Posts tagged conversion rate
Parked domains: is Google wasting your money?
Sep 6th
You have probably come across sites such as the one in the image, a defunct domain allowed to lapse by its owner that has now been taken over by a pointless directory that nobody would ever use to real purpose.
It invariably contains a lists of paid links categorised into groups of expensive search terms. You would never buy links on such a site, and you definitely would not pay for clicks from ads on parked domains. Or would you?
Right now, it is my bet that if you are running PPC campaigns of a reasonable size, you are indeed paying significant amounts of money for clicks on these sites. It is also my bet that these clicks are delivering next to nothing in terms of value for you.
I regularly perform landing page tuning and for one major client, the Website Optimiser tests showed significant conversion rate increases. Why then, was the overall conversion rate on the biggest and best performing search campaign falling?
On investigation, the Google search traffic was performing as expected, with increasing conversion rates, but it was the search partner network that was getting worse and spending more.
My top-level impression of search partners was that they are basically other search engines that are powered by Google’s search results. These smaller ‘search engines’ can choose to show Google ads. What I didn’t realise, and what our investigation showed, was that parked domains are included in Google’s search partners.
I also noted that the appearance of parked domain traffic in the campaigns under investigation had increased massively since last year. In one campaign it had increased by 900% in one year!
If you navigate to the site in the image above and see any of the ‘related searches’ categories, you will see that these are all premium search terms i.e. they carry high click prices.
I doubt that any of the advertisers on those sites are aware of their placement. At the time of writing, I doubt that confused.com, Saga, GoCompare, USwitch and MoneySupermarket are aware they are paying for clicks in the ‘Auto Insurance’ category of this domain.
To turn this off in your AdWords account is easy when you know where to look, but the setting is buried in a place that I think is misleading.
I have a few problems with Google’s view of parked domains:
- This is not ‘search’ traffic. If you stumble upon one of these domains like the one above, you are not searching for these terms; the site is simply displaying expensive categories for the purpose of making money.
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Who is clicking and why? This is extremely low quality traffic, despite getting a 34% click through rate,we received no value from this traffic in the campaign under investigation despite getting lots of expensive clicks.
Is this not Google turning a blind eye to a similar type of click fraud to that which occurred widely on early AdSense accounts? Google and the site host are making money from this.
- Turning off parked domains involves going in to a section of AdWords called ‘Exclude Placement’. However, this is not display network traffic, which this setting suggests. The setting seems to have been buried so that most people will not find it and therefore will not turn it off.
When we complained to Google they came back very quickly with a case study highlighting a business case for using parked domains. Google seemed prepared for the question.
Please, analyse the traffic you are getting from parked domains and assess its quality. You may want to turn them off while you investigate. This post shows how to turn off parked domains.
How much commission should you pay affiliates?
Aug 31st
When setting a commission structure it is also important to consider the cost of other online outlets. The affiliate channel can be a cost effective way of generating additional sales, if it is benchmarked against the cost of other areas of online.
The key to setting a commission structure that is going to engage all affiliates is flexibility. A “one size fits all” policy for setting a commission rate is not an effective strategy to drive additional sales volume through the affiliate channel.
Benchmarking against your competitors is one vital component of setting a commission structure. If it is not competitive within the segment that you operate, affiliates will either:
a) Opt against promoting your programme.
b) Promote the campaign but not give it as much exposure as your competitors.
Affiliates will partly base their promotion on the Earnings per Click (EPC) that the merchant generates for them. This is not based solely on the commission that is being paid, but also takes into account the conversion rate of your website.
If you have a website that converts at a higher rate than your competitors, you will not necessarily need to pay as high a commission, as affiliates will earn more money for each click through to your site. Of course, you may need to make an extra effort to tell your affiliates this is the reason for lower commissions but site conversion is often overlooked as a key priority within the affiliate channel and a well optimised and usable site will always be looked on favourably by affiliates.
You will also need to consider what the standard payment model is for that particular sector. For example, if you are in the telecoms or finance market, commission is generally paid at a flat rate while in retail and travel the norm is to pay commission as a % of the basket value.
It is also important to ensure that any objectives you have are reflected in the commission structure. If there is added value in new customers for example, a preferential rate could be put in place for any affiliate that is able to generate a significant level of new customer sales. Similarly, if there are certain products that have a greater margin than others, the commission structure could be set to reward affiliates who are able to sell high margin products.
‘Super affliates’
Many affiliate programmes will see the majority of sales delivered by a small group of affiliates. There will then be a mid tier and then a longtail of affiliates making up the rest of the campaign. You are likely to see the greatest impact on sales by working closely with the top volume drivers, putting in place bespoke commission rates and sales targets whilst also ensuring that the mid and longtail of affiliates are not neglected.
Rather than setting commission tiers, it is more beneficial to work closely with individual affiliates on bespoke rates/targets. Tiers do not necessarily motivate the top affiliates to hit the highest commission rates and they can in fact be achieving the top tier already, essentially meaning that you could be paying more without generating additional sales. Similarly, unachievable tiers are likely to de motivate the long tail of affiliates who do not see the opportunity to earn increased commission.
By establishing the additional opportunities for increased exposure across affiliate sites, there is potential to engage with affiliates as media partners to deliver incremental volume. In order to have the flexibility to reward affiliates, it is imperative to set the base commission rate at a level where there is room for negotiation.
Working with different types of affiliate
Flexibility is also the key to working with different affiliate types. In order to extend your “reach” and to target as many potential customers as possible, a merchant should look to implement a strategy across a number of affiliate types – cashback, content, PPC, comparison and voucher code sites will all involve a different approach to maximise sales potential.
For example, when working with cashback sites, an exclusive commission rate above and beyond what is being offered to other affiliates is going to be needed to gain additional exposure, whether this means being included in “top tips” sections or in newsletters to members which could have the potential to reach hundreds of thousands of members.
Similarly, voucher code sites can be classified as an affiliate group and can deliver high sales volumes. If a voucher code is issued then it is possible to set up a commission rate that is lower to offset the fact that you will already be taking a hit on margins to offer a discount (again, consultation with relevant affiliates will allow you to make a more informed judgment).
PPC affiliates
If part of your affiliate strategy is to allow brand rights to select PPC affiliates (either as direct to merchant PPC or as a complementary PPC campaign through a landing page) you will have to consider the commission levels that are paid to these affiliates. If the commission paid on the sale does not cover the affiliates click costs with additional profit margin, then a PPC campaign would not be a viable offer for the affiliate.
There is also the opportunity to increase the amount of PPC activity that the affiliate is able to do on your behalf, potentially covering off more generic search terms if you are able to offer them an improved commission rate. A minimal increase can result in a high percentage uplift in sales revenue generated due to the extra spend.
Finally, it is also possible to motivate the longtail of affiliates by offering them bespoke rates for hitting sales targets/increasing the visibility of your campaign across their sites. This could include writing reviews on products/services that you offer. Longtail affiliates are unlikely to hit a sales tier but if they are worked with closely, they are able to increase the sales they are driving with a minimal additional cost to the advertiser, with fantastic, targeted branding attached.
To summarise, flexibility and an understanding of the motivations for different affiliate types is the key factor in setting an intelligent commission structure for any affiliate programme. A full appreciation of the finer details should ultimately result in greater engagement with affiliates and crucially an increase in branding, sales and revenue.
Six key tactics for alternative search engine marketing
Aug 11th
Before you dive in however, you need to remember that different engines crawl for slightly different content. Relevant, quality content with solid search phrases will always work well, but for PPC you’ll definitely need to consider other factors and tweak your campaign accordingly.
Here’s a few ways you can maximise your results on alternative search engines.
Don’t throw the baby out with the bathwater
Remember, every engine is going to provide slightly different results.
Even major campaigns can experience vast differences across Google and Bing, so make sure you have a dedicated account manager on hand and run carefully through each engine you intend to target.
If you have a successful campaign to use as a blueprint then by all means do so, but be prepared to rejig it extensively along the way.
Make sure you take note of your best existing traffic sources so you can target them and avoid dead ends.
Don’t overdo it
Optimisation is key, but you can have too much of a good thing. You may have laser-targeting for Google, but again, each new engine will require different keywords and sources so be prepared to loosen your parameters and experiment.
If you have 50 clicks from a source and no sales, then the initial reaction is to dump the source, but stop and think about your overall conversion rate before you do this.
If you are seeing 2% conversions then you need larger figures before you can really write anything off, so don’t over-block or over-target.
Watch your overheads
If you’re only receiving one or two conversions then it may seem wise to stop targeting that source.
Before you do though, measure the actual amount of money those customers spent with you. If you are paying a low rate for a few high paying conversions then it’s still worth it.
Be generous
With smaller engines you can usually pay less for productive keywords, but don’t be tempted to bid under the odds.
Although the overall volume will be lower, you’ll still get out what you put in, so be prepared to invest properly at the start of your campaign and then rethink things when the numbers start to come in.
PPC campaigns need to be flexible, but balance this against solid metrics first.
Track everything and everyone
Make sure you set up detailed conversion tracking from the off. Just because you’ve assigned a large section of your budget to two or three words, it doesn’t mean you shouldn’t ditch them if they aren’t providing results quickly enough.
Think about the search engines user base and key demographics when choosing keywords, you may need to optimise around completely different terms.
Stranger Danger
Finally, remember that a new search engine means new infrastructure and business practices.
You may be used to working with Google or Microsoft, but don’t assume that every search engine does business in the same way, so make sure you have internal and external fraud tracking in place so that you are protected.
There are plenty of free third-party fraud detection systems available so any reputable search provider should be able to offer adequate assurance against fake clicks.
Building a successful campaign on any search engine is a challenge, but one that can be overcome by taking time to understand the community using it.
Different engines prioritise different material and some target specific subject matter, so make sure you’ve done your research and feel that your product is a good match for the service before you commit your PPC budget.
Top five criteria affiliates analyze in affiliate programs
Jul 30th
Having picked 15 different factors that normally influence an affiliate’s decision about joining (or not joining) an affiliate program, I asked affiliates to cast their votes checking all criteria they analyze prior to choosing an affiliate program to work with.
Here is the top five ranking that can be derived from that poll:
- Commission amount (45%)
- Website usability, leaks, etc (35%)
- Merchant’s reputation/reliability (34%)
- Conversion rate (27%)
- Tracking/reporting platform used (25%)
The full picture looks as follows:

Legend:
A – Commission amount
B – Commission recurrence
C – Conversion rate
D – Cookie life
E – Creatives
F – EPC
G – Management & approachability
H – Market saturation
I – Prices/competitiveness
J – Reputation/reliability
K – Reversal rate
L – Terms of service
M – Tools
O – Tracking/reporting platform
P – Website (usability, leaks, etc)
If you’re an affiliate and haven’t yet voted, poll, your vote would be much appreciated.
Dragon Naturally Speaking 11 Boasts Accuracy and Speed
Jul 29th
Dragon-Naturally-Speaking-11
Dragon Naturally Speaking, a voice recognition software by Nuance Communications, has just released its next version and this new development boasts improvement in the areas of accuracy and speed, two areas of key importance to users.
Apart from the speed and accuracy developments, there are several other new features and enhancements as well. The new version, Dragon Naturally Speaking 11, is being said to have accuracy rates as high as 99%, though most reviewers and testers have not been able reach such high results it seems.
The development of the new speech recognition software took about two years, and the previous version has been enjoyed by many users.
The price for the professional edition comes very steeply at a cost of $600, with the home version being more affordable at $100. The updated verision includes social-networking components and boost the conversion rate of voice to text at a rate of three times faster.
According to Peter Mahoney, senior vice president and general manager, “Our goal with Dragon 11 was to make the software not only as accurate as possible, but almost transparent, empowering people to focus on simply letting their ideas flow, straight from their brain to the page.”
Increase search marketing ROI with retargeting
Jun 18th
Getting started with retargeting
The first thing you should do if you are considering setting up a retargeting campaign is to make sure the cookie pool is starting to build up. Since Google won’t activate any retargeting lists before it has at least 500 unique cookies this might take some time if you’re working in a niche industry. Also keep in mind the typical sales cycle and future use of the cookie pool when setting the cookie length.
The simplest way of starting a retargeting campaign is to reach out to everyone that has visited a specific landing page or whole site. While this will likely improve conversion rates (considering that typically around 95% of visitors won’t convert on the first visit), it is still wasting budget on existing customers and restricting the possibilities of tailored messaging.
Audience lists in Adwords works similarly to keywords and can be used as negative matches and part of Boolean expressions which gives them enormous power to hone in on the desired audience.
Fine tuning the audience
A next logical step to improve the basic retargeting campaign is thus to exclude any visitors who have already converted by using an audience list of converting visitors as a negative match. This also gives the flexibility to target them with a possibly more enticing offer to win them over. This can then be further refined by combination lists to target people within a certain timeframe after a visit, or where they dropped off in the buying cycle etc.
In recent tests for B2B clients, we’ve recorded a vastly improved cost-per-lead due to the improvement of conversion rate that are up to triple that of search and is already contributing to an additional 20% leads.
Obviously retargeting cannot work on its own, i.e. in order to create a retargeting campaign there must be visitors to retarget in the first place. Worth noting is that the Adwords remarketing tag will work for any type of traffic, so in contrast to the regular Google conversion tag, it will drop cookies for visitors from other sources such as direct traffic, email or display etc.
Don’t be creepy
When discussing the topic of retargeting, it’s virtually impossible to not feel obliged to also highlight the privacy issue. As noted earlier Google requires at least 500 unique cookies per list before it can be activated for retargeting purposes. The main reason for this is to avoid the risk of overly clever online marketers to triangulate data to target individual people.
Google also requires the inclusion of retargeting information in the sites privacy policy and a link for users to opt-out from the functionality across the Google Content Network.
A further control that we as markets have to avoid the creep factor, is the frequency cap. While Google typically advices to start off with an uncapped retargeting campaign, it’s advisable to revisit this as the campaign progresses over time.
In addition to improving campaign ROI, retargeting can of course also be used very effectively for branding purposes, but that’s another post.
Checkout optimisation: 17 posts to help improve conversions
May 14th
Mistakes to avoid
Is this the most hated checkout process on the web?
A look at the cross-selling usability nightmare of the GoDaddy checkout process.
Overcomplicating the checkout process
Another example of checkout worst practice.
Checkout optimisation tips for Virgin Media
Some suggestions for Virgin Media on how it can improve its checkout process.
Discount codes
Dealing with discount codes in the checkout process
Are discount boxes costing online retailers in terms of lost sales, and how can they handle this?
Trust, information and payment security
Does your checkout process answer customers’ concerns?
A look at the kinds of information and reassurances that customers need during checkout.
E-commerce trustmarks: do they matter?
How important is it to display third party security logos?
Why good checkout design is more important than trustmarks
Design factors that help build customer trust.
How do you handle payment card declines?
Matthew Curry looks at the options for handling this issue without losing a sale.
Verified by Visa: a conversion rate killer?
Verified by Visa has been adopted by many online retailers in the UK, but does it cause customers to abandon sales?
Checkout / basket abandonment
Should you be emailing checkout dropouts?
Reminding customers about their abandoned baskets can be an effective way of tempting them back to the purchase.
Checkout error handling
Is postcode entry costing you conversions?
Why strict postcode validation should be avoided.
Some general tips on error handling and messaging.
Registration
Why you shouldn’t make users register before checkout
Includes the example of an e-commerce site that added $300m to its annual revenues simply by removing the register button.
What is the best way to handle registration?
A look at some of the options.
Which retailers are making users register?
Plenty of retailers still insist on customer registration though, despite the potential for reducing abandonment rates.
Interviews
Checkout Optimization tips from Dr Mike Baxter
Checkout expert Dr Mike Baxter talks about recent trends in e-commerce checkout design.
21 e-commerce experts interviewed
A round up of e-commerce related interviews from 2009, including plenty on checkout design.
Apple’s new VIP ad program gives iAds a tracking advantage
May 6th
According to TechCrunch, Quattro Wireless, which is now owned by Apple, recently sent an email out to app developers to announce a new program called ViP (Verification of iTunes Purchase):
“The VIP program is aimed at app developers who use iPhone ads to
drive downloads and purchases of their own apps. It will tie the ad
directly into purchasing data from iTunes, letting app developers
measure the conversion rate of ad impressions to downloads. As the
slide indicates [below], this tracking is made possible with a “proprietary
direct link from the ad to App Store” and once a “user downloads your
app, they won’t ever see your ad again.”

could save advertisers a lot of money by allowing them to cut short
campaigns that aren’t performing.
iPhone, iPad and iPod touch ads through iAds will have to pay $10 per
thousand impressions plus $2 per click.
Four ways to help your Helpdesk (and your users too!)
Apr 26th
I’m in rather a unique position, my audience are quite special, in that often they have never shopped online before, and as such, need to be hand-held through the experience. They are also quite prone to mistakes, which means I’ve had to build an extensive support infrastructure, not just for my users, but also for myself and my helpdesk team to be able to resolve issues quickly.
So, since Selfridges took a few days to figure out the problem I had and resolve it, it dawns on me that not everyone is doing the same. So i thought I’d detail a few of the ways I’ve created a support infrastructure that not only aids my helpdesk, but also helps me increase my conversion rate.
Firstly, lets face the truth
OK, firstly, your users are always going find issues before you do, even with the most stringent of testing methodologies. They will always be the ones with funky browsers and special “speed up internet” software and exotic plugins. There will be those who have the “never fetch a new version of a page” cache setting turned on, have fancy payment card details and live at addresses that break the laws of physics. This is a fact of life, it will happen.
You’re job is to find out why it happened and fix it, preferably before the user reports it to you.
And before you think “oh, well I’m on Platform X so I don’t need to worry about this”, Selfridges are on IBM Websphere Commerce: if it can happen to them it can happen to you.
1: The good old Feedback Form.
Even without all the infrastructure to capture and analyse support issues, it’s fundamental to offer a clear and simple process for your users to give you a little nudge when they have a problem, and to make sure that when they do, you get the maximum amount of information about their experience.
So, the humble feedback form. I would argue keep this in a single easy-to-reach place, rather than replicating it on any error page. This way should you have any (Gasp!) unhandled errors, they can be reported too. This feedback form should be super simple, pull through the customers contact details if they’re signed in, and prompt if not, but not require them.
The basic additional information in this form should be:
- The user agent of their browser.
- Their Customer ID – if they have one, so you can look into their account.
- Their Basket ID, so you can look up its contents.
- What ever their Session ID is, assuming that you have a handy tSession table that holds session information during a visit.
If you’re feeling funky and have Live Support, then the inbound call request to your helpdesk team can have this information appended to it too.
2: Run Away! The Terrorlog!
OK, this should really be tErrorLog*, which means it’s a table in our database that holds a log of all the server errors ever experienced, so anything 404 or 500 or similar writes an entry giving us a whole bunch of additional information to work with.
Not only does this allow us to capture any points where our firewall’s flood controls and suspicious activity filters are failing, but also with regular review, allows us to pinpoint any situation that would throw an error.
*As an aside, we once had an analyst of a data agency describe our database schema as “it’s just beautiful, a work of art”. That made me so proud.
3: The Card Decline Monitor
I’ve banged on about this before, but if Selfridges had had this, my issue would have been fixed licketyspit.
At Wiltshire Farm Foods, we have a thing called a Card Decline Monitor. What we suspected (via our helpdesk and a healthy does of “feeling in our bones” intuition) was that a number of people were having their payment declined, not because of lack of funds, but due to exotic card types, strange issue number/start date combinations, or an overzealous address verification system.
Whenever a nonstandard response from the Payment Gateway is received, this is stored along with the customer ID, so that our Helpdesk staff, should they receive a call or email, can help the customer resolve the problem.
Most importantly, if we see the same error continually, then we know there is something that we need to look into.
4: Event tracking on Site Errors
If you’re using Google Analytics (which it seems, is an awful lot of us) then you have a nifty feature called Event Tracking. This allows you to register anything that happens on your website as an “Event”. Along with this, you can pass a number of parameters, such as a video being played and how far they go into it, whether someone clicked “add to basket” and how many they added, and so on, without having to use a virtual pageview, which is rather clumsy.
A great use of Event Tracking is to register when an error has occurred to the user, this could be something as simple as an incorrect password, to something more severe like the error I encountered at Selfridges.
With Event Tracking, you can pass an Event, an Action, and a Label to Google Analytics for tracking, so you could pass:
- Event – The error (This seems a bit noddy but you should be event tracking lots in GA, so you’ll want to keep these separate).
- Action – The page it occurred on.
- Label – The error message itself.
Using Google Analytics, you can then examine the pages most prone to errors & the conversion rate following a particular error. Where conversion rate is low, you can then look to either improve the messaging or rework the site so users don’t find themselves in the same situation.
Improve your error messages!
Right, drill this into the heads of your developers: Error messages aren’t error messages, but mini-guides to making sure the customer’s next action is a successful one.
Tattoo it into the eyelids if you have to. From experience, most error messages are written by developers, which is why for a long time we suffered from error messages such as “Something has gone wrong!”. Fortunately we now have a copywriter who rewrites such things for us.
On Selfridges, I received the error:
“Unfortunately we are unable to process your order as it has failed our validation checks”
Which isn’t super helpful. So going back to the rule – the error message is a mini guide, this error should say:
- That everything’s OK (as long as it is) – no one likes an error.
- What the validation checks are.
- Which part of my order failed the check.
- What I should do to correct this.
- A helpdesk phone number and link to a feedback form.
- A different way of placing my order, such as over the phone, a sales a sale.
So, hopefully you’ve found this useful – and as a little “name and shame” game, the next time you come across an error message clearly written by a developer, post it here!
Q&A: Chicago Steak’s Matt Crowley on maximizing search keywords
Apr 16th
What are your main issues branding your company in search?
We are aware that consumers have a wide variety of choices, but we have
great pride in our product and guarantee that our steaks are the finest
in every way from marbling to packaging. We age our steaks for at least
28 days and guarantee each box with a registration number to confirm
this promise of excellence.
If you Google “steaks” you will find companies such as Omaha Steaks, Kansas City Steaks, and Allen Brothers. We use a variety of avenues to brand Chicago Steak Company online. Some of these include CPC, CPA, email marketing, affiliate marketing, sweepstakes, social networking, SEO, discounts, and promotions.
What about free shipping?
We understand consumers’ perception of shipping costs when shopping online. It is because of this that we have done everything we can to meet, and even exceed, customers’ expectations when it comes to shipping. We offer several free shipping promotions throughout the year to encourage new customers to try our products.
What was your approach to search last year?
It was unmanageable. We sell a popular product to a broad audience. There are thousands of relevant keywords and we were attempting to group them all under one campaign. In addition, having multiple Campaigns and AdGroups enabled us to capitalize on cost savings offered by Google (keywords in adcopy etc.)
When did you decide to go to a third party agency to help with search? What was the result?
In the third quarter of 2009. Comparing February 2010 to February 2009, we were able to raise our conversion rate by over 1 percentage point.
How did you do that?
We were really surprised at how much of an impact getting more granular with keyword grouping had on our performance. We saw an increase in both Quality Score and click-through rate. We were also able to take advantage of WordStream‘s negative keyword tools to cut out wasteful spend, increasing our negative keywords by 300%! This in turn cut our cost per conversion significantly, allowing us to hit our target cost per conversion.
Did the results meet your expectations?
What we were looking for in a solution was really to streamline the PPC workflow process while keeping transparency in the account. WordStream allowed us to do this because of the way they manage keywords and suggest an architecture for the account. It was very difficult to do this manually,
because we weren’t sure how to take the data Google was giving us and put it into a structure that made sense. Because WordStream utilizes JavaScript to capture new search queries in real time, we were able to compare new data with what existed in the account. It really made a difference.