Data-Driven Paid Search Marketing

September 22, 2009 mkazberuk — 0 comments

For marketers managing paid search and online campaigns, data is paramount. They use data to make campaign adjustment decisions, to determine budgets, to pay channel partners and affiliates, and to justify advertising spend to their management.
 
Once in a while, a new Webtrends Ad Director customer asks us about a seeming discrepancy in their data. Our reporting may have numbers which are higher or lower than those reported by a previous vendor, or the cross-channel reporting in their Analytics UI may not match our data for the paid search channel. When this happens, our customer will frequently ask which system is wrong and how they can fix it.
 
The ability to measure the success of search marketing campaigns and effectively compare them over time is mired in how performance is tracked and how metrics are defined. As many companies change paid search tools, outsourced vendors and the internal staff who manages their search marketing campaigns, understanding and leveling the data becomes increasingly important. Even when campaign goals remain the same, changing reporting parameters or outsourced providers can lead to dramatically different perceived results.

While sometimes the discrepancies are due to tracking not being set up correctly, frequently they are the result of vendors using different tracking and attribution methods.

Examples we frequently see include:

1  First-Party vs. Third-Party Cookies

Many anti-spyware applications and default privacy settings block third-party cookies and increasing numbers of users are manually blocking third-party cookies or regularly deleting them. This cookie rejection can result in loss of and less accurate tracking and conversion information. In contrast, first-party cookies are not blocked by anti-spyware software or privacy settings, and are the preferred method for more complete and accurate data collection.

2 Cookie Windows

Setting a same-session, one week, or 90-day cookie window will lead to different reported performance.
 
If you carry high price-point products which will require careful consideration and price comparison shopping, the conversion latency may be a week or more. By limiting your cookie window to same-session or one-week, you will miss the conversions which would otherwise be attributed to your search campaign.
 
It is also important to consider the portion of your customers who are single or repeat. If you carry products which will be replenished at regular internals (such as make-up), consider if you want to end up attributing each repeat sale to the click which drove the initial sale. If users restock their supply at regular one month intervals, by keeping a 90-day cookie window open you will effectively be seeing a “lift” in how many sales are generated by your search campaign over time.

Note that your paid search tool or vendor may also have attribution window settings which determine over what period they will take credit for conversions. If their attribution window is shorter than the cookie window, they will not take credit over the entire cookie period. If the attribution window is longer than the cookie window, they will only be able to collect recorded data until the cookie expires.

3  Methods of Conversion Attribution

It is possible to use many attribution methods and rules including last-click, first-click, multi-click, same-session-only, or anytime within the cookie window. Depending on the tools and tracking systems used, each one may have a separate cookie and may take credit for the same conversion event.
 
While businesses have different reasons for selecting a particular attribution method, the most important thing is to maintain the same or similar attribution method over time and to recognize that conversion data will look different with a change in method used. It is also important to recognize how the changes in attribution will impact reporting.
 
Examples of attribution methods can include:
·        Last click in: attribution is granted to the last channel and/or paid search listing which brought the user to the site prior to conversion
·        First click in: attribution is granted to the first channel and/or paid search listing which brought to the user to the site and eventually resulted in conversion
·        Multi-click: attribution is split across all channels and/or paid search listings which the user interacted with prior to converting

4  Definitions of Metrics

When speaking internally or with an outsourced search provider, make sure you have the same definitions of performance metrics.
 
For instance, is ROAS defined as (ad revenue – ad spend)/(ad spend) or as (ad revenue)/(ad spend)? Do these metrics include or exclude agency fees, if applicable?
 
Establishing these definitions ahead of time can prevent incomplete data later along with setting correct expectations for campaign performance.
 
 
It is important to determine early on how you plan to track your campaign metrics and maintain these settings to get the best picture of campaign performance over time. If you choose to outsource your paid search management or change reporting providers, make sure that your prior settings are maintained or kept as close as possible to how you are used to seeing reporting. If it is not possible to maintain all your settings, make sure to keep these adjustments in mind before analyzing the final data for performance.
 
By determining how you will be collecting metrics and performance internally, externally, and over time, you will have the clearest picture of how your search investment has changed over time and how it can be maximized in the future.

We will be discussing reporting and attribution methodologies, best practices, and the future of ROI-driven marketing in an upcoming webinar.
 
Please join us. Register here: True ROI-Driven Marketing Webinar

CATEGORIES: Best Practices Marketing Optimization