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You may believe search deserves a bigger
budget, but you still need ammunition to justify a major budget shift. Maybe
you plan and allocate auction-based media budgets on an annual basis even
though the predictability of inventory levels, engine allocations, ROI or
profit are unreliable at best. Each industry and business are different, but
nearly every search marketer should ask for bigger budgets now instead of
scrambling for budget next year when that a paltry search budget won't
deliver the results you desire, as your competition leaps over you.
As you think about next year's budgets, you
may want to factor in some strategic reasons and rationales covered in this
column. Just one of these rationales may provide a basis for a two-fold
budget increase. When combining these factors and trends, you may determine
that the correct budget increase is significantly more than double.
Here, in no particular order, are my top 10
reasons to double your search budget for 2008. Most of these reasons are
U.S.-centric, but many apply to international markets as well.
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Search query volume will increase modestly
overall but may have particular spikes in your category due to systemic
or marketing-related events. Even if search query growth is 10 percent,
those additional clicks add up.
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Other media increasingly drives search
behavior instead of store traffic or personal conversations. Your online
and offline media buys, PR, and viral marketing are driving search
behavior; as you spend your other media more effectively and design
better viral or social media campaigns, your brand and generic searches
will increase.
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Better targeting by the search engines
will increase your terms' CTR. By improving the selection of your ads
(or your competition's) that belong in a SERP , the average number of
outbound paid search clicks per impression will go up. When combined
with more searches, there is a multiplier effect.
-
You and your competition will hopefully
perform additional creative testing within the next six months. Better
creative garners more clicks per impression, which means your spend will
increase. Additionally, you may get a boost in position based on the
better quality score on your new search ad creative.
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New entrants into the market may escalate
click prices. Believe it or not, some major marketers are just
discovering search or that search campaigns are effective beyond the
no-brainer keywords. Those deep-pocketed marketers can hit the ground
aggressively and not even worry about ROI for the first year.
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Click price escalation may be driven by
existing marketers improving their conversion rates based on landing
page testing. Just as you regularly test landing pages or other ways of
raising conversion rates, so do your competitors. As they succeed in
raising the conversion rate, their allowable max bid for CPC goes
up, and even if they manually bid, one can expect bid escalation. An
automated campaign system can allow you to do elasticity tests to
determine if position change is sustainable.
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New keyword-targeted contextual inventory
opportunities will arise. These include links placed in video players
and across social media networks. Google, Yahoo, and Microsoft will be
joined by an increasing number of players selling keyword-targeted text
link ads placed by context.
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Behavioral targeting opportunities for
display inventory, pure text inventory, and creative assembly ads will
increase. Yahoo already has Smart Ads, but I expect to see simpler
retargeting options to become available from other engines, though
perhaps not Google, based on its current stance on search retargeting.
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More screen real estate will be dedicated
to paid listings. As the relevance of paid ads improves due to engine
targeting and marketers further refining campaigns, match types, and
creative, the engines, in particular Google, will be more likely to
allocate screen real estate to ads. In addition, there may be new tabs
where advertising shows up for the first time, including news video and
images.
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More research showing the true value of
the search impression and click will be released. This will drive
marketers to increase budgets, often pulling spend from slush funds or
canceling other media with poor or dubious performance.
It's always easier to ask for the PPC
search budget money now than to ask for it during a crisis when rivals are
collectively kicking your butt, taking market share, or poaching your most
valuable customers. A well-tuned campaign can almost always absorb more
budget, so ask for double and support that request with these reasons as
well as any internal data showing trends that indicate you'll need more for
search.
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