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Ad copy is a unique aspect of the search campaign because it is the only part that the visitor can interact with. Marketing Sherpa estimates say that a searcher will spend only 0.7 seconds on average reviewing an ad, yet in that small amount of time you must:

• Grab the searcher’s attention against 10 organic links and 9-11 other paid links
• Describe the product/service you provide in a manner relevant to the search query
• Have an enticing call-to-action that tells the searcher what is expected of them after they click on the ad.

The ads need to be attention-getting and relevant, but also describe who will benefit from the site after s/he clicks on the ad. As an example, imagine each ad being a closed door with a peephole. The relevance of the ad determines the size peephole to look through, and the quality of the ad is how many appropriate people will be enticed enough to walk through the door. If all these are being performed correctly, it should provide the optimum combination of clicks and conversions, which leads to cheaper CPAs, cheaper clicks, and lots of profit.

TIP: It is very rare to want as many people to click on an ad as possible. Writing copy that qualifies an ideal visitor will tell some people that the site is not for them.

There are several online marketing metrics that don’t have the same relevance in search that they do in other fields. For example, CTR is important to banner ads because the advertiser pays for each 1,000 impressions. CTR in search varies based on each client’s goals, and sometimes won’t play a large role in making decisions within an account. The primary reason to use CTR is if you don’t have conversion tracking enabled. If this is not the case the conversion rate and the Return Of Ad Spend (ROAS) should be your key performing indicators.

Character Limits

The engines are more similar than different when it comes to ad display requirements. Here is a basic list of each engine and their maximum requirements:

Writing Effective Ad Copy & Headlines with Calls to Action

Headlines are in a different color and will be the first part of the ad a person sees. Having this stand out will be ideal to get attention. The best method of standing out is to do something that the other advertisers aren’t doing. This may require using a keyword insert function, but it may also mean to not use a keyword insert when everyone else is. It may also simply be to use a unique style of writing that others aren’t incorporating, like asking a question or even being a little silly. Always keep in mind that it has to be copy that you won’t mind if the client sees while doing their own search, so keep it clean and inoffensive. You should also avoid the use of fragment ideas or concepts, because the short number of characters should be used to complete a full sales pitch.

The description line is the place to back up a claim made in the headline, and/or to give detail about the advertised product or service. It is also the ideal place to add exclusive language to ensure that only the quality traffic is coming to the site. For example, if a client is a networking company for large businesses, a lot of the keywords used by a large business will also be used by consumers and small businesses. By saying “Designed for businesses with 200+ employees” a consumer and the small business will instantly know the ad is not for them. At the same time it will make a searcher at a large business more interested since they know they are the targeted audience.

The display URL acts as a mini-branding function by telling the searcher where the ad will take them. It doesn’t have to be the same as the landing page URL (which will sometimes be very long) and gives some leeway into bending some of the editorial policy rules.

Exclamation points and capitalized words are not allowed in ads. Only one exclamation point can be used within the ad copy of an ad, and one shouldn’t use superlatives like “best”, “greatest”, “lowest”, or “cheapest” without the claim being backed up on the landing page of the ad. This can be worked around, since Google only actively monitors terms like “#1″, “Top”, and “Lowest”.

TIP: If you upload ad copy via AdWords Editor for Google, you can bypass some of the regulations for a limited amount of time. It will let you upload individual words as capital letters. So try saying “FREE” instead of “Free”, and see if it has any impact on your conversion rates.

Using KeyWord Insert Functions

All three engines allow the option to include the search term into a headline or ad automatically to increase relevancy. Studies by Google suggest that using keyword insert increases the click-through rate (CTR) for an ad by varying amounts. The search engines want a high CTR because that’s what they get paid on: clicks. Otherwise the ads take up valuable screen space and don’t generate revenue, which is why the engines typically penalize low CTRs.

By adding the Keyword insert function into an ad, it usually guarantees a part of the ad will placed in bold, which often catches the eye of the searcher. However, as the practice has grown and is being used by less experienced advertisers, some use it as a shortcut for not creating tight ad groups and to still get parts of the ad placed in bold.

TIP: Creating a tightly knit ad group gives more reason to use keyword insert because it will make the rest of the copy more relevant to the keyword being included in the copy.

Keyword inserts don’t always work. One must always consider the character limits on the ad copy while considering using the keyword insert feature, since some search strings can go beyond the 25 or 35 character limits. The engines require a backup to display in case the search query is too long. He backup is the description after the colon mark within the brackets:

{KeyWord:Buy Black Shoes}

A space is not needed after the colon because that would tell Google to place a space before the word “Buy”, which will waste a character and will get chopped off anyway.

Google Ad Copy

Google requires two unique lines of text that can run up to 35 characters each. Previous experience shows that ads usually perform better when each line is an independent sentence instead of one sentence running across both lines. Typically the headline serves as a stand-out function that tries to separate it from the other ads. The goal is to be relevant to the search query and visible to the searcher. When an ad has the same keywords as the search query, Google puts those keywords in bold within the ad. This is often done by using a keyword insert function that takes the search query and inserts it into your ad and instantly making it bold. However, as everyone tries to stand out by using this function, they all begin to look the same. In order to truly stand out one can remove that common factor and be a successful ad without having anything in bold.

Yahoo Ad Copy

Yahoo currently allows 40 characters in the headline with 70 characters in the description line. There are two primary differences between Google and Yahoo copy:

1. Google breaks its 70 character limit up into 2 lines of 35 characters, where Yahoo has one line of 70 characters that automatically wraps to a second line as space requires.
2. Yahoo allows for alt text for dynamic headlines. These allow for more control over what appears with a keyword, if the search query exceeds the character limit.

TIP: Yahoo strongly recommends the use of keyword insert to all advertisers. If your conversion rate is starting to dip on otherwise strong copy, try replacing the dynamic headline with a static headline .

Try using the same ad copy on all three engines simultaneously. This will limit the amount of time needed to run statistically relevant ad copy tests due to the higher impression, click, and conversion data.

MSN Ad Copy

MSN took the basic concept of Google’s ad system like testing, geo-targeting, and keyword-insert, and expanded it. The character limits are the same as Google’s, but instead of two description lines of 35 characters MSN has one description line of 70 characters that will automatically wrap to the second line. Visually this makes all of the ads look left justified compared to Google’s which look force justified. Along with keyword insert, MSN allows for a new feature called dynamic text for each keyword. The premise is that one can change the standard order-level ad copy to better fit a specific keyword. This will typically benefit eCommerce sites with large volumes of product pages that want each product page as a landing page for a keyword.

MSN Dynamic Text Example

In the above example the name of the order group was put in the headline as a Parameter to emphasize a larger sale than one that would only benefit the searcher, and help the advertiser know what sale language caught the searcher’s attention. The keyword insert function was used early in the ad to draw attention and increase relevancy to the searcher, showing that the site has exactly what she is looking for. Finally, a third parameter of price was included so that the searcher knows exactly what she will find when getting to the site.

Using Price in Ad Copy

There is a debate of whether one should or shouldn’t include the price of an item in the ad copy. The argument against is that if the searcher has seen it for less somewhere else, regardless if it is not an exact item match, then she will ignore the site completely. This can be bad for both parties if there are additional rebates or other offers that the searcher wasn’t aware of before clicking on the ad. The argument for including cost is it tells the searcher up front what they’re expected to do and what it will cost them, which should increase the conversion rate. However, one would have to test different ad copies to see if the overall revenue generated with mentioning cost is greater or lower than not mentioning the cost. This will be shown in more detail later. Generally speaking, if the price is above certain psychological levels, or above the price of competitors in the same advertising space, don’t put the price in the copy. If the price is lower than competitors, and the average shopper knows that price is a good deal, then put it in the copy.

Whatever you write for your copy, keep in mind that the headline has to relate to the keyword, the copy has to relate to the headline and sell, and the landing page needs to relate to the copy to avoid a disconnect between you and the searcher. If you have suggestions beyond what is written here for successful copy, please feel free to share it via the discussion.

So it finally happened: Microhoo, YahooSoft, YaBing…however you call the search deal between Microsoft and Yahoo it is now officially signed with the biggest pen I have ever seen.  There has been tons of write-ups on the pros and cons by people with a lot more access to the high-ups than I have or care to have, so I’m going to leave all the strategy and win/lose discussion to them.  If you’re interested in that stuff, check out the coverage at TechFlash, TechChrunch, Andrew Goodman’s take, and of course, one of Danny Sullivan’s famous 15,000 word posts.

All I really care about is how this affects advertisers like you and me.  What does this mean for our accounts in the near future and beyond?  For right now, nothing.  Before anything happens the deal needs to get regulatory approval by the Justice Department.  And considering how hard Ballmer’s lobbyists fought the Google/Yahoo deal a couple months back, you have to assume Google will be more than happy to return the favor.

Assuming all that goes through and everyone is happy, then there is still a 24-month implementation process before all Yahoo SERPs are powered by Bing. During that time frame it appears that the Yahoo Panama interface will be retired and all advertisers will purchase ads by auction for both Yahoo and Bing through the adCenter interface.  Self-serve clients (whcih is almost everyone) will do everything through adCenter, while premium clients will be handled through the Yahoo sales team, but also do everything with Microsoft’s technology.

Make no mistake, this is huge.  As Danny pointed out yesterday in a seperate article, Yahoo is bowing out of search.  In the meantime, here are some suggestions on how you can better prepare yourself for this transition:

• Get Used to the Bing Interface: It is mighty quirky, so learn your way around it.  I’m sure changes will be made in the future, but learning the system now will shorten your learning curve as updates are made in the future.  If you haven’t opened an account, do so here.
• Download the adCenter Desktop: It’s still in beta, but I can only assume this tool will get better and better, just like the Adwords Desktop tool did, so learn it, live it, love it.
• Play around in the AdLabs: I’m always surprised that people don’t know about this fun sandbox for potential features and tools, but this is a great way to see what crazy stuff those engineers are thinking about for future improvements.  Familiarizing yourself with them today means less time figuring out how to use them tomorrow, if/when they get incorporated into full features within adCenter.
• Read the Help Guides & Forums: This may sound too newbie-like for expert advertisers like yourself, but it really does help understanding the wording differences between the engines.  It also helps you understand a little on why things are organized the way they are, and from a logistical perspective, these documents are updated the most frequently.  If you are a newbie, then you NEED to read it.  Login to your account and click on the help link in the upper right above the search bar.

Change is coming, as it always does in the dynamic world of SEM.  All we can do is prepare.  Doing the above steps will put you one step closer to readiness than your competitor.  Even though this may not happen for several months, start learning today and squash the competition tomorrow.

Courtesy: BusinessInsider.com

You probably get them as much as I do: those sales calls from people who can “guarantee top positioning in Google and other search engines”.  Little do they know that when they call me, they’re talking to someone who doesn’t mind showing them just how little they know about search engines and business in general.  Heck, if I can keep them on the phone a couple seconds longer, that’s hopefully someone else saved from hearing their snake oil spiel in the first place.  On one such call, I let the gentlemen finish his whole script and he proceeded on the hard sale.  I asked him one question: “What kind of ROI can I expect to see from your services?”

“Oh, our ROI is AWESOME” was his response.

Um…no it isn’t.  Last time I checked, ROI was a calculation where you take earnings minus cost divided by cost multiplied by 100 to get in percentage terms [((E-C)/C)*100], which I’m pretty sure leads to a number…not AWESOME!  The analysis of how that number meets expected goals may lead to the label of “awesome” and high-fives all around, but ROI itself is simply a number.

If you’re wondering why I’m ranting on this, it’s because this is the perfect example of mixing up the difference of results and the interpretation of the results.  This is critical when it comes to monitoring PPC performance.  You could have a 500% ROI, which some might consider awesome, but what if your break-even point required a 750% ROI compared to other activities you could have done with those resources?  Ladies and Gentlemen, in this case “awesome” has left the building and you have some explaining to do.

Since PPC can be factored down to the penny at a keyword level, don’t consider ROI as a goal, but as a floor to build on.  Look at your daily or weekly reports and ask yourself “Can I be happy with these results if they continued for X amount of time?”  If the answer is no, then you just reviewed the actual results, and interpreted them to be insufficient (aka “not awesome”), regardless of what the actual ROI is.
If you know that to break even after shipping, commissions, taxes, and all other costs that you need a 250% ROI from PPC (or $2.50 ROAS…same thing) then you should set your floor at 250% and not your goal.  Set goals in three forms: Ideal, Expected, and Acceptable.

• Ideal is shooting for the moon and really worthy of being called “Awesome”
• Expected is profitable and sustainable.
• Acceptable is north of break-even but you really want it higher.

This is especially critical if you work with agencies because agencies will ask you what your target is, and if you say 250% they’ll give you as much volume as they can at the 250% to spend as much as they can (assuming their compensation is based on percentage of spend).  So remember…awesome is a goal, not a number.  ROI is a number, and not a goal.  Setting a given ROI as a goal is awesome, so long as you know what your results should be.

credit: BusinessInsider.cm

Bing can be portrayed as a search marketer’s best friend or biggest annoyance.  Agencies, who typically charge based on percentage of media spend, hated Live/MSN search because it had relatively no search volume, which meant no media to spend, which meant no fees to charge.  It also has the hardest user interface to properly setup ad groups, took the most time to manage, and probably has the most quirks like {param} settings and a bunch of other baloney that 95% of the people don’t know how to use.

But then this rebranded search engine came out called Bing.com and was backed by $100 million in marketing–and get this–people are actually using it!  So is it time to rush over to the adCenter and open up an account?  Well, if you like making money, then you probably should.  Here’s why:

Since agencies have often shunned it for so long, there still aren’t a lot of other advertisers on Bing compared to Google and Yahoo.  This means less competition, cheaper CPCs, higher CTRs, and hopefully higher conversion rates.  Even though it only has 7-9% of the market share, you know what?  That’s still 7-9% of the BILLIONS of searches that happen every month!  If you could increase your orders by 7-9% with a 4-5% increase in PPC spend, wouldn’t you want to?  Also, since the costs per click are lower (due to the less competition) then that usually means lower costs per conversion, which means you can afford to buy more!

OK…So You’re Going to Advertise on Bing.  Now What?

Like I mentioned earlier, adCenter is the quirkiest interface to work in, so I wouldn’t go duplicating your Google account and importing it over to Microsoft.  Instead, look at your converting keywords over the last 60-90 days, and import only those.  AdCenter ad lengths are the same as Google’s so you can even import the same ads if you want.  Unless you really want to spend some time reading the help guides, I’d stay away from the param settings for now.  I’ll explain those in another post.

Finally, make sure you don’t import your Google bids into MSN, otherwise I can almost guarantee you’ll skyrocket in top position.  Use bids 30-50% lower than Google to see how you do, and adjust accordingly.

So should you advertise on Bing?  Yes. Yes you should.

It’s not uncommon for me to meet people who are interested in getting started with paid search, but have no idea how to get started.  That’s usually why they come to me in the first place.   More often than not, there is one question that trumps all others right out of the gate:  How much can I afford to pay?  It’s one of the toughest questions in search marketing, and it usually comes from a conversation that goes something like this:

I can spend $500 each month on advertising on Google and other search engines. But, what do I set my bids at? Where do I start?  How do I know what I can afford to pay for a sale?

If you’re like most people who have asked themselves this question, your answer is probably similar to theirs:  Less than what I’m paying now.

I’ve determined that the easiest way to answer this question from the beginning is to start at the end and consider how much profit we want from PPC, and using that to determine how much we’re willing to pay for a sale or conversion (typically referred to as a Cost Per Acquisition, or CPA).  So grab a pencil and some paper, or open an Excel window, and prepare to think about your goals.

Things to think about:

We need to consider a few things before figuring out what a reasonable CPA is:

• How much margin is gained from each sale?
• How often does your site convert visitors to buyers?
• Is your margin the same amount regardless of product or quantity, or does it vary per transaction?

Once you have considered this information–even in just ballpark terms–then you can begin working backwards to find out what you can afford to pay per sale and then determine your ideal cost per click.

First of all, how much of your margin are you willing to reinvest into the business in the form of future PPC advertising? This answer is based solely on your objectives and intentions, so there’s no way I–or anyone else–can tell you what this number should be.  As a starting point, you may want to consider this number in terms of a percentage. This will allow you to adjust your budgets over time so it’s easy to calculate modifications when you make changes in your pricing or cost structure. As an example, let’s assumes an advertiser is willing to invest 30% of her margin into PPC advertising to determine her ideal cost per conversion.  (I keep emphasizing PPC advertising because if you consider all advertising you will have a lot more volume from higher CPAs than you intentioned, and this will lead to a lot more money spent than you planned, and leave your original goals useless.)

EXAMPLE:  A website sells a product for $299.99, with a cost of goods sold of $194. This means the sale has a margin of $105.99. If she reinvests 30% of her margin, she would have $31.80, which would be your acceptable CPA.

Ta da! Now this advertiser knows how much she’s willing to spend for this $300 sale, roughly 10% of the sale total, or $30-32.

Determining Costs per Click

Once you know how much you can afford to pay on a sale, then you need to know how often you can sell a product to someone who comes to the site. This is where your site conversion rate comes in. If you don’t know this number already, simply take the number of sales (S) you receive on your site and divide it by the number if unique visitors (UV) over a given length of time, usually a month. Multiply this number by 100 and you have your conversion rate in percentage form.  As a formula, this would look like:

Conv Rate =(S / UV) * 100

To continue our example, we’ll assume that our advertiser has made 20 sales from 1000 visitors, which would be a conversion rate of 2% [2%=(20 / 1000)*100].  After you know your site’s conversion rate and your acceptable cost per conversion/sale, then you have the information to figure out what you can afford to pay per click to get those visitors to your site. Take your conversion rate in decimal form, (the conversion number you have prior to multiplying it by 100), and multiply it by your acceptable CPA.  In our case 2% is the same as 0.02, so the formula would look like this:

0.02*$31.80=Max CPC

Our advertiser has determined that her max CPC to meet her CPA is $0.64 per click. Voila!

WAIT! Don’t set bids to be $0.64! That would be too easy. Remember that your bidded CPC is rarely the same as your actual CPC, so you can go as much as 20-40% higher than your acceptable CPC to get close to $0.64 being your actual CPC.  In this case that would make the bidded CPC somewhere around $0.75-0.80.

DOUBLE WAIT!  There’s one other problem: This method doesn’t take into account competitive factors, ad copy changes, or landing page conversion rates, which all can have huge impacts on your costs per click AND your PPC conversion rates. So what do you do then?  Well, the honest answer is you test everything.  First of all, given the products/services you sell, is $0.64-0.80 a high CPC or a low CPC?  If you’re selling insurance you’re not going to be able to play ball with the big leaguers (unless you follow my advice on how to compete with bigger advertisers), and if you’re selling buggy whips, then your ads may be crammed in position 1, which is usually a good sign that you’re over-paying.  So test, and re-test again to see which of the variables, or combination of variables, gives you the best outcome.  You can always go lower and get cheaper CPCs and CPAs, but if you want to max out what you’re willing to pay to maximize volume, then this is how to get a good start.