White Paper
Read the Idearc Search Marketing White Paper on Portfolio-based Bid Management and learn how to implement more strategic and efficient Pay-Per-Click keyword campaigns.
White Paper Synopsis
Today, there are over 30 different search properties that sell some form of PPC advertising. With over a billion search performed per day, there are ample keywords to choose from, but little science to rely upon in making those selections. The typical advertiser has between 200 and 500 keywords, but some have several hundred thousand. The typical advertiser has accounts at multiple engines. If an advertiser is promoting 500 keywords at 5 engines, that is the equivalent of managing 2,500 keywords. As each engine has varying bidding paradigms - how much you can bid, daily budgets, rules, etc. - the complexity for the typical advertiser is often too much.
Instead of exploiting each engines unique bidding paradigm, many advertisers employ the same strategy at each engine, even further limiting the potential for success. Many advertisers rarely monitor bids or make adjustments. Only when they no longer occupy the number one position do they log in and re-set their bids, often raising them. When one advertiser raises their maximum bid for a given term, the rest of the market usually raises its price commensurately. This behavior is often called "Bidding Wars" which continue until the poor ROI becomes so obvious to advertisers that they abandon the keywords and look for substitutes.
Idearc Media Corp. proposes that there is a more logical and sound approach to developing a bidding strategy, based in a mathematical and algorithmic approach to bidding. This form of bidding requires a more measured approach with a focus on managing words similar to the way in which investments are optimally managed, as part of a portfolio of keywords that share common objectives.
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