Google announced in an email to advertisers today that “the AdWords pay-per-action beta test will be retired”.

“Starting the last week in August, your pay-per-action campaigns will no longer be active, and any ads in your campaigns will stop running. As a result, you will no longer be able to edit or create pay-per-action campaigns.”

This move is to make room for the DoubleClick acquisition:

“As part of Google’s recent acquisition of DoubleClick, the Performics affiliate network is now a part of Google and has been renamed Google Affiliate Network. To consolidate our offerings, we will be phasing out the AdWords pay-per-action beta in the last week of August 2008.”

The news was also posted on the Inside Adwords Blog: We are retiring the pay-per-action beta

I am often still surprised at how many advertisers are not investing in search marketing. The basic reporting of cost and revenue can easily prove that search is a valuable tool for any marketing campaign. In fact, I often advise many people to invest in search marketing first. Then use “left over” funds to fulfill all other marketing needs. After all, if paid search is not working, then you are doing something wrong.

This need to fulfill search first, had me thinking about the history of advertising and mass marketing downfall.

It’s true that mass marketing did work at one time. However, during those times the surrounding criterion for mass marketing was a perfect storm.

Small product selection, limited television channels, consumer acceptance and many other factors all led to a great acceptance of mass marketing.

Mass marketing is dying

The environment for mass marketing has changed. Consumers have hundreds of television channels to choose from, plus various forms of other entertainment choices (MP3 players, game consoles, Internet access, etc.). Consumers are also more resistant to advertising then ever before.

Capturing attention is not required in search marketing

Consumers have already volunteered their attention, by typing in the keywords they want. They are focused, engaged and ready to pay attention to your product.

This is very unlike mass media. Over the past 30 years, television advertisers have to look for more and more creative ways to capture a consumer’s attention. Television advertisers need consumers to like them, or at least pay attention. All this has to happen before the selling even begins.

Social Media will not replace Search Marketing

As powerful as social media is becoming, it’s ultimately not going to replace search marketing. Social Marketing allows users to capture and automatically receive their custom information. By setting up RSS feeds and Email alerts, users can receive the news when and how they want it.

Ultimately, social media is nice, but it does not serve the marketing goals that search marketing does. When a user is ready to purchase, social marketing is not going to help.

Today, Yahoo and Google officially announced a non-exclusive agreement. This agreement “enables Yahoo! to run ads supplied by Google alongside Yahoo!’s search results”, per Yahoo

The move comes as no surprise to many. In early April, Yahoo conducted a limited test of Google’s Adsense on Yahoo Search.

Google quickly followed today’s announcement with it’s anti-monopoly case for the Department of Justice.

Let Me Opt Out

Minutes after the announcement, I quickly sent an email to my Google AdWords Relationship Manager asking to be opted out “IF” I have the opportunity.

Ultimately, it comes down to money for advertisers. (Doesn’t it always?)

Yahoo Sponsored Search does not have a strong Return on Ad Spend (ROAS). Over the past month, I have begun trimming my spending on Yahoo and moving more funds into Google. Yahoo doesn’t pay for itself, like Google does.

If Yahoo ads do not have a good ROAS, then why would I want my Google ads there?

As I mentioned before, one of main themes in 7 Habits of Highly Effective Pay-Per-Click Advertisers is separation.

• Separating Content from Search
• Separating Match Types
• Separating Negatives

Search separation allows advertisers precision analytics. Blending Google with Yahoo defeats the separation. In fact, it taints the analytics with bad ROAS.

If Google does not allow advertisers to opt out of Yahoo Search, then cost per conversion will increase. If Cost per Conversion increases then spending will decrease. This ultimately defeats the whole point for Google.

I ask Google: “Allow AdWords clients to Opt out of Yahoo”

Pay-per-click is much more than paid advertising. Not only is PPC the best return on marketing investment available, but it is, or should be, at the heart of all marketing campaigns.

With pay-per-click, there is very little guess work in marketing.

However, the trouble arises when traditional advertisers do not understand or believe in the power of pay-per-click marketing. Many companies still see it as separate advertising model and fail to tie the relationship back to traditional off-line campaigns.

Below are 4 examples of how to relate pay-per-click statistics to other marketing efforts

1. Ad Testing -
   The major search engines allow advertisers to run multiple ads for the same keyword. With various messages reaching potential customers, advertisers are able to see which ads attract the most visitors and more importantly which ads attract higher revenue.

   Ad rotation gives the advertiser great insight into the mind of the customer. For instance, do customers click more on ads that offer “Free Shipping” or “Free Item with Purchase?” Another example, do discount mentions convert better than guarantees?

   To get accurate measurements on ads, it is important not to let the search engines optimize the rotation of the advertiser’s ads. By default, search engines will serve the better performing ads more often. However, the problem is search engines measure “better performing” as ads with higher clickthrough rates (CTRs) and quality scores. Although, that may work for some advertisers, the real test of an ad is what happens after the user clicks on the ads.

2. Solid geo-targeting statistics can help off-line campaigns -
   Pay-per-click geo-targeting lets advertisers target ads to specific countries, regions and languages. Geo-targeting especially benefits companies with smaller budgets, by allowing product promotion strictly within the majority of customers’ region.

   Geo-targeting resolves any geographic uncertainty about customers. For example, more customers from Region A may click on ads. However, more customers from Region B may actually convert and purchase.

   By combining geo-targeting testing with ad variations, advertisers can also discover if specific messages convert better in various regions.

   With this strong geographic customer analytics, advertisers are able to target all marketing initiatives to specific regions.

3. Discover keywords for organic search rankings -
   With pay-per-click reporting advertisers are able to know what the customer is typing in search engines. By reviewing periodic reporting, they are able to tell which keywords bring in the most clicks and most importantly which keywords bring in the most revenue.

   Instead of creating search engine optimization initiatives to tackle hundreds of keywords, the top converted pay-per-click keywords are targets. Site content, link building, and various other search engine optimization techniques can push these elite keywords.

   Advertisers do not have to waste valuable time and money trying to get rankings on keywords that do not convert. The numbers are provided; it does not matter where the competition is ranked. By following the pay-per-click keyword statistics advertisers are able to get instant customer analytics to use for search engine optimization efforts.

4. Learn the customer’s language with exact keyword matching
   Often advertisers get caught up in internal jargon. Within the industry it may be an acceptable form of communication. However, it is the customer that pays the bills.

   To obtain accurate results from pay-per-click, having various match types is essential. By bidding on all variations of keywords advertisers are able to see which keywords customers are typing into a search query. Google, as an example has four different keyword matching options (broad, phrase, exact, negative), each with their own advantages and disadvantages. For example Broad Match, the default setting, includes all variations of the keyword in the query.

   However, Exact Match is the most targeted option available. It only shows ads when the exact phrase is used. Exact Match will provide instant feedback into the language of the customer. It is not to say there is not a place for broad, advance, or any other match type. Ideally, all variations should be tested. In fact, Exact Matching will inevitably bring in fewer visitors than other forms of matching. However, Exact Matching is a great way to gather instant customer analytics.

By analyzing pay-per-click reports advertisers are able to pull dramatic customer analytics. With that knowledge all marketing campaigns can benefit thus eliminating traditional guess work from traditional advertising.

With the value of the dollar decreasing and a decline in consumer confidence, it might seem counter-productive to keep spending. However, that is exactly what needs to be done.

History shows that marketers that maintained or even increased spending benefited from the silence of others. In fact, a recent study on warc.com (World Advertising Research Center) showed “that brands with sustained advertising expenditure through recessions have a competitive advantage”.

Below are several online marketing strategies to keep in mind during trying economic times.

Do not cut pay-per-click funds
When done correctly pay-per-click is the best return on advertising available. Paid Search should be the last place you look for budget cuts. Remember, if paid search is not working, then you are doing something wrong.

Put your analytics to work
Now is the time to put the “analyze” into web analytics. Without analyzing data, it’s just data. Study your numbers and look for trends. Look for ways to trim the fact. For example, if customers are coming from a general geographic area then target online efforts toward that direction.

Beware of discounting
The first instinct online marketers have in rough times is to start giving deals to customers.

However, this can start a chain reaction that is hard to shake. Not only is there a risk that customers may expect deals, they may also begin associating that brand with low value.

Discounting is not a marketing strategy.

Shoppers become addictive to discounts and so do marketers. Beware of the long-term value of your brand, especially online.

Introduce a new product or put a new face on an old one
Many new products were introduced during troubled times. For example, the iPod was released during the dot-com burst. The frequent flyer concept was born out of a marketing tactic use to stimulate interest in the recession of the early 80’s.

If you don’t have a new product to introduce, use this time to put a new front face on an existing product. Follow that up with an online press releases. Get the word out and start a social networking campaign to push the product hard.

Companies are still failing to see the benefit of online marketing, especially paid search marketing. Pay-per-click works for any budget and any product. Use these times to take advantage of your competitors’ lack of funding and knowledge. Don’t follow their lead on decrease spending, take advantage of their lack of presence.

Well, I was not chosen as a finalist for the Semmys, but its okay. As they say, “it is an honor to be nominated”. There were some great articles this past year. I definitely can not say my writings were better than the finalists.

Local Search
Anatomy & Optimization of A Local Business Profile - By Chris “Silver” Smith

Analytics
Web Analytics Demystified - By Avinash Kaushik, Occam’s Razor

Google
Google 2.0: Google Universal Search - By Danny Sullivan

SEO
SEO Linking Gotchas Even the Pros Make - By Andy Beard

Online Marketing / General
How A Pretty Face Can Push Visitors Away - By Bryan Eisenberg

PPC
Five Common Paid Search Mistakes That Can Sink Your Campaign - By Jennifer Laycock, Search Engine Guide
* This one mentions some of the same points that I mentioned in 7 Habits of Highly Effective PPC Advertisers. However, Jennifer does a much better job of explaining in many of the points. Plus, she has some other great points that I left off. I strive to write as good as her.

Small Business
When Ignorance Isn’t Bliss: What You Don’t Know About Your Web Site Can Hurt You - By Christine Churchill

LOL Funny!
Web 3.0 Sites - By Philipp Lenssen, Google Blogoscoped

Viral Marketing
Viral Marketing is NOT the Same as Word of Mouth - By Jennifer Laycock, Search Engine Guide

Nominations for the first Semmys were recently announced recently.

The awards recognize the best articles in search engine marketing over the past year. “The SEMMYS are an annual awards event honoring the great content produced across the search and online marketing industry.” - Semmys.org

I was honored to be nominated in the PPC Category, for Seven Habits of Highly Effective Pay-Per-Click Advertisers.

The finalist will be announced around January, 23rd. From there the public can vote for a winner. In the PPC category, the judges are Christine Churchill and Aaron Wall. With that being said ….

Have I mentioned how much of a fan I am of Christine Churchill and Aaron Wall? They are geniuses and masters of search engine marketing. Their intelligence is beyond belief, and they would … (too much?)

Christine Churchill is the President of KeyRelevance and a frequent speaker and contributor to the search engine marketing community. Christine can also be found on SEMClubHouse.com

Aaron Wall is SeoBook.com, one of the leading SEO blogs around. SEOBook.com has long been a source for quality articles in the industry..

(Link love never hurts)

One of the most frequent comments I hear is: “Paid Ads? Oh, I never click on those”.

The fact is that’s simply not true.

I want to pass off an article that I contributed on SearchEngineLand.com that address that comment and others.

If Paid Search Isn’t Working Then You’re Doing Something Wrong

Greg Meyers posted a great article on paid search marketing here: www.semgeek.com/semgeek/2007/12/writing-effecti.html

A couple of his points that I loved:

• “First make sure Ads are set to ROTATE and NOT Optimize.”
  Do not let the search engines determine the success of your hands. Only you and your analytics can determine. Just because an ad received the most clicks, does not make it successful.
• “Understanding what Messaging works best with your customers and prospects is more important than writing and testing 10-20 different ads with the only difference being a few words being moved from description line #1 to line #2.”
  Too many people make it too complicated. Let the numbers speak for themselves.

Greg’s points coincide with my Seven Habits of Highly Effective Pay-Per-Click Advertisers:

1. Separate Content from Search
2. Control spending by adjusting bid amounts, not daily spend budget
3. Create a negative keyword list

Find the rest here: www.johnwellis.com/seven-habits-of-highly-effective-pay-per-click-advertisers/

The article I wrote this past summer for DMNews’ Essential Guide to Search Engine Marketing, was published on their website today.

Here is the link.