for retailers

Posted by Joe Owens, Account Manager & Sachin Gadhvi, Account Director

Spotlight Tag Bidding is a great way for marketers that manage multiple products with multiple margin goals to take advantage of optimal ROI.  Through the use of Spotlight Tags, marketers can bid on mixes of products/goal thresholds instead of bidding on one generic goal.  Bidding on one generic goal can be limiting, if not damaging, to certain programs.

Spotlight Tag Bidding 101

Spotlight Tag Bidding has been an existing DART Search capability for some time, but is still not widely adapted by search marketers, despite its potential advantages.  Spotlight Tag Bidding works by taking inputs from several Spotlight Tags rather than just one.  It then factors those Spotlight Tags into a bidding decision for each keyword. 

For instance, say that Bank Z has multiple goals they want to achieve from their paid search program.  These goals are number of opened checking accounts, number of leads for mortgages, and number of existing customers who enroll to use the site’s online banking feature.  Using Spotlight Tags, the bank can tag different conversion types and allow the keyword to take all those inputs, per their varying goals, and make bidding decisions based off of them as appropriate.  If the keyword "bank z" is getting more conversion traction for opened checking accounts (which the bank may be willing to pay more to acquire) rather than existing customers enrolling in online banking, Spotlight Tag Bidding would allow the bid tool to bid more aggressively on the “bank z” term than it would have with a generic goal.

Conversely, a term that may have appeared to be staying at goal under a single generic bidding goal may actually be too expensive.  Once the more granular conversion tagging input is factored in, the bid tool will allow the term to be pulled back. 

Therefore, Spotlight Tag Bidding makes for smarter bidding decisions.  Rather than holding a keyword to an ROI that is a blend of the profit of all your products, it can be held to several ROIs that are actually the exact profit margins of all your products.  It should also be noted that Spotlight Tag Bidding is most successful for keywords that receive a healthy cross-pollination of sales traffic from different products, like in the Bank Z example.  This is because these keywords will have regular inputs across all tags for which bidding decisions can be made. 

Performics recommends testing Spotlight Tag Bidding on brand terms and other generic, widely encompassing terms.  However, if product line tagging is in place, other terms can be evaluated for candidacy as well.

 

 

July 8, 2009

Using Spotlight Tag Bidding to Manage Multiple Products with Multiple Margin Goals

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