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Affiliates Can Ruin the (Third) Party

Affiliates often advertise on the same search keywords as the companies they work with. In theory, this is a great way to keep products exposed and sales continuous, but also an effective way to drive up bid prices. An example:

The toy company Splash has launched a search campaign for their newest squirt gun, the ICE-Blaster. XYZ Toys is an affiliate that will bolster online ICE-Blaster sales.

Both company’s search campaigns include the brand term ‘iceblaster’. Considering the direct relevance to the name and the highly-targeted traffic the SERP will attract, the cost-per-click (CPC) should be relatively inexpensive.

However, because Splash never established affiliate bidding and position rules with XYZ Toys, both companies instinctively bid for first position, raising the competition of the term and inadvertently increasing each other’s CPC.  Worse yet, both Splash and XYZ are sending search traffic to the same domain, Splash.com. Google will only display one ad per domain on a results page. Because Splash is bidding less on the term, their ad is not being displayed, which creates inconsistencies in impression share, spending and sales.

Splash can avoid raising CPCs and losing impressions by implementing and enforcing strategies such as controlling affiliate keyword lists, coordinating affiliate position targets, and requiring the affiliate to use a separate domain.

A well-designed affiliate strategy can significantly improve your online presence and provide cost-effective sales, but requires planning and coordination in order to be efficient and to allow you to maintain control of your brand.

File Under: Pay Per Click & Search Marketing Comments (0)

Successful paid search marketing in the legal vertical begins when profit is reflected in your keyword optimization. Assessing campaign data with the added conclusions of realized clients, case revenue and client cycle will emphasize the effectiveness of individual keywords by giving them a tangible value that matures through its lifetime.

Measuring keyword performance on cost-per-lead (CPL) alone begets misguided bidding strategies. Although top converting keywords may have a low CPL, resulting leads must produce paying clients in order to be profitable.

Tie case revenues to their attributing keywords, developing the quantifiable effectiveness of the keyword over time. However, keep in mind that knowing current keyword values is only part of the assessment process.

Because close rates vary, it is illogical to punish a keyword for poor performance if the leads it produced have not been given the proper amount of time to be realized. Define lead-to-client cycles to avoid penalizing keywords by reducing bid prices based on incomplete data.

Other factors to consider when optimizing performance on revenue generation include assessing value by case and division type, the value of repeat business, expenses (e.g., research and travel time), targeting ads to an audience looking to act rather than conduct research, geography, and performance targets by the various branches of law to account for differing revenue by the case types.

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iPhone to get a Bing Makeover?

In a move that would shake up the Mobile advertising world, BusinessWeek announced that Apple and Microsoft have been discussing a deal that would make Bing the iPhone’s default search engine. Currently, that honor is held by Google, which is run by mobile advertising company AdMob, Google’s recent $750 million dollar acquisition. Although users would still be allowed to switch their default back to Google, the coveted “default search engine”, would certainly result in a gain in market share.

In 2009, Google accounted for almost 88 billion searches or 67% of the global search market. Bing registered just 4.1 billion, but did grow 70% over Microsoft’s previous year with Live. Microsoft has a long way to go before it catches Google in the search market, but an iPhone move to Bing would be a large step in the engine’s uphill battle.

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Pay-Per-Tweet

Internet marketing has expanded into yet another channel in recent months as a few startups are attempting to tackle the world of Twitter marketing. From the beginning, companies have used Twitter as a PR outlet to announce updates, offer coupons and deals, and connect with followers. The San Francisco Chronicle reports, however,  that in the last six months a few startups have now ventured into Pay-Per-Tweet marketing, where companies have reportedly paid celebrities between a few dollars and $10,000 to tweet an ad for the company.  Similar to PPC search engine marketing, firms are then paid per click-through.

With celebrities having upwards of 1.5 million followers and growing, Pay-Per-Tweet marketing could be a great way for companies to reach a targeted audience. How profitable it is for the advertiser remains to be seen.

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