Posts Tagged ‘Search agencies’

Search as a Commodity?

Thursday, February 4th, 2010

The recent trend in agencies outsourcing search to cheaper suppliers, whether they be in the UK or abroad, signals the possible commoditisation of search skills in the near future.

Both SEO and PPC practitioners are available in plentiful numbers at low rates; there are companies in India willing to work on hourly rates as low as £5. That’s 80p lower than the minimum wage for an adult in the UK, so you can see why it would be tempting for clients and agencies alike.

In practice, outsourcing opportunities will deliver a very cheap solution for the simpler aspects of PPC or SEO delivery. My experience of being involved in relationships (from a third party perspective) where both PPC and SEO have been outsourced has always seen something lost in the translation though, with poor quality results being achieved through either poor campaign builds and management in paid search, or the use SEO techniques that are slightly outdated and that fail to address the real issues needed for success in natural search.

So what’s the reason for this? Where is the value being lost? Let’s face it, some of the actual delivery work in search doesn’t require a huge amount of brainpower – adjusting keyword bids when a CPA is too high or re-working meta-tags to have an emphasis on different words is a simple task. So why does it go wrong so often?

The problem comes from the fact that search strategy is inextricably entwined with its delivery. For example, with paid search, when you’ve spent several hours analysing results, understanding how various factors affect the different metrics, and deciding where to focus your efforts, the matter of performing the optimisation is a relatively simple task. Natural search will sometimes similarly require someone to immerse themself in the market, observing what’s working well for the competition, translate this into a strategy for their site, and then spend time delivering what then seems to be relatively simple output in terms of actual SEO work.

So what does this mean for clients or agencies looking to outsource work? I’d suggest that although there are cheap options out there, the skillset of this type of business or individual is never going to be able to drive real success in search for your business by using them alone. Perhaps we need to look at a more traditional model where a planner would devote their time to building a strategy and a separate buyer would then specialise in buying the media – so for search you may be able to draw value from outsourcing options by using them simply as an implementer of the more time consuming tasks, but you will still need a channel expert to decide your strategy, spend time interpreting the data and recommending what changes need to be implemented to your site or PPC account. For all but the largest of advertisers, the benefit is going to be minimal.

Of course, this may change over the next few years as businesses in lesser developed markets become more savvy and develop their skill sets further. When that does happen we may see search agencies turning into more specialist comms planning style businesses and we’ll see companies who specialise in cost effective implementation springing up to complement them. Larger agencies may choose to break staff down into planning & implementation departments to respond to the market.

So while the current standard of delivery from cheap outsourcing options isn’t yet high enough to actually benefit from the cost saving, the threat to the current search agency model from these suppliers is real – and we can expect to see it driving change in the way search is bought over the next few years.

Are you getting the value you should be getting from your PPC agency?

Friday, October 23rd, 2009

So investment in paid search is growing and growing, clients are bartering harder on agency commissions, more and more focus is being put on the efficiency of your search marketing programme. So what, as a client, can you do to ensure you’re getting the most bang for your buck?

One thing that you can do is review the practices involved in the management of your account. All of the engines will be able to support you in this, but some of the things you can review to get you started are:

Bidding & Budgeting:

Are you operating at a fixed CPA across the entire account, all year round? Or are you flexible on your CPA so that you can maximize ROI? The uplift in traffic around seasonal peaks may make competition more fierce, and as such each conversion more expensive, but if you’re willing to be flexible you can capture the volume and improve profit. Your agency should be feeding back to you on a monthly basis what the investment should be in different areas of your campaign, understanding this can allow you to further your understanding of what’s affecting different parts of the PPC account, and adjust bidding strategy accordingly.

Coverage:

Are you testing to see if generic keywords that don’t cost in on their own create an uplift across the rest of the account? It’s not always the case, but if you’re in a quest for the final 5% of volume it can make the difference.

Have you got the balance of investment on your brand terms right? Sometimes you need to bid on them to keep out the competition, but sometimes you’ll cannibalise your natural traffic – again, testing is the answer!

Using a search query report will help you ensure you’ve got coverage on the right terms, and you can use the searches that you’re getting clicks from but don’t have content or products for to inform you over what you need to be doing – search isn’t just about traffic or conversions, but about listening to what the searchers are asking for!

Structure:

Does your account structure evolve, or is it static? Paid search offers an opportunity to constantly improve your account using the timely, conversion focused data that it’s capable of supplying. As a result, keyword lists should constantly change shape and new ad copy should be built. The structure will have to change around this to support the delivery of relevant ads – so if your structure isn’t changing then either your account isn’t, or it’s not making the most of the changes that are being made.

Processes & Automation:

Of course, these recommendations are only a starting point, and rely on a smooth, uninhibited flow of information between an agency and a client. Once you’ve reviewed these and all of the more granular points that you investigate as a result, it’s time to review the processes that will help you improve your budgeting, coverage and structure.

Do you have a report that informs you what is being spent on what keyword groups and clearly shows you the trends over time?

Do you have processes set up that allow you to feed new keywords into the campaign quickly and efficiently?

Do you have a process in place to test different ad copy and continually optimize your creative messaging?

If not, then it’s likely that the time being put into your account is inefficient – and if time equals money for both you and the agency, there’s an opportunity for improvement here.

Time for transparency of Search practices?

Thursday, September 24th, 2009

At ad:tech in London this week there was the usual good representation from the Search agency community: DBD Media, Oban Multilingual, Jellyfish and Efficient Frontier, to name a few of the regular crowd; and Just Search, Optimize and High Position to name some newer kids on the block.

Each agency has its own USPs – whether this is an algorithm, a technology or planning tool. Some claim to be technology providers; others stick with the agency theme. Some have slicker marketing then others – glossy handouts and snazzy logos for tools; others have fast talking sales folk, who can counter any argument on the planet with “yes, but we’ve got a secret sauce”.

Poor, poor clients. Where do they start in evaluating what really sits behind the ‘smoke and mirrors’ sales rhetoric? How do clients know that they will get quality of service, efficiency of management, a best of breed piece of kit, and – perhaps most importantly – transparency of ROI?

Here’s the thing. What all of these Search agencies and technology providers are selling is a service. It’s a combination of people, process and technology. Technology is really important because it is the enabler, the heavy lifter, the lawn mower. But someone’s got to mow the grass.

Here’s the other thing. There is no perfect algorithm for delivering a service. Efficient Frontier call it an “intelligent learning algorithm”; we call it great minds, nimble fingers, Excel macros, spreadsheets and 50 people in India.

Oh, and clients, do ask about who’s doing the do. Is it in-house, or is it outsourced to a country where labour is cheaper? Many Search agencies nowadays are outsourcing. Because there is a lot of heavy lifting to do. If so, do they understand the nuances of your target language and how people search in that language. Are your business and marketing objectives being lost in the Chinese whispers translation from client to search agency to overseas outsourcing agency.

Search is already complex enough without suppliers masking the truth about delivery and adding extra layers for sales and marketing purposes. When will the mist clear so that clients know exactly what they’re buying? Isn’t it time that Search agencies started being transparent with clients about their practices, so that clients can make informed buying decisions?

Is it too much for clients to expect a straight answer to the questions “how?” and “who?”

For more information on how Reform could improve your business through search, please call us on +44 203 178 3086 or email us at info@reformdigital.com

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