marketing Firm” variations.

0

50

100

150

200

250

9/04

10/0

4

11/0

4

12/0

4

1/05

2/05

3/05

4/05

5/05

6/05

7/05

8/05

9/05

10/0

5

11/0

5

12/0

5

1/06

2/06

3/06

4/06

5/06

6/06

7/06

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

Search Traffic 2+ Pg View Average

0

50

100

150

200

250

9/04

10/0

4

11/0

4

12/0

4

1/05

2/05

3/05

4/05

5/05

6/05

7/05

8/05

9/05

10/0

5

11/0

5

12/0

5

1/06

2/06

3/06

4/06

5/06

6/06

7/06

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

Search Traffic 2+ Pg View Average

Not Spazzing because…

Search traffic:

• Upward trend

• Correlate spikes with non-search marketing efforts

Average among those with 2+ Page Views:

• Upward trend

• Consistent seasonal trend

NewsletterNewsletter Newsletter

Newsletter& Atlanta

Search Event Newsletter

Using Analytics to Minimize theSpaz Factor

Beyond Visibility

0

50

100

150

200

250

300

350

400

450

500

1-0

3

3-0

3

5-0

3

7-0

3

9-0

3

11-0

3

1-0

4

3-0

4

5-0

4

7-0

4

9-0

4

11-0

4

1-0

5

3-0

5

5-0

5

7-0

5

9-0

5

11-0

5

1-0

6

3-0

6

5-0

6

7-0

6

Brand Terms 1 Brand Terms 2 Total Non-Brand Terms

KeywordTargetingPPC Test

CompanyName Change

Pre-OptimizationTotal Volume 154

100%Brand 1 Volume 33

21%Brand 2 Volume 59

38%Non-brand Volume 62

40%

OptimizedSite

Launched

Post-OptimizationTotal Volume 265

100%Brand 1 Volume 6

2%Brand 2 Volume 75

28%Non-brand Volume 184

69%

ProminentPlacementPlaced on

“Hiatus” soClient CanAfford toHire Add’l

SalespeopleTo HandleNew Leads

Read Client’s“Record Quarterly

Performance”Release in Paper

PPC TestTotal Volume 405

100%Brand 1 Volume 15

4%Brand 2 Volume 114

28%Non-brand Volume 276

68%

ProminentPlacement

Starts

+369%

+94% +27%

+199%

PPC TestTurned

Off

Accounting forOutside Factors

•There are things you can control.

0

100

200

300

400

500

600

700

800

5/21

5/28 6/4

6/11

6/18

6/25 7/2

7/9

7/16

7/23

0

0.2

0.4

0.6

0.8

1

1.2

US Brazil Mexico

0

100

200

300

400

500

600

700

800

5/21

5/28 6/4

6/11

6/18

6/25 7/2

7/9

7/16

7/23

0

0.2

0.4

0.6

0.8

1

1.2

US Brazil Mexico

MemorialDay

4th ofJuly

TermsAdded

TermsRemoved

0

100

200

300

400

500

600

700

800

5/21

5/28 6/4

6/11

6/18

6/25 7/2

7/9

7/16

7/23

0

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70

US Brazil Mexico

0

100

200

300

400

500

600

700

800

5/21

5/28 6/4

6/11

6/18

6/25 7/2

7/9

7/16

7/23

0

10

20

30

40

50

60

70

US Brazil Mexico

AddedVisibility/PRWeb

WorldCup Starts

6/9

MexicoEliminated

BrazilEliminated

MexicanElection

LostRanking

•There are things you can’t.

•Need to identify why something happened to prepare for the future.

Summary

• Take information and turn it into insight.

In lieu of reporting, seek discovery.

• Don’t waste time on measures that:

Provide little direction.

Are not actionable.

Not closely aligned with the goals of the organization.

• Apply your knowledge.

Test, test, test.

Improve what’s working.

Eliminate what isn’t.

Develop new approaches that will work better.

Thank You

Comments or Feedback?

matt@prominentplacement.com