PPC used to pretty simple.

You just signed up, selected a keyword terms – probably used your SEO keyword list – put in a few bids, and hit go. Some tweaking here, some tweaking there. Life was good.

These days, with quality scores, ruthless levels of competition (including Google competing against the advertisers), a wealth of segmentation options, and complex analysis and reporting, PPC has become more demanding, necessitating the need for more in depth training.

• Should you bid on your brand? What match type should you use if you do?
• Do AdWords Site Links increase yield? Or do they charge you for what you were already getting free?
• Have you tested modified broad match yet?
• Have you seen Google’s new enhanced CPC bidding option?

When does it make sense to use any of those options?

Before you get down to detail, there are some higher level skills you should read up on, too. The fundamentals of PPC are similar to established channels. Because these channels have been around a long time, they’ve build up a lot of time-tested theory. You can apply much of this theory to PPC, without having to repeat the same mistakes.

1. Study Direct Marketing

Direct marketing is a form of advertising that communicates with the consumer using advertising techniques such as fliers, catalog distribution, promotional letters, and street advertising. The techniques are very similar to PPC. Direct marketers target a group of people, seek to convince them using well-crafted written/pictorial advertising, and try to illicit a response and/or purchase.

The great thing about direct marketing theory is that there is so much of it. Direct marketing has been going since the 1860s. In order to be profitable, direct marketing had to ruthlessly test what worked, and what didn’t, else direct marketers could blow through a lot of money in print and distribution costs.

There are a lot of great books on the craft of direct marketing theory, but one good place to start is Tested Advertising Methods, by John Caples. Whilst the examples offered by the book are getting a bit long in the tooth, the psychology underlying the approach – how to appeal to your market segment using effective copy and constant testing – is sound.

2. Understand Your Customer

PPC is a sales channel.

A lot of sales theory is directly applicable to PPC, particularly in terms of identifying your customer, determining what they want, and making an offer at a price they want to pay.

Sales relies on three aspects:

Quality Prospects – you need to target the people who are prepared to buy.

Your keyword selection process should involve weeding out keyword terms that sound like they are relevant, but do not convert.

For example, someone looking for “[keyword] coupon” has already made a decision to buy, they’re just looking for a discount before they do.

The person who searches on the keyword, but uses no qualifier, may be much further back in the sales funnel. They require a very different pitch to get them to the point where they are ready to give over their credit card details.

Sales theory, particularly relating to sales funnels, will help you pitch correctly.

Quality Presentation – you need to make a persuasive case. This comes down to your copy and landing page style. Are you responding to peoples needs, and are you doing so in a credible way?

Numbers – you need to get infront of as many people as possible, once you’ve selected quality prospects and got a quality presentation. Scale is near infinite in PPC, given the range of keywords and channels.

3. Understand Your Strategic Goals

What do you want your PPC campaign to achieve?

Whilst the obvious answer is “more sales!”, there are other ojectives you may wish to consider. You may want to increase market share, keep expenses under control, increase your profitability, increase your profit margins, or a mix of the above. Starting a PPC campaign without clear strategic goals makes it difficult to measure your achievement in a broader sense.

Another way of clarifying this aspect is to ask yourself “what problem am I trying to solve?” Are you trying to get more/better…..what? Why use PPC at all? Would another channel solve those goals more easily? Where does PPC fit into the overall business strategy?

If you have a regularly updated business case, it makes strategic planning easier than if you just wing it. A business case doesn’t need to be complicated. It can occupy a single page.

Be clear about where PPC fits into the broader picture.

When you run a PPC campaign, how do you decide whether to use Google Adwords, or Yahoo Search Marketing, Microsoft AdCenter or, erm….Findology?

How do you decide whether to push you campaign into content networks, such as Adsense, or Facebook?

The simple answer is you should be everywhere your customers reside, so long as the ROI is positive. The Balkanisation of the web is ongoing & won’t be complete until every single person becomes a demographic.

You have to be everywhere.

And people need to remember who you are.

Why Building Brand Is The New Rock N Roll

PPC is often geared around direct sales, so doesn’t take into account brand metrics. However, PPC offers brand building opportunities that are still fabulously cheap.

The world is changing fast. To build a brand, you used to need to spend a fortune on TV, radio and newspaper advertising. There was no other way. As Gary Vaynerchuk – owner of the Wine Library – says, the gatekeepers of those channels were a handful of 70 year old guys who run the world. But they’ll be retiring soon. Or dead.

These days, you can build a brand for next to nothing. You can publish on media channels, like YouTube, for nothing. Yet the reach of these channels is huge.

Everyone can now have a brand. A brand can exist in every micro-niche. Pick your niche, no matter how small, and become the biggest brand in that niche.

Why should you focus on brand?

Brand related searches are hugely lucrative. People use brand names as starting points for their searches. Once you own the brand name, you don’t need to do as much search marketing to get traffic. People will find you directly.

Eric Schmidt, Google’s CEO, is on record as saying brand would be used as a means to clean up the internet cesspool:

Brands, he said, are the way to rise above the cesspool, and of course he is right. The corollary is that advertising via Google and its brethren is an essential way to build and sustain a brand

So, when a visitor clicks through to your site, they should always take something away with them. That “thing” could be a brand association.

Evaluate your landing pages. Do they convey a brand image, and is it easy for people to relate that brand image to your keyword niche?

It doesn’t cost much to gain this benefit. It’s a simple positioning exercise – ask “what niche am I top in?”.

Next, create a brand that is consistent with that niche, and the service you offer. Pick a strong, memorable name. Buy the .com, .net and .org, or regional variants. Own the word. Get a graphic designer to create a logo and identity, and use it consistently across all your media advertising. Become that brand. Let it flow through everything you do.

For many small internet niches, that’s all you need to do to build a brand. So long as you get in front of your audience wherever they reside, they’ll have one more opportunity to remember your brand name. Once they start searching on your brand name, you win. This lowers your advertising cost over time. You can also prevent others from advertising against your brand name, especially in PPC. This make your position more defensible.

Compare this approach with focusing solely on direct sales. You’ve paid for the click, you may still lose the sale, and yet the visitor takes nothing away with them. Your site is just another anonymous site which they’ll quickly forget.

Even a break even PPC campaign can be a big winner if you include the value of data along with the latent impact of exposure, branding & links.

Brand is now something for everyone. The benefits are huge, and it can cost next to nothing to build.

Are you thinking of starting a web business? Starting a PPC Management agency? Setting up your own site and selling things, or building a web publishing empire?

Before you start, ask yourself the following eight questions. The advantage of this Q&A is that you can quickly see if the idea you’re going to throw your money and soul into is likely to work.

1 . What Do You Do?

Define what service the business provides. Many entrepreneurs make the mistake of trying to be all things to all people. They may well have a wide range of skills, but resources spread too thinly often leads to failure.

Try to focus.

McDonalds could, no doubt, provide up-market meals, but they focus on selling quick, cheap food.

That is what they do.

2. Who Do You Do It For?

Who are your customers?

Create a mental image of your typical customer. Make a note of their income levels, and particularly their “itch” i.e. that problem they really need solving, and will gladly pay money for you to solve.

3. What Makes You Different?

What is your unique selling proposition?

If your customers can buy the same services for less elsewhere, or more easily, they will. Your customers will compare you against others. What is that one thing you can do, that offers considerable value, that no-one else can do? What makes you special? What makes you remarkable?

There is a tendency to model yourself on others. To copy existing models. Try to avoid doing so. The people who come up with these models are probably already onto the next stage i.e. refining their service, changing direction, heading somewhere else. You’ll always be the person in their rear-view mirror, one step behind. Why be Bing when you can be Google?

This is not to say doing something wildly new or different is any guarantee of success. One winning strategy is to take a successful business model, and twist it a little. You have the ready-acceptance of a proven model (safe), and the opportunity to talk about something a little new (interesting). For example, Steve Jobs did not invent the PDA, but he put a new twist on it in the form of the iPhone. He took something that most people were already familiar with (safe) and made it more approachable (interesting).

4. Do You Know What Cashflow Is?

This point is so important, it really should be number one. Cashflow is the movement of cash into or out of a business. It sounds like the dullest thing in the world, and many budding entrepreneurs overlook it, but it is the one thing most likely to kill your business.

Businesses may have great ideas. They have customers signed up. They execute well. They’ve even sent the bills out. Growth is happening, and all is well with the world.

Then the bank manager calls.

The overdraft has hit its limit and you can’t meet payroll this week. You can’t make rent. At this point, you’ve out of runway.

Running out of cash stops you dead and makes you utterly vulnerable. Address cashflow from the start. How much capital will you need? How much overdraft will you need? How long will it be before client money appears – cleared – into your bank account? How much do you need to operate each week?

There is no fooling cashflow. The score of any business is the bank account balance.

5. What Employees Do You Need?

Will you be doing all the work yourself? If you’re doing the work yourself, when will you have time to sell new work? Should you be wasting time doing menial clerical tasks?

Consider outsourcing all non-core tasks. Whilst you may be able to do everything, often it doesn’t make sense to do anything other than the things that bring you the most money.

6. How Will You Manage Customers?

Keeping existing customers is a lot cheaper than finding new ones. How will you manage your customer relationships? How will you structure your activities to ensure repeat business? Do you have a process whereby you can find out customers wants and needs?

Create a process that allows you to adapt to your customers.

7. What Are Your Goals?

Set company goals. Set personal goals. How much do you need to earn, and in what time frame? How will you exit your business? Who will you sell to?

Use the SMART system when setting goals. Using the smart system, goals must be:

S = Specific
M = Measurable
A = Attainable
R = Realistic
T = Timely

For example, a goal might be “to gain 20 new customers in one year”. The specific, measurable nature of the goal means your planning will be more effective. Specific goals beg questions i.e. “Where will I find 20 new customers”? and lead to specific actions.

Failure to be specific results in vague goals such as “to operate a successful business” or “to be happy”. It’s difficult to decide on actions that will lead to such goals.

8. Do You Really Want To Run Your Own Business?

Having gone through these questions, you’re may be a) raring to go or b) feeling a little overwhelmed.

Ask yourself why you want to be in business for yourself? It’s more work than being a staffer, there is more risk involved, the money is non-existent to start with, you swap one boss for many bosses, and each new contract becomes a job interview.

On the plus side, it is enormously satisfying, you are responsible for your own destiny, and all benefits return to you.

Taking one hour to consider these questions can save you a lot of time, money and grief if you jump in unprepared.

Jump in. With due consideration

Those who have made it through your first year of business, what things do you wished you’d considered before you took the plunge?

Whether we work for ourselves, or we work as part of a bigger business, we should always be accountable for what we do. Clients, bosses, and bank managers will always want to see us demonstrate that we are working steadily towards achieving goals.

Project management has become a specialized task in it’s own right. Dedicated project managers delegate tasks, ensure people complete those tasks, and generally keep projects on track. However, project management should permeate all we do. We’re all project managers, especially those of us involved in long and complex tasks, like PPC campaigns.

The principles of project management are simple. A complex task is broken down into a series of manageable, measureable steps leading to a desired outcome, achieved in an acceptable timeframe. If we manage ourselves – or others – well, we free up time, and save ourselves a lot of grief.

Here’s how to manage a PPC project:

Define The Outcome

Whether you’re dealing with a client, or undertaking your own project, you have to know exactly what you’re aiming to achieve.

Write the objective down down, as clearly and succinctly as possible. If a client is vague about outcomes, it’s best to push them to get clarity at this point. Once a project is underway, it becomes difficult – and time consuming – to change course.

Define The Process That Delivers The Outcome

Once you have an outcome – a destination – defined, you should now plot a high-level course showing how you’ll get there. If the project is short i.e. a day or two, then your don’t really need to define a process. However, if the project takes a while – and most PPC campaigns do – then a process becomes important, because the client will want to see you demonstrate that progress is being made.

The benefits of having a clearly-defined process is that it shows the client what is involved, and when things are likely to happen. It reassures the client that things will happen in an orderly, accountable fashion i.e. there is less chance of being surprised, and that the client is in control of the process.

For example, a PPC process might look like this:

• Establish and define objectives
• Create written reporting plan, setting out milestones. Client to approve reporting plan and milestones.
• Report on each milestone. Client to review and provide feedback at each stage.
• Deliver final milestone. Provide final project report.
• Sign off

Break The Project Down Into Steps

Climbing a mountain begins with a single step. And then another. And then another. Eventually, we’ve scaled the mountain.

Likewise, a project is made less intimidating if broken down into a series of small steps. The client doesn’t need to know each technical step. However, the steps lead to each milestone.

The benefits are two-fold. One, a complex task becomes a lot more manageable. Two, reporting is built into the process. Clients almost always appreciate progress reports, which also provides you with an opportunity to seek valuable feedback and clarification.

Say What You’ll Do, Do It, And Tell Them You’ve Done It

If you do what you say you’ll do, even if it’s a small thing, you will build trust.

Sometimes, it’s easy to think that because you know what you’re doing, that the client will automatically perceive it. This isn’t necessarily so. Demonstrating competence, at regular intervals, is often required in order to build trust.

Integrate Feedback

No matter how well we plan at the early stages, there will always be tweaks and adjustments that need to be made.

By integrating multiple opportunities for feedback, we can also alter and add steps we may have missed, or didn’t define clearly enough.

Focus On The Next Step

After the first step, comes the next step, and so on. At each stage, we keep the client informed, integrating feedback, redefining and adding tasks as necessary. Each stage leads us closer to our goal, and everyone is clear about what needs to be done, and what the outcome will be.

Repeat

Repeat the steps/reporting/integrating process until the desired outcome is achieved.

Tips:

Consider making the first milestones easy-wins, especially if the client is new. This helps create trust, which may be needed if other milestones become difficult.

Make a note of which tasks require other people, and get buy-in from them as soon as is practicable. In many ways, other workers are like clients in that they benefit from feeling they have an element of control.

The more complex a project – especially projects that require multiple people to hit time targets before others can start – the more useful project management software becomes, however a lot of project management software is simply overkill for PPC.

No surprises – for anyone

Should you hire an external PPC consultant? Or can you do the job better and/or cheaper inhouse?

Large companies – companies with over 1,000 people – typically have less need to outsource than smaller companies. Existing in-house teams can often adapt in order to provide extra services, with a little extra training required. Smaller companies typically benefit the most from outsourcing, as the overheads for each added employee can be considerable. However, the decision whether to outsource really comes down to a cost benefit analysis, regardless of size.

Which option would suit your company best? Let’s take a look at the issues.

PPC Outsourcing:

Consider the following:

Data security – PPC data is valuable. If your business is driven by marketing, particularly internet marketing, then how comfortable are you with this data being in the hands of a third-party?

Control – If the internet marketing function brings in a significant chunk of your business, then your choice of partner is critical. For some, the risk cost will simply be too high.

Incentives – ensure that the performance incentives are appropriate. For example, some PPC agencies bill a percentage of spend. The problem with this model is that it encourages high bidding for clicks, which are only ever likely to increase. The incetives should align with your business case. Be sure to implement a means of tracking PPC traffic to measurable business goals.

Low Spend – small campaigns are relatively straightforward to manage in house if you have existing marketing resource i.e. spending in the thousands per month. The function is typically a part time role, and the time cost can be minimized further by using third-party semi-automated campaign management software and tools.

A PPC agency starts to make sense when the monthy spend is in the tens of thousands and higher, as such campaigns can quickly become complex and/or can be regularly optimized to drive down total campaign cost. We’re talking about good PPC agencies, of course. There are plenty of lousy ones. Which brings us onto…

Management Overhead – third party suppliers need to be managed. They need to have objectives set. They need to report on a regular basis. Performance needs to be monitored. This is also true of inhouse PPC management, of course, however the proximity of an inhouse employee, and the fact they’re engrained in the culture and process, often makes this function easier.

Business Knowledge – any marketing function needs to be closely aligned with business goals. Tyically, PPC managers work on multiple accounts and have a tendancy to focus on numbers, as opposed to wider company objectives. This remoteness can make external consultants less effective than someone who lives and breathes your business and culture each day.

PPC Inhouse

Expertise – PPC management is specialized and ever changing. This requires on-going training and adaptable employees who can wear hats of both marketing and technical expertise simultaneously. PPC agencies are specifically geared for this task.

Lack Of Resource – PPC takes time, and your existing employess may not have it. PPC invariably grows more and more complex, especially if the return on investment grows. Whilst it’s easy to manage basic campaigns – low budget/low numbers of keyword terms – it can become time consuming to manage large campaigns. PPC agencies use economies of scale and specialized tools that may not be readily available elsewhere.

Poor Results – If you’re new to PPC, then you may not have adequate benchmarks to quantify performance. An external agency may have years of experience in your market sector, and be able to provide a wealth of market data.

High Costs – not only is there the cost of hiring extra staff, there is the opportunity cost of having that staff not focus on something else. Obviously each businesses cost structure is unique, but generally the bigger the PPC spend, the more value you’ll get from outsourcing to a good agency.

Summary

Consider inhouse PPC if:

• You require high levels marketing/business integration.
• The function can readily be absorbed using available staff and management resources
• The level of complexity is manageable. Typically, campaigns in the tens of thousands per month featuring thousands of keywords are best managed by a dedicated specialist.

Consider Outsourcing PPC if:

• You have a high level of spend i.e. in the tens of thousands per month and above
• You don’t have readily available resources
• The PPC function is not a mission critical part of your marketing mix.