Combating keyword price increases

Keyword Price Rise Reality

Today’s keywords marketplace within the pay per click space is supply & demand driven. The demand for high volume traffic & high converting keywords is huge. This is driving up the cost of popular keywords to a level which can make some keywords beyond the reach of smaller budget advertisers. Add to this the inflationary pressures and major players like Google and Yahoo deciding to raise keyword prices across the board.

However, rising keyword prices do not necessarily mean a lower rate of return on your usual search engine marketing campaigns. Smart keyword deployment strategy uses web analytics to automate the keyword bid process and increase the relevance of web content. This leads to higher click through rates and conversion rates of search engine marketing campaigns which in turn mitigates rising keyword price issues, while boosting the ROI of your overall marketing spend.

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Needed: Reverse ROI Approach

To effectively manage your pay per click (PPC)  search engine marketing campaigns in the face of rising keywords costs you need to follow ‘Reverse ROI’ based budgetary planning. Here is what you have to do: Before you bid, or even decide on the media choices, you should calculate how much you can spend to generate a business lead. This ‘bottom-up ROI approach’ helps as you start with the cost of the product/service you are marketing; figure out such overheads costs like storage, packaging & shipping and then add to this the desired profit margin. Only then you need to identify the amount of money you can comfortably commit on search engine marketing and its activities like keyword purchase bids. As a web-marketer while you cannot control the spiraling cost of keywords, you can control the efficiency of your business. The more efficient you are, the more aggressive your bidding can be for ‘pricey-keywords’.

Keyword Bid Tools Are Essential

As keyword costs continue to rise up, inefficiencies in all search engine marketing processes need to be eliminated across all campaigns. Online advertisers can mitigate the price rises by managing their SEM initiatives more prudently by using the appropriate SEM technology tools and analytics.

In your search for ways to make your SEM campaign more cost efficient, you will find that some specialist web marketing software vendors offer useful keyword bidding tools. You could use these ‘auto-keyword- selection’ tools to select the most appropriate key words & phrases that raise your campaign ROI

There are many proven Search Engine Bidding Agents (tools). These agent-based tools analyse the work you need to do to accurately identify the desired target cost per lead and then organise and optimise your entire SEM campaign. Many businesses, thanks to consistent use of smart keyword tools realise that the big, costly, broad search terms do not always generate as high an ROI as the longer, less-costly, multi-word, more targeted keywords. This is allowing them to invest more heavily in ‘better-converting’ keywords than ever before.

For example ‘Insurance’ now becomes ‘comprehensive life insurance policy’ and ‘cruise’ could become “Sydney Harbour Day Cruise.”  Successful marketers are also customising their overall SEM management methodology to allow appropriate flexing and scaling up as keyword-bid prices change frequently. Marketers need to constantly leverage the fact that conversion rate does change by position of the ad and its contents’ relevance.

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