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Paid Placement Advertising
October 2, 2000

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' WEBSITE101: READING LIST
Reaching Great Minds Online
October 2, 2000 Issue #63
Mike Valentine, Editor, learn@website101.com



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WEBSITE101: READING LIST

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IN THIS ISSUE
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==> Sponsor Ad: Time Control Training Room
==> Feature Article: Roadmap to Pay-For-Placement
==> Guest Article: Don't Let Them Forget You!
==> Cool Tool: Rocket E-Book carries a Library!
==> Classifieds
==> Subscribe/Unsubscribe information


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Roadmap to Pay-for-Placement
by Mike Banks Valentine

The "paid placement" search results model introduced by GoTo.com
has become an accepted method of advertising online and should
be considered a very viable and attractive option in your small
business marketing budget. Get out your roadmap and let's GoTo!

TUNE UP YOUR SEARCH TERMS

Goto.com offers a great tool to help determine valuable search
terms to bid on by showing the number of searches in the previous
month for any word or phrase you enter in the search box.

Try it yourself and see. Let's assume you are in auto insurance.

http://inventory.go2.com/inventory/Search_Suggestion.jhtml

I went there and found that "auto insurance quote" was searched
9853 times in August 2000.

CHECK OCCUPANCY RATES AND BOOK YOUR TRIP

Now visit the goto.com front page and type in the same search term
"auto insurance quote" and the results page will show how much money
each click-through costs the top bidding advertiser. In this case
it was $1.78 by "Netquote.com" I went there to see and they seem
to be a company that sells to agents and brokers, and thus are not
even aimed at the consumer.

By the way, my just clicking on that link to visit NetQuote cost
them $1.78 and I had no interest in them myself. The first page
of results lists the top 40 advertisers and if you go to the last
of them you see #40 advertiser bid is .05 cents. That is quite
a range for the front page of results! You can appear on the front
page of the "auto insurance quote" results for just .06 cents!

FILL UP YOUR TANK AND LOAD YOUR BELONGINGS

The way to determine what type of campaign to run with goto is
to determine how much you want to spend and find out who your
competition is by doing this type of research. If I were to do
this for the client, I'd charge by the hour, ($75 hourly) since
it is not cut and dry stuff, but requires analysis and careful
targeting of terms. Sometimes you can offer the client the tools
and let them spend the time researching. Some of my smaller
clients take me up on this.

GoTo also offers a service at $99 where they will find and set
your bids on twenty search terms and credit you with $50 in
click-throughs, so they are charging you $49 for a not-very
precise "we'll-do-it-for-you" kind of campaign.

Generally though you'll get good reports from goto and can
substantiate where the money goes to determine your return on
investment.

Note that the second bid for "auto insurance quote" at $1.76 is
from "insweb.com" and they are one of the big dogs of online
consumer insurance quotes.

BUDGET YOUR YOUR TRIP

GoTo claims that a number one listing gets three times the
click-through rate of the number two listing and offers stats
for ranking purposes to help you decide where to bid and what
your budget can afford. You can beat them all for $1.79 per
click-through so if your conversion rate were ten percent of
click-throughs converting to paying customers, then customer
acquisition on this campaign would cost you $17.90 per new
paying customer. If your profit exceeds that amount and you
can justify it, then you have a winning campaign!

Statistics show that the average cost to business for new
customer acquisition is $30 per customer, so the example
given above of less than $20 per new customer would be quite
a bargain.

HIT THE ROAD AND ENJOY YOUR TRIP!

What it comes down to is, how well do you want to rank? What
can you afford? What is your conversion rate once a searcher
clicks through? How much is that new customer worth to you for
the life of the business she would bring your company? Finally,
what is your return on investment? This can't be determined
until you set up a campaign and test it with them.

The value of this type of advertising is the ability to track
exactly where the customer came from. If you set up a specific
page on your site to receive traffic from your paid search
listings, your traffic logs will verify that those new clients
came from that paid listing. It is possible to create pages to
accept traffic from each of the pay-for-performance resources
out there. Consider a few of them and test, test, test!

GoTo is not the only vehicle on the road. Road-test these!

http://www.goto.com/
http://www.sprinks.com/
http://www.rocketlinks.com/
http://www.searchhound.com/
http://www.7search.com/
http://www.ah-ha.com/
http://www.euroseek.com/page?ilang=en
http://findwhat.com/
http://www.kanoodle.com/
http://www.onesearch.com/
http://www.simplesearch.com/
http://www.titansearch.com/

Check your mileage and keep your web vehicle in tune!

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GUEST ARTICLE
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Don't Let Them Forget You
by Carol Cuoco

You work hard to attract visitors to your website. Very hard.

A visit to your site means that someone has sorted through the
abyss of the Internet and found you. The mere fact that you
have attracted a new visitor indicates that you are a success
in your search engine placement, word-of-mouth popularity, or
advertising campaign.

Even if your visitor has found your site to be informative and
useful and made a mental note of its value, there is still a
chance they will never return. They may have even bookmarked
your site, but have you taken a look at your bookmarks recently?
You are probably overwhelmed and lost even within your own
privately selected and bookmarked sites.

This is why it is imperative that you are granted permission to
communicate with your visitor in the future -- that they submit
their e-mail address information to you. The development of a
mailing list becomes your bread and butter -- it is the gold
medal you need to succeed on the web.

There are various methods to be employed for obtaining e-mail
addresses, but the most important is to make sure that it is
easy and convenient for visitors to sign up for your newsletter
from EVERY page of your website. This way, anyone who has
visited your site can easily and instantly sign up to receive
future news from you; they no longer have to remember on their
own.

The second most successful way to obtain these names and
addresses is to offer your visitors something in return: a
free e-book download, a contest entry, a giveaway of any kind
will prompt your visitor to sign up.

Thirdly, exchange newsletter promotion with other ezines. These
ads are placed in the newsletters being distributed by other
companies to an audience that you can assume has a similar
demographic base. Exchange your ad space on the basis of your
number of subscribers. For example, if their list has 2,000
subscribers and yours has 1,000, you might consider running
their ad twice in exchange for them running yours once. That
way, you each announce the ad to the same number of people.
Make sure that your ad has specific (and easy) instructions
for people to ubscribe to your newsletter.

Once you have developed a mailing list, don't forget to use it!
As obvious as this may seem, it is something that occurs quite
often. People feel they can't write effectively or don't know
what to say in a newsletter. Rest assured that your mailings
can be very brief and consist of very few words. If you are
unsure what your ezine might contain, consider these options:
announce new site enhancements; offer a weekly
inspiration/joke/quote; introduce new products/sales/contests;
share a link to a site that you think your audience would be
interested in viewing. The chances are very good that if you
find it interesting, so will the recipients of your newsletter.

The most important point of your newsletter is that it will
contain your site's URL and remind your hard-earned visitors
that you are there and that you have something of value and
interest to them. Use your mailing lists to keep the visitors
you have worked so hard to attract.

About the Author:

Carol Cuoco is the founder of Go-Mom which owns and operates
Go-Mom.com (an online community for moms of teens) and
Christmas Gift Stores.com (dedicated to showcasing the products
of the small and unique merchants of the web). Both sites also
offer a free and interesting newsletter, Go-Mom and Gift-Ideas.
http://www.go-mom.com and http://www.christmasgiftstores.com



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Copyright 2000 Mike Valentine

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  June 10, 2001