Choosing the right keywords for effective search advertising

November 2007

Buying keyword search placement is a unique form of advertising that allows businesses to narrow their marketing efforts down to a mere "keyword phrase."

Let's face it: there aren't many advertising options out there that offer such an opportunity to reach targeted customers. But, as any marketer who has purchased search advertising knows, buying the wrong keywords quickly depletes your entire month’s budget. Even the search engines know this and advise against it. You can probably think of at least 10 to 20 keywords off the top of your head that are relevant to your business. But the terms you automatically think of may be too broad or widely applicable to be appropriate.

For example, a financial company who offers credit cards to new businesses doesn’t want to attract consumers. Let’s say the company has a budget of $550 for a key word buy.

For $550, they can buy 100 clicks from the 2,000 searches for the term “new business credit card.” Or, that same $550 will buy 330 clicks from the 220,000 searches performed for “credit card.”

The term “credit card” buys three times as many clicks, but a much smaller percentage of those who click will be qualified. In fact, you run the risk of getting all the wrong people. Although the same amount of money only buys 100 clicks for the term “new business credit card,” every one of those clicks is pre-qualified. Even though the cost per click is more, you’re reaching the right audience.

Another key benefit is that the $550 spend buys a number one spot for “new business credit card” whereas buying “credit card” lands the ad placement in the 17th position. And we all know that most people end their search on the first page of results.

This example demonstrates the importance of looking beyond traffic numbers, and understanding the true size of your target audience. For many BtoB marketers, that number is likely to be in the thousands, or even the hundreds, rather than the millions. Very few businesses sell to everyone. Careful definition makes for better targeting, and more effective advertising.

Don’t just pick the top 10 keywords that come to mind. Invest the necessary time into a keyword strategy before you buy. Make no mistake, planning a successful keyword buying strategy takes a great deal of time, research and knowledge. And make sure search advertising is a component of a diversified online marketing plan, rather than the sole strategy.

Too often, marketers see search advertising as the “be all, end all” in online marketing efforts. The thought is, “if I’m only paying for the clicks, then there’s no waste.” Nothing could be further from the truth. This is one case where less (clicks) really is more (business).

For example, directory advertising is an effective way to get in front of your target audience when they are searching for your product or service. The total investment is typically a few hundred dollars a year, and the time investment is minimal because ads are built in under five minutes.

In addition, being listed in the right directories also gets your company picked up in all the major search engine keyword searches.

The ultimate goal of online marketing is bringing the right people to your website, not just bringing lots of people. So choose your strategies – and your keywords – carefully.