Tuesday, July 20, 2010

How is PPC Campaign Affected with Yahoo/MSN Merger?

Here is a very interesting article from Joseph Kerchbaum on 'How the Yahoo/MSN Merger will affect your PPC campaign'.

As part of the transition, Yahoo and Microsoft also have come up with joint editorial guidelines

Distribution Channel Selection and Reporting

Unlike other PPC distribution options such as search partner networks or content (display) networks where you can opt-in or out, you will not have the option to choose whether your ads appear on only Yahoo or Bing; it's all or nothing.

Within your newly merged adCenter account, your PPC advertisements will be displayed on both Bing and Yahoo search results pages (SERPs).

You may have discovered from your own historical performance, Yahoo and Bing have different audiences and their ROI can vary greatly. I have worked with clients in the past where our results in one of these search engines were strong and the other was lackluster. When this occurred, we adjusted our budgets accordingly to gain the best results.

After the merger, you won't have this option. You either display ads on both search engines or neither of them.

I guess it make some sort of twisted sense that if you can't opt-in or out of either search engine, why provide this level of reporting? The data displayed within your merged adCenter account will contain an aggregate of your Yahoo and Bing performance for each keyword and ad text. You won't be able to monitor the performance of a keyword specifically in Yahoo or Bing.

Keyword Match Type Transition and Mapping

The Yahoo Search Marketing interface provides two matches: standard and advanced. AdCenter provides three match types, similar to Google AdWords: exact, phrase, and broad. When keywords are moved from Yahoo to adCenter, their match type will have to be transitioned.

In Yahoo Search Marketing, the keyword match types are managed at the campaign and ad group level. So, in one ad group all of your keywords are the same match type.
Standard match type keywords will be transitioned to exact match in adCenter. Advanced match keywords will be transitions to broad match keywords in adCenter.

If your Yahoo account is transferred directly into adCenter you'll need to make significant changes to your keyword strategy.

For example, the canonicalization of keywords in Yahoo Search Marketing maps the singular and plural variations and common misspellings to the primary form of the keyword.

Within adCenter, the singular, plural and common misspellings are treated as individual keywords and need to be bid upon and managed separately. If you bid on the keyword "truck," you will also need to add all of the variations to your account.

Excluded Keywords Options

Both interfaces allow you to implement negative keywords. However, they offer different limits on how many negative keywords you can add to your account. AdCenter offers a wider range of options for this tactic. If you transfer your Yahoo directly into adCenter, you can expand your negative keyword list.

For example, Yahoo's limits on negative keywords:

  • Account level = 500
  • Campaign level = 1,250
  • Ad group level = 500

AdCenter limits on negative keywords:

  • Campaign level = thousands
  • Ad group level = thousands
  • Keyword level = 1,024 characters

When moving a Yahoo account into adCenter, excluded keywords will transition over at the same level, except account-level excluded words, which will be set to the campaign level in adCenter.

Geo-Targeting Differences

The tactics for which you can target specific geographic locations differs between the two PPC interfaces. Therefore, when you transition between accounts, you should make adjustments accordingly.

In Yahoo Search Marketing you have the ability to target campaigns and/or ad groups by:

  • Market
  • Country
  • State
  • DMA
  • City
  • ZIP code

Within Yahoo Search Marketing the location of a user is determined by:

  • Geo-modified queries
  • ULM/registration data
  • IP address

Geographic targeting and user location determination functions differently in adCenter. With adCenter, you can target campaigns by:

  • Country/region
  • State/province
  • Metro area
  • City

Also, the user location for an adCenter visitor is determined solely by IP address.

Ad Copy Length Differences

In Yahoo Search Marketing, your headlines can be up to 40 characters in length. In adCenter, headlines are allotted only 25 characters.

If any ad's headline exceeds this 25 character limit at the time of transition, that headline will be truncated and transitioned as inactive. I'm not certain how the headline will be truncated so this is something you'll certainly have to monitor. The adCenter team may completely rewrite your headline or they may just cut out a few words. Either way, it's a bad deal for your ad and you need to act accordingly.

Hopefully, all of the account transitions will go smoothly and advertisers won't feel too much discomfort during the change.

However, I have one tip that is pretty straight forward and should save you a lot of headaches. To avoid all of these account merger issues, you should just open an adCenter account now and build it exactly how you want it. If you already have an adCenter account, then you're already covered and you won't need to do anything.



In August or September, when you log in into your Yahoo Search Marketing account, you'll see a screen similar to the above. On this screen, you'll have three options. If you already have an active adCenter account, then you won't need to do anything.

If you choose option three for the transition (and you should) then you should receive a notification when your Yahoo Search Marketing account has stopped distributing ads and these search queries have been transitioned to your adCenter account.

Monday, July 19, 2010

Is Quality Score a gimmick by Google to make money?

Somewhere in the mid of 2005 as a revolution towards stressing on the fact of relevancy, Google came up with the concept of Quality Score. As per Google below are some of the factors that influence QS:

  • Historical clickthrough rate (CTR) of the keyword.
  • Your account history, which is measured by the CTR of all the ads and keywords in your account.
  • Relevance of the keyword to the ads in its ad group.
  • Relevance of the keyword to ad and to the search query.
  • Your account's performance in the geographical region where the ad will be shown.
  • Other relevance factors.
Since then Google has added lots of factors that would influence Quality Score, such as the inclusion of landing page quality and landing page load time and so on not to forget ‘other relevance factors’. Above all one question that hunts all SEM professionals is how is Quality Score Calculated? What are those ‘other relevancy factors’?

To all readers I would like to share the result of a test conducted across multiple accounts regarding QS. For a test period of 15 days bids were reduced drastically for all keywords with low QS (1 to 4), leading to which keywords that were consuming almost 60% of total cost of the account dropped to just 18% of the total cost contribution impression and clicks from keywords with low QS dropped by almost 80%. CTR for all these keywords went from bad to worst during this period. (Point to note: apart from bid changes no other changes such as ‘Ad Copy changes’, ‘Landing Page changes’ were done to the account). Strangely by the end of the test period QS of almost 55% of keywords with low QS (1 to 4) in the account had gone up to (6 to 7). This sudden change in Quality Score trigger’s certain question in my mind.
  • What made Google to suddenly change the keywords QS to that high?
  • Did Google suddenly realize that Keywords and Ads were very relevant in that ad group and it has assigned low QS and raised the QS?
  • Did the past 15 days CTR (worst ever in the history of that account) match to the industry standards and hence raised the Quality Score? Finally important one
  • Quality Score for these keywords were increased just because Google stopped making money on these keywords? If yes then the whole concept of Quality Score from Google is just a gimmick to make more money?
If anyone has an answer to these questions, your comments are welcomed!

Tuesday, June 8, 2010

Going Back to Basics - Google AdWords

Today i have tried to answer some of the frequently asked questions in Google AdWords.

What is Ad ‘Rank’?
Ad rank is a score that your keyword receives when the quality score is multiplied by the max CPC. Formula: Ad Rank = Max CPC Bid x Quality Score

  • Advertiser A. Max CPC of $1.55 with a Quality score of 7 = assigned rank is 10.9 = position 1
  • Advertiser B. Max CPC of $1.65 with a QS score of 4 = assigned rank of 6.6 = position 2
  • Advertiser C. Max CPC of $1.30 with a QS score of 5 = assigned rank of 6.5 = position 3

What is the difference between ad rank and ad position?
Position is the actual position of your ads on the results pages. Rank is the score a keyword receives based on it’s quality score and Max CPC and this Rank is what determines your position and what you pay per click.

How do I raise my Ad Rank?
Ad rank is determined by Quality Score X Max CPC, so if you raise one of them your ad rank will improve. But just increasing Max CPC might not directly increase your ad position, as keywords should also qualify/exceed certain quality threshold set by Google. (Hence QS has the upper hand among them)

How is Actual CPC calculated?
Actual CPC is calculated by dividing Ad Rank to beat (Ad Rank of the ad showing beneath you) by Quality Score + $0.01. Formula: Actual CPC = (Ad Rank to beat ÷ Quality Score) + $0.01

  • Take B’s rank of 6.6 and divide it by A’s QS of 7 – 6.6 / 7 = 0.94 cents. 0.94 is what Advertiser A has to pay + 1 cents added to place it above B’s position for a total of .95 cents.
  • Take C’s rank of 6.5 and divide it by B’s QS of 4 – 6.5 / 4 = 1.62. 1.62 is what Advertiser B has to pay + 1 cents to place it above C’s position for a total of 1.63 cents
  • This process repeats until the end of the auction where the last bidder pays the minimum bid required to be active in the action.


What does ‘below first page bid estimate’ mean?
Below first page bid estimate indicates that you need to increase your bid to be placed on the first page of search results. Reasons for this could be quality score of that keyword is too low or you may be in a competitive market and your bid is not meeting the minimum bid requirement to qualify for first page.

What does ‘Rarely shown due to quality score’ mean?
This message indicates that you have a problem with your Keyword Quality, Landing Page Quality Score or possibly both. Your quality score needs to be addressed immediately.

What does ‘Low Search Volume’ mean?
“Low search volume" keywords are keywords associated with very little search traffic on Google properties. Keyword can have low search volume for a various reasons, including a lack of relevance to users‘, keyword obscurity, specificity or a significant misspelling of the intended keyword.

What is Bid Optimization/Management?
Bid management is the process of optimizing paid search / sponsored search campaign by modifying the bids to get the desired rank by specifying the maximum amount you are willing to pay per click for a keyword in order to maximize return on Investment.

How is Bid Optimized?
At present most of the PPC campaigns are optimized by manual optimization or by using bid optimization tools.

Manual Optimization enables dynamic bid changes at any given point based on the performance metrics and client goals. It is more dynamic then Bid Management tools because click trends are not uniform throughout the month/day so based on current situation and real time data analysis instant action can be taken in order to maximize ROI

Bid Optimization Tools enables maximize efficiency of spend in order to reach client goals. Bid Management Tools make Keyword-level bid recommendations based on historical data for each keyword, using sophisticated statistical algorithms within parameters / strategies set for each set of group or keywords. Most of the tools available in the market work with the concept of
  • Max Bid
  • Min Bid
  • Target ROI %