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Marketing Blog
Louis Gudema, President
Magic Hour Communications

Recent Posts (click to jump to post):

Carnival of Marketing
MarketingSherpa's "Landing Page Handbook" -- Who to believe?
Cheerleading for drug sales
Beta: A software marketing tactic?
PPC May Soon Mean "Pay Per Call"
The Reason for Google Analytics
Google Click-Fraud: The Sequel
Google Click-Fraud

Google is Number One, but by how much?
Online display ad demand exceeds supply: prices surge
Ford's not so innovative ads
DM forms that should be outlawed
Master networkers
Magic Hour releases First Presidential Search Engine Poll
Google is changing the face of advertising

Carnival of Marketing
We're pleased to be hosting this week's Carnival of Marketing, conceived by Noah Kagan at Okdork. Here's the best of the (recent) best:

Jack Yoest has some good tips for "10 Steps of Marketing With No Money -- Then Sell Out".

One of the things I like about Jack's post is he tells a story. People like stories; people relate to people. Michael Chaffin writes about this in "Emotion Generators and Why Stories Matter".

Douglas Davidoff has a very different style, much more theoretical, in "It's Time to Stop Giving Customers What They Want". It may be easier to get into his post if you read the third to last paragraph ("What's wrong with that, you may ask?...") early on.

Liz Strauss has thoughts on the business strategies Michael Eisner used to resurrect Disney in "Marketing Strategy a la Mickey Mouse".

While Spike Jones has thoughts that remind me of Jim Collins's excellent book "Good to Great" in "The Little Things".

Bob Cargill has identified one "little thing" that Southwest Airlines is making into something so big that other companies are already immitating it in "The Ding Heard Round the Marketing World".

And John Jantsch boldly predicts the demise of the iPod due to Apple's arrogance in "Great Products Can't Overcome Arrogance". I have to agree about Apple's arrogance; it helped keep them to less than three percent of the PC market. So far, though, they seem to be doing just fine with the iPod: over 40 million units sold, 14 million in the most recent quarter, and they have created what Damon Darlin in "The New York Times" calls an "iPod ecosystem".

Good thinking, and writing, all.

February 12, 2006

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MarketingSherpa's "Landing Page Handbook" -- Who to believe?
If you haven't been to MarketingSherpa yet, get there. They have some excellent (free!) weekly newsletters that often include interesting case studies of successful marketing campaigns, as well as numerous reports and marketing studies for sale.

I recently read their 2005 "Landing Page Handbook: How to Raise Conversions -- Data & Design Guidelines." It has over 150 pages of recommendations on how to design landing pages for direct mail, search engine marketing, and other campaigns. (A "landing page" is the Web page you go to for more information; in the case of an online ad its the page you're directed to by clicking on the ad.) It also includes some very cool heatmaps which show how page design can affect where your eyes go.

I won't detail all of their recommendations, of course; you can plunk down $247 yourself if you want that. But their key philosophy is that landing pages are a special kind of Web page with unique design and content requirements. Critically, landing pages live in a parallel universe and shouldn't include the site's full navigation. The marketer doesn't want you to start browsing the site, they want you to either buy or at least take the next step of raising your hand by signing up for a white paper or converting on whatever the offer may be.

So... That got me to wondering. Most of their examples are small and mid-sized companies. What do the big guys do? I went onto Google and searched on a variety of terms designed to bring up ads from Global 2000 companies. I found that three-quarters of the landing pages did not follow the MarketingSherpa recommendations; many ads simply went to the usual Web page on the company's Web site about that product or service. In some cases these were already ecommerce pages and the company may have decided the page was optimized as much as they knew how to induce the visitor into making a purchase. Other times that was not so clear. Here are the links to custom landing pages listed by company and search term that brought up their ad:

Google "anti-spam"
Cisco "network security"
IBM "network security"
Google "internet marketing"
Blue Martini "online marketing"

And links to the many more "landing pages" that were not customized or living in that parallel universe:
Dell "server"
Microsoft "anti-spam"
VeriSign "anti-spam"
HP "network security"
VeriSign "network security"
Sun "Xeon server"
IBM "Xeon server"
HP "Sarbanes-Oxley Compliance"
ENI Marketing "internet marketing"
iCrossing "search engine marketing"
SEOinc "search engine optimization"
Claritas "media strategy"
College Board "marketing"
Target "international sales"
Sony "MP3 player"
Apple "MP3 player"

I would like to think that behind all of these major search ad campaigns is an agency, and a lot of thought, strategy and testing -- that they have tried customized landing pages and found them inferior. Maybe they were too hard of a sell, too off-putting. I would like to think that. But I've also worked with enough Global 2000 companies to know that behind some of these efforts may be a product marketing manager with a few dollars to try something, and little interest in going through an agency of record that can't be bothered with such a "little project".

Clearly Google has drunk the kool aid. But are we to believe that Dell, which probably knows more about online direct marketing than anyone in the world (except perhaps Google...), is getting this wrong? In his book "Direct from Dell", Michael Dell talks about how they can optimize pricing for a product online in just a few hours based on responses. Wouldn't Dell be using custom landing pages if they were truly more effective?

It's also interesting how few of the online marketing firms used custom landing pages, either.

And one of the MarketingSherpa study's favorite examples, an Old Navy email campaign, actually leads to a page on the Old Navy site with full navigation.

On the other hand, in her introduction, MarketingSherpa publisher Anne Holland claims that after redesigning their own landing pages, they saw a significant lift in results. On the importance of iterative design and testing, the study claims, "By a three to one margin, marketers who tested campaign specific landing pages achieved significant improvement. This was equally true for B-toB and B-to-C marketers, as well as those using primarily search or primarily email."

And Seth Godin, who has a similar philosophy, is quoted endorsing the study.

So what do you think? Do so many major marketers have this wrong? Is MarketingSherpa leading the way? Send me your experience at louis@magic-hour.com and I'll print interesting responses next week.

Meanwhile, at Magic Hour we're testing both integrated and campaign-specific pages with our SEM campaign. Not enough data yet on the campaign-specific pages to suggest which is working better for us. And no doubt both can be improved; neither incorporates all of the MarketingSherpa recommendations. Designing and testing is a never-ending process. We've already seen a significant improvement in inquiries based on redesigning our landing pages over the past two months.

November 30, 2005

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Cheerleading for drug sales
In one of their better headlines ("Gimme an Rx: Cheerleaders Pep Up Drug Sales"), The New York Times today describes the common tactic of drug companies to recruit former college cheerleaders, or current pros, as sales reps. The cheering advisor at the University of Kentucky describes the desirable qualities of the these recruits, ""Exaggerated motions, exaggerated smiles, exaggerated enthusiasm - they learn those things, and they can get people to do what they want." He adds that the pharmaceutical recruiters don't ask what the cheerleaders major was.

All this time that we've worked with pharmaceutical companies we've tried to figure out how to get marketing materials past their secretaries, and the answer was to give it to a cheerleader to deliver.

November 28, 2005

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Beta: A software marketing tactic?
The Wall Street Journal today suggests that it's increasingly common for software companies to use public betas as a marketing device. They write, "These days, beta editions are not only released to the public, but also stay in that mode for months, or even years. Google News, Google's news aggregator, has been in beta for three years. Microsoft's antispyware application has been in beta for nearly a year."

As soon as Google Maps were available, they were pretty solid and useful -- but in beta for months. More useful features have since been added, but that is always true with software.

November 28, 2005

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PPC May Soon Mean "Pay Per Call"
OK, I know I promised something on Yahoo!, but this news came out and deserves timely mention:
Google is testing pay-per-call ads. In these test ads – see screengrab – there is a little phone icon. If the searcher clicks on it, they can enter their phone number and be automatically connected with the advertiser. Instead of paying when the searcher clicks on the ad, the advertiser pays for each call received.

This may be especially useful for the millions of small businesses that don't have a Web site -- want to order a pizza, anyone? -- but would profit from advertising online. And it may help Google close its gap with Yahoo! in local advertising.



Ingenio already offers this service on AOL. The placement of their ads is based on how much the advertiser is willing to pay per call. However, Google has always used a more complex formula for rank that includes not just how much the advertiser is willing to pay, but also how popular the particular ad is, and presumably they’ll do that with pay-per-call, too.

Big potential problem, and how Ingenio solves it: spurious clicks/calls. Early banner ads had very high click-through-rates because people wanted to see what would happen. Many people who click on a paid ad -- or a “natural” link, for that matter – don’t spend much time on the site. It’s not unusual to see half or more leave after looking at only one page. Here’s Ingenio’s policy:

"To ensure you get maximum value as a Pay Per Call advertiser, you are not charged in the following situations:
- Repeat calls: Only the first call from a phone number will be charged within a 30-day period.
- Short calls: You will not be charged because most likely the lead was not valuable.
- Hang-ups: Calls where the caller hangs up the phone before you answer are not charged.
- Unanswered calls: You will not be charged until sufficient time for the phone to be picked up elapses.

Other new phone call leads delivered to your ring-to number will be charged, so be ready to receive calls when your ad is live and use scheduling to automatically pause your ad when you are unavailable."

Google hasn’t made details on their policy public yet. So far this is a test, it is only a test.

November 25, 2005

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The Reason for Google Analytics
Ten days ago Google added its Analytics tool to Adwords. The reason:

About eight out of 10 U.S. companies with annual sales of $1 million or more aren't using or have outdated software for tracking the success of online advertising campaigns, said Eric Peterson, a Portland, Ore.-based analyst for Jupiter Research. (Source: Bloomberg News, 11/15/2005)

That's ridiculous. If you're using online ads and not using an analytics tool like NetTracker (which we use and supply to our hosted clients), Webtrends, or HBX Analytics, you're flying with blinders on.

Even if you aren't doing ads, you should be using these tools to monitor your Web site and marketing success.

We, like most of our clients, aren't engaged in direct online sales. Most of our clients (high tech companies and private schools, for example) are engaged in sales of a five- or six-figure service or product with a lengthy sales cycle. NetTracker gives us invaluable feedback on our online and other marketing. It has helped us steadily increase click-throughs, and -- more importantly -- inquiries, while reducing the cost per click (CPC) and even the overall campaign cost. More inquiries, lower cost: can't beat that.

More on using analytics, with a small "a", another time. And enough about Google! What about Yahoo? More on them shortly, too.

I'm outta here. Have a Happy Thanksgiving!

November 23, 2005

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Google Click-Fraud: The Sequel
In response to my report of possible click-fraud (see previous post), I received the following email from Google today:

After a thorough investigation of your account, our team found some clicks and impressions that didn't fit a profile of normal user traffic. We also verified that this activity was filtered from your reports by our monitoring software. You were not charged for this potentially invalid activity. We found that this activity was very minimal and fortunately, it does not seem your account was affected by any higher-scale invalid clicking usually done by competitors or automated clicking programs.

Actually, the email was much longer, but that's the jist of it. As in my prior experience, it seems that the clicks initially show up in the daily tally (which is not updated in real time, but they say it shouldn't lag by more than three hours), and then disappear within a day or two.

Since I don't record the reported rates and compare them a few days later -- I just use the Google reporting tool anytime I want to look at stats -- I don't know how often this is happening with them automatically adjusting (as they claim).

November 22, 2005

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Google Click-Fraud
I received a message today from Richard DeLigter of Real Productions in New York, a corporate video company that uses Google Adwords to promote its video services, as does Magic Hour. He had noticed that the number of clicks on one of their terms had suddenly shot up and, using their Web site statistics program, that the person who was clicking-through using that term was only looking at one page and then quickly leaving their site. He thought this was very likely an example of click-fraud: a competitor trying to deplete his advertising budget. He's almost certainly right. It was very kind of him to notify me; when I looked at our stats, I saw the same thing.

Two weeks ago we notified Google of another instance of click-fraud on another, unrelated term. We had experienced a click-through rate (CTR) of about 3 percent on that term, which is outstanding. Suddenly it jumped to 9 percent, which is insane. Google investigated and got back to me a couple days later agreeing that the jump was the result of click-fraud and taking away charges for what they felt were the extra clicks. Two instance of click-fraud on a small account like ours in a month: that's pretty amazing. Google claims to be aggressive in monitoring, but it looks like in these cases they didn't catch the activity. It shouldn't be that hard. It all starts with that sudden jump in CTR. If they see that, they should investigate immediately and automatically.

I've notified Google and will let you know what they tell me in a couple days.

November 21, 2005

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Google is Number One, but by how much?
I've seen several recent analyses of the ranking of search engines -- what percentage of total searches is done on each engine -- and while they all agree that Google is #1, they don't agree on size of market share. Three examples (all data from July):

 
Google
Yahoo!
MSN
AOL
comScore Media Metrix
36.5
30.5
15.5
9.9
Hitwise
59.2
28.8
5.5
NA
Nielsen/NetRatings
46.2
22.5
12.6
5.4

The NetRatings data press release does not make it clear if it is referring to only US or worldwide searches. comScore and Hitwise are for US-only, and what a huge difference in the survey results between the two. I saw an article in the Wall Street Journal over the summer that claimed that while Google has a lead worldwide, in the US Google and Yahoo! were within a percentage point of one another.

These stats are very important when devising a search engine marketing strategy. If you believe Hitwise, you wouldn't bother with MSN or AOL at all. When viewing the Web site stats of our clients, corporate and non-profit, we typically find a huge lead for Google -- 70 percent or more is not uncommon. Since the sites have similar rankings in both Google and Yahoo!, this has to be the result of more people using Google.

These rating organizations need to provide more detail. Perhaps Google is big in one type of search and Yahoo! another (Hitwise did note that Yahoo! is much stronger in local search). It makes you wonder just how valid their methodologies are...

November 19, 2005

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Online Display Ad Demand Exceeds Supply: Prices Surge


The Wall Street Journal reported today that demand for prominent display ad space at Yahoo!, MSN and AOL is so great that some pages (i.e., car buying tips) are sold out 18 months in advance! They report "MSN says it currently charges between several hundred thousand dollars and $1 million for a prime, 24-hour ad spot on its home page. That's up from about $25,000 to $50,000 four years ago." One media buyer accurately commented that "it's starting to get into Super Bowl territory."

As I write this, the home page of Yahoo! has an ad for Mazda. MSN for Kraft, and AOL for Dell. Google's home page, of course, is ad-free. Given their tremendous profitability from paid search and other services, and the degree to which that simple home page is part of their brand, it may even stay that way.

Major advertisers have now bought into what content sites have claimed for years: that online ads not only result in direct sales, but also build brands.(1) (2) (3)

Fortunately, pay per click ads are still affordable for small businesses and organizations for many search phrases, but demand for them is steadily rising and the day may come when they are only affordable for the Global 2000, also.

November 16, 2005


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Ford's Not So Innovative Ads

In the latest issue of The New Yorker there is an ad from Ford about how innovative they are (click image to enlarge):

Now THAT'S innovative: a middle-aged guy standing at a podium. And looking pretty uncomfortable, at that.

On the page before the Ford ad is an ad from Samsung that really does communicate that they are an innovative company:

Ford's ad is the classic disconnect between form and content. If you have to say you're innovative...

November 15, 2005

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DM Forms that should be Outlawed

There is such a thing as immoral marketing, although to talk with some marketers you wouldn't know it, and it goes beyond spam. One of the most outrageous forms of marketing is a direct mail piece that look like a bill or a check from a company that you have no business relationship with.

At Magic Hour we occasionally receive direct mail pieces that look like bills; they are more common at home. I think this is a form of mail fraud: a piece intended to communicate an obligation that, in fact, does not exist and to slip through and get paid by the inattentive recipient. My guess is it's more effective with older people who may have a harder time keeping up with all of their business relationships, or may be more afraid of the repercussions of an unpaid bill ("would they sue me?") The direct mail check is simply a sugar-coated version of the bill: cash it, and you've authorized a service that will cost you far more than the check paid. The large print giveth; the small print taketh away.

They should both be outlawed.

November 10, 2005

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Master Networkers


West Coast PR/marketing consultant Renee Blodgett is the networking queen. On LinkedIn, most people I am linked to have a few dozen connections. A couple have a few hundred. Renee has 1,123! Renee was recently passing through Boston to attend PopTech, and so of course she sent out an invitation to everyone she knew to get together at a friend's apartment for an evening of wine and schmoozing. The word from others at the party that attended PopTech was that it was okay, but they didn't see The Next Big Thing. Most enjoyable conversation of the evening was with Buzz Bruggeman, another consumate networker, who told many interesting stories about his dealings with the draft board in the '60s and other matters, and even slipped in a plug for his ActiveWords software.

If you Google Renee, you come up with 67,400 hits. If you Google Buzz, you get 124,000. That's networking, and putting the power of the Web (they both have blogs, Buzz has two) to work for you.

November 5, 2005

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Magic Hour Releases First Presidential Search Engine Poll

Magic Hour today released the results of its first Presidential Search Engine Poll. We analyzed how many searches were being done on the leading candidates in each party for the 2008 presidential nomination. The results on the Democratic side mirrored very closely the recent WNBC/Marist poll. The number of searches for Democratic candidates was higher, too. Republicans did not mirror the poll results quite as closely, which supports the "conventional wisdom" that while Republicans dominate the airwaves with the likes of Rush Limbaugh and Bill O'Reilly, Democrats are stronger on the Internet.

November 2, 2005

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Google is Changing the Face of Advertising

A new month, a new blog.

Both the New York Times and Wall Street Journal had major articles recently on Google’s impact on advertising. According to the Times, Google’s $6.1B in ads this year “is more advertising than is sold by any newspaper chain, magazine publisher or television network.” And it’s expected to increase 50 percent next year. If you’re not advertising online, you may be missing out on a major opportunity.

A key element in this revenue is the superior technology Google has created for ad placement: ads that are clicked on more often get a higher placement than other ads. The rate the advertiser is willing to pay is not the only factor in placement (unlike Yahoo!, which ranks ads simply by what the advertiser has bid). This helps consumers – the ads they’re most interested in are placed higher – and it helps Google, because the ads that generate the most revenue are more prominent. And it helps the advertisers: if you have a popular ad, you can actually maintain or even improve its position while lowering your cost per click.

Now Google is looking at moving into other advertising services, taking its cost-per-click model into media buying in other media. They are looking into serving up personalized TV ads via digital cable boxes; they give the example of a man only seeing ads for men’s clothing rather than women’s. Or compare it to how Amazon shows you books that other people who bought the books you buy like. Google recently took out a sample print ad that had information on several companies; the companies only pay if a person calls the 1-800 number for information about them.

November 1, 2005

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