Ever wonder why one keyword is more efficient than another? Or why seemingly relevant terms drive click volume but no conversions? Conversion funnel reports (available in eSV5 and recently released in AdWords) can help drive insight into these issues and have brought forth a new series of analyses to incorporate into the PPC optimization strategy: consumer query behavior; which I define as the practice of identifying patterns in queries leading to a conversion. Taking a step back, consumer query behavior is a sub-set of consumer behavior analysis – the process of understanding what someone is trying to do and why they are doing it. Effectively integrating this analysis into paid search maximizes an advertiser’s opportunity to engage with the consumer and qualify clicks. So how can we use these analyses to improve PPC results? The opportunity lies in the intrinsic relationships between query, ad copy, and landing page.

I had the opportunity to attend SMX Toronto a few weeks ago where the keynote speaker was Avinash Kaushik. He gave a fantastic anecdote which went something like this: If someone walks into a store and asks where they can find and compare tires, one would expect to be taken to the tire section…not the store entrance. So why take a consumer coming from a search engine to the homepage when you can qualify their intentions based on their query?

In their Search Engine Marketing Inc manifesto, Hunt and Moran determine that all keywords fall into one of three categories: informational, navigational, or transactional. By pairing each type of term with the appropriate type of creative, and furthermore, sending the click to a relevant landing page, trust between consumer and advertiser is established. Subsequently, the consumer is able to naturally move down the sales funnel, remaining engaged, just as an experienced salesperson would interact with a potential buyer.

Let's break down each type of term and define the opportunity:

• Informational terms, something like [best tires] imply that the searcher is researching. These are upper funnel terms where the ad that is most relevant calls out research opportunities: "compare top tire brands" or "what makes great tires?" These ads should be directed to a product aisle page or a product section page where the consumer can pick, choose, and compare.
  
  
• Transactional terms, for example [buy Michelin exalto a/s], indicate the intent to purchase. These lower funnel terms are low-hanging fruit and the consumer is looking for product specific ads calling out prices. This is a fine example of a set of terms which can be optimized using a product feed.
  
  
• Navigational terms, such as [www.tires.com], show intent to reach a specific site. These ads should be non-dynamic and brand specific in order to maximize QS and generate cheap CPCs.

While this may sound simple, things get tricky when tracking multiple consumer actions with a website and attempting to attribute value to each interaction. This is where the conversion funnel reports come into play. Each advertiser seems to have a unique model for attribution: last click, first click, 50/50 between first and last, 25% to first click then even amongst all others…the possibilities are endless. What’s most important in the attribution process is to make sure that keywords which do not generate the last click are not overlooked. Since eSV offers several tagging/labeling systems (catalog, category, etc), I tag terms which are involved in the conversion process but do not appear to be ROI positive in standard reporting to ensure that I, or any of my automated bidding agents/models, are not bidding these undervalued terms down. It’s critical to maintain a strong position on these feeder terms otherwise conversions will suffer.

Following the best practices defined in this article will yield positive results. The steps are clear and straight forward:

• Classify terms as informational, transactional, or navigational
  
  
• Associate sales funnel appropriate creative
  
  
• Send to sales funnel appropriate landing pages
  
  
• Run search funnel conversion reports to identify upper funnel terms
  
  
• Repeat

Let us know how this process works for you. If you have any questions, thoughts, or feedback, feel free to reach out.

Benny Blum                                                                                               

Scott Wachtmann, Account Manager

A self-labeled Geek, Scott has tried to tie technology into every aspect of life that he can. Prior to joining eSV, Scott worked as a Web Designer and Search Engine Optimization professional. He joined eSV in November of 2009 as a Junior Account Manager and moved into paid search for the first time.

Despite his love of technology, Scott was unsure if he would like the heavy numerical analysis SEM work involves. But after getting his feet wet he found that even days spent in Excel sheets can provide extremely interesting challenges. He loves to learn and the variety of clients he works with has been an excellent opportunity to do just that.  Scott sees each new client’s business as an opportunity to learn something new about an industry he loves.
Recently Scott entered into competition for the SMX West "Biggest Search Geek" quiz. Of the 2000+ entries he scored 3rd place on test questions covering SEO and Paid Search Optimization.

eSearchVision has been an excellent opportunity to work with some of the sharpest minds in SEM and Scott is looking forward to the months and years ahead.