While Friday still remains at SES NY ‘07, it feels like today (Thursday) was the last day. I sat in on several sessions all of which were focused around retail, search, advertising, and social media. The underlying theme of the day was looking at advertising from multiple angles and how it can help build/elevate your brand. My notes from the day are very scattered so I’ll do a recap with my own thoughts as well.
Online SEM Channel Strategy - What to do?
As I evaluate our online channel and the fact that it is like the Wild West right now, I am presented with the following dilemma:
- As a manufacturer, we want to protect our brand name. In fact, leveraging our brand is a corporate initiative, and it should be a differentiator when people shop for blinds and shades online or offline.
- Our products are sold in different channels: Big Box, Independent, and Online. Online presents the biggest challenge because our brand name is used to drive traffic to competitor websites. This is an easy problem to fix thanks to our legal department. However, the more interesting and complex issue is how to work with our online retail partners to get a win-win situation: we want to “own” our brand name, yet our retail partners need to advertise our brand name. What’s a consumer to do?
I don’t have all of the answers yet, but have some ideas (which I will not discuss here). The more important point is that we have retail partners who are advertising our brand name, essentially free of charge. In the blind and shade industry, brand names are either very well known, or completely nonexistent. It’s really a hit-or-miss vertical. With that said, once you start rolling in banner advertising, offline advertising, PR, social media marketing, etc. to create that brand awareness, then the online retailer SEM takes a whole different role.
Where does SEM live in the sales/conversion funnel?
There are essentially two types of searchers:
- Consumer searches for a specific product name (sometimes including a brand name)
- Consumer searches for generic product name
Consumers who fall into bucket #1 are further along in the sales funnel. They have been pre-disposed to your product and are more or less “in the market” now and ready to spend their money. I would argue that these consumers represent an “easier” conversion to a sale and that your SEM budget should focus heavily in this area.
Is SEM a marketing tool or a sales tool?
Consumers who fall into bucket #2 are the people who blur the lines of SEM. Is SEM a marketing tool or a sales tool? Or is it both? People using generic search terms may not have a brand top-of-mind, but if they see advertisements relating to their search that mention a brand name, they may be more likely to resonate with those ads. This is particularly true if you have other advertising and marketing in place such as banners, offline ads, PR, good social media penetration, etc. Now, combine the power of the “stickiness” of brand advertising with the online retailers who also sell our products and we’ve got an interesting situation.
Generic terms may not immediately convert, but they may be attributed to future conversions
The problem is that it’s hard to tie sales to generic search terms. They may not immediately convert, simply because the consumer falls a little higher in the sales conversion funnel and may not be ready to purchase right then and there. Unfortunately for us, too, the sales cycle is much longer for custom blinds and shades (due to ordering samples online, waiting for them to arrive, and also because of the higher price point of custom products).
Who’s to say, though, that a generic term didn’t ultimately drive the consumer towards purchasing your product at a later date. What if they came back to the search engine, looked for another term or even used your brand name this time in their search phrase, and ended up purchasing on your site (or retail partner site)? It’s certainly doable to keep track of the initial click or keyword/phrase that drove the consumer to your website for the first time. But it’s also very hard to measure the effectiveness of SEM with other “outside’ influencers such as more traditional advertising.
Fortunately, I will be able to run a baseline test of SEM for 1 to 2 quarters without any other external advertising (other than normal monthly promotions, etc. that we would normally run). I anticipate a lift when SEM begins to clicks to our website (and hopefully sales through retail partners), but even more so do I expect this when we start advertising via more traditional means. I will really be interested to see if it drives a higher conversion rate on the same SEM campaigns I had been running.
It’s hard to say, but fortunately I have tools like Omniture SiteCatalyst and WebTrends Dynamic Search to help me manage it all.
Creating the right blend of advertising - avoiding advertising silos
The ultimate goal is to create the right blend of advertising so SEM is converting at its highest possible rate when balanced with the correct amount of banner advertising, offline advertising, PR, social media, etc. I think the main problem with advertisers today is that they are looking at everything in silos. PR is measured in impressions — but how is it correlated with sales? Banner ads are measured in impressions, click-throughs, and conversions — but how do banners influence search? How does leverage social media influence customer satisfaction and repeat business?
There are so many variables that go into the marketing, management, and maintenance of a brand. Pile this responsibility on top of having to actually creating, produce, and maintain new product development and you’ve got your hands full. Do it well and you’ve got a well-oiled machine with new product development and marketing playing off each other. Do it poorly, and you’ll find yourself in a very disconnected business with poorly performing sales funnels and weak innovation and new product development.
