The Advantages of Using Fixed Placement

Fixed placement advertising is less time-consuming to manage than other types of search engine advertising programs because your position is guaranteed and your costs are fixed. This program offers several competitive advantages to advertisers, as described in the following sections.

Lock In Rates

It's easy to forecast your cost for a Fixed Placement program because you'll establish a rate before you start advertising. You'll usually contact a media representative and negotiate a contract for the keywords you wish to buy. (To contact a media rep, look for an "Advertise" link on the search engine's home page or after you run a keyword search, as shown in Figure 6.2.)

Figure 6.2. To find an MSN media representative, run a keyword search and look for the "Advertise on MSN" link under the "Other Resources" heading at the bottom of the results page.

The media rep will tell you how many estimated searches there are for your terms based on the previous month's search volume. Your fee is based on the traffic estimates for the month(s) in which you'd like to advertise.

Generally, you can sign a 30-day, a multiple-month, or an annual contract. Generally , the longer your contract term , the lower your keyword rate. Keywords are priced on a cost per thousand (CPM) impressions , cost-per-click (CPC), or cost-per-acquisition (CPA) basis.

• CPM refers to the number of times your ad listing appears during a search for the keywords you've purchased.

• CPC is the fee required for each click on your ad listing.

• CPA can define either a lead or a sale that you receive from your ad listing.

CPA is a marketer's dream. And unlike several years ago, today this pricing option is easier to secure by advertisers who are willing to spend big bucks every month. But hold on! CPA sounds like the most cost-effective option, but it isn't always. Companies with a strong brand identity, for example, could find that paying a per- impression or per-click rate yields a lower per-customer cost because their conversion rates can be high. (I'll discuss tracking solutions that help you monitor your profitability in Part V.) Why agree to pay a search engine $10 per order if instead you can pay them pennies to deliver traffic that ends up producing new customers at $7.50 per order? Whichever type of rate and fee you negotiate, it'll remain the same during your advertising term. Your set cost buys you guaranteed visibility, traffic, leads, or sales.

Check your agreement for the delivery terms. If you pay for 5,000 clicks in one month, but only receive 4,000, does the search engine run the campaign until your minimum is met, refund the difference to you, or give you additional freebies? If these specifications aren't in the contract, you'll have a hard time collecting any option after the fact. Therefore, ask for it "in writing" before you sign.

Today, search engines are typically writing into their contracts that their reports , not yours, are used for billing purposes. Even if this restriction is in your contract, I advise double-checking their reports against yours. My clients ' internal reports have been off 10 ‚ 30% of what search engines, or search engine tracking vendors , report. This can represent a frighteningly big discrepancy that warrants investigation.

Lock Out Competitors from Top Positions

Arguably, the chief benefit of buying a Fixed Placement keyword position is the ability to block your competitors from prime visibility. Search engines sell a limited number of listings. If you occupy one of these spots and the others have already been sold, then your competitors can't outbid you for a higher position, or design their site to outrank yours. Competitor "lock-out" is yours during the length of your contract (as long as the other advertisers renew theirs, or a spot could open up).

You'll also have "first right of renewal." At the end of your advertising campaign, you can renew the agreement for another specified length of time, continuing your hold on these positions.

Important

Set up an advertising calendar to note renewal dates in case your contract expires but you aren't notified. Evaluate the campaign performance ahead of time to determine any contract changes before you renew the same campaign.

Ask search engine media reps about keyword exclusivity. Because companies can buy a specific number of impressions or clicks, a competitor might buy the excess inventory. For example, if you buy 10,000 impressions for the phrase "home health care," and next month the traffic doubles, your competitor could be next in line to buy this traffic. Which is more important to you: Spend more money that month buying the extra inventory to block your competitors, or keep your set monthly cost and hope that your competitors don't ask about new impressions? Discuss your needs with your media representatives to avoid surprises when this opportunity arises.

Deals Are Negotiable

Unlike other types of search engine advertising programs, Fixed Placement deals leave room for negotiation. And fortunately, with the Dot Com boom behind us, it's an advertiser's market once again. Amen! Highly- coveted keywords are in demand by competing advertisers, but a large portion of keyword inventory goes unsold. Try your hand in structuring a more profitable deal by using the negotiation secrets in the following sections.

Ask for a Frequency Discount

In your initial discussions with media representatives, ask for costs based on a 30-day campaign. Give them this short timeframe even if you'll commit to a one-year agreement (I've received a 5 ‚ 10% frequency discount on 3 to 12-month campaigns , and so can you). If you reveal that you're interested in an annual program too soon, then this discount might not be extended to you.

Ask for Bonus Ads

Search engines sell more than just keyword text links. They offer banner ads, content sponsorships, and opt-in email. As a way to increase the overall profitability of that search engine's campaign, ask for additional advertising opportunities at no additional cost. With so much ad space available, a media rep who is on the ball will conduct a little research and propose ideas for your consideration.

Keep in mind, however, that this free offer must be targeted or it'll kill your profit margins, unless you simply view this as a branding bonus. When I purchased search engine ads for clients I didn't accept run-of-site banner ads or text links because I knew they wouldn't perform. I negotiated free generic or branded keywords with a low search volume because these were still highly targeted , even if there weren't a lot of people searching for them. Because low-traffic terms aren't in high demand by other advertisers, media reps are able to bundle these into contracts fairly easily.

Important

Track main media buys and free bonus ads as two separate campaigns to ensure that the former performs on its own merit without the freebie .

Accept the Cost, Ask for a Reduced Rate

Search engines have contract cost minimums that average a couple thousand dollars per month. There's no point in asking for a reduced contract cost. However, you'll more than likely be quoted retail rates for keywords. As long as the search engines receive a minimum payment from you, they're generally happy. If you get more for your dollar, then you'll be happy too.

Pretend a search engine proposes $3,000 a month for 100,000 impressions, which is $0.03 per impression. Accept the $3,000 cost; then ask for 150,000 impressions to close the deal, which brings the rate down to $0.02 per impression.

Whether you're already running search engine campaigns or this is your first one, a Fixed Placement program will give you new keyword ideas. Submit a keyword universe to your media representatives and ask them to propose an expanded list. They'll tap into their keyword inventory database and tools to help you with your research. Consider these keywords for other ad programs and optimization efforts.

Important

Don't ask media reps for keyword recommendations and associated quotes if you have no intention of participating in their programs. Use keyword tools instead.

Better-Positioned Real Estate

It's fair to assume that search engines put their own advertisers in optimal positions. These listings are above the fold and close to the search box. Fixed Placement advertisers' listings can be set apart from other listings with logos, longer descriptions, or multiple links to different web pages of the advertiser's site.

Just look how much real estate Mortgage Expo.com has on Excite for the keyword "mortgage" (see Figure 6.3). This advertiser is lucky; Excite appears to sell just one ad position under their fixed position program. Did you notice how many text links Mortgage Expo.com has in this sponsored area? Excite allows the advertiser to connect with their target audience through a variety of marketing messages, which probably helps their overall click-through rate.

Figure 6.3. Fixed Placement advertisers receive well-positioned ad space, as demonstrated by Mortgage Expo.com's multiple listings on Excite.com for the keyword "mortgage."

Unfortunately, Mortgage Expo.com is not fully utilizing this perk to their advantage ‚ all of the links dump visitors onto their home page. Sigh ‚ they own a prime piece of the advertising landscape and it would be so easy to link to the appropriate landing pages. That would mean one less click to the information their potential clients seek. When you buy the best lot on any search engine, invite the neighbors inside your house for a visit ‚ don't leave them standing at the front door.