Convince and Convert Blog: Where Social Media and Email Collide

From Dot Bomb to Dot Boom

Let’s face it. The economy is taking on the distinctive, sickly pallor of a post Mardi Gras Keith Richards.

Generally, recessions hit the advertising business with the ferocity of a rabid wolverine, and the last one trimmed overall ad spending by 9% according to market researchers Veronis Suhler Stevenson. The wolverine in question mauled and devoured online advertising, which plummeted 27% over two years during the last recession.

This time it will be different. Not only will online marketing survive, it may actually thrive during the lean times, continuing its inexorable theft of ad spend from traditional media tactics. Online is far more mature and proven now, and there are five specific reasons why it will be the go-to tactic among increasingly budget-conscious marketers.

Money Talks

First, online is typically less expensive than many other marketing tactics, and a sizable and impactful online effort can be undertaken more quickly and cost-effectively than can an offline campaign.

Wiggle Room

Like an Elizabeth Taylor marriage, online doesn’t require much long-term commitment. PPC ads can go up and down on a day-to-day basis. Email can be sent (or not sent) based on financial considerations. Even banner ads can usually be negotiated with an advantageous cancellation clause of 72 hours or so. Try that with your local TV station or newspaper. Other than keeping your Web site up to date, the only core online tactics that require substantial ongoing effort are organic search optimization, and Web site analytics and testing.

More Juice for the Squeeze

With diminished outbound marketing budgets, companies will shift focus toward increasing revenue from current customers, either through more frequent purchases, or larger ones. Email marketing is the perfect vehicle for communicating with customers and incentivizing additional purchases. Customer lifecycle marketing (persuasively combining email with direct mail, voice mail and text messaging) will gain favor as companies strive to close a higher percentage of a reduced flow of leads.

Waste Not

There is meaningful financial waste associated with advertising to people who have no interest in your product or service. The superior targeting ability of online marketing will enable companies to focus their reduced marketing dollars solely on likely prospects. This will accelerate the trend toward use of behavioral targeting and retargeting in online ad placement.

Behavioral targeting mines a person’s Web page visits and search terms to serve relevant ads. If a prospect reads several pages on Yahoo! about Nissan Altimas and does a search on Yahoo! using a related term, an ad for Valley Nissan dealers can be served up just in time.

Retargeting (a nascent industry led by local company Fetchback) takes the concept one step further, enabling companies to advertise only to people who have visited their Web site previously without making a purchase. With average conversion rates hovering around 2%, this is an ideal way to reach the other 98% that have taken the time to visit your site but haven’t yet converted.

Additionally, search marketing will continue to expand since it is the only tactic (other than Yellow Pages) that puts the marketer in the middle of the consumer’s purchase psychology funnel. I expect heavier bidding on specific, “long tail” search terms that often correlate with greater intent to purchase.

Numbers Don’t Lie

Online marketing of all types offers superior measurability and trackability in comparison to traditional tactics. This is of course due to the Orwellian nature of the Web, where every mouse click is tracked, usually anonymously. While the availability of this data may give you the same creepy feeling you get when gazing upon Joan Rivers, it makes for effective marketing.

When implemented correctly, banner ads, organic search, paid search, blogs and social media, email, lifecycle marketing and all other online marketing tactics provide a user by user scoreboard that can be utilized to ascertain precise return on investment metrics for each campaign.

In this way, online marketing provides companies the ability to test a wide array of tactics, evaluate which generates the best response, and then adjust the marketing program accordingly.

The old saying is “I know half my marketing dollars are wasted. I just don’t know which half.” This problem is even more acute and painful in a down economy when advertising dollars are curtailed. The inherent cost, targeting, and tracking advantages of online marketing make it more likely to succeed (or at least able to minimize losses from a failed campaign). And when a wolverine is at your door, that’s the type of assurance you want from your marketing strategy.

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Do you need to know whether people on a Web page are clicking on the navigation, the logo, photos, or links in the text? Of course you do. And ideally, you should be tweaking your pages and testing often to maximize results. (that’s why we’re on version 3.2 of the Convince & Convert Web site copy in 9 weeks). 

For specific areas of digital inquiry like this, it can be easier and more useful to utilize specialized software rather than navigate through the massive array of features contained in an enterprise application.

If you need to figure out which elements of a Web page are getting clicks, and measure versions against one another, CrazyEgg is the answer. This simple software program only does a couple things, but it does them exceedingly well in an ultra easy to use fashion that puts it in the same “why isn’t all software this good” category with Basecamp, iphone, and Conceptshare. It’s Web-based (nothing to install), works in just about any browser, and handles analysis quickly.

CrazyEgg also lets you filter out internal usage (for more accurate reporting) by clicking a link in your dashboard or by sending an email to users you don’t want to appear in your reports. 

Web analytics and click stream data at your fingertips

Here’s how CrazyEgg works.

1. Sign up for an account. Fees range from $9 per month to $99 per month for deluxe version, based on how many different Web pages you want to track, and the number of combined monthly visits to those pages.

2. Add tracking code. Paste one simple line of javascript into the HTML of the Web pages you want to track. This should take approximately one minute, and if your Web developer or IT department says differently, they are being difficult and you should immediately bribe them with Red Bull or an XBox game. 

3. Wait for traffic to come. Once you have visits to your Web pages, you’ll be able to access your CrazyEgg reports online instantly. (alerts and other information can also be sent to you via email or RSS).  Reporting is where this system really shines. They offer multiple, highly visual ways to view click stream information that is far more compelling than a spreadsheet. For instance:

OVERLAY

- Clicking [+] for each links shows how many times that link has been clicked, and the more+ link shows you from where each clicker came (and their search term if they come from search). I can see that 16% of the 44 people that clicked “Digital Marketing Blog” from my home page came from Google. It also tracks outbound links, so I can see what other blogs in my “Links We Like” section get clicked.

CONFETTI

- Shows colored dots representing clicks on each link. Every color represents a different referring Web site. This is very useful for visually determining click pattern differences between visitors coming from Google and typing in www.convinceandconvert.com directly, for example. (Orange and Red, respectively)

HEAT MAP

- Perhaps the easiest to grasp and the most awe-inspiring report, the heat map shows frequency of clicks through color variations. Brighter colors = more clicks, so I can tell in one second that the “Digital Marketing Blog” link on the home page gets significantly more clicks than anywhere else on the page. 

If I wanted to see whether I should rename “Digital Marketing Blog” and change it to “Internet Marketing Blog”, I could make that change and then start a new CrazyEgg test. Comparing the before and after results reports is incredibly simple, and telling.

No Excuse for Not Running A/B Web Site Layout Tests

Many agencies and client marketers I speak with believe that methodically testing landing pages (see blog post about landing page testing), shopping carts, and other key Web pages is a huge hassle. It’s not, and CrazyEgg can help you get into a habit of testing.

For agencies, the perceived value of CrazyEgg’s heat maps, etc. is very high for clients and its a system that for $9-$99 per month, I recommend universally.

Have you used CrazyEgg? Something similar? Are you ready to start testing? Leave a comment.

Average length of stay on a Web site is approximately 2 minutes and 30 seconds overall. Approximate length of stay by visitors coming from search is about 10 seconds. Why the difference? Search users are less likely to know your company and its attributes in advance, and they know there are several other options available to them simply by clicking “back”. In short, search engine users have the attention span of a 4 year-old after three s’mores and a cup of grape Kool-Aid. 

Most marketers engaged in even semi-serious pay per click programs have determined that creating specific “landing pages” to sync with particular search terms can help combat the flighty nature of search users. If a user searches for “mustard” on Google and clicks on your ad, you don’t take them to your home page, you take them to a page that’s all about mustard. You don’t even mention ketchup. Why confuse the user with information that doesn’t specifically address their needs?

This ability to determine the specific interests of the consumer (via their search phrase) and give them marketing messages that match is perhaps the most powerful capability of the Web as a whole. It’s as if consumers are walking around with thought bubbles over their heads describing what they want to buy. 

Not to be ignored is the important fact that Google (and I presume Yahoo!) are now including the content (and download speed) of landing pages as components in the “quality score” that determines where your PPC ad appears in search results. Meaning, if the page that lies behind your Google ad is not uber-relevant to the query, your ad will be penalized for it. This makes creating great landing pages a necessity, not a luxury. 

For agencies, the creation of landing pages is a critically important service that is not often being offered to clients with the appropriate voracity. If the client is thinking about a Web site redesign, but isn’t ready or doesn’t have the budget, creating a series of outstanding landing pages can help the agency prove its Web design mettle. Further, if a variety of messaging and/or design approaches are being considered for the new Web site, testing the efficacy of those approaches on landing pages is a smart move. 

Because they lie directly in the consumers’ research and purchase funnel, landing pages provide extraordinarily useful data that can be extrapolated for use in other online and offline marketing programs. Offer testing, photo testing, price point testing. All of these can be accomplished with landing pages with relative ease.

In fact, a rigorous and ongoing program that tests new landing page components (including multi-variate testing) can have tremendous bottom-line impact for clients, and makes the agency a hero. A multi-variate test that we conducted at Mighty Interactive for a student loan company generated a 40%+ increase in leads - resulting in a financial gain of hundreds of thousands of dollars for the client. 

When testing landing pages (and really any digital marketing element), remember that small changes can make a big difference. Background colors, font, spacing, photos, headlines and more can all impact whether a consumer will buy now or buy never. Don’t overlook button labels, either. Your action button is the last thing the consumer reads before determining whether to take action. Labeling it “submit” or something equally uninspired is missing a tremendous opportunity to set the hook at a critical time. 

If you have a landing page testing success story, let’s hear about it. 

In a LOOOOONG overdue move that provides some much-needed transparency to the PPC business, Google has added search volume data to their keyword research tool. 

This means that when you use Google to research potential search terms for your clients’ pay-per-click campaign, Google will actually give you an idea of how many people actually search for that term each month. Useful data when you determine that only 2 people per month search for “heirloom cucumbers kansas” so perhaps that phrase shouldn’t be the cornerstone of your search marketing efforts.

If you’re not involved with PPC on a daily basis, you may be thinking “well of course they would tell you how many people search for each phrase, how else could you even figure out which phrases to bid on?” Welcome to Planet Google, where information is doled out in maddeningly small and disconnected doses like plot points on Lost.

It is of course ridiculous that this data was not provided historically, especially since GoTo/Overture/Yahoo showed search volume from the beginning, and they pioneered PPC, not Google. But, Google’s moxy to hide a critical piece of marketing information has been a boon for search agencies and consultants, who use third party tools like WordTracker (a nice little company that is probably stocking smelling salts in the cafeteria after this announcement) to find this data for clients. 

While this announcement may seem out of left field, I see it as another move in a series designed to disintermediate agencies and move small and medium sized advertisers into the hands of Google directly. Google Analytics makes having a Web analytics consultant less necessary for some. Google’s Ad Planner makes an online media consultant less necessary for some. Google’s TV Ads and Radio Ads services make a traditional media consultant less necessary for some. 

Trouble for Agencies, but an Opportunity

Ultimately, it appears Google’s desired end game is for all small and medium sized advertisers to conduct all marketing transactions directly with Google, leaving agencies to deal with the big clients. For advertising agencies, this is both troubling, and an opportunity. If Google makes the marketing and advertising business as transparent as travel planning and stock purchases, the only agencies that will be able to survive are those that can add real value in messaging, creative, and integrating data into actionable tactics.

The transactional components of the advertising agency model like media placement, and the other services like Web analytics that are based on access to data will evaporate. Agencies must commit to being thinkers, rather than doers to succeed in this environment. Setting up a PPC campaign won’t cut it much longer. Managing a PPC campaign with rigorous testing that incorporates insights from offline tactics will be the level of expertise required for an agency to charge for search marketing - and that day will be here quickly.