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Agency/SEM Issues David Szetela Clix Marketing. eCommerce Campaign Oprimization. 1. Compensation methods: Percentage of Spend vs Pay for Performance 2. Click Path Tracking. Percentage of Spend Compensation. Pros: Appropriate for branding objectives – “buying eyeballs” Pro: Easily measured
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Agency/SEM Issues David Szetela Clix Marketing
eCommerce Campaign Oprimization 1. Compensation methods: Percentage of Spend vs Pay for Performance 2. Click Path Tracking
Percentage of Spend Compensation Pros: Appropriate for branding objectives – “buying eyeballs” Pro: Easily measured Con: Rewards overspending, and fails to reward ROI
Pay-for-performance Compensation Pro: keeps team focused on business objectives – e.g. revenue, profit Pro: incents agency to produce continuous improvement Con: more difficult to track
Compensation Case Study Pay-for-performance compensation was top factor in Clix being chosen over other agencies Based on PPC profits = (PPC Revenue minus Ad Spend) Started with a sliding scale: higher profits earned higher percentage Challenges: revenue tracking, sticker shock
Click Path Tracking Many buyers don’t buy on their first visit Buying cycle: needs identification, brand/provider research, selection Example term sequence: “Anniversary Gift;” “Photo Oil Portrait;” “PhotoOilPortaits.com” Conversion “credit” is given only to most-recently-used term
Click Path Tracking Tracking “assist terms” allowed us to discover broad terms that lead to eventual conversion ROI was attributed to terms that had previously garnered zero conversions