Tuesday, November 16, 2021

BUS410 - The Kent’s Camera Castle: Paid Search Marketing Paper (8/16/2021)

 

The Kent’s Camera Castle: Paid Search Marketing Paper

            Websites want to generate traffic to increase company or brand awareness. There are three types of traffic that most websites get: direct traffic, referral traffic and search traffic (Larson & Draper, 2020). Direct traffic comes from visitors trying in the URL or clicking on a link saved to their favorites. Referral traffic comes from paid ads or unpaid links and off-site SEO. Search traffic is the result of paid search engine result pages (SERP) or unpaid search results. Search engine advertising allows users to search for products, services, or information that they are interesting in locating and companies want to be accurately matched to these searches (Larson & Draper, 2020). There are many variables to consider when creating a search ad such as the intent of the searcher and searched keywords (Fishkin, 2016). A/B testing and maximizing ad budgets are ways that marketers can draw the most meaningful traffic to a landing page.

Part 1: A/B Testing

            Effective ad copy contains relevant keywords, a unique value proposition (UVP) and a call to action. Relevant keywords improve the click-through rate since the ads will show up in search results for users looking for those specific terms (Larson & Draper, 2020). A UVP sets the ad apart from competing ads by including what makes the website different. The call to action informs the searcher what to do next if they are interested such as “click here to learn more” or “buy now.”

            A/B testing is a way that marketers can test the ad copy against other variations of the ad. Marketers can create different ad versions by changing the headline, description, or call to action and test it against another version of the ad. A/B testing allows ad to continuously improve the click-through rate (Larson & Draper, 2020). Stukent expert Matt Umbro advises marketers to constantly A/B test two ads and replace the lower-performing ad with another version to assure the most effective ad is always running (2015).

Kent’s Camera Castle Ad Versions

            The first ad version highlights the rugged features whereas the second ad focuses on the LiveBurst mode feature. Both ads go to the same website, but will have different landing pages that go into more detail of the rugged and LiveBurst features. Headline one is the same for both ads, however, headline two recognizes the different features. These are good ads to test to what features attract searchers and get them to engage with the ad, sign up for the website, or purchase the product.

Part 2: Keywords

            Google Ads accounts allows users to quickly and efficiently organize and manage various ads and campaigns. The account level is where a company or advertiser enters payment information to pay for the ad clicks or conversions as previously selected. An account can have multiple ad campaigns running. Each campaign can be selected and different settings edited (Larson & Draper, 2020). This campaign is likely titled “Kent’s Camera Castle – GoPro HERO 8.” There may be several campaigns for the different version of currently available GoPro models and future product releases.

            Keywords are used to help searchers find accurate search results and for companies that match those keywords to pull up in the search results. Advertisers also keep track of keywords that are specific to each ad or campaign. If advertisers use brackets around any of these terms, then only searches with the exact term will pull the GoPro ad up in the search engine results. If the keyword or set of keywords include quotation marks then the ad will only show up on the search engine results page if the exact keyword phrase matches the search. Using a plus sound before any keywords allows the Google search engine to include any variation of the terms in a modified broad match (Larson & Draper, 2020). According to the chart in the assignment, Gopro has 550,000 average monthly searches and go pro has 246,000 monthly searches so these are both great keywords, but the competition is high for these terms. Kent’s Camera Castle has 50,000 monthly searches and low competition. Therefore, recommended keywords for both ads in the HERO8 campaign are:

            Kent’s Camera Castle,

            “HERO8,”

            +GoPro + HERO,

            +GoPro + HERO8,

            +GoPro + HERO8+ Black

Additional keywords for ad one are:

            +GoPro + Rugged,

            +GoPro + Waterproof,

            +GoPro + Moments, and variations of these keywords combined.

Additional keywords for the second ad are:

            “LiveBurst,”

            +GoPro + LiveBurst,

            +GoPro + LiveBurst,

            +GoPro +Live + Burst + Mode,        

            +GoPro + Shutter,

            +GoPro + Shutter + Speed, and variations of these terms.

Part 3: Purchasing Display Ad Space

            Budgeting is an essential part of any form of advertising. Companies that advertise on billboards agree to pay a monthly rate (Larson & Draper, 2020). Advertisers may pay a certain amount to run an ad in a printed magazine according to page size. However, paid search advertising is dynamic meaning the price per keyword can frequently change. To rank high for certain search terms or get the best ad placement for the term, companies place bids to in an auction and the ad position goes to the highest bidder (Larson & Draper, 2020). Advertisers can choose to bid in a few ways, but the company has to decide how to bid to get the highest traffic for the budget. One way a company can pay is through CPC bidding in which the company pays a chosen amount per click on the ad. Through Google Ads second-price auction model, the company who bids the highest may not pay their actual bid, but will pay one penny more than the second-highest bidder. Cost-per-acquisition (CPA) bidding allows companies to pay the company-selected amount per conversion (Larson & Draper, 2020). 

Ad Budgeting Examples

·       For example if an advertiser has a budget of $1,000 and an average cost per click (CPC) of $2.50, how many clicks can the advertiser receive before their budget is exhausted? The answer is 400 clicks.

This is calculated by dividing $1000 by $2.50 since each click will cost the advertiser $2.50. 

·       If an advertiser has an unlimited budget, an average CPC of $1.00, a CTR of 1.8%, and 60,000 impressions, how much will the advertiser spend?

The answer is $1,080.

The amount owed for advertising equals the number of impressions multiplied by the click through rate and then multiplied by the CPC, so 60,000 x 1.8% = 1,080 x $1.00 = $1,080.

·       If the advertiser has a $3,000 budget, her average CPC is $0.50, and her conversion rate is 5%, what is her current cost per action (CPA)? How many conversions can she get for $3,000?

The CPA is $10 and the number of conversions possible with a $3000 budget is 300.

This is because at a 5 percent conversion rate, the average clicks per conversion are 5 per 100 clicks or reduced to 1 sell per 20 clicks. 20 clicks times the CPC of $0.50, so the CPA equals $10.

Since the budget is $3000 and the CPA is $10, then $3000 divided by $10 equals 300 conversions.

Part 4: Keyword Data

·       According to the keyword chart included in the assignment, does a high CPC mean the advertiser should not bid?

Not necessarily. The advertiser is only charged for each click. This depends on the budget allotted for the campaign and the number of search result clicks.

·       How much should the advertiser bid? Higher than the average CPC? Lower? To obtain the best ad placement for the keyword search, the advertiser must bid higher than the suggested bid to win it.

·       Should the advertiser shy away from high search volumes or are those a good thing?  High search volumes are a good thing because more search traffic means a greater potential for webpage traffic and conversions.

·       Do you get more traffic when you have campaigns for lots of different cameras? Potentially yes. For example, if the company runs a campaign for the GoPro Hero 4 and Go Pro Hero 3, then the search numbers could be around 195,500 search results. That is a large volume of webpage traffic.

·       What seems to be the searcher’s intent when he or she types in a keyword like [Go Pro reviews]? What about if the search is for [digital cameras]? Is the searcher just as likely to buy? What if the search is for [Go Pro Hero 4]?

When the searcher places the search term in brackets, then the searcher wants to pull up exact results for the search term. If the searcher is looking up generic terms like reviews and digital cameras, then the searcher is likely still in the research and information stage. Whereas, the searcher who looks up the exact term GoPro Hero 4 is more likely to purchase because they are searching for the specific product.

Conclusion

            To create an effective paid search ad campaign, advertisers must consider several factors. First, advertisers must understand what their searchers are looking for and try to work the keywords organically into ads that the searchers will use. Next, the advertiser chooses the best way to bid on keywords for the best search result placement which is sometimes highly competitive and costly. An advertiser must make good decisions and continually to monitor the campaign through Google Ads and AB testing to assure the ads are leading the correct users to the landing pages. 

References

Fishkin, R. (2016, December 9). The 10 types of content that work best for SEO—Whiteboard Friday [Blog post]. https://moz.com/blog/the-ten-types-of-content-that-work-best-for-seo-whiteboard-friday

Larson, J., & Draper, S. (2020). Digital marketing essentials. https://www.stukent.com/

Stukent [Stukent, Inc.]. (2015, September 9). Introduction to remarketing with Matt Umbro - Stukent expert session [Video file]. YouTube. https://youtu.be/uqSPKzoyGHc

 

No comments:

Post a Comment