Why Should You Organize Your Keywords?

Some people live to organize and we see all sorts of advantages in organizing everything in our lives. If you’re in that category, you probably have already convinced yourself that organizing your keywords is important, but what about the rest of us? We need convincing.

Some search programs contain hundreds of thousands—even millions of keywords—and you can imagine that it isn’t easy keeping track of all of them. Even if your program has far fewer keywords—10,000, say—you can be forgiven for not looking forward to organizing all of those keywords. In fact, you can be forgiven for not even believing that organizing your keywords is an important activity. Everyone knows that paid search keywords need to be organized by accounts, campaigns, and ad groups, but keyword organization can go far beyond that—and includes organic keywords, too.

So, here’s the simple reason why everyone needs to organize their keywords far beyond the standard accounts and ad groups—money.

If you aren’t categorizing your keywords according to myriad criteria, you’re missing out. Here are just some of the benefits of organizing that can jump start your keyword optimization:

  • Separate categories allow separate analysis. If you’ve ever performed market segmentation, you know the power of organization. Segmentation allows you to identify the keyword groups that convert the highest, produce the most loyal new customers, produce the best return on investment, and many other prized segments.
  • Organization allows optimization. Understanding those prized segments allows you to optimize your approaches—better keywords bidding strategies, more time spent on optimizing organic pages, common messaging to persuade similar targets, and many more.
  • Common categorization helps co-optimize paid and organic. If you’ve only organized your paid search keywords, you’re missing a big opportunity. Focusing on both organic and paid keywords with the same categorization approaches allows them to be optimized together rather than separately.

So, what kinds of categories can be helpful? Anything that allows you to consolidate your message across groups, rather than keyword-by-keyword:

  • Target market. If you have already segmented your markets based on other criteria (B2B vs. B2C, demographics, industry, or others), you can use what you know about your segments to identify which keywords appeal to each segment.
  • Purchase funnel. Search keywords reveal exactly where in the buying cycle searchers are. There’s no reason to offer a coupon to someone in the initial research stages, so organizing by purchase funnel stages allows message optimization.
  • Benefits. Some keywords reveal which benefits the searchers desire—“cheap flights” or “five-star hotel” or “quiet restaurant”—and that lets you target the messages to match. Grouping keywords for value, luxury, or other benefits allows you to scale your learning as to which messages are most persuasive.

Don’t settle for one-dimensional keyword organization that does nothing to optimize your messaging. How you organize your keywords can make the difference between an average search program and a great one.

Why you should Organize your Keywords

Some people live to organize and we see all sorts of advantages in organizing everything in our lives. If you’re in that category, you probably have already convinced yourself that organizing your keywords is important, but what about the rest of us? We need convincing.

Some search programs contain hundreds of thousands—even millions of keywords—and you can imagine that it isn’t easy keeping track of all of them. Even if your program has far fewer keywords—10,000, say—you can be forgiven for not looking forward to organizing all of those keywords. In fact, you can be forgiven for not even believing that organizing your keywords is an important activity. Everyone knows that paid search keywords need to be organized by accounts, campaigns, and ad groups, but keyword organization can go far beyond that—and includes organic keywords, too.

So, here’s the simple reason why everyone needs to organize their keywords far beyond the standard accounts and ad groups—money.

If you aren’t categorizing your keywords according to myriad criteria, you’re missing out. Here are just some of the benefits of organizing that can jump start your keyword optimization:

  • Separate categories allow separate analysis. If you’ve ever performed market segmentation, you know the power of organization. Segmentation allows you to identify the keyword groups that convert the highest, produce the most loyal new customers, produce the best return on investment, and many other prized segments.
  • Organization allows optimization. Understanding those prized segments allows you to optimize your approaches—better keywords bidding strategies, more time spent on optimizing organic pages, common messaging to persuade similar targets, and many more.
  • Common categorization helps co-optimize paid and organic. If you’ve only organized your paid search keywords, you’re missing a big opportunity. Focusing on both organic and paid keywords with the same categorization approaches allows them to be optimized together rather than separately.

So, what kinds of categories can be helpful? Anything that allows you to consolidate your message across groups, rather than keyword-by-keyword:

  • Target market. If you have already segmented your markets based on other criteria (B2B vs. B2C, demographics, industry, or others), you can use what you know about your segments to identify which keywords appeal to each segment.
  • Purchase funnel. Search keywords reveal exactly where in the buying cycle searchers are. There’s no reason to offer a coupon to someone in the initial research stages, so organizing by purchase funnel stages allows message optimization.
  • Benefits. Some keywords reveal which benefits the searchers desire—“cheap flights” or “five-star hotel” or “quiet restaurant”—and that lets you target the messages to match. Grouping keywords for value, luxury, or other benefits allows you to scale your learning as to which messages are most persuasive.

Don’t settle for one-dimensional keyword organization that does nothing to optimize your messaging. How you organize your keywords can make the difference between an average search program and a great one.

81% of Paid Ads do not have a Corresponding Organic Listing

Hopefully that headline got your attention!   Yes, you did read it correctly – Google’s research shows that 81% of the time the paid search advertiser does not have a corresponding organic ranking.  So the opportunity of 1 + 1 = 3 actually rarely happens.   I believe this is primarily due to many companies not being aware of what is happening between their paid and organic activities but that is another post.

I had commented on their original research that incorrectly stated that if you have paid and organic there is an 8% increase in traffic.   In March Google put out their “revised” research on the impact of organic rank on paid clicks. I wrote a pretty scathing review of the research which I would like to think helped encourage them to go back to the drawing board.    The part I objected to what that they did not account for those words where the advertiser was not ranking.  Of course if you don’t rank for a term you will see an increase in paid search clicks

In the updated research titled “Impact of Organic Ranking on Ad Click Incrementality” they looked specifically at what happens when they have organic rankings and take away the paid.  This helps show the collaboration or cannibalization of the two.   They even did a neat info graphic that I will dissect to help explain what they found and the implications to search marketers.

Source: Google http://googleresearch.blogspot.com/2012/03/impact-of-organic-ranking-on-ad-click.html

81% of the Advertisers DON’T HAVE an Organic Listing

Yes, that is what they found.  Of the words in the test, the advertisers that had a paid search ad running “did NOT HAVE an associated organic result 81% of the time.”   At first I was shocked by this but then we see this on nearly every data load we do into our Keyword Management Suite.  We often find the typical company only actively manages a fraction of the words in their paid campaigns in their SEO campaign.

Clearly, if you don’t have an organic listing then you won’t get additional consideration and the ONLY opportunity for interaction is “renting the traffic” via the paid listing.  They continued with the analysis and found that only 9% of the time the advertiser also had the #1 search results position, 5% of the time the advertiser was ranking in the 2 to 4th position and 4% of the time they were in a position #5 or greater.  So clearly, there can be a case made for rank checking to make sure that you do have organic results especially for high value terms.

I have talked about this recently in How do your Expensive PPC Kewyords Perform in SEO? after finding so many companies do not even know how many of their highest Cost Per Click keywords are performing in SEO.  We are updating our application to look for this anomaly specifically.  In preliminary tests we are finding that in some cases it is much worse.  We have found a few cases where it is as much as 98% of the time there is no corresponding organic listing in the top 5.

66% of the clicks happen when there is NO Organic Search Listing

So if we don’t even have an organic listing 81% of the time when there is a paid listing how does this impact the click rate.   Google found that 66 percent of the clicks occur when there is no organic listing for the advertiser.   Duh, that is the only thing they can click.

So what we all want to know is what happens in the 9 percent of the time when we do have both paid and organic listings.

  • 99% of ad clicks with no organic results are incremental.  – Duh!  You can’t get a click from Organic if you don’t have organic so any clicks from paid are incremental.
  • 50% of ad clicks with #1 organic result are incremental – this is what Google wanted to hear to counter advertisers that if they have a #1 listing then they don’t need to use paid search.
  • 82% of ad clicks for advertisers ranking in organic positions 2 to 4 are incremental
  • 96% of the ad clicks for advertisers ranking in organic position 5 or greater are incremental

Google does call it out specifically but do concede that while statistically there are 50% incremental clicks – the rate of incremental clicks varies by advertiser and I will also add that it is the context (query type or buy cycle) and type (branded or non branded) of keyword plays an important part in which is clicked.

My goal is make advertisers aware of the 50% incremental lift in clicks but more importantly ensure advertisers work with the SEO team to ensure that they do have a corresponding organic ranking.  Our research shows that few advertisers even know where they rank in relation to their paid terms.  What we want to clearly understand is how and when can an organic listing be a substitute for the paid ad?  That is the work we are doing now to test different situations like branded and non branded as well as phases of the buy cycle.

You can read my previous article on that attempts to answer the question “Should you buy your Brand Terms when you Rank #1?” where we look at a very specific case where a company was over paying by $24,000 a month for their brand name.

 

The Cost of Not Ranking

We already had a “Cost of Not Ranking Model” in our tool based on the Excel file that I write about in this post from 2010 on “The Cost of Not Ranking Organically” on my personal blog.  Based on this research I will update the logic in our tool to show the incremental cost.  Again, it should never be a PPC vs. Organic but a Paid + Organic and once we have the alignment then we can work on the messages to make sure they are collaborative.

 

What is your situation?

How many keywords do you have in your paid campaign that do or don’t have an organic performance.  As Google noted, without organic listings your paying for 100% of the clicks for people interested in your products and services.   If you don’t know what your situation is you are a perfect candidate for our Keyword Management Suite or new Search Performance Analysis Solution.

Should you Buy Brand Terms When your Rank #1?

So you have a #1 ranking brand term should you also buy it in paid search?  I recently wrote the article about the 81% of all paid ads that don’t have an accompanying orgnaic listing.  That was a byproduct stat from teh main purpose of the research which was to reassure advertisers that running paid ads for high ranking organic terms is still an excellent strategy – which I agree with 100%.

Why does Google care if you do or don’t?  Well, it is all part of Google’s Profict Maximization – this, in m,y opinion is the siggle largest budget waster only second to braod matching terms.   For many adverisers, their top ranked terms are their branded terms and where a significant share of the click volume goes.  For one of our clients it was as much as 83% of all of their paid search clicks.   This means there is significant click volume (Google Revenue) that would be lost if they just turned them off.

There are some key strategies where you need them.  Back in the day were you could really protect your trademark this was not a big issue but now that you can’t there is often a stragic way to do it but there is also a right ans wrong way.  The following is a case it shows you need to do the research and it also shows the financial impact to Google if you just turn it off.

This is a major national brand in the travel space who was buying their company name “Acme” in paid search both in broad and exact match. Their average paid position fluctuated between #1 #2 and #3 but typically wanted it in the #3 position.    They obviously rank #1 for their brand name and have 6 highly relevant site links.

Company Name – Broad Match vs. Organic Performance
Source: Back Azimuth Search ROI Analysis

Scenario 1 – Broad Match Brand Name

Organic Performance:

They received 409,872 visits from Google via the organic results (94.35% click rate based on paid search impressions and ranking #1) that resulted in a 4.06% conversion rate generating $7.3 million in revenue.

Paid Performance: 

They had 434,531 impressions for which received 19,191 clicks (Average CPC was $1.28) for a media spend of $24,541.   They had a 4.42% click rate and a 1.19% conversion rate generating just over $9,000 in revenue.  This resulted in a negative Return on Ad Spend (ROAS) of -$15,535.

Analysis:

The problem in this case was they were running a “price match offer” along with copy that indicated “they offered he cheapest airfare” which did not sync that well in with the searchers intent for a broad-based branded navigational phrase.  At first the agency wanted to just change the ad copy to make it more in line with the navigational query but ultimately after looking at scenario 2 below, they opted to kill the broad match and go with exact match terms since we had identified 2,387 exact match variations including nearly 2,000 misspellings.   The result was putting just over $24,000 worth of click costs back into the pool for other words.

This is the prime reason that some advertisers want to turn off these ads.  The paid team argues that they have to be there for branding purposes but in this case the paid actually pushed people into the organic.  The learning here is as quickly as possible you want to get words into exact match situations and then make sure the context matches.  In the scenario below the advertiser swapped their broad match of the brand to over 2,387 exact match variations taking the average CPC from $1.28 in the broad match to between $0.04 to $0.32 for the exact match terms saving nearly $30,000 a week thereby allowing significantly more clicks for other words where they had budget restrictions.

Cost to Google: 

About $24,000/month or $288,000 a year.  Note: Google will ultimately make this up n other keyword clicks but this helped increase the media efficiency of this advertiser exponentially.

 

Scenario 2 – Exact Match Brand Name

So while in scenario 1, buying a #1 ranked branded term using broad match did not make sense what happens with an exact match for the same term? The paid search ad in this case was a reference to them being a leading travel site and having the lowest prices.

 

Company Name – Exact Match vs. Organic Performance
Source: Back Azimuth Search ROI Analysis

Organic Performance:

Using the same 409,872 organic visits this means that our organic click rate was 55.27% with a Conversion rate of 4.06% generating the same $7.3 million in revenue.

Paid Performance

In this exact match case the paid click rate was 42.36 percent (nearly 10 times that of Broad Match).  The Average Cost per click was a negligible $0.04 per click.  We drove 314,229 visitors from paid search The conversion rate was 3.43% which is great resulting in sales of nearly $300,000 generating a positive ROAS of $285k.   So with paid in exact match and the #1 organic listing Acme had nearly a 97.63 percent share of clicks.  This my friends is the definition of 1 + 1 = 3.

Analysis:

For half the paid search media budget they achieved a significant increase in visits from paid search.  This gave them the brand protection they wanted along with an increase.  The following months have shown that in this case of exact match the paid and organic seem to be working together.  Due multiple competitors also showing up for the brand name and to the collaborative success of paid and organic the client will not turn off or day part the paid to see what share of traffic would go to organic without the paid.

 

What is your situation?

If you don’t know what your situation is you are a perfect candidate for our Keyword Management Suite or new Search Performance Analysis Solution.

 

 

 

Should you have a Keyword Czar?

Keywords are the lifeblood of any search program.   The more we process data in our application the more I believe companies should spend far more time than they do analyzing them.   I have talked about the chaos of the data, the different numbers between paid and organic and the need for better segmentation and opportunity monitoring.  The big question is who should do this – agencies, interns, SEO teams, PPC teams – it varies by company but one thing is for certain, to maximize your opportunities in search marketing someone needs to do it.

Last Friday on a call with a large company we had 8 members of their search and digital marketing team on going through the demo the Digital Marketing Manager asked me who would do this work and monitor the opportunities and challenges with the keywords.   The team discussed a few opportunities and suggested it rest with the Global Search Manager who should have a lens into the overall picture.   I then suggested that they give access to the application to the Social Media and PR teams as well as the content development teams.  We mange preferred landing pages, keyword priorities and persona segmentation so these would be good to keep those uniform in the company.

They realized the Social Media team was not using the same words the Search Team has agonized over to prioritize and identify as critical.  The PR team was using the keywords and associated URL’s in releases to help build links to the most relevant pages.  To illustrate this, at OMS in San Diego I asked the 150+ audience in the Social Media session how many of them had talked to the search team about keywords and/or loaded the search team’s keywords into the conversation mining tool.  The answer was none!

Out of nowhere, a senior manager jumped in after having the epiphany that “keywords are critical to our digital marketing success” and suggested to the team they have some sort of a “Keyword Czar?

What would the Keyword Czar’s role be other than to rule over the keyword pot of gold?

Search Opportunity Analysis

This is the role that will aggregate all of the keywords and data and develop the opportunity models and other data needed by the teams for resource prioritization.  This person will also develop refine the monthly “Always On” performance reports and well as the paid and organic co-optimization models.  In my experience, this is typically not a new role but one that is shifted from analytics, data mining or taxonomy management.   There have been a few large companies, which have invested in this type of role, and they have yielded some very interesting results.

Content Needs and Opportunities

As companies migrate to more efficient content creation models this role will be come valuable since it can identify new opportunities for messages, keyword synergies and keywords to be added to paid search and organic programs that has never been considered.

Those of you who have read and follow the key principals in the great book Optimize by Lee Odden should be able to see the benefit of this role to the organization.  As Lee suggests in Chapter 8, you need to create content that “Attracts, Engages and Inspires” and this can only be done if you understand your audience needs, wants and problems.  We can learn what they are interested in using search query data and social media conversation monitoring.  These, when matched to your current content inventory (Preferred Landing Page Management) it highlights the gaps in your content.

As indicated, this will help increase traffic and conversion potential as well as creating the content matrix for preferred landing pages that can be used across all forms of digital marketing tactics.

 Keyword Arbitration

In many companies there are real problems with competition between business units.  In my recent post on Keyword Arbitration  we identified specific challenges when you don’t align across paid and organic, business units and agencies.   This role can manage the scorecards and process to do allow the process to be completed in a timely manner to ensure issues are resolved quickly and fairly.

Keyword Data Sharing

The most common cause of keyword overlap is the lack of sharing of keywords data.  his person would be the keyword data wrangler and keeper of the most current lists.  While we would love for you to use our Keyword Management Suite to manage them – Excel sheets on your Intranet or Google Docs can work as well.

I talked to a Search Manager recently that was stressed that their social media agency was using a list of words and URL’s from the previous year since no one thought to update them with the latest version.  Another company told me they lost a huge opportunity for links to a key part of the site via earned media since the PR team used the wrong URL and less than optimal keywords.

Keyword Expansion

You can read my rant on the necessity of keyword expansion and while I question the need for many companies that role does fall squarely on the Keyword Czar.  We do often find that companies are not matching key combinations of products and phrases.  While one company identified 25 different adjectives and descriptors for their buy cycle less than 20% of their products and categories used them.  This is the type of analysis that this role should be doing.  I the case just mentioned, by closing that gap that company increased search revenue by 12% mostly attributed to ferreting out these buy cycle terms that had a higher chance of conversion.

Keyword Czar’s Qualifications

Data Geek – First and foremost this person has to be a data geek.  They have to love data and be comfortable with data.

Excel Master – Yes, you can do a lot in our application but you will still need to do a lot of work in Excel or Open Office.  This person should be an advanced level with deep knowledge of analysis and pivot tables.

Understand Linguistics and/or Taxonomies – I worked with a company about 5 years ago that had a couple Masters and PhD candidates in linguistics, text processing and taxonomies that thrived in this area.  They spent the summer digging into all of their keywords and took the word base from 12,000 to over 450,000 that resulted in a total rebuild of the site around the taxonomy they developed based on the words.

There are also some personality traits that you may want to look for.

Trend or Nugget Curious – this person needs to be curious and ask questions why.  They need to be able to see patterns in data and want to dig into them.

Minimally Ambitious – why normally this is a bad thing – this is not that recent MBA grad willing to get in at the ground level that wants to the CEO of a multinational corporation in 10 years.  No, I am not talking about the career burger flipper but a person that is fine with a fairly defined role with latitude to be creative and without a lot of room for advancement.  These are often hard to find with the other skills but they are out there if you look around.

Business Justification

You will have to run the numbers.  Many companies don’t do anything with their keywords and data now so there is a lot of upside.   You could estimate a segment of words and their demand/opportunity and indicate that there is significantly more and that value might be enough to support it.  If your paying agencies to manage keyword and do that research this could be shifted as well to allow the agency to focus on more strategic and technical activities.  You could allocate a port of the time to your current team or agency and monitor the findings as in the case of the company that had the 12% increase in revenue that was 100% attributes to this activity.  Same with the company that found $400k worth of revenue by focusing on End of Life product keywords.

 

Do you need a Keyword Arbitration Strategy?

One interesting challenge we encounter once we load a company’s data into the Keyword Management Suite is the fights over keywords that begin as the different business units learn others are using their words or ranking for their terms.  In many cases they have been competing for the same keywords for a long time but often never knew about it.

Cross Business Unit Keyword Conflicts

Cross Business Unit keyword conflicts affects both Paid and Natural Search.   Here is a typical scenario.  Marketing Manager for Business Unit A searches on a term to see where they rank in natural search.   They get a surprise when they find in addition to their organic listing, Business Unit B is a paid search campaign for the same product and their listing is showing in the paid search result but they are targeting small and medium businesses rather than consumers.

A variation of this happens when both of the business units are running paid ads and depending on the time of the day and match types one or the other is the ad that is listed when the managers does their search.  I

Usually, this scenario arises when keywords are allocated based on budget rather than business objectives and searcher intent, resulting in multiple versions of the keyword being used in multiple campaigns simultaneously.  While it is frustrating to managers, it is very frustrating to searchers.   It can also lead to confusion for searchers when they visit your site based on the ad copy but encounter another set of content.

For example, this case from Adobe.  The query is “Adobe Software” and the PPC ad is for “Adobe Photoshop for Students” offering a massive 80% discount.  First the searcher wanted “Adobe Software” and not specifically Photoshop.  Second we don’t know which audience segment they are so in this case the if the Educational Business Unit would get a “No” for relevant ad copy and not be allowed to buy this phrase.

These “Searcher Intent” issues and be sorted out by simply managing your match types and keyword allocations to ensure that you don’t have misalignment.

Often most are unaware of organic ranking conflicts since those that still do rank reports often only care that there is a page ranking and not necessary the best page.  Since the late 90’s I have been advocating the use of “Preferred Landing Pages” to ensure the best page is the ranking page.   We had a case recently where a client found for one of their most important keywords a PDF was ranking and not the actual page.  Their SEO vendor showed everything was ok when in fact it was not – yes they were ranking #1 but no one was clicking and buying.  Once they redirected to the desired page they retained the #1 rank and saw a 40% click rate increase and 12% increase in conversions.

Worst of all there is the time suck of explaining duplicate keyword situation to various stakeholders after the fact rather than dealing with it before the campaign starts.  As a Search Marketing Manager it is your job of managing the conflicts and managing expectations and the cross business unit political minefield.

Implement a Keyword Arbitration Scorecard

Back in the old days when search engines allowed multiple accounts from the same company we often bid against ourselves.  As I wrote previously about Developing a Cost Justification for Integrating Paid and Organic Search that was a big problem in that organization.   Just having meetings and making suggestions are fine but you won’t make everyone happy.  What has worked well for me is to implement a Keyword Arbitration process.   This process is implemented in any case where we have a keyword conflict between business units that cannot be resolved by a hybrid page.

The scorecard can be as complicated as you think you need but here are is an example of the simplest one that I use which require a simple Yes/No answer:

 

The formula is simple – each “Yes” answer gets 1 point.  The BU with the highest score gets to use the keyword phrase.

If there is a conflict over the context or business objective of the Keyword, you can escalate it to a Senior Manager to make the final call.

It is very rare where there is a tie but if so, suggest that a neutral search landing page, similar to the Dell example below, to “share” the Keyword.  If they are unwilling to do so then escalate to a senior manger.

Hybrid pages can be the perfect solution when you have multiple audiences.  In this example below from Dell they send searchers to a top level page that allows them to select which audience segment they belong to.  This allows the business units to share budgets to get a larger share of the total audience and then allow the audience to self-select which category they are in and continue from there.

The bare minimum that I have found necessary for a scorecard are the following elements.  These all help demonstrate how serious a business unit is for this words and how organized they are to be successful.

Relevant Landing Page – Is there a specific and/or dedicated page for this phrase or offer?  This is important to help improve the quality score so that we can reduce the overall costs for the word as well as maximizing the conversions.

Relevant Ad Copy – Same concept as the relevant landing page.  Is this word lumped into a large ad group or caught up in a broad match cluster?   Also the context and interest of the searcher.  We often see ads that are very focused in their offer matched to specific queries.

Appropriate Budget – This is very subjective but in many cases a BU may not allocate enough budget to get a significant share of the demand for a keyword.  Depending on the word we might look at 50 to 80% share of voice on a keyword.

Tracking Metrics in Place – Are they using paid tracking to the conversion element?  Lots of times a BU will throw up a micro site or other landing page and not track the performance.  We want to make sure the person who uses the word can track the performance.

Current Offline Campaign – It is often unlikely that multiple business units are doing offline or other digital campaigns.   If they are they are generating awareness which will drive people to search so we want to make sure that we are connecting with them.

P&L Requirement – this is often the tie breaker – does each business unit has a mandate to generate revenue

Note:  We have added this function into our tool.  I am working on dummy data to show you what it looks like.   If we are managing multiple business units in our application we can see all the data in a single screen to allow you to make decisions on how to manage it.

Cost Savings Justification for Integrating Paid and Organic Search

The following is a proposal that I just found on my old laptop that I presented on October 28th 2003 advocating the creation of an internal roll of “Paid Search Manager” and further integrating paid and organic search activities at a large multinational. Edited to remove the name of the company and business units.

What is interesting is that after nearly 9 years there are still few companies that have integrated these teams and efforts. While bid management has become more sophisticated and there is more collaboration today; I do find that if companies better integrated their paid and organic efforts they could yield significant improvements in their campaigns.

Move to an Integrated Search Engine Marketing Program

According to the experts presenting at the recent August Search Engine Strategies in San Jose (ironically, I was one of the presenters) named higher overall click-through rates, greater penetration of search engine results “real estate,” more comprehensive keyword research, and building credibility as clear reasons to create integrated campaign strategies with both organic and paid listings.

The optimal strategy is to use both in a carefully managed campaign to complement one-another. A recommended strategy is to maximize free listings through SEO first, then augment and round off with PPC placements. However, it is strongly recommended we continue to leverage PPC activities for must-have keywords while SEO is in progress. The primary value from an integrated strategy will reside in the overall efficiency and cost savings that will occur as a result of the same person overlooking both practices.

We as an organization currently have 50 Tier 1 keyword phrases currently in the #1 position in Google. For 48 of these phrases, we receive 5x to 10x the clicks on organic than on the corresponding paid listing and 42% higher leads.

The average CPC for these phrases ranges from $3.00 – $8.00 per click. My research shows that we have enough brand leverage in these top positions to minimize the need to pay for clicks. Especially for those words where the organic click rate is at least 5x the paid click and lead generation rate.

By effectively coordinating paid and natural we can save significant amount of media spend through this efficiency.

Searches Click Rate Avg CPC Excess CPC Fees
1,000,000.00 100,000.00 $ 5.00 $ 500,000.00

Intel Reimbursement Loss Revenue

Business Unit C developed a campaign-landing page to introduce visitors to our line of servers that contained Intel processors for which we could be reimbursed for the costs of those clicks under their co-op marketing program. Since the internal search team, who negotiated the deal with Intel Search team was not consulted until the ads were live and the landing page content was final (we detected the ads using our competitive monitoring process). Since the page content omitted certain words from the landing page, thereby disallowing us to use those phrases, it restricted our keyword list of those considered for reimbursement. These omissions from the landing pages cost us $25k worth of reimbursed advertising.

Linux Keywords Example:

During the Q3 PPC campaign we had a situation where Business Unit A and Business Unit B were buying the phrase “linux” and “linux server.” While it would be ok for both of them to “own” this word in a PPC program, the fact that they were set up in the system in a competitive bid scenario (both set to be #1) it resulted in our paying significantly more per click than we should have. Fortunately, we caught this problem quick and were able to update the system before there was a significant cost.

Business Unit A – had a max bid of $25.00 per click for “linux server” to be #1
Business Unit B — had a max bid of $6.86 per click for “linux server” to be #1

These two positions were competing for 1stnd place up to their max bid. Due to the higher max bid of the #1 advertiser (business unit A) Business Unit B would be placed #2 at their max bid. However, the competing #2 place advertiser was paying $5.50 per click resulting in a difference of $1.36 per click. Had these two not been in a competitive position to each other they could have competed with the #3 position and not the #1 position. This situation pushed the max bids of both phrases to their max levels resulting in a higher CPC of $1.36 and $1.37 respectively per click for “both” placements. Had this not been noticed immediately and left to run over the course of a year, the potential excess cost to IBM would have been at least $11,164.51.

Annual Searches Annual Clicks CPC Delta Excess CPC Fees
41,046 8,209 $ 1.36 $ 11,164.51

This is for 1 phrase and we will have potentially thousands of phrases all competing for the same positions. This needs to be managed effectively along with the current natural placements.

Efficient Management Opportunity

Generally speaking the average PPC campaign that is not managed in a centralized manner using an effective management and execution protocol is believed to waste at least 35 percent of the budget due to poor management, excessive per click fees, and internal competitive bidding. If we were to take the proposed Paid Placement budget tentatively approved for FY2004 of $6 million this “cost of waste” could be significant in the neighborhood of $2 million dollars.

Program Change Request

1. Create and fund a new position of Global Paid Search Manager to oversee all paid search activities and monitor the duplicate keyword process to ensure business units are not bidding for the search term in a on-collaborative process.
2. Integrate this role with a dotted line report to the Search Team Manager to ensure collaboration and integration of best practices.
3. Establish a “Co-Optimization” process to monitor the collaboration or cannibalization of paid and organic search to ensure that they are working together especially for our “Always On” keywords
4. Create a rigorous performance scorecard for the media agency to ensure that they are coordinating and monitoring the performance of paid search within the standards we have set to prevent both the Intel reimbursement loss as well as any anti-competitive performance placements.

While this proposal is 9 years old it could be used nearly identically today by any company. This experience and others from large multinationals resulted in my creating the “Cost of Not Ranking” worksheet and integrating the Cost of Not Ranking Analysis as a key function into our Keyword Management Suite.

How do your Expensive PPC Keywords Perform in SEO?

One of the biggest issues I keep encountering as I demo our Keyword Management Tool is the aversion by many PPC managers to Co-Optimization. Yesterday I posted this new post on “Realizing Paid and Organic Search Strategies” and suggested that there are specific cost reductions that can be had when you can transfer expensive PPC clicks into your organic pages rather than paying for them in via PPC.

And today I was looking at two new pilot projects for large tech companies and found they they are prime for Co-Optimization. Co-Optimization is simply activities that maximize the collaborative performance of paid and organic search. It is not paid vs. organic but how do we combine them for even greater results. For all of the naysayers to this concept most are shocked when they realize they don’t even know what is happening when they have top ranking organic with top paid search listings. That is your first step – understand what happens in this situation.

How do your Expensive PPC Keyword Perform in SEO?

One of my top recommendations from my Advanced Keyword Modeling session at SES New York was to go back and take your top 20 most expensive keywords by Cost Per Click and just see how you are ranking and performing for those words.

I have had a number a people tell me that they have done this and were shocked by what they found.

Of the 23 people who have done this analysis only 1 had more than half of their keywords ranking on page 1 for their most expensive keywords. This clearly shows the communications disconnect between paid and organic search.

I have always used simple math to try to get people to understand this. A typical search results page for a popular phrase has 10 organic listings and 10 paid listings. IF you only have paid listing then the minimum potential click rate is 5% (10 paid + 10 organic = 20 options for click – clicking 1 of 20 options is 5%. Meaning if you also have an organic you have a 2 in 20 chance of being clicked so 10%.

Here are some of the responses I have received for why people don’t do this analysis:

“It just seems to hard and I don’t have enough time as it is”

“Research shows that there is an 89% increase in clicks when you add paid search to your program but we don’t know if we get that level of clicks”

“Our Paid Listings are for Conversion and Organic are for awareness”

“We can’t do this type of analysis since our paid and organic agencies won’t work together”

“We can’t share the paid data with the organic agency since it is our IP and we don’t want them to reverse engineer our proprietary bid strategies”

“We don’t have a conversion option on our organic pages so we need paid to get people to convert”

“$35 and $50 CPC’s are acceptable to us since we can’t change our organic pages to add conversion options”

Now… that we have the excuses out of the way – lets look at reality. The following are two real examples from large companies that gave these types of excuses only to be shocked when they actually saw the data

In this fist case, out of their top 20 keywords by CPC cost, with costs ranging from $43.76 to $27.79 (yes that is per click) and only 1 of the words is in the top 5 positions 4 of 20 on the first page. What was interesting is that some of these words were not on the SEO teams priority list. A second thing to note, is that many of these words don’t have a lot of search demand and yet they are managed on broad match.

While I thought this first case was bad was even more surprised when we loaded the data from another company in a similar industry. They were even worse if that is possible:

Their keywords ranged from a high of $123.96 to $46.81 for a single CLICK. Wow…. I don’t even think the ambulance chasers spend that much to rope people into class action lawsuits. Only 2 of the 20 have a first page listing with 15 of the words not even being in the top 50 positions.

These both are examples of a key problem when paid and organic are not looked at holistically. Again, I am not saying paid is bad but lets go for the 1+1 = 3 multiplier and at least work to get some organic representation.

Co-Op Baby Steps

Start small with just the simple understanding of what is happening for keywords. Do you have paid and organic at the same time and where don’t we have them both. When you do are the collaborating or cannibalizing each other?

Realizing Paid and Organic Search Synergies

For a number of years I have been evangelizing the benefits of integrating your paid and organic activities.   It does not matter if it is via a single agency or multiple agencies as long as you do have a unified strategy.  The following are 8 key reasons why you should have paid and organic in sync.

1.  Search Results ShelfSpace

This one seems pretty obvious but rarely listed as  reason for jointly managing the search programs.   Forget any sort of paid vs. organic but lets get them both positioned well and take of two of the potential 20 spots on the SERPS shelfspace.  This double listing gives additional branding, double the message and often sways searchers in clicking one or the other listing.  Add in social media listings and you can have a significant part of the SERPs covered.

2. Insights from Unified Reporting

By integrating the results of both paid and natural search in a single report helps you understand the relationship between the two better.  The joint view into the clicks can help understand the needs and interests of the searcher.  Which listing they click can also allow you to determine if there is a synergistic or cannibalistic effect between the two listings.

3.  Cost Reductions

So far 100% of the pilots and clients we have worked with have not had all of their most expensive keywords by cost per clicked represented in the natural search results.  This results in all of the clicks being “rented” and incurring a cost with no chance of getting them for free.   When these are your most expensive keywords even a 10% shift of clicks into the organic results for these words can save significant budget to target words with less budget allocation.

4. Program Management Efficiency

Quite simply, if the client has their entire search program under a single manager or agency they can ensure collaboration and uniform execution.  This can be with a single agency or multiple agencies but under a single owner.  This saves a lot of time and money in terms of communication, project management, results reporting, account management and much more since all this is done at one time.  Many people have indicated they like our application since it allows for rolled up data without the problems of agency IP concerns and extra costs of aggregating it.

5. Landing Page Strategies

Unfortunately, too much effort is applied to paid search landing pages and little applied to organic landing pages.  Too often the SEO team is overly focused on rank and not as focused on conversion of their organic pages.  I actually had a company tell me recently that their organic pages are just for awareness and not for any conversion.  This is a huge mistake.  You can use the data from paid and organic conversions to impact the performance of the other.  A key feature of Opportunity Models is to identify landing pages that are outperforming their counter parts for review and best practices reapplied to the other.    By combining the best of the two approaches, you should end up with the perfect landing page – one that ranks highly, improves your quality score AND most importantly converts.

6. Algorithm Shift Risk Mitigation

With all of the changes lately in the algorithms paid search is a great way to hedge against a massive drop in performance.   By monitoring a drop in organic performance in high-value keywords the PPC team can immediately fill the gap until the SEO is adjusted to regain the original performance.

7. Relevance Cannibalization

The effect of owning PPC terms where natural results already rank highly differs completely according to the brand, site, product, ranking position, competition and many other factors. When paid and natural are in the same place, these effects can be understood and accounted for.    We are seeing some interesting results interaction with different offers based on searcher intent as to which listing the searcher clicks.  Paid ads tend to be offer related and organic listings are awareness related.  By reviewing which the searcher clicks and the objective of each listing/page we can better understand the interests of the searcher.   A big challenge for large companies is the organic listing is pretty consistent yet the paid listings may be spread across multiple offers from different business units.  This may cause confusion for the searcher.

8. Misspelled Keywords

Often, the organization is focused on ranking well for high-demand keywords and get the branded variations by default.  Since it is rare that you will have misspellings on the site unless they are really close to the brand name you may not rank for them.   For one recent client, there were nearly 12,000 brand name misspellings that were driving traffic to the site.  Many of these were captured very inexpensively via paid search.

There are a few others best practices and reasons for integrating paid and natural search but for now lets focus on these 8.   All of these are key attributes in our new Opportunity Miner feature.  What do you think? How do you view the relationship between paid and natural search?

Trust But Verify Click Rate Reports for High-Ranking Paid and Organic Results

If you’ve been around long enough, you’ve seen the research reports. And it’s become almost a part of the lore of search marketing. When searchers see the same site at the top of both the paid and organic results, they click a lot more than you’d expect. More than they click on those two results on that same page when they are two different sites. We’ve repeated this over and over again, so it must be true. But is it?

It does have a certain logic. When you think about the way searchers scan result pages, they are looking for their keywords and related words in the search results and deciding in a split-second what to click on. If they see the same company in two places, they might believe that the company is more credible than the other individual search results. That slight edge in credibility might lead to a lot more clicks.

It’s been important for search engines to persuade us that this is true. Why? Because there is equally powerful logic in the other direction. If you already have the #1 result in organic, why would you want to pay for the top paid search spot? You might be paying for traffic you’d get for free. So, it’s good for business if the search engines can prove that showing up in both places really pays off.

So, search engines have regularly studied the issue, along with search consultants who also would like this to be true. Yahoo! reported that it saw a 60% lift back in 2003 when it studied this issue. Google was even more optimistic, saying that there is an 89% lift in clicks on paid search when sites have top results in both areas.

Are these studies false? Unlikely. They probably revealed just what they purport to show. But that isn’t the important question for you. You don’t really care whether searchers in general click more. You want to know if your searchers do!  On top of that – do you even know if you have both in high-ranking positions?  Ironically, it’s very easy to test which your searchers are clicking and converting on.  You just need to pause your PPC campaign and take a look at whether the organic clicks go down.

But almost no one even tries this kind of experiment. A Back Azimuth study on keyword management best practices shows that fewer than one percent of all search marketers have even looked at paid and organic search together. Have you? And what would you find if you did?