Archive for April, 2008

After three years of working with large and small franchise units I’ve conclude there is a simple formula for successful online marketing for franchisees.  The formula may be simple but its implementation is somewhat involved.  Read on:

1. Tailor Your Campaigns to Each Franchisee.  To properly implement an online marketing campaign for your franchisees you need a) a landing page for each product or service, b) hundreds, perhaps thousands of properly researched search terms, and c) dozens of ads that are designed to tie these terms to a specific landing page. This needs to be done for each franchisee fifty, one hundred, or a thousand times.   I’ve often seen a 50% improvement in performance just by tailoring a campaign.
2. Show the Ads Only in Areas that the Franchisee Can Serve.  Franchisees often lose money on online advertising.  The main culprit– paying to show an ad outside of the service area.  Considerable time and money can be lost when a franchisee is forced to interface with prospects they have little to no chance of converting to customers.  All this increases the Franchisee’s Customer Acquisition Costs which may lead to an erroneous conclusion that online marketing does not work.
3. Route the Prospect to the Web Page of Franchisee in their Area. Just as the campaign needs to be specific to the franchisee—the page the prospect is sent to must be specific to the franchisee.  When a prospect arrives at your site from the organic or “free” listings, it’s okay to send them to your home page that contains your “Store Locator” tool.  Prospects who click on paid search ads tend to be more impatient.  Here’s where using a combination of the search engine’s local targeting options and a localized landing page can really lift conversions.
4. Manage each Individual Franchisee’s Campaign.  In addition to setting up franchisee level campaigns, changes to bids, ad copy, landing pages, offers and keywords should occur at the local level.  Why?  Here’s where online is no different than offline.  Offers, prices, products, services etc that sell really well in New York City may not resonate with consumers in Boise.  In addition the competition for customers may vary greatly from one market to the next.  This is hard work, but if you really want to see stellar campaign results, it’s a must do.
5. Separate Out Selling Franchises From Securing Business for the Franchisee.  Franchisors want to sell more franchisees, which is a good thing.  Franchisees want more customers, which is also a good thing.  Although both are good, they are very different.  A direct response campaign should have a singular focus.  Promoting too many things at once only distracts and confuses the prospective customer.  If the keyword that brought the prospect to your site is “Math Help,” the page they land on should be all about proving how you’re the best option for helping them with math and nothing else.  I’ve even seen a case where a franchise was driving all search traffic to the main page of the site, which in addition to selling franchises, also encouraged visitors to enter complaints about a franchisee!  Remember, your competition is only one click of the Back Button away.

Nothing that I’ve stated above is rocket science.  But if you have more than a handful of franchisees in your system, it can be a daunting task.  Your choice is to either staff up or hire a qualified agency to run your campaigns.  In either case, if you follow these rules your franchisees will get more customers from the Internet.   

Steve Thompson is co-founder and Managing Director at siteEDGE agency.  Steve has extensive experience in structuring; managing and optimizing online marketing campaigns for small and large (+500 units) franchise systems as well as large companies with a regional or local focus.  To contact Steve, email him at Steve dot Thompson at siteEDGE agency dot com. 

Google (Accidently) Leaks Quality Score Variables.

Posted by Steve Thompson on April 29th, 2008

I have blogged on Google’s Quality Score before.  It was the usual insight about why its important to get a good quality score.  I went into how getting a bad quality score may cause you to pay more to be in position number 4 than your competition paid to be in position number 2.  I even talked about some things to do that may help to improve a quality score.  I’m sure the insiders at Google had a good laugh because no matter how much I hypothesized, I had no varifiable evidence on what will increase a quality score.

Earlier today Google may have had a gitch that made public some of the variables used to make up the quality score.  This is the buzz anyway.  Eric Landers of Search Engine Journal published in his blog that immediately below each of the sponsored search results (AdWords) were three separate variable names and values.  Eric has screen shots and an opinion on what these may mean.  Since this gitch has since been corrected by Google I wasn’t fortunate enough to have seen this myself to allow me to share my insight.  I will at least point you to Eric’s Blog on this so you can get it directly from him.

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How to Save Money with Google’s Content Network

Posted by Steve Thompson on April 29th, 2008

Google Content Network Defined

The Google content network comprises millions of websites, news pages, and blogs that partner with Google to display targeted AdWords ads.  Ads to the content network are targeted based on content themes rather than specific keywords as is done on the search network. Unlike a keyword search which is well defined, a content match may not display your ad on the site you had in mind resulting in clicks you prefer not to have.

Identifying the Sites that Don’t Convert

On June 1st last year, Google made available a report that tells you which sites are not converting.  You can run this report at the ad group or the campaign level for a domain or a url.  Once you run the report you can feed the results into the Site Exclusion option in the Tools section.  This will cause the domains or url-s you designate to not show your ad resulting in a better use of your ad dollars.

Further Analysis

This on the surface appeared to be an excellent opportunity for one of our clients to save a few dollars.  After running the report for all the ad groups we learned there was about $1,075 that could have been saved in June if the sites with no conversions had been excluded.  Upon further analysis we determined that some sites did not convert for some ad groups but did convert for others.  Since the Site Exclusion option does not allow exclusions at the ad group level we had to revise our plan to exclude the non performing sites at the campaign level.

Still Not Bad

The initial excitement over the potention savings abated somewhat.  Instead of the $1,075 a month savings that we had anticipated from excluding non performing content network sites, we will save about $521 a month. We have to factor in that this is just one month’s worth of data but it is still encouraging when you consider a year’s savings would equal $6,252.  Is it worth a try or is there still more analysis we should do?

One Additional Thought

The thought that one month’s worth a data is not enough to make a decision stayed on my mind. On one hand we may be paying more than we have to each day.  On the other hand we may be making decisions on incomplete data.  Thinking it through it seems logical to conclude that if a domain or url doesn’t convert then don’t spend money on it.  The only down side would be if it converts later we would miss a conversion.  But what impact would 1 or 2 conversions have when we are talking about 100 conversions a day.

An Aha Moment

Then it occured to me.  Most of the conversions orginate from a few domains or URLs, but the bulk of the conversions come from many domains or URLs.  It is the old numbers game.  In the reports there were thousands of domains and URL-s that had only 1 or 2 conversions for June.  The number of sites that had just 1 or 2 conversions were not the same domains and URL-s that had only 1 or 2 conversions in July. If I had excluded the non converting domains and URL-s that had no conversions in June we would have eliminated 100-s of conversions in July.

My Conclusion

Based upon this data I concluded that sites should not be excluded simply because they don’t have conversions.  Another criterion should be placed on top of this that is simular to the cost per acquisition (CPA) measurement.  With the CPA you assign a dollar amount to what a conversion is worth.  If it is worth $40 is get a new customer,  $40 worth of clicks to get it is acceptable. Simularly if the non converting sites are costing you a few pennies a month to keep them then it may be wise to do so.  If they are beyond a thresshold you determine to be unacceptable, then by all means exclude them.  As with a CPA, some conversions are not worth the price.

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