Segmenting a Paid Search Campaign by Success Metrics

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Segmenting a Paid Search Campaign by Success Metrics

Posted by Jason Pope, Senior Manager, Search Marketing

When it comes to paid search campaigns, one size does not fit all.  Keywords all perform differently and represent different stages in the consumer buying cycle.  This variation in keyword performance, in conjunction with the unique goals of your business, must be considered when setting up and segmenting a search campaign.

At Performics, we often reinforce the importance of proper segmentation of campaigns and ad groups.  However, it’s equally important to properly segment a program into bid strategy portfolios.  This will allow you to assign various success metrics to each group of keywords, which can then each be managed to the appropriate ROI.  Bid portfolios should be set up to meet the needs of the business.  Assuming the appropriate tracking and analytics are in place, bid strategy portfolios can be as complex as considering insights such as new and existing customer ratios, profitability margins, product inventory, sales & promotions, etc. 

For example, if you find that a certain group of keywords drive more profitable sales, you can assign them a unique ROI target and potentially bid them into higher positions. If advanced analytics are not available, bid strategy segmentation can be as simple as carving out brand and generic keywords and assigning them different goals.  For example, you may want to ensure that your brand keywords are always in positions 1-3, while ensuring that your generic keywords are hitting an ROI goal.  Whether your search campaign is simple, complex, or somewhere in-between, it will benefit from proper segmentation of bid strategy portfolios that align with the goals of your business.

Example Bid Portfolio:

Portfolio 1 – Brand Keywords (position 1-3)

Portfolio 2 – $85 CPL

Portfolio 3 – $150 CPL

Portfolio 4 – Average CPC < $1.00

Portfolio 5 – Spring Sale

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