• Andy Maclean

    0% ROI strategies based on break even CPA from paid search can still be effective when margins are thin as 0% never actually means 0%. Aside from the conversion measured in the CPA other direct benefits are likely to include email capture, phone calls, brand awareness etc. More paid traffic will support organic traffic increases via multi channel attribution. Break even CPA’s usually indicate you’re getting max traffic and conversions for your buck and that has benefits in terms of repeat business and capturing market share.

  • Pat Grady

    We see irrational bidders enter, sometimes staying a while, then eventually going away. So I’d add “stay on your Goal ROAS (not Share), be patient and think long term, these cycles are natural, the interlopers action (unlike yours) is most often unsustainable.” The Auction Insights report in AdWords often provides the sort of data needed to more easily think along these lines.

  • Pat Grady

    “Surprisingly, very few marketers who responded to my inquiry mentioned affiliate advertising.”

    This is strange. This year, our company was awarded Affiliate Summit Pinnacle Award for Affiliate of the Year. Everything we do (mostly PPC related, but certainly not all SEM) for our clients and partners is paid on a performance basis. The affiliate channel waters are difficult to navigate (hire an OPM!), but since the cost is performance based, any merchant is off their rocker to dismiss this channel, especially one being pinched by SEM competition. If you think Affiliate Marketing is dead (Panda, Penguin, whatever the theory du jour), go to Affiliate Summit in January in Vegas… if it is dead, well then, who are all of those attendees? Hahaha!

  • Pat Grady

    “It is estimated that 23% of e-commerce is driven by affiliate marketing.”

    Whatever the number is for you, there is a lot of value to be found in this channel! Like AdWords or SEO, there’s also a lot of ways you can go wrong. Manage this channel, like you would the others – expertise, experience, analytics, ROAS goals, brand sensitive issues – be selective, be profitable.

    Btw, OPM = Outsourced Program Manager, a hired gun who knows the ins and outs of this Affiliate Channel. If you sell B2C, imo 99% of the time, you should hire an OPM.

  • http://prenatal-cradle.com/ Prenatal Cradle

    We’ve never had the budget for PPC. We tried it and found that competitors would quickly drain our budget by clicking the ads, even when we set our prices well below those of our competitors.