Wednesday, July 02, 2008

Targeting Usage Demographics to Increase Paid Search Conversions

Targeting the campaign to the proper target audience is very important in terms of conversion rate.
Website conversion is when a visitor takes action on your website after clicking through your ad. It is important because it leads to financial results for your web business and generates a return on your advertising spend (ROI).

On internet and for PPC ads, to be very precise, we can target the audience geographically and demographically. Targeting through ads is another part. First we should study the demographic profile of search engine’s users.

User demographic profile study means why visitor chose one search engine over other. It could be because of the functionality, relevance and many other factors that user can perceive and prefer one search engine over other. If you can research into user demographics of Google and Overture then you can create message accordingly and increase your ROI.

To study that, you must know what Google AdWords or Overture consists of! Though there are many sites and search engines in these networks, very few of them are famous and most popular.

Below are the primary search engine usage demographics to consider when developing your PPC strategy:
1.Gender: Male versus Female

In the search engine world it is very often said that ‘Men are from google and women are from Yahoo! and MSN’. And it seems to be very true.
A May 2004 study by Hitwise showed that “55% of women prefer MSN Search while a majority of men favor Google Search”. Yahoo! Search was split even on gender with a greater focus on people 18-34 in age.

A 2004 MarketingSherpa study indicated that MSN’s user profile consisted of time-limited, married females who searched less frequently yet performed greater e-commerce searches. While Google Search was favored by professional males who performed greater news, media, entertainment and education searches with a lesser intent to purchase.

For AOL and Ask Jeeves, AOL is favored by women with less buying intent than MSN Search while Ask Jeeves is preferred by children.

Furthermore, an April 2004 iProspect study uncovered that, “women found paid ads to be more relevant than men did when searching across Google, Yahoo!, MSN and AOL.”
These statistics are startling when considering their influence on your PPC strategy since women represent roughly 75% of major household purchases and as stated in a Women.com study, control 80% of all purchasing decisions.

2.Relevancy: Paid versus Organic Listings

Another usage demographic to consider for your PPC strategy is “perceived relevancy” of paid versus organic listings. Ads perceived as having greater relevancy lead to higher website conversions.

The iProspect study referenced earlier also discovered that “Internet users are more likely to click on an organic search link on Google, and a paid search result on MSN.” Organic listings on Yahoo! were considered 61% more relevant than paid listings while AOL was split 50/50.

3.Age: Young versus Adult versus Seniors

A third usage demographic to review is age. Preferences among the top five search engines are fairly mixed among age groups; Yahoo! is a strong favorite with 18-34 year olds; while MSN and AOL have a stronger preference among the 35-55+ age group. As stated earlier, AskJeeves is favored by teens and adolescents which is growing in their buying power within American households as stated in a recent BusinessWeek research study.

Conclusion:

Google and Overture offers the best PPC programs and always prefer them.
Google has the greatest reach but conversion rate on overture is high.
Go for both the programs simultaneously
Ad copy, keywords and landing page all are equally important.
Consider customer demographics and psychographics while writing copy.
Use relevant qualifiers to get mote targeted traffic.
Usage data generated from your website is the best market research.
Use keyword-level tracking systems to determine which PPC search engine generates the most cost effective and best converting visitors.