Branding as a Direct Response PPC Search Byproduct
Why branding and direct response initiatives aren't separate disciplines.
Why branding and direct response initiatives aren't separate disciplines.
This week I was honored to attend an RBC Capital Markets Internet executive dinner at the 21 Club in New York City. There, a dozen or so executives were joined by about 50 analysts. While providing an outlook on PPC (define) search and Google, I commented several times that our clients and those of other SEM (define) agencies manage search to direct-response metrics, which often becomes the binding constraint to spending. In fact, SEMPO’s annual research confirms that marketers primarily manage to direct-response metrics.
Wenda Harris Millard, Martha Stewart Living Omnimedia’s president, and I got into a fun debate about whether, by emphasizing direct response (DR) metrics when discussing how clients manage search, I was misleading investors and ignoring the branding impact that many marketers also derive from search. Millard contends that branding and direct response are completely separate disciplines. I argued that because marketers overwhelmingly manage search to DR metrics but can get a brand lift while engaging in DR messaging, the two weren’t mutually exclusive. Indeed, marketers and advertisers all want brand impact, and why not? The classical definition of branding includes the ability to charge more for one’s product and have a loyal customer base due to one’s brand.
As with many debates, we can both be right. Recently, executive summary data from SEMPO’s “2007 State of the Market Survey” were released to the membership, sponsors, and press at SES New York. Advertisers consistently indicated that brand awareness is the top objective of paid placement search campaigns. This is particularly true for larger firms. When asked, “What is your company using search engine marketing to accomplish?” 71 percent of advertisers with more than 500 employees answered, “To increase/enhance brand awareness of our products/services.” Smaller advertisers shared their enthusiasm for branding, with 56 percent of those advertisers with fewer than 500 employees selecting brand awareness as a purpose of their paid search efforts.
Yet when asked, “What metrics do you track/measure/generally pay attention [to] to gauge the success of Search Engine Marketing programs?” brand impact was the lowest of 13 different metrics, at 16 percent of advertisers. The top metrics used were: traffic, conversion rate, CTR (define), ROI (define), and CPC (define), which were all selected by 50 percent or more of 338 advertiser respondents. The gap between the most important reason for doing search and the least is a testament to the difficulties of measuring brand impact. Branding metrics used by larger marketers with the budgets to measure attitudinal metrics are typically brand and ad awareness (aided and unaided), message association, brand favorability, and purchase intent.
My hypothesis is this: When managing a lean-forward media such as search, one in which consumers look to become engaged in links from the SERP (define) to the rich content available on marketer sites, one can achieve tremendous branding on the post-click engagement while selecting clicks based on predictive DR metrics. In other words, branding metrics can be considered a byproduct of a best-practices DR search campaign, even if one does not go so far as to develop a branding effectiveness index (BEI) formula. Such correlative metrics include:
Once my brand-lift correlation research is done, I’ll know for sure if one can optimize on DR metrics and get branding as a byproduct optimally as opposed to having to use different media messaging and, as Millard would put it, apply a whole different marketing discipline to optimally build brand.
Join us for SES Search Engine Marketing Training Workshops on May 6, 2008, at the Crowne Plaza Denver in Colorado.
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