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Before delving into why ROI is transforming the way the world does business, let’s take a moment to think about traditional paid search engine marketing.
In traditional paid search engine marketing, companies focus on getting clicks through human-based manual management with erratic and statistically non-optimal decision making. Generally, they use directly promoted techniques by Google. These recommendations could be anything from increasing CPC bids to massively adding hundreds of new potential keywords.
Obviously, Google has its own commercial interests – and we will not blame Google for that – but just keep in mind that Google’s business is about selling clicks, while what you are really looking for are business performance results. Unfortunately, both of those interests don’t always match, am I wrong?
However, these techniques that once were enough no longer work today. As more advertisers compete for the same keywords, their costs per click rise, and where yesterday we could find profitability, today we’re just one more out of thousands of advertisers fighting for an expensive click. Today, 99% of global investment in search engines is concentrated on 1% of all search queries. In other words: 99% of search queries do not show ads; with fewer advertisers in the competition, their prices are lower, and for more specific queries, their conversion ratio is higher.
As a result, advertisers and agencies feel frustrated by the low scalability of this management model, which blocks growth and gives an unintended opportunity to their competitors to overcome them.
So what is ROI Search all about?
Well, ROI Search is a fundamental shift in the way people invest in Search Engine Marketing. Instead of the old impression or click generation messages that do not give you profitability, ROI Search focuses on the automation and mathematical optimization of your search campaigns.
Instead of annoying users with ads they will never click on, they might create ads that only potential customers want to see. Instead of increasing bids to generate more clicks, they might adjust CPC bids based on the exact value generated by each click. And instead of keeping active keywords that don’t generate revenue, they might assume that those are unprofitable keywords that only penalize overall ROI and therefore must to be stopped.
ROI Search Marketing is Search Marketing focused on getting the greatest return on your investment. It’s profits-based. It’s helpful, it’s scalable and intelligent. Wouldn’t you prefer to buy traffic willing to generate revenue to your business instead of generating revenue only to Google?
You’ve probably come across some of your favorite brands actively practicing ROI Search marketing. It’s the search Ad referring to your next destination with flight prices that are updated in real time. It is also the Ad Group of those Nike sneakers that you no longer see because the advertiser has run out of stock and the ad is automatically paused. It is also that incredibly attractive ad that meets the specific requirements of your specific query, as well as that startup you didn’t know about and today can’t stop growing.
ROI Search marketing means not only showing the right Ad to the right audience, but also doing so at the right price. It’s paying the CPC that maximizes your ROI. And most of all, it’s about creating ads that strictly generate profit.
So how do you actually do ROI Search? Well, the best way to start is by understanding the ROI Search Marketing methodology:
This is the ROI Search Marketing. It illustrates the three axes that make up the ROI Search Marketing process. These axes are “Audience”, “Ads” and “Price””. Each of these 3 dimensions has its own characteristics, goals and optimization processes so that the equation between them is simply perfect.
“Audience” manages everything necessary to build the global keywords audience curve for each advertiser. The audience curve is the graphical representation of all search queries that build your potential audience in search engines, from generic queries to specific queries.
“Ads” manages the design of the most specific and attractive ads for each audience, those beautiful ads that maximize your Click Through Ratios, getting higher quality scores and cheaper costs per clicks.
Finally, “Price” management helps us understand why we should pay more or less per bid, or even add or stop keywords depending on each audience’s potential profitability.