Are Junior Level PPC Jobs Disappearing?

I recently wrote a post about SEM Automation and PPC Careers. An amazing PPC Ian reader (ppcKnight) was wondering in particular if all these amazing automation platforms, those built in-house and those available to purchase, are actually taking away from career opportunities? I shared some of my thoughts on the topic in that post, in particular why I think automation is actually helping build careers in digital marketing. Today, I wanted to answer a follow-up question from another PPC Ian reader (and friend), in response to that post. Sid wonders in particular if those more junior level jobs are becoming irrelevant due to automation. Thanks, Sid for reading and for the inspiration, I really like your question and I’m honored to answer with my 2 cents on the topic!

What About Junior Level Jobs In SEM? Are They Going Away?

Get Your Dream Job

Hi Ian,
It’s always very nice to read your blog. Of course, adopting the automation within the SEM will certainly help a company to scale or ramp up the campaigns and diversify your skills and driving new initiatives. However, the automation will eradicate entry level jobs within the SEM industry, what do you think? One has to be an expert level to work on the bid management tools like: Marin or Kenshoo or should gain superior knowledge before rubbing hands with the tools. What has been your experience like once you’ve executed the automation? Can you share what kind of jobs were created once the automation was deployed?

Moving forward, companies would like to automate the digital process be it SEM or display network through integrating demand side platform. I look forward to hearing for your thoughts on this.

Thanks,
Siddharth

The Argument In Favor of Junior Level Jobs

Siddharth, thanks again for the question. Here are some of the core reasons I think junior and intermediate level jobs in SEM are here to stay.

Certain projects require manual execution. One great example is writing customized ad copy. Another is executing upon an account restructure. While the strategy behind the ad copy approach and the strategy behind the account reorganization may be derived as a team effort (with leadership from more senior team members), there is a clear need for more junior and intermediate level marketers to execute upon the strategy. Many of the SEM accounts in existence today are the result of years and years of different managers. In short, many could use a good reorganization, creating a multitude of manual work.
It’s impossible to automate everything. A large number of second and third tier search engines do not offer APIs. For the foreseeable future, I see a more junior/intermediate role in managing/optimizing second tier search engines. It’s incredibly valuable, leveraged work, but requires massive time and attention. With more and more marketing dollars flowing online, marketers need to explore all opportunities including second and third tier engines. Someone needs to manage them.
Human interaction cannot be automated. Certain aspects of PPC require frequent human interaction and follow-up. While overall relationship management with search engines is a more strategic, senior role, various day-to-day aspects of the relationship are perfect for someone newer to the PPC career path. For example: Policing your trademark. Even though automated systems exist to locate the offenders, an employee needs to follow up with search engines, websites, and the internal legal team to appropriately address trademark offenses. They never stop, creating an unending queue of work.
Someone needs to take notes and document meetings. The plethora of opportunities in digital marketing is unparalleled. I have found it challenging at times to keep everything organized because we move at such a quick pace. Senior leaders on the team can rely on newer team members to document meetings and send out notes.
What about testing new keywords and ads? These are two projects at the core of search marketing that will never go away. Automation and platforms make all of this easier, but cannot fully automate it. Why? The best ads have never been created. The best keywords have no search volume because they take advantage of future trends. Start showing up before the trend hits and you will be a true winner. While the more junior team member will work with a more senior team member on the strategy, the process of deploying the keywords and ads is a great project for someone newer to paid search.
Great digital marketing platforms are not just for experts. When it comes to build vs. buy decisions on SEM automation, I’m a fan of buying. Why? In house platforms are rarely pretty. They are rarely easy to use for junior team members. However, when you buy a platform, you’re buying not only an amazing back end technology, but also an easy to use front end interface, complete with tutorials and documentation. There is no reason junior employees cannot leverage these platforms, of course with some guidance and supervision from a more senior level team member.
As an overall trend, more money is flowing online. With increased money being spent on digital marketing, there is more work. I feel it each and every week – more and more to do, more and more opportunities! With more work, the only way to scale is to hire, expand, and delegate. A well-functioning team requires members of all levels. As digital marketing professionals, we are all stretched for time. I see no end in sight for junior, intermediate, and advanced digital marketing professionals!

Agree, disagree, thoughts? Please write in with your opinions!

Will Automation Destroy Your PPC Career?

By PPC Ian Leave a Comment Aug 4 4

I’m a huge fan of digital marketing automation. I have written extensively about SEM automation here and all of my favorite platforms. One of loyal readers, ppcKnight, wrote in with a super interesting question. (Thank you ppcKnight for reading and for the question, you rule!) I have pasted ppcKnight’s full question below, and here’s the main punchline: Will automation eliminate careers in digital marketing? Today, I will respond to ppcKnight’s question. Preview: I’ll share why automation is absolutely critical. It enhances and grows careers in digital marketing.

Will SEM Automation Eliminate My Career?

Production Automation

Hi Ian, remember me? Long time ago I asked some questions about work-life balance in PPC and you gave some brilliant answers! I now have a new, very important question, and would appreciate to hear your thoughts on that.

I am still at the same company (client side) and am the global PPC Manager. My role is less technical and more… marketing. Recently, our tech guys helped the Director of Online Marketing automate everything (you surely have heard about AdWords API etc) thereby making 80% of the PPC team redundant. That was a lot!

I have heard of slightly similar stories in other client-side PPC departments/teams – If this trend continues, will in-house/client-side PPC become extinct as a career? If not, how can a PPC professional be more valuable than automation, especially in-house/client-side?

Would really really appreciate to hear your thoughts on this, especially because I love my job, I love PPC, but I don’t want to be replaced by a machine…

My 2 Cents On Digital Marketing Automation and Digital Marketing Careers

I’m here to say that SEM automation absolutely does not eliminate careers in digital marketing. In fact, it enhances them! Here’s why:

Digital marketing is getting more and more complex by the day! Digital marketing professionals are doing even more than before, with no end in sight. Many digital marketing professionals are expanding from Google AdWords and Bing Ads to manage new programs such as Facebook, LinkedIn, display advertising, retargeting, and so more. Many digital marketers are taking control of new programs, including the customer experience. I, for one, love utilizing ion interactive for building incredibly sophisticated landing page experiences. Many digital marketing professionals are venturing into other closely related marketing channels such as email marketing and even direct mail. Many digital marketers are testing new beta opportunities on Google AdWords and Bing Ads, expanding the sophistication of their core programs. The only way to scale, in my opinion, is via automation. Automate as much as possible so you can focus on new initiatives and new complexities. Automation is your key to career growth.
Advertising dollars are shifting online at a rapid pace. Competition in many/most categories is increasing with little relief in site. The only way to keep your edge? Innovation! Marketers are being challenged to push the limits of digital advertising. I’m a huge proponent of automation because it offers precision and scale. Let computers do the manual stuff so you can focus on clever new strategies to outsmart your competition. As marketers we are judged on performance. Automation is your friend in hitting your numbers and goals.
Humans are incredibly smart and creative. As marketers we deserve to be thinking about marketing strategy. I’m talking about truly knowing the customer and crafting amazing campaigns. This vision becomes so much more possible with great automation. Automate the routine, manual tasks so you can focus on the higher level strategy. While automation may change the day-to-day of many online marketers (less manual, repetitive work), those same marketers will now be focused on new, more exciting challenges. Automation grows careers and allows marketers to push our industry forward with new strategies.
Automation requires incredibly intelligent marketers to set up and manage the system. Many savvy marketers are integrating automation deeply into their organizations. They’re starting to import CRM data into their bid management platform so the automation can bid even more efficiently. Such integration requires a truly seasoned marketer, one who can work cross-functionally throughout their organization. There are always more opportunities to integrate. There are always increased opportunities to leverage automation in new ways. Platforms are always releasing new features that will help you and your company scale. Exciting work for digital marketing professionals, especially those that can manage the technology platforms, has no end in sight!
Automation helps grow teams. I have managed digital marketing programs at four large companies during my career in online advertising. In all four cases, we implemented and grew our automation. In all four cases, we actually ended up expanding our teams as automation grew. Why? Complex programs need amazing teams. As programs grow, companies make more money. With more money, comes more responsibility and more future opportunity. There’s no better way to tap into that opportunity than to hire world class marketers. As someone who has embraced automation for ten years, I have never seen automation actually shrink a digital marketing team. It’s always the other way around!

This is not meant to be a comprehensive list, but just a few of the top reasons why careers in SEM and digital advertising are here to stay. In my opinion, technology and automation increase the need for talented individuals. What do you think? How has automation impacted your team and digital marketing program? Do you leverage a digital marketing technology platform? If not, make sure to start auditioning right away, you will be super impressed!

Image of Production Automation © iStockPhoto – ralex3D

Introducing InsideVault SEM Automation

By PPC Ian Leave a Comment Oct 14 4

PPC Ian’s 3-year blog anniversary is coming up at the end of October. It’s only fitting that I lead up to my blog anniversary with a post about SEM automation, perhaps my favorite topic in our exciting world of online marketing. I like to think that PPC Ian is one of the best resources online when it comes to choosing the right search marketing platform for your needs. When I first started blogging about SEM automation, I wrote a post about Four Amazing SEM Tools. Since then, the world of SEM platforms has expanded even more! There’s so much competition, both in the world of PPC platforms and also in the world of SEO platforms (a topic I have not covered yet but plan to in the future). With competition comes better choices for online advertisers like you and me! Today, I’m thrilled to highlight a brand new SEM platform called InsideVault. Before we get into the actual post, however, I wanted to share a fun picture of yours truly and the InsideVault team!

PPC Ian Hanging Out With The Amazing InsideVault Team (and Justin Bieber)

We actually took this picture last Wednesday night when I visited the InsideVault office (in San Carlos, CA) on the way home from work. San Carlos is an awesome little city and a very central location on the San Francisco Peninsula to start a new company. When I arrived, I was greeted by my old-time friends, Guillermo and Brian. I worked with these guys back in 2004-2006 at Nextag.

Guillermo and Brian gave me a tour of their awesome office and introduced me to the team. I ran into several familiar faces there. What a fun blast from the past! Right from the start, InsideVault recruited the best of the best. It’s all about the people!

After the office tour, we hopped into the conference room and actually sat at a conference room table that used to be in the old Nextag San Mateo office. How cool! I do believe the old school table will bring InsideVault good luck. (At the same time, these guys are so awesome that they really do not need too much good luck.) My hosts graciously ordered in some amazing pizza for dinner and then gave me a demo of their product.

Now, I’m not going to lie. Before I even went to their office, I was a tiny bit skeptical. SEM automation is probably one of the most saturated and competitive markets within Internet technology right now. The competition is fierce and the amount of funding is huge. I’m talking about over $100 million worth of funding across all of the SEM platforms, if I were to throw out a conservative estimate.

However, my skepticism dropped the minute the team started demoing the platform. In short: I was 110% blown away and am a major believer that InsideVault is going to be one of the hugely successful SEM platforms. What InsideVault has accomplished in the last 1.5 years is truly unbelievable. I was dazzled!

I asked Brian, “Why did you guys go into such a competitive market?” The answer was simple: No matter how competitive, we can do better! Based on my several hour demo of the platform, I can see exactly what Brian was saying. In terms of features, I believe that InsideVault has one of the most advanced SEM bidding systems around. I absolutely love the bidding, the InsideVault team really hit the nail on the head. I also believe their cross-search engine campaign management is one of the best. I’m not going to get into too much detail here because I’m not sure how much I’m able to say and how much I’m not. What I do want to say is make sure to reach out to InsideVault. Whether you’re in the market for a platform or whether you already have one, you owe it to yourself and your company to stay on top of the latest trends and advancements. We’re in the early days of search engine marketing and the platforms just keep getting better and better! Make sure to stay on top of the trends and make the best decisions for you and your company.

Over the coming months, I’m going to be blogging more about InsideVault. I’ve got some exciting projects in the pipeline with the InsideVault team and will be providing some great coverage of the platform here on PPC Ian. Stay tuned and make sure to check out InsideVault today!

Image of PPC Ian and InsideVault © PPCIan.com

I’m Honored To Be A Marin Software Celebrity

By PPC Ian Leave a Comment Sep 13 5

Today truly was my day! It all started when my good friend Matt Lawson, VP of Marketing at Marin Software, sent me an email this morning. He asked me to check out the brand new Marin Software homepage. So, I headed on over to Marin and could not believe what I saw! I really couldn’t!

So, what did I see? There’s a big picture of me right in the middle of the Marin homepage, with a link to my Marin Software video testimonial. Head on over to Marin and check it out for yourself. Also, you can see a screenshot below (click it to see the full-sized version). I’m so honored. Marin Software is one of the best SEM automation platforms around. I personally leverage their platform each and every day to optimize and manage large scale SEM campaigns. I’ve been a Marin Software power user for years and cannot say enough great stuff about Marin, their technology, and their team. Thanks so much, Marin, this is a true honor! And, congratulations on your new homepage, it rocks.

Image in this post © Marin Software

Three Tips When Buying SEM Software

By PPC Ian Leave a Comment Mar 7 6

I’m a huge fan of SEM software. Some of the most popular posts here on PPC Ian are all about this very topic. Eight years ago, when I first started out in this industry, there was no option but to build your own SEM software using the search engine APIs. Today, platforms like Kenshoo and Efficient Frontier are better than what any company could possibly build in-house (or at least the vast majority of companies). As such, the Build Versus Buy decision is somewhat easy, in my opinion. Let’s say you’re in the market for SEM software. Today I’m going to share three off-the-beaten-path tips you should consider when buying your platform. I’ve already covered most of the standard stuff in my SEM Automation Whitepaper so today’s tips are some of the more advanced ones.

Tip 1: Get Peace of Mind In Your Contract

SEM Automation

Once you buy your new SEM platform, you’re going to invest a lot in the integration. I’m talking about getting your back end conversion data into the platform, testing and optimizing bidding algorithm, training your team at length, setting up reporting/alerting, and so much more. All of this stuff, if done right, will take a lot of time. It will also propel your SEM program to new levels never thought possible. The byproduct of this all? Once things are working, you really won’t want to change platforms. Sure it’s possible, but it’s going to be a setback for your operation once your new platform is all set up perfectly. For this very reason, I recommend having your legal team insert language into the contract so that the SEM software company cannot raise prices on you. Or, if they do, it’s capped at a certain amount per year that you’re comfortable with. Now, I’m not saying that the SEM software companies will try to raise prices. Most likely, you will be just fine and the price will stay the same. That said, I’m talking about peace of mind here. Whether you’re buying SEM software or any other software for that matter, get some peace of mind in your contract!

Tip 2: Get Resources Behind Your Ideas

Every vertical in online marketing is different. SEM platforms these days offer so much functionality that they cover almost every use case imaginable. That said, after leveraging your SEM software for a while, it’s likely you’ll come up with some idea specific to your company that has not been thought of before. Personally, I’m championing one such idea right now. My tip: Make sure to purchase software from a company that’s interested in hearing and acting upon your ideas. It’s truly great when you’re working with a platform that is receptive to client feedback.

Tip 3: Make Sure Your SEM Software Company Has Funding

The space is heating up for sure. Acquisio acquired ClickEquations. Adobe acquired Efficient Frontier. When you invest in SEM software, it’s not only about the present but it’s also about the future. Make sure to invest in an SEM platform that is going places. Make sure you buy SEM software that has resources (money) to innovate. SEM is a fast-paced field that changes daily. There’s a ton of overhead in innovating SEM software. Make sure the money is there to make it all happen! By the way, the platforms I discuss here on PPC Ian have major funding behind them.

Image of SEM © gdas

Negotiating a Great Price on SEM Software

By PPC Ian Leave a Comment Feb 5 0

Are you in the market for SEM Software? If you’re running a large paid search program, I certainly hope so. SEM Software produces great returns, but it certainly does not come cheap. Today, I’m going to share a few tips that will help you negotiate a super price on your SEM Software.

Tip 1: Compare Prices on SEM Software

Marketing Automation Flow Chart

There’s a lot of different, great SEM Software packages available these days. You can read about a few of them in my post titled, SEM Software – Four Amazing Tools. The beauty of all these options? SEM Software companies are fighting for your business! Audition all of the platforms out there. Make it known that you are doing your homework. Leverage the fact that you are comparing platforms to negotiate prices down.

It’s expensive to build search engine marketing software. That said, it is possible to negotiate prices. Don’t give up and hold your ground. If you’re not a super experienced negotiator, you may even want to include someone from your sales or business development team. They can get a great read on the situation and help you with your negotiations.

Tip 2: Offer Yourself As A Reference

SEM Software companies only make money if they sign up a huge number of clients who spend a large amount of money on paid search. There is no better way to sign up new business than via referral. Tell the SEM Software company that you are willing to be a reference if they offer you and your company a discounted price. Just remember: Once you’re on their platform, make good on your promise. It’s the right thing to do, and it’s a fun way to meet new people in our great industry.

Tip 3: Become An SEM Software Testimonial

This one really ties into the last point. Offer yourself and your company as a potential testimonial for the SEM Software company. SEM Automation companies are always looking for testimonials, case studies, and even video interviews with clients. These help their marketing team drive more new business. Before promising this one, make sure to check with your company’s legal team. Are you authorized to be a testimonial? What are your company’s policies on testimonials? What type of data can you share and what can you not? Testimonials are a win-win, they keep prices down and will even get you some media exposure!

Tip 4: Is a "Lite" Version Available?

These days, SEM Software companies realize that large, enterprise customers have different needs than smaller organizations. Assess your monthly spend and understand if a "Lite" version is available. Many search marketing platforms offer abridged versions (at a cheaper price) that are still incredibly powerful for smaller advertisers.

Best of luck in purchasing your pay per click software and I also recommend reading my SEM Automation Buyer’s Guide Whitepaper for more tips on your big purchase.

Image of SEM Software Flow Chart © iStockPhoto – Henrik5000

PPC Bidding Automation Tips

By PPC Ian Leave a Comment Sep 21 0

If you’ve been reading PPC Ian for a while, I bet you know that I’m a huge proponent of SEM automation. I even wrote a whitepaper a while back, PPC Ian’s SEM Automation Buyer’s Guide. One of my favorite aspects of PPC platforms such as Kenshoo, Acquisio, and Marin Software is automated bidding. In that spirit, I wanted to provide a few invaluable tips to keep in mind when setting up and maintaining your automated bidding platform.

Tip 1: Verify Your Platform’s Data Daily

What You Need To Know

Good data means good decisions. Bad data means bad bidding decisions. I’ve seen it hundreds of times: Something goes wrong and your SEM platform does not sync data properly. Perhaps the search engine API is down. Perhaps your own API (or FTP) is not working and the platform cannot access your internal conversion data. Perhaps your internal system does not update conversions properly. Sometimes it’s just a day’s worth of bad data. Sometimes, the bad data can pour in for multiple days (my worst nightmare, that is if it goes undetected).

Here’s the problem: Automated bidding systems rely on accurate data. If the clicks, cost, conversions, or other important metrics are off, the bidding system is going to make mistakes. These mistakes can be incredibly costly. It’s important to audit your data daily on all levels: Account, campaign, adgroup, and keyword. It’s also important to make sure your internal conversion data is passed into the system correctly (if applicable). When you do catch issues, make sure to work closely with your account management team and, until the problem is fixed, make sure the bidding system ignores the bad data dates.

Tip 2: Leverage Internal Conversion Data

Do you currently bid based on conversion collected via search engine pixels? Or, do you leverage your own, internal conversion data? From my experience, search engine pixels are always off. They will never offer as accurate of a picture as your own internal data. As such, I highly recommend passing your internal conversion data into your automated bidding platform, if at all possible. By doing so, you will see an instant lift in your results (good data equals good results). If not easily possible, search engine pixel data can be a stepping stone until you’re able to integrate internal conversion data.

Tip 3: Invest Heavily In Your Bidding Setup

Long term, automated bidding systems save a ton of time while also driving improved results (more conversions at lower CPA). Short run, however, they require a ton of setup. In my experience, it’s the setup (or lack thereof) that will make or break your bidding system. My advice is to spend a good amount of time upfront thinking through all the details. I’m talking about these types of questions:

Should I pass data across search engines? For example, if Microsoft adCenter does not have statistically significant data on a keyword, should I leverage my Google data?
Should I minimize bid movement on a day-to-day basis? Let’s say my current bid is at $0.50 and I’m headed toward $1.00. Should the system make the entire move in one day or should the system make the move gradually?
What should my bidding system consider statistically significant? Is 100 clicks worth of data statistically significant? How about 1,000 clicks worth of data?

My advice is to compile a list of at least 30-50 such questions and then think through them in great detail. Engage your account management team and expect to dedicate a full time employee (for at least one month’s time) to make your new automated bidding system work.

So, there you have it. Some of my favorite automated bidding tips, especially if you’re newer to the exciting world of PPC bidding automation. I sincerely hope this helps and encourage you to investigate the great SEM platforms out there.

Image of What You Need To Know © marekuliasz

SEM Software – Four Amazing Tools

By PPC Ian Leave a Comment Jul 21 13

I’m a tremendous fan of pay per click automation. I just wrote a FREE 12 page whitepaper all about buying the right search marketing software platform. I highly recommend checking it out!

Last Friday, I also wrote all about portfolio theory versus margin maximization bidding models. Today, I’m super excited to continue the SEM automation trend and discuss four of the most popular SEM software tools. Specifically, I’m going to introduce Marin Software, Kenshoo, Efficient Frontier, and ClickEquations. While there are pros and cons with all tools, I’m really going to focus on some of the high level pros of each tool today. At the end of today’s post, I’m hoping you go away with four great tools that you can evaluate for your organization’s SEM program.

Marin Software – The Industry Leader

One Plus One

I’m starting with Marin Software because it’s one of my favorite SEM software tools of all time. In fact, I had the pleasure of recently interviewing Matt Lawson from Marin Software (one of my favorite posts on PPC Ian). Following are a few of my favorite things about Marin:

As the largest search marketing application, Marin has over 180 customers and $1 billion in annual paid search spend. This figure is absolutely amazing! More than anything, more spend equals more features (and better features). Marin clearly has the client base to support best of breed innovation.
- Just one recent example: Marin now supports Facebook Ads. (I’m a big believer in the future of Facebook and also recommend checking out my review of Jonathan Volk’s Facebook Ads book.)
Marin Software has the best account management team, period. I personally know several of the account managers at Marin and give them my highest recommendation. Marin hires the top dogs of the corporate pay per click industry, account managers that can truly add value to your program. It’s actually quite funny: The best campaign managers I know all end up joining Marin!
As you know from my last post, I’m a huge fan of the margin maximization bidding model. Marin offers a no-nonsense (anti-black box) bidding model that absolutely delivers. In my opinion, it’s the best bidding engine out there.
Marin’s user interface is amazing and polished. If you’re going to be in one application all day, you want one that’s easy to use, visually appealing, and powerful, right? You get all of these benefits with Marin. They truly put the user first.

Kenshoo – Intelligent Campaign Automation

Kenshoo is another one of my favorite search marketing applications. It’s actually really crazy: About a year ago, I visited an office warming party at Kenshoo’s new San Francisco office and had the pleasure of meeting and chatting with Mike Moritz, one of the top venture capitalists in the world. Over the last year and a half, I’ve really gotten to know the Kenshoo team and give them my top recommendation. Following are just a of my favorite things about Kenshoo:

Kenshoo is new! Let’s face it: The search engine marketing industry has matured. I’ve been doing this stuff for over 6 years now and can hardly believe it. The beauty of Kenshoo is it’s a brand new application so its code base is fresh, innovative, and fast.
As you may know, I earned my BS in Computer Science from Stanford University back in 2004. Recently, I spoke all about online marketing at Stanford’s Graduate School of Business. I love technology and innovation. Kenshoo is all about innovation. Their roots are in technology and they think and build innovation like true engineers.
If you’re in product shopping, Kenshoo offers amazing crawling technology that will spider your site and link your SEM campaigns into the various nodes of your site. This technology can do some really great stuff such as keeping prices in your ad copy up to date with current prices on your site, and so much more.

Efficient Frontier – Optimized Performance Marketing

Next I’m looking forward to discussing some of my favorite aspects of Efficient Frontier. Efficient Frontier is a little different than Marin Software and Kenshoo in that it’s more of an agency package. Marin Software and Kenshoo enable internal SEM teams to better manage their campaigns. Efficient Frontier, however, not only offers an amazing software solution but also combines it with the leverage of agency resources. If you’re looking to leverage one of the most amazing bidding models out there while outsourcing your campaign management, Efficient Frontier is an excellent option. Following are a few highlights:

Efficient Frontier offers the premier portfolio theory based bidding model around. As I discussed in my last post, there are two really great bidding models for the corporate setting: portfolio theory and also margin maximization. If you’re under a budget (especially a strict one), I’d definitely encourage you to investigate portfolio theory.
How many people work on your team? Do you plan to hire more? Let’s face it: There are many situations where you simply don’t have the ability to hire more team members, but you need more scale. Now, it’s my firm belief that any of the tools in this post will help you in that situation, they all offer scale. However, there’s nothing like the power of outsourcing and agency assistance for maximum leverage.
Efficient Frontier is the leader in algorithmic bidding. They employ some of the most amazing PhDs in the industry and can truly take your bidding to the next level.

ClickEquations – The First Intelligent Paid Search Solution

I’m going to close out today with ClickEquations. ClickEquations is a newer paid search application that has taken the industry by storm. I’m going to write a bit less about ClickEquations simply because I don’t know as much about it. However, that definitely doesn’t mean there is anything less valuable with this tool. Following are some of my favorite things about ClickEquations:

The management team at ClickEquations truly gets it. At SMX Advanced Seattle, I had the pleasure of hearing Craig Danuloff, President and Founder of ClickEquations, talk about Quality score. He presented a quality score whitepaper that is truly the best I’ve seen on the topic. I highly recommend checking it out! After reading this whitepaper, I’m convinced you will be a fan of ClickEquations too!
ClickEquations has a superb team. At multiple conferences, I’ve heard Alex Cohen (Digital Alex) speak on behalf of his employer, ClickEquations. This guy always hits the ball out of the park and makes a great name for his company. It’s people like this that truly inspire confidence.
I’m a big fan of the ClickEquations Blog. The blog makes a great name for the company and I can’t wait to learn more about this great SEM tool.

Portfolio Theory Versus Margin Maximization

By PPC Ian Leave a Comment Jul 16 16

Have you checked out my SEM Automation Buyer’s Guide yet? I highly recommend it! You’ll get 12 FREE pages of information about buying the perfect SEM software for your company. I’ve been at the forefront of SEM technology for the last six years and share my proprietary methodology for choosing the perfect platform.

Two Very Popular SEM Bidding Models

$Math Formulas$

Today, I’d like to stay on the topic of SEM automation and specifically discuss two very popular bidding strategies: portfolio theory and margin maximization. I’m a tremendous fan of bidding automation. It’s really the only way to go when you manage hundreds of thousands if not millions of keywords. Of course, you’ll always want to involve human judgment (and supervision), especially on high volume keywords, but a solid bidding model will become your organization’s SEM backbone. At the end of this post, you will walk away with two things:

An understanding of the differences between portfolio theory and margin maximization.
An understanding of which model makes the most sense for your particular business model.

What is Portfolio Theory?

Portfolio theory based bidding models involve a parameter (or parameters) you’re trying to maximize given certain constraints. Typically, you’ll find portfolio models set up to maximize volume of conversions within a budget constraint. You’ll often have a cost per acquisition constraint as well, whereby the algorithm stops short of the budget if your overall CPA is running too high.

Within your portfolio, different keywords will end up running at very different CPAs (cost per acquisition). You may have some running at extremely high margins with others even running at a negative margin. It’s all really a function of the CPA/volume tradeoff. In those cases where the algorithm can drive significantly more volume at slightly higher CPAs, it will go for it. In cases where higher CPAs drive relatively less incremental volume, the algorithm will decide to go for margin. At the end of the day, the algorithm does its best to make intelligent tradeoffs so the overall portfolio’s volume is maximized within the constraints.

In my opinion, portfolio based bidding models are absolutely awesome! They tend to break down a bit when you have an unlimited budget, although elements of the portfolio theory can still help you out in that scenario (more on this later). The most well known portfolio software out there: Efficient Frontier.

What is Margin Maximization?

So now we’ll move onto margin maximization. Over the course of my SEM career, I’ve worked mostly at companies that have had unlimited budgets. That’s right! As long as the CPA is at or below the target, I have been free to drive as many conversions as possible. It’s precisely in these types of situations that a margin maximization model thrives.

What is margin maximization? It’s simple: The model basically maximizes your margin (typically percentage margin) on a keyword level. If you have enough statistically significant data on a keyword level, it’s easy to just bid 1 – margin percentage target (while also adjusting upward to take into account slack, the delta between your bid and actual CPC). What if you don’t have enough statistically significant data on a keyword level? The best margin maximization models will forecast your keyword level revenue per visitor based on closely related keywords.

The primary benefit of margin maximization: You can rest at night knowing that you are never losing money on any keywords (as long as your forecasted keyword values are accurate). One of the downsides of margin maximization: You can sometimes leave volume on the table. If you simply take a lower percentage margin on certain keywords, you may be able to drive significantly more volume. There are a few tricks in getting around this downside, however. The first involves experimenting with different percentage margins in an effort to optimize your dollar margin. The second involves experimentation on a keyword level to allow a few loss leaders in your campaign. The margin maximization platform that I’m most familiar with (and highly recommend): Marin Software.

Which SEM Bidding Model Do I Prefer?

So what’s my preference: Portfolio theory or margin maximization? It’s really a function of my constraints. If I have a budget constraint, I’m a portfolio theory guy all the way. If I have unlimited budget, I’m all for margin maximization.

Let me tell you however, even in the second case (unlimited budget), I’m a fan of a hybrid approach. I’ll manage most keywords to a strict margin percentage. However, I will experiment placing my the best keywords (Google.com only, exact match only, category leaders) at higher bids. In cases where I can drive significantly more volume at a lower percentage margin, I’ll sometimes make the tradeoff, especially if my organization needs the volume. In terms of making up the percentage margin for the overall portfolio, I’ll often rely on my trademark terms because they run at such high margins.

So I’ve mentioned Efficient Frontier and Marin Software. What are some other great SEM applications? I recommend checking out Kenshoo and ClickEquations. In a future post, I’m looking forward to discussing some of these SEM applications and more!

Pay Per Click Automation

By PPC Ian Leave a Comment Jan 22 29

As you may know from my about me page, I majored in computer science at Stanford University. I truly feel like my computer science background prepared me perfectly for the corporate pay per click career path. Why? When you’re dealing with extremely large campaigns (especially across a portfolio of verticals), it’s nearly impossible to scale without automation of some sort. As someone who’s product managed several internal automation tools and who has worked with third party solutions, I’m thrilled to start discussing PPC automation today. I’ll start off with an overview of my automation thoughts and will follow up with a series of in-depth PPC automation articles over the coming months.

Why Automate Corporate Pay Per Click Campaigns?

Automation Gears

What’s the key difference between affiliate marketing and corporate pay per click marketing? There are a few, but the big one is scope. In the affiliate world, you can make quite the decent living by focusing on a very specific niche. However, in the corporate world, it’s all about going big. You’re dealing with millions of keywords, unreal budgets, extremely complex accounts, often across multiple categories.

As a computer science guy at heart, I like to equate manual campaign management to The Mythical Man Month. After a certain point (usually after 5-10 campaign managers), throwing more marketing professionals at your corporation’s campaigns will simply not help. Actually, more people at a certain point can actually slow you down! Here’s where automation comes in: Automation will take your program to the next level. Automation will assist your human team in executing certain aspects of PPC faster and more accurately than possible through manual campaign management. Automation will get you over that plateau your team is facing.

Another critical point: Corporate PPC is an extremely competitive field. You need to assume your competitors are investing in automation. If you’re not, your PPC campaigns will fall behind. You simply cannot keep up without automation. For this reason alone, it’s extremely important to automate aspects of your PPC campaigns to maintain your edge against the competition.

What Aspects of PPC Should You Automate?

I want to be clear from the beginning: I’m not one of those guys that recommends automating all aspects of PPC. In my opinion, that’s a recipe for disaster. I’ve seen it play out before: You automate everything, the campaigns start trending down, and then a manual manager needs to jump in and fix everything. What I am arguing however is that automation should play an absolutely critical role supporting your human campaign management team. Below are just a few aspects of PPC that are totally worth automating.

Automate PPC Bidding: Biding is perhaps the primary aspect of PPC that should be automated. Bidding is very tedious, it’s totally based on data, and it’s very time consuming. In my experience, it’s very easy for humans to make major mistakes with manual bidding.

Automate PPC Reporting: There’s no doubt about it, reporting is extremely important. Corporate PPC is all about data analysis and data-driven action. If you automate your reporting, your team can spend more time analyzing and driving action versus pulling numbers together.

Automate Keyword Generation: I have mixed feelings on this one because some of the best gains in PPC have been a direct result of creative keyword generation. At the same time, you simply cannot scale your keyword set effectively without automation. In a product shopping vertical? Leverage your catalog to generate keywords as new products are released. Looking to deploy more exact match queries for increased bidding efficiency, targeting, and position? Deploy exact match versions of all raw user queries that drove conversions. Looking to leverage the competitive intelligence of your industry? Pull keyword lists from tools such as Trellian, Wordtracker, and KeyCompete.

Build Versus Buy and a Few Great SEM Platforms

As discussed in the introduction, I’ve both built and bought PPC automation tools during my career. While building was the only option when I first got started (there were simply no tools available on the market for purchase), buying is a lot easier these days (thank goodness).

As a general rule, I’m much more in favor of buying versus building for smaller organizations. Small organizations need to focus on their core business, they simply don’t have the resources to effectively build and maintain automation tools. There’s actually quite a bit of overhead in simply maintaining SEM tools due to search engine API upgrades that happen regularly. Moreover, the tools available on the market these days are absolutely astounding. Two tools that I highly recommend are Marin and Kenshoo.

Now, if you’re at a larger organization, the decision can become a bit more difficult. Because most SEM platforms out there operate on a percentage fee model, buying at a large organization can become very expensive (unless you’re able to negotiate a great deal). There may come a point where building becomes more cost effective than buying. One thing is for sure: SEM automation is very high leverage and should be an important decision that every corporate SEM team considers regularly.