searchengineland.com » Search Ads

Achieving Paid Search Balance: 3 Reasons To Invest In Non-Branded Terms

Cara Beaudette — Wed, 18 Nov 2009 11:00:04 +0000

Managing your health requires achieving a balance between diet and exercise. In the same way, a healthy paid search campaign requires achieving a balance between branded and non-branded spending. Working together, the two create an optimal mix that will help you achieve the best results possible.

Why balance matters

Given branded terms’ reputation for delivering ROI, they often receive the lion’s share of a paid search budget. However, in this economy—where consumers are still hesitant to purchase—many marketers are not seeing the revenue from their branded terms that they had hoped for. As a result, they are desperate to find other means to boost revenues.

Fortunately, targeting non-branded terms can help you do exactly that. In fact, doing so not only has the potential to drive revenue, it can also increase brand awareness and spur growth—3 great reasons to invest in non-branded terms. Let’s take a closer look at each:

Growth. A paid search campaign that only spends on branded keywords will only grow as much as the brand recognition allows. By only investing in your brand, you leave growth opportunity to your competitors who are willing to make the non-branded investment. True growth, beyond the brand, comes from non-branded investment. If you are only investing in branded spend, year over year growth will be a reflection of your brand and the investments you’ve made towards it alone. In order to see year over year growth in paid search, you need to invest in non-branded spending.

Branding. If you want to increase brand awareness, you need to run paid search advertisements on relevant non-branded terms. After all, the search funnel begins with research, often with non-branded searches. Given that, it is important to get your brand in front of searchers when they are beginning their research. Ad copy that reflects your brand name may be one of the first touch points you have with that new user. Employing tracking that attributes the sale appropriately across each marketing touch point with that user will qualify your investment in non-branded terms that results in branded conversions.

Revenue. If your goal is to increase revenue from the dollars you invest, non-branded investment is an opportunity that has proven profitable for marketers. With accurate attribution management/reporting, non-branded spending can reflect its own profitability and that of your other marketing initiatives. Such attribution will be key to helping you find the optimal balance between branded and non-branded terms, and allow you to see how they are balancing each other in regard to ROI. In addition, this style of asset management may also teach you a thing or two about your consumers. In essence, it will allow you to leverage the data from your non-branded investment to improve your overall marketing and increase your bottom line.

Keys to achieving balance

But before you can configure your optimal balance between branded and non-branded terms, you first need to establish your minimum threshold of return. For example, if you could make $2 for every $1 you invested would you do it? Could you afford to make such a low return? Or, can you afford not to? Would it be better for your competitor to be spending that dollar and making two? Compared to the return you get from your branded spend, a 2:1 return doesn’t look that great. However when you are looking for maximized returns and growth, it spells possibility. Once you know your minimum threshold, you’ll be ready to push your investment to get the maximum return possible with the branded/non-branded mix.

While it can be tempting to solely focus on branded terms, smart marketers will incorporate non-branded terms into the paid search marketing mix in an effort to achieve the optimal balance that will deliver the most profitable return.

Behavioral Targeting: Creating A Unique Experience For Each Visitor

Daniel Waisberg — Wed, 18 Nov 2009 05:07:57 +0000

Behavioral targeting (BT) has been the buzzword of the year for the last two years in the web analytics field. But is BT really all that important and valuable to the companies making use of it? The answer is usually yes. And does it take a team of PhDs to implement BT for a website? The answer is usually no. In this and a following post I will explain the value that behavioral targeting offers, and show how a marketer can make use of BT to make the website experience richer for users, and increase conversion rates.

According to Wikipedia, there are two principal types of behavioral targeting:

Onsite behavioral targeting is a technique that uses visitor behavior to target certain content that is proved to be more relevant to a segment of visitors. It should be preceded by an encompassing analysis of users and their characteristics (using web analytics tools). We can either define hard rules (for example, offer a special deal to anybody that adds any two or more products to a shopping cart) or use an engine to dynamically learn about and then target high-converting groups.

Offsite behavioral targeting is technique used by advertising networks to increase advertisement targeting. For example, Google is using this type of targeting to profile visitors to their website network according to subjects they like (their “interests) and then uses this info to provide users with targeted ads across the entire content network.

In this article I’ll focus on the first type of BT, onsite behavioral targeting, the type of technique used by website owners to improve user experience by delivering the right content to each person. Companies that current provide such a solution to website owners are:

From tracking to behavioral targeting

Web analytics has been constantly developing since the 1990s. In the beginning there was data, and initially the struggle was to collect it accurately and provide reports on the state of websites, usually from an IT perspective. Then, with the turn of the millennium, analysts felt the necessity to turn numbers into insights, and the field evolved from simple data reporting to analysis. Today, marketers increasingly understand that testing is the way to go when it comes to design and implementation of websites (in other words, intuition-based decisions don’t really work well). Said another way, the customer should decide what works and what doesn’t (this phase is still rapidly evolving).

In the last two years, marketers, analysts and executives have started to understand that customers should get what they want without having to ask for it. That’s what behavioral targeting is all about: delivering the right content to each visitor to a website. It moves the current focus on overall results to segment results. It enables the website owner to understand which visitors are struggling and which are succeeding with their objectives. It helps marketers build more relevant campaigns to target the right market, be it through search, content, media, or emails. These insights and actions should not come at the expense of website testing, but in addition to it. Testing is very important to recognize the low hanging fruit that is ready to be plucked. It is also a great way to persuade management of the importance of investing in both testing and targeting.

Analytics guru Jim Sterne defined the benefits of behavioral targeting as follows:

“We can attract prospects with customized campaigns according to their interests, engage site visitors with dynamic content in response to their conduct and desires, and put the right message in front of the right person at the right time. We can create a more pleasant and more individual buying experience. We can quickly identify the offers that will more likely convert those prospects to buyers.”

However, the market is still not completely ready for this revolution. Recent research from eMarketer suggests that American internet users are not very fond of behavioral targeting techniques. As seen in the chart below, one of the conclusions of the research is that “respondents showed somewhat more interest in receiving personalized discounts and news, but still, less than one-half of Americans wanted any tailored Web content at all.”

Concluding, we can see a strong trend towards using behavioral targeting to provide web users with richer web experiences. But this will require a market education effort so that users don’t perceive companies using these techniques as not respecting user privacy.

In my next article I will go over a few examples showing how to implement behavioral targeting and analyze its results to increase website conversion rates.

How Google & Yahoo Make Money Off A Twitter Typo Domain

Danny Sullivan — Thu, 05 Nov 2009 19:57:12 +0000

Like many people, I misspelled a domain name today when I was trying to visit a web site. I typed Twiter.com (with one T) rather than Twitter.com. I wasn’t surprised to land on a site with ads, as is common when entering typos. I was surprised that both Google and Yahoo were making money off those ads.

Google has a program known as AdSense For Domains, previously known as DomainPark. Got a tasty domain but no content for it? AdSense For Domains will put lucrative ads up on it, for you (really lucrative: see more here and here).

The practice is known as domaining. And before some domainers start working up heated rebuttals, let me make it clear. There’s nothing wrong with domaining. If you were lucky enough or smart enough to land a generic domain like usedcars.com or taxforms.com, my hat’s off to you. It’s well known that people will simply slap words together, tack on a .com and see if they reach a site that has information about a particular topic relating to those words. Domainers earn off that traffic, and no one is misled when visitors directly navigate this way.

So saying domaining = spamming is the same as saying SEO = spamming. Neither is true. But there are spam tactics that happen in both areas along with the legit stuff. In the domaining world, it’s the typo traffic that’s often scummy, in my book.

Typo domains are domains that are nearly identical to the domain name of another well known brand. Here, there is often harm. Someone expecting to reach a particular site instead lands on a different one that’s cashing in on the other brand’s fame.

OK, it’s the person who is entering the domain name wrong in the first place’s fault, right? It’s like they dialed the wrong phone number. Why shouldn’t a domain owner be able to earn off of misdirected calls to their phone? Or, it’s the “real” company’s fault for not registering all the typos out there.

What about companies that have a name in use before another company becomes more famous? Is there really anything wrong with UTube — a well established pipe company — benefiting from a spike in traffic after some upstart YouTube video site came along? Or in the case of Twiter, that domain existed well before Twitter became popular, so why shouldn’t it tap into new found popularity.

These are fair objections. In counter to them, some typo domains are often registered after a brand becomes popular, with the obvious intent of riding on someone else’s coattails. For another, it simply violates the policies of some ad networks, Google’s included. In other words, the fault isn’t with the domain owner themselves. It’s with companies supplying ads in violation of their own guidelines or policies.

That leads us to what I saw when I reached Twiter.com, the single “T” web site:

These ads are provided by Google, not that anything on the page tells you this. Domain ads apparently aren’t forced to carry those “Ads By Google” notifications as with contexual ads. That’s a handy way for Google to distance itself.

The first and fifth ad indicates a relevancy issue for Google advertisers. If you’re advertising “Free VoiceXML platform” or “Monitor Server health,” why on earth is someone from Twiter (one T) going to convert for you? They might click out of curiousity, but the probably aren’t going to buy (in fact, there’s a lawsuit against Google over the quality of domain ads pending. Google’s has also been sued over trademark issues with typo domains).

Now look at the second ad, which I’ve pointed an arrow at:

Twitter? Twitter is here Need Twitter? Official Twitter site Twitter lets you share. Its Twitter www.Twitter.com

That ad surprised me. Really, Twitter (that of 2 Ts) decided to buy an ad for its own name via Google? Actually, no. Instead, it’s a Twitter user that bought the ad, driving people to their particular profile which, while indeed being on the official Twitter site, isn’t providing Twitter but rather a pitch for a book:

Clever person, right? Yes, but they also likely being misleading. That would violate Google’s ad guidelines and also may violate advertising laws in various US states, as well as nationally and in other countries.

That ad also shows two flaws in Google’s ad system. Clearly no human being looked closely at this ad, to review it for quality guideline violations. Meanwhile, Google’s requirement that the display URL in an ad match the domain name someone arrives at get exploited. This ad correctly shows a Twitter.com domain, even though the ad itself doesn’t speak with the authority of Twitter itself.

Check out the third ad, with an arrow pointing at the domain (which I’ve also bolded below):

Twitter Looking for Twitter? Find exactly what you want today. Yahoo.com

Why yes, I was indeed looking for Twitter. Glad to know that Yahoo has it now. I guess I missed news of that deal being cut. Let’s go get us some Twitter at Yahoo:

Ah, Twitter, er, shopping results. Maybe that lamp beams out tweets, when you turn it on. The results are kind of crummy. But that’s OK, because right at the top of the page, we get three paid search ads from Yahoo.

Now, it’s not Yahoo doing this directly. Looking at the URL that brings me to the shopping page, I see an affiliate reference. So this is someone earning money by driving Yahoo traffic. But Yahoo takes some of the blame here. It’s their affiliate, getting paid by Yahoo, and Yahoo should be policing this.

Yahoo, by the way, joined a coalition against typo domains back in 2007. They’re no longer listed as a member, which given these type of ads, is probably best.

The rest of the ads are all products somehow related to Twitter, so at least the misleading aspects aren’t there. But there still seems to be a violation of Google’s domain ads program policies:

Domains submitted for the AdSense for domains program may not violate any trademark (and related rights), copyright, trade secret, patent or other intellectual property right of any third party….

Google AdSense for domains is committed to respecting the rights of trademark owners. It is our goal that advertisers, users and trademark owners all be aware of Google’s process for reviewing perceived trademark infringement in the AdSense for domains network. If Google becomes aware of a domain name that contains a trademark (or typo), that domain will be removed from the AdSense for domains network.

At best, Google might argue that Twitter hasn’t submitted a formal complaint, so as far as it knows, there’s no trademark violation happening. That’s still pretty weak. Does Google, which often holds itself out as championing the relevant organization of information, really want to hold its head up about what’s happening on that page?

I don’t think so. That’s especially so when you consider the type of ads that show up on Google’s own site for a search on twitter:

That Twitter user claiming to be the official Twitter site doesn’t show there. Neither does the Yahoo ad promising to deliver Twitter.

If those ads aren’t good enough to be shown on the shining storefront that is Google’s search results page, they don’t get any better being plastered on some dark alley of the internet.

Postscript: After publishing this, I sent these questions to Google.

Are the ads from that Twitter user and from Yahoo meeting your relevancy guidelines?
Are they not misleading?
If they are, were these actually reviewed by a human?
And does the site violate your guidelines on typo domains or not?

In response, I was emailed this statement:

We don’t comment on specific ads or domains – but our AdSense for Domains policies are here. When we’re notified of complaints, we investigate for compliance with our policy. We’ve found that advertisers enjoy the benefits of the additional reach that AdSense for Domains offers. Many advertisers find that ads on parked domains perform as well as or better than ads on more traditional search and content sites.

Today, the site is no longer showing ads from Google. Instead, another company is providing the paid ads.

WSJ: Advertisers Doing More And Less With Search

Greg Sterling — Thu, 22 Oct 2009 22:07:15 +0000

In case you didn’t see it there was an article in the Wall Street Journal this morning that seeks to capture a kind of shift or broadening of advertisers’ attitudes toward search marketing. Formerly search was something of an island and not well integrated into wider marketing campaigns. Many search + display studies and several years later it appears that marketers have developed a somewhat more nuanced view of search in the context of broader consumer behavior.

Here are some bits from the article:

Sprint is buying the top ads tied to phrases consumers tend to search for when they are close to making a purchase, such as “cellphone rate plans” and specific products like “Samsung Reclaim,” rather than more generic phrases they search for at the beginning of the shopping process, like “Sprint,” “AT&T” and “cellphone” . . .

Volkswagen is coordinating its search marketing strategy with its network of 600 dealers across the country so it doesn’t end up competing against itself for the same terms and driving up prices…

[N]ew research from the search division of GroupM Search (a media buying and planning unit owned by ad holding company WPP) and online measurement firm comScore [ ] shows that consumers exposed to social media campaigns are likelier to search and click on that brand’s paid search ad.

“A few years ago, search was a little bit more progressive. Now, it’s mainstream,” says Simon McPhillips, director of media at Sprint. “The incumbents are trying to figure out, ‘What is the next new frontier?’

None of this is a surprise, nor do the examples above represent incredible sophistication on the part of marketers. It does however represent a widening of the “aperture” around search and search user behavior. As much as it may be driven by economics and not wanting to compete on brand or “generic” terms, which still constitute the majority of search queries, it reflects a better understanding that search queries occur in a larger context — of social media, display, traditional media and word-of-mouth-like viral behavior.

The article also speculates about how such trends are causing some slowing of search-ad spending at Google and how Google is pushing into other areas (display, video) as higher growth opportunities, as a consequence.

5 Social Media Lessons For Paid Search Landing Pages

Scott Brinker — Thu, 22 Oct 2009 19:25:13 +0000

Can you apply the spirit of social media to other marketing channels?

At this year’s SMX East, after my presentation on Landing Page Usefulness—emphasizing a “usefulness” mission over “usability” tactics—it struck me: great landing pages can bring many of the ideals of social media to paid search marketing campaigns.

Here are five principles of social media marketing that can energize your landing page program:

1. Engage in specific conversations, not generic one-size-fits-all talk.

When a company engages in social media, the worst thing it can do is echo canned, cut-and-paste responses to every incoming comment. It’s painful just to imagine! Yet many paid search marketing campaigns commit that very faux pas: a user clicks on a keyword/ad combination with a specific promise, and then they are unceremoniously tossed to a general-purpose page. Such “message mismatch” between keywords/ads and their associated landing pages damages brands and hobbles conversion rates.

The reason I advocate deploying dozens—or even hundreds—of landing pages is because doing so lets you deliver focused and well-matched introductory dialogues with respondents, framed in their terms. As I said in my presentation, the goal is have respondents exclaim, “thank you, that was exactly what I was looking for!”

It’s not about optimizing one page to rule them all—an illusory, marketer-centric fantasy—but deploying many separate pages that each speak authentically to their niche. That’s the kind of respect that honest social media marketing shows to people reaching out to you, and a good landing page strategy can live up to the spirit of that goal.

2. Embrace “constant content,” continually releasing new ideas out into the world.

From blogging to tweeting, the engine of social media is the frequent generation of content. Hopefully it doesn’t take a committee or half a dozen pairs of hands to put up a new blog post or to update your Facebook fan page. The incentives in social media are to be fast, prolific, experimental, relevant and real.

The same tenets should apply to landing pages.

Sometimes, when I suggest that people should publish dozens or hundreds of landing pages, I get a look of incredulity: how could we ever create so many landing pages? Yet organizations who embrace social media marketing produce 10-times as much content without breaking a sweat. The resistance to such agile production of landing pages is often a hang-up from the bygone days of long-cycle web development. Today, deploying new landing pages should be as easy as—maybe even easier than—posting to your blog.

If you have a good content management system (CMS), a nice collection of page design templates, a shared library of images, maybe a few reusable Flash components, and a standardized mechanism for data collection and analytics tracking, then you’re ready to crank out landing pages on demand. And if you don’t have all of those pieces yet, none of them are particularly difficult to put in place.

3. Harness fast feedback to learn about your audience.

Arguably the best feature of social media is that it lets you tap into candid and immediate feedback from your market, albeit in an unstructured manner. It’s a wonderful environment to put ideas out into the community and quickly gauge reaction.

However, you can also solicit a different kind of feedback—more quantifiable and more directly connected to sales—through rapid experimentation with landing pages and keyword buys. Participation is more predictable with such PPC experiments, and the results can be easily benchmarked against your e-commerce or lead funnel metrics. It’s a small, low-risk investment that can help you discover big wins.

Struck with a novel theory about an unaddressed customer segment over your morning coffee? Don’t just hypothesize about it or file it for the next quarterly planning meeting. Launch a targeted search ad and tightly matched landing page for it before lunch and have real-world feedback by the next day. It doesn’t have to be perfect. You can test and tweak as you go along—an ongoing feedback loop.

Ads and landing pages also lend themselves to A/B tests, in a more controlled fashion than variations in social media tactics. If you structure your tests with good hypotheses, you can learn a lot about audience preferences and personas.

4. Open up a dialogue by asking relevant questions—and respecting the answers.

Social media is a conversation, not a soliloquy. People can ask questions, usually quite informally, to help identify the content or information that’s most relevant to their interests. This allows a single discussion to adapt itself to many different participants.

A similar dynamic can be achieved with landing pages. Sometimes, you have to field clicks from keywords/ads that appeal to several different segments of respondents. Instead of reducing the specificity of your content to a bland common denominator—the ill-fated, one-page-to-rule-them-all approach—start by offering them a few meaningful choices. Are you more interested in A, B, or C? Based on their one-click selection, you then deliver more detailed content that’s tailored to their needs.

This technique is known as multi-step landing pages or conversion paths. It can be a tremendous source of feedback, especially when you test different types of choices. However, it’s crucial that the choices genuinely help respondents find what is most useful to them—you want segmentation that benefits users, not just marketers. Remember, we’re striving for that “thank you, that was exactly what I was looking for” effect.

5. Champion transparency and authenticity over cleverness and technology.

The essence of social media is its authenticity, plain and simple. You can try to manipulate it with gimmicks and complicated machinery, but such machinations tend to fall flat. People love what’s real in social media, not what’s artificially crafted to appear real. Human trust is more important than plastic perfection.

Certainly this holds true with landing pages as well. There’s no shortage of sophisticated software you can use to dynamically alter your pages to users based on their IP address or behavioral profile. You can layer rules upon rules to calculate the optimal offer for each respondent. But inevitably, such overly processed experiences lose their authenticity.

Similarly, you can play UI tricks to try to force people to engage with your page (e.g., you must fill out this form before continuing!), but it’s almost always more of a turn-off than a successful hard-sell tactic. If you’re going to remove your regular navigation choices from a landing page, do so because it helps eliminate clutter for a respondent in that context—but still always give them an option to easily jump to your main site.

Be genuine, creative, open, and enthusiastic in your landing pages, and you will win more converts.

Landing pages, like social media, are something that you get better at by doing. So release your inhibitions and make more landing pages.

Five Rules For Running A Successful Pay-Per-Call Campaign

Rich Rosen — Fri, 16 Oct 2009 19:09:04 +0000

Although it’s been around for years, pay-per-call advertising may be finally hitting its stride. Greg Sterling, a Contributing Editor at Search Engine Land, recently wrote:

We’ve long known that calls are much more valuable than clicks to small businesses in particular, but also to many larger entities with call-center sales operations. However… it’s taken PPCall much longer to get going than I originally anticipated.

Sterling sees pay-per-call growth in traditional media and mobile. He also notes that pay-per-call programs are now increasingly being used in print Yellow Page directories such as AT&T which just announced pay-per-call programs via the YPmobile App for iPhone and iTouch . Merchant Circle also recently announced pay-per-acquisition pricing – including pay-per-call.

And it’s not just AT&T and Merchant Circle. Other traditional yellow page publishes are renewing interest, and venture rounds by MojoPages, Balihoo, RingRevenue, as well as the TechCrunch50 launch of Redbeacon and Yext show that there is a growing supply of pay per call offerings coming into the mobile local search market.

In fact, I just read a blog post lamenting the poor service delivered to a pay-per-call advertiser. The merchant—who was irate that he received wrong number calls and was charged inappropriately—reminded me of what can go wrong with an advertiser’s pay-per-call campaign.

All of this brings home a point: as more and more search engine marketers, publishers and others in the mobile local search ecosystem are discovering, pay-per-call is not as easy as it appears on the surface. If your local business is being pitched by a provider who just provisions a few tracking numbers, begins charging for calls and then expects to roll in the dough, you need to be prepared to ask a few hard questions.

Five rules for every local merchant interested in pay-per-call pricing

Make a good first impression. If the first calls received from your campaign are wrong numbers look out. Despite best intentions, assigned numbers (necessary of course for pay-per-call), are never entirely clean. Before a number is assigned, your provider should be monitoring for wrong number calls.

Be selective. Pay-per-call can succeed for local advertisers focused on phone lead generation, but it may not be right for your business. Your business should not rely on walk-in traffic (retail); the cost of sale cannot be too low, or too high; and sales generally need to be closed every few calls (high sales to call ratio). You are an ideal pay-per-call advertising candidate if you have advertised in the yellow pages, newspapers, FSIs, Valpak or other mailers, radio or local TV. Business-to-business (B2B) advertisers or niche merchants are not typically good candidates for pay-per-call.

Be prepared to serve your callers. I founded my company on the premise that pay-per-call must benefit the consumer, merchant and publisher. Ten dollars per call may be a great deal for you, but your business needs to be properly staffed and trained to answer the phone. Without a connection to your helpful, available staff, the consumer is not served. If your business does not have the infrastructure to serve clients by phone, pay-per-call may not be for you.

Be able to close a sale or make an appointment by phone. I had a client—a direct mail publisher—whose advertiser complained that they did not make any sales as a result of the pay-per-call leads. We were recording the calls (with permission) for the client and discovered that the leads from the publisher were good, but the advertiser’s staff couldn’t sell.

Calls prove return on advertising investment (ROI) even without pay-per-call pricing. If pay-per-call isn’t right for your business, don’t give up on the numerous benefits of tracking and routing calls.

Look for innovators and leaders when comparing pay-per-call offerings. Yext demonstrated an example of this innovative thinking at TechCrunch50. Leakage and dirty calls are a real problem with pay-per-call. Yext is using analytics to examine key words for relevance and filter out junk calls.

The TechCruch50 winner, Redbeacon—while not focused on pay per call, or calls at all—is trying to solve the problem of merchant availability. This is closely related to pay-per-call (see Rule #3). If your staff is not available to respond to a call, the consumer is not served. The merchant who answers the phone is generally more available than the merchant that does not—especially over a series of calls.

Successful implementation of pay-per-call requires bottom up thinking with the same new product development rigor as any major new advertising or lead generation product. The next generation of Pay-per-call 2.0 insures a high level of satisfaction with the quality of your callers (consumers) by including detailed analytics and reporting to identify repeat calls by caller ID and other calling patterns; category management to deliver the best leads to the right merchants; pricing models that optimize value; and finally advanced, real-time call routing applications to deal wrong numbers, vendors and other unwanted calls.

Despite several years of building expectation, pay-per-call is still a relatively new pricing model within mobile local search. Providers entering this market must be prepared for a fairly steep learning curve and merchants need to be prepared to ask the right questions.

Report: Most People Don’t Want Online Tracking Even If It Means Relevant Ads Or Savings

Greg Sterling — Wed, 30 Sep 2009 12:10:20 +0000

Get ready marketers: a credible new report with sweeping implications from the University of Pennsylvania and UC Berkeley is likely to be the nail in the coffin of self regulation of online advertising. Specifically I’m talking about behavioral targeting, which largely concerns online display advertising but does marginally touch search at Yahoo and Google.

The NY Times discussed the report, released today:

The study’s authors hired a survey company to conduct interviews with 1,000 adult Internet users. The interview, which lasted about 20 minutes, included questions like “Please tell me whether or not you want the Web sites you visit to give you discounts that are tailored to your interests.” The results were later adjusted to reflect Census Bureau patterns in categories like sex, age, population density and telephone usage.

Tailored ads in general did not appeal to 66 percent of respondents. Then the respondents were told about different ways companies tailor ads: by following what someone does on the company’s site, on other sites and in offline places like stores.

The respondents’ aversion to tailored ads increased once they learned about targeting methods. In addition to the original 66 percent that said tailored ads were “not O.K.,” an additional 7 percent said such ads were not O.K. when they were tracked on the site. An additional 18 percent said it was not O.K. when they were tracked via other Web sites, and an additional 20 percent said it was not O.K. when they were tracked offline.

Lawmakers have been ready to regulate “behavioral advertising” for some time and the FTC has signaled that it did not believe marketers were doing a good enough job with self regulation. However, the new economic and political climate, more favorable toward regulation, combined with public frustration and anger generally have set the stage for regulation of some kind.

Search will largely be exempted because of the way it works — keyword matching rather than data mining — although the search engines’ data retention policies are implicated by the report (which I quote a bit more fully on my blog). Yahoo is using search queries as part of its behavioral targeting and Google not long ago implemented “Interest Based Advertising,” a euphemism for behavioral targeting.

However, Google’s privacy and preferences management could become a kind of model in some new regulatory regime.

Very soon lawmakers will introduce legislation to more aggressively protect consumer privacy. One member of Congress, Rick Boucher of Virginia, recently wrote:

Because consumers need an assured level of control over the collection, use and sharing of information about them, a statute providing those assurances is now called for. That goal should be achieved by legislation, which reflects best industry practices and requires that they be followed by all websites that collect information from Internet users. Legislation assuring Internet users that their online experience is more secure will be a driver of greater levels of Internet uses such as e-commerce, not a hindrance to them.

In my view all this points to “when” rather than “if” and the question is: what disclosure and data management burdens will imposed on marketers and publishers? As I said, I think search will largely be unaffected but display could be profoundly affected.

If people are required to be given an “up front” opportunity to “opt-out” of targeting a majority likely will: “Tailored ads in general did not appeal to 66 percent of respondents.”

Attributing Value To Phone Calls: Dynamic Number Insertion Can Help

Bill Dinan — Tue, 22 Sep 2009 21:11:37 +0000

Dynamic Number Insertion (DNI) technology allows advertisers to track the specific search engine, web page or keyword that generated an inbound phone call using tracking numbers. Advertisers are using DNI to measure the performance of their online advertising campaigns and the impact on call volume. At the most basic level, DNI seamlessly replaces select contact phone numbers on a web page with call tracking numbers, which allows advertisers to measure volume. Combined with pay per click programs, DNI can help complete the online advertising performance picture by clearly outlining the results of advertising campaigns both online and by phone. Advertisers using DNI to measure and report phone calls driven by web activity use two different methods: a server-side method called reverse proxy, and a client-side method that uses Javascript tracking codes. While each approach is different, both offer advertisers unique benefits and value.

Reverse proxy method: Best suited for local advertisers

With the reverse proxy method, instead of web requests going directly to an advertiser’s website, the user request is routed to an intermediary server which determines what content should be displayed. This proxy retrieves the content from the advertiser’s website and transforms the output by inserting and/or replacing specific phone numbers on the page with call tracking numbers based on keyword or search engine triggers. This is done via cached copies of an advertiser’s website or in some cases, in real-time, for every request through the proxy so that any dynamic content included on the advertiser’s page is reflected ensuring that data is always current and up-to-date.

As reverse proxy capability is more readily available from SEM or other third party resellers, this approach is very effective for local advertisers or SMBs that do not have sophisticated internal technology resources easily available to make modifications to their existing websites. However, because a service provider is involved, it is typically more expensive. Also, reverse proxy is a better option for advertisers that use third party website functionality for shopping carts or email forms.

A disadvantage of the reverse proxy method is that it is not well suited for tracking organic search activity. Reverse proxy sites are invisible to search engine spiders, so organic searchers would never reach a reverse proxy site and online organic search activity is not captured. Also, larger advertisers with complex websites that are considering this approach should ask the reseller about their reverse proxy method as some require the advertiser to share control of the websites as they continuously make duplicate or updated copies of the page. This “carbon copy” approach would be a complication for advertiser sites that include real-time data such as news feeds, RSS or stock quotes, as it risks serving static or old data.

Javascript tracking codes: Best suited for national advertisers

In the Javascript tracking code method, user requests are routed to the advertiser’s actual website rather than through a third party intermediary. Similar to Google Analytics, a piece of Javascript code containing a unique identifier is inserted into an advertiser’s webpage which links to the SEM provider’s servers via a web service. When an ad click or organic search result routes a user to the advertiser’s website, the Javascript takes the parameters used to perform the search along with the advertiser’s unique identifier and passes them to the SEM provider to be processed against predefined keyword, ad group and browser triggers. The result is a series of phone number substitutions returned to the advertiser’s page where it is used to dynamically update the content with the designated call tracking numbers.

Since the coding is performed client-side, this method requires HTML design and maintenance expertise—something typical SMBs lack. It is best suited for larger, national advertisers with committed monetary and technology resources or which have access to specialized agency resources that can perform such maintenance.

A benefit of the Javascript tracking code method is that advertisers can use it to track organic search activity. This method uses an advertisers’ primary website and domain names, which are easily visible to search engine spiders and enable advertisers to compare the organic traffic from a keyword or ad campaign on Google versus Bing. As such, Javascript tracking code is the best method for tracking full search engine optimization and marketing results. Also, because this method uses traditional or primary domain names, such as macys.com, rather than a third-party provider URL like provider.macys.com, national advertisers have more control over their branding standards.

One minor pitfall of this method is that some browsers disable Javascript tracking code. It is a small percentage but does represent a data loss.

The overall benefits of DNI—through either method—are simple: DNI provides advertisers greater visibility to the source of inbound calls and allows advertisers to track the performance of specific ads and/or keywords. With the ability to capture the full value of online advertising initiatives adding call counts to the traditional click count approach to online campaign performance, advertisers can optimize their spend and move underperforming keyword-search engine ad buys to more successful combinations.

Harvard’s Edelman Proposes A Bill Of Rights For Online Advertisers

Matt McGee — Mon, 21 Sep 2009 07:15:21 +0000

It’s time for an online advertisers bill of rights. So says Harvard assistant professor Ben Edelman, who has spent years researching Internet advertising and compares the current landscape to a “wild west.” Edelman recognizes the “staggering” opportunity that online advertising provides, but says the current system has problems that “threaten to destabilize online advertising—wasting advertisers’ budgets, slowing transition to online formats, and reducing payments to online publishers.”

In his just-published proposal, Edelman outlines five-point bill of rights for anyone advertising online:

An advertiser’s right to know where its ads are shown.
An advertiser’s right to meaningful, itemized billing.
An advertiser’s right to use its data as it sees fit.
An advertiser’s right to enjoy the fruits of its advertising campaigns.
An advertiser’s right to resolve disputes fairly and transparently.

Edelman uses Google’s advertising services and policies as examples throughout his proposal, sharing specific examples of practices that he says are harmful to advertisers. He says many of the “starkest problems” can be traced to Google’s online ad system:

“Google does not tell advertisers where their ads will be shown, omits itemized billing, limits how advertisers can use and transfer their own data, and insists on convoluted dispute resolution. Why such one-sided terms from Google?”

Edelman says he hopes his report leads to “improvements in at least the norms and expectations, if not the regulation, of online advertising.”

SEMPO Says Time To Get Serious About Mobile Search

Greg Sterling — Fri, 11 Sep 2009 13:48:34 +0000

SEMPO yesterday released a “POV” white paper that seeks to orient search marketers to the growing mobile market, mobile SEO and mobile paid search in particular. It cites the dramatic growth of mobile web usage and anticipated future growth in arguing that search marketers now need to take mobile seriously. Developed by SEMPO’s Emerging Technologies Committee, the report asks (and seeks to answer) several key questions:

What mobile channels are available to search marketers and which show the most promise?
What are the prospects for search, particularly local search, on mobile devices, and how is the landscape changing?
What steps can marketers take to effectively target and reach consumers using mobile?

The report generally advises:

Create usable content designed around the specific wants, needs, and usage patterns of mobile consumers.
Redirect users to that content via SEO and paid search efforts calibrated to the smaller screen real estate available on mobile devices.
Location, location, location: remember that mobile is about location, specifically where the mobile user is at any given moment. Take into account the specific behaviors and needs that accompany on-the-go Internet access when crafting advertising messages.
Brands that value their site stickiness and hard-earned search equity should create versions of their desktop Web content synthesized specifically for the wants and needs of the mobile user.
Marketers need to segment the market by demographics and mobile device traffic. Mobile is not a one-size-fits-all proposition.

Overall it’s a very helpful primer on mobile marketing and search marketing to mobile device users, for those just starting to think about it. The report provides concrete best practices advice, identifies challenges and differences between mobile and PC SEO and paid search. It also segments the audience by device and demographics.

Earlier this year, SEMPO released its annual findings on the State of Search Marketing, based on data collected in December, 2008. It found that just under half of survey respondents were interested in mobile search marketing. There was also a mixed picture in terms of location targeting on mobile devices. I suspect these numbers would be much higher just nine months later.

At SMX East there will be several panels directly or indirectly addressing mobile, with one directly about mobile search marketing.