ClearSaleingTM Confidential

September 6, 2007

The ClearSaleingTM Webinar Series

6 Advanced Paid Search Strategies Used by the Internet Retailer Top 500

Presented by Adam Goldberg aformer Google Insider and Co-Founder of ClearSaleingTM

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The 6 advanced strategies

1. Use profit as your guiding metric

2. Look at the cumulative effect of your advertising

3. Connect your offline sales to your online advertising

4. Build a data warehouse

5. Use search queries as a basis for new keywords and negatives

6. Implement an alert system

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Strategy #1

Use profit as your guiding metric

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PPC metrics are flawed

» Revenue can increase…Profit can decrease

» Conversion Rate can increase…Profit can decrease

» CPA or Cost Per Conversion can decrease…Profit can decrease

» Sales can increase…Profit can decrease

» ROAS can increase…Profit can decrease

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PPC metrics are flawed

Plasma TV

Cost per conversion:

$375

LCD TV

Cost per conversion:

$450

Sale Price: $1,000 Sale Price: $3,000 Sale Price: $3,000

Product: PN 2387

Profit Margin: 13%

Profit ($95)

Product: PDP 4250

Profit Margin: 18%

Profit $165

Product: LG 37LP1

Profit Margin: 24%

Profit $270

Flat screen TV

Cost per conversion:

$225

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Strategy #2

Look at the cumulativeLook at the cumulative

effect of your advertisingeffect of your advertising

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Not as valuable as you think

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Never underestimate the value of air conditioning

Should I close the doors to save on my electric bill?

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November 15, 2006Most common Purchase PathsTM

Average # of clicks to sale: 2.75

Path

Purchase PathTM 1 AdWords (Toaster Oven) > AdWords (GE toaster) > AdWords (TEM500) > Sale

Purchase PathTM 2 Nextag (PDP-HD50) > AdWords (company name) > Sale

Purchase PathTM 3 AdWords (modern lamp) > AdWords (modern floor lamp) >AdWords (ingo mauer) > AdWords (im-hotachille) > AdWords (company name) >Sale

Purchase PathTM 4 Nextag (plasma TV) > Nextag (Pioneer plasma) > Nextag (PDP-HD50) > Sale

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How can I use the Purchase PathTM?

AdWords (Toaster Oven) > AdWords (GE toaster) > (TEM500) > $90 Sale

ROI Type First Last Even

Credit Allocation $90 Toaster oven $90 TEM500 $30 Toaster Oven

$30 GE Toaster

$30 TEM500

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Strategy #3

Connect your offline sales to

your online advertising

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Offline sales tracking

1. Assign an ID to each keyword

2. Dynamically insert keyword ID on your website

3. Have sales person capture keyword ID along with other contact information

4. Run a sales report that shows sales with keyword ID’s

5. Determine if those keywords are profitable

Keyword = flat screen = ID 3378

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Strategy #4

Build a data warehouse

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All sales are not created equal

5 Sales (CPA = $123)

TV cable = $30 (Margin = 25%)

TV stand = $199 (Margin = 15%)

Plasma TV = $3999 (Margin = 8%)

Flat Screen TV = $299 (Margin = 32%)

Gift card = $25 (Margin = 27%)

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Mine your data

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Use the data you mine

And/Or

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Strategy #5

Use search queries as a basis for

new keywords and negatives

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What’s the ideal recommendation tool?

Ideal =

Sorry, this does not exist…but

a recommendation tool that can accurately tell you the ROI on a new keyword prior to adding it to your campaign

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Use the information available to you

» Search query = 50 inch flat screen TV

» Keyword = flat screen

» Keyword match type = broad

» Conversion = $4,700 sale

» New keyword = 50 inch flat screen TV

» New keyword match type = exact

» Advantages = Know it works, cheaper CPC, higher QSR, more targeted

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Continued…negatives

» Search query = flat screen computer monitor

» Keyword = flat screen

» Keyword match type = broad

» Conversion = $0

» Negative keyword = computer and monitor

» Advantages = target right audience, don’t waste ad dollars

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Strategy #6

Implement an alert system

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Why use alerts?

» Impossible to keep your eye on 10,000’s of keywords

» Saves time by allowing you to focus

» Insurance against human error

» Ability to automate responses to alerts

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Types of Alerts

» Compare date range A to date range B and alert me if…– Sales

– Profit

– Traffic

» Alert me when a metric increases by X or decreases by Y– Ad Spend

– Conversion rate

– CTR

– Ad position

* Make sure you are being alerted only when data is statistically sound

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How to set up alerts

» Directly from the ad sources in some cases (Google, Yahoo, etc)

» Make use of the API

» Build internal tools

» Buy an off the shelf product

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Bonus Strategy

Methodology used by sophisticated

advertisers to earn the maximum profit

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5-Step methodology for increasing profit

Ad Spend

Profits

20K

40K

Identify Ad Waste Eliminate Waste Buy Maximum Clicks Add Ad Sources

TimeOptimize Business

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Adam S. Goldberg

adam.goldberg@clearsaleing.com

1.800.592.0463

Blog: www.clearsaleing.com/blog

TM