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SEM Considerations For Optimal Campaign Performance

Staff Writer
Published: 2004-10-05

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DoubleClick released a new white paper on search engine marketing considerations for optimal campaign performance.

The white paper, based on information compiled from DoubleClick's Performics division, presents key findings from more than 100 leading marketers, spanning hundreds of thousands of pay-per-click keywords.

Performics, a leader in search engine marketing and affiliate marketing, was acquired by DoubleClick in June 2004.

"Multi-channel marketers encounter extremely complex variables in their search marketing campaigns, and more are starting to leverage sophisticated technologies and industry expertise to guide them," said Chris Henger, SVP of marketing and product development for Performics. "DoubleClick's new white paper addresses these complexities and intersections, and provides guidance on factors that impact campaign performance and return on investment."

The white paper outlines five groups of important considerations for sophisticated search engine marketers including click volume, campaign size, keyword length, pricing and position. Concepts discussed in the white paper include the importance of having high and low volume keywords in a search campaign, variables that dictate a search engine marketing campaign's ideal size, internal controls that affect a keyword's performance, best practices for managing a paid search program, and many others.

More specific findings from DoubleClick data shows:

* Keywords do not need to be expensive to generate click volume. More than 60% of active keywords cost 20 cents or less; only 6% cost over $1.00.

* High position keywords do not necessarily equate to click volume. There are as many high click volume keywords in positions lower than three as there are at three or higher.

* On average, conversion rates decrease when CPC exceeds fifty cents, indicating a potential "law of diminishing returns"

* Lower-positioned keywords still drive 10% of total conversions, suggesting there is value in developing broad keyword lists

The white paper is available in its entirety, and a complete search engine marketing trend report is scheduled for release in November. The upcoming trend report will provide even more extensive data and analysis based on complete Q3 data from more than 100 leading marketers.

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