Shop.org Blog

I had the pleasure of moderating three roundtables at the Shop.org Marketing Workshop on “Avoiding Analysis Paralysis: Making Sense of the Numbers”. As the founder of Coremetrics, spending over seven years deep in this topic, it was nice to jump back into this subject matter. Of course, we do spend a lot of time at Bazaarvoice on Web analytics as we are partnered with Coremetrics, Omniture, WebSideStory, and WebTrends to prove out the value of ratings and reviews on the site as well as in marketing efforts. I referenced many of the lessons that I taught at the first Shop.org Boot Camp back at the Annual Summit in 2005. The surprising thing was that many of the lessons were received as positively as they were in 2005. I was a little concerned as I started the roundtables that my material would be “old hat”. But instead I had three very engaged roundtables. And I was encouraged to make this presentation available to all of the members again, so here it is: click to download it.

If you have any questions about this material, please ask them here. That way everyone that reads this blog will benefit.

We started a thread over at Search Engine Land about search marketing agency pricing structures and rates:

Pricing structures and rates aren’t secret in established service industries. Real estate agents get 3% to 6% of the house’s price; recruiters get 1/3 of total first year comp; trial lawyers take 33% of the settlement; list brokers charge 20%. While specifics vary, each industry has conventional pricing arrangements.

Not so in paid search management. Not yet. Not only are rates kept under wraps, as an industry we’ve not even yet converged on the most appropriate structure for those fees.

You might ask, “Why does the pricing structure matter? If client and agency deem the fee fair for work performed, why does it matter how that fee is computed?” Incentives drive behavior, and fee structures (not just amounts) influence how a SEM agency serves its clients.

We’d suggest a sensible way for a paid search marketing agency to charge for their services is “capped percent of ad spend…”

More discussion of search marketing agency pricing structures and rate at SEL.

What do Shop.org retailers think about this? What do other Shop.org agencies think?

Click and Mortar retailers have, since the dawn of online marketing, struggled with the challenge of promoting an online, direct-to-consumer store environment with their own brick and mortar stores. Even manufacturer, publisher, and designer brand advertisers wrestle with channel conflict and the support of their identity through retail partners.

The promise of Local Search eludes many as traditional paid search placement is burdened with the need to create hundreds of campaigns by zip code, dma, or other geography. Promotion of local stores, sales, and events requires replication of the same (or similar) program over and over again. While the paid local search marketing channel exists to promote local sales and events, the engines’ experiences still encourage users to search for a product, store, or brand they want, not a localized result. As we all know by now, this is where vertical search steps in to create for users, an experience entirely their own. Options worth your consideration are available from Yahoo! Local and Zvents which cross the bridge between online and offline, brand and channel.

Yahoo! Local, is, of course, “local search” which caters to those looking, literally, for a store or business within their vicinity. Store listings are free and easily submitted through a user friendly process. With 80,000 zipcodes indexed and over 60,000 city pages, even the smallest business in the most remote location should look to Yahoo! Local for promotion.

Paid placement in Y! Local is available through an Enhanced Listing, a paid, guaranteed placement on the first or second SERP which includes customizable store descriptions, photos, and promotion of online coupons. Pricing varies according to distribution and reach for each location though, with so little demand, rates are usually much more attractive than traditional Paid Search.

The Yellow Pages are nice but a listing alone won’t get customers in the door. Retailers know this well and while sales and promotions are still sufficient online, offline, events, classes, fairs, parties, and celebrity appearances help draw a crowd. Zvents indexes store events and sales to its massive, localized event search engine and allows users to save keyword searches, venues, or grouped themes of interest to receive updates through RSS or iCal. Inclusion in their index is free and promotion of your event extends beyond their site search to event pages with partners including the San Jose Mercury News, Miami Herald, and Boston.com. Creating a venue (your store) will ensure its promotion in perpetuity; customers who enjoy your events and sales can save your store to their MyZvents page.

A good number of retailers have caught on to this opportunity and I easily found reading clubs at Borders, PetSmart’s in store Greyhound adoption, and a Trading Spaces clinic at Home Depot. Even Williams-Sonoma made an appearance (though they are apparently still dabbling with the opportunity) while outdoor retailer REI is promoting a variety of classes to draw enthusiasts into the store.

Brand advertisers are catching on to promote branded events while bridging the gap between promotion of their brand and retail partners. Kodak’s Path to Transformation series takes photographers through photography’s transition from film to digital while Toyota’s well known Toyotafest is featured alongside lecture series and Toyota sponsored events.

Easily include your Stores’ events from the prominent link at the top of any page and create groups of themed or like events (like all your sales or education classes) to promote from your own site.

As search continues to evolve, marketers must look beyond the tried and true engines to the emerging opportunities in local marketing. Yellow Pages have been replaced with online directories and store sales and events have a new home for promotion in search. 

Wouldn’t it be great to have private in-depth Q&A sessions with some of the world-leading experts on social media optimization, link building, and Google SEO? That’s exactly what I was treated to recently — with social media marketing guru Neil Patel, link builder extraordinaire Eric Ward, and Google Webmaster Central product manager Vanessa Fox. All three happen to be speakers at the American Marketing Association Hot Topic: Search Engine Marketing events taking place next Friday April 20th in San Francisco, May 25th in NYC, and June 22 in Chicago. (And I happen to be the conference chair for the three events. )

I turned these conversations into podcasts, which I think you’ll find beneficial in your SEO and SMM (social media marketing) efforts. There’s some real gold in those interviews.

Download/Listen:

• Vanessa Fox interview (40 minute MP3, 9 megs) - Google’s webmaster tools, SEO impacts of AJAX, Flash, duplicate content, redirects, etc.
• Neil Patel interview (15 minute MP3, 3 megs) - getting to the front page of Digg and other social media sites
• Eric Ward interview (36 minute MP3, 8 megs) - tips and secrets on how to garner links

More podcasts to come from other speakers, including Shop.org blog contributors and members, in the coming weeks. So be sure to subscribe to the RSS feed so you don’t miss them.

UPDATE: I just posted the podcast interview of Google software engineer Amanda Camp (33 minute MP3, 8 megs)

Most retailers struggle with the promotion of their catalog through Comparison Shopping Engines (CSEs) through data feed optimization.  Far too many expect comparison shopping to convert as well as search, with referred customers as likely to immediatley purchase, yet, evidence continues to mount that comparison shopping is aptly named: A means for your customers to shop, compare, and consider what to buy before making a purchase.

Last year, Revenue reiterated comScore research citing that 75 percent of consumer electronics comparison shoppers were merely window shopping, 25 percent did buy within the next 90 days though only 10 percent bought online. Hardly supporting an argument that retailers should expect direct sales from CSEs. 

So how do retailers, publishers, and manufacturers leverage this vertical search platform to support latent and indirect sales? Comparison shopping engines manage their own catalog of products.  The accuracy and comprehensiveness of that catalog is one of the most important considerations.

Let’s assume you are sending the best possible product feed to Shopping.com and BizRate and consumers can (and do) find your products when they search the CSE.  Product Search is an important part of the value these engines provide but fundamentally, comparison shopping engines optimize the customers’ experience to comparison of products and prices. To support that, CSEs diligently maintain a catalog of products with each sku visible to you through a “Product Page,” “Buyer’s Guide,” or “Product Detail Page.”  Those product pages, their pages, are promoted more prominently in Product Search than your own products so that consumers are presented with product listings through which they can then compare merchant offers.  Your listing, from your datafeed, usually falls below those results (if at all); the customer will likely never find you through search.  As such, your goal is to ensure your skus map with their own so that you appear as a merchant of said product.

Consider this search result from Shopzilla.  Each of the products listed there is from Shopzilla’s catalog, not because a merchant sells that product.  Stores only benefit if they appear on the product page as a vendor.  Fail to map to their data structure and you don’t appear.  There are two things of which you should be aware:

1. Your product data must match their product data
You would expect the industry know and use the exact same UPC, SKU, and Part Number for every unique product.  The reality is that international variations, derivatives, and just plain bad data, corrupt the alignment of your catalog with theirs.  Your SKU may actually be different than what they have for the exact same product.  Work with your vendor/agency to ensure they are optimizing your feed to translate product data to the format the CSE expects.  Don’t assume your UPC codes are those that you need to have to show up on BizRate.

Sure, you could argue the CSE should change their data to align with yours (assuming yours is considered the industry standard) but trust me, such an expectation is like moving a mountain. 

2. CSEs’ catalogs are not flawless
Most CSEs manage that catalog by cobbling together data from product data vendors and their own staff of editors.  That practice is prone to error and you will find inaccurate product data and entirely missing skus.  When that happens, it doesn’t matter if your datafeed is optimized, your products won’t be marketed effectively to customers.

Consider your feed with only 2 skus:
1. Green Widget (654qwe) for $99

2. Blue Widget (321rty) for $75

You have ensured titles are accurate and include a call to action, descriptions are keyword rich, and promotions and offers flow freely. Unbeknownced to you, the CSE doesn’t have SKU 321rty in their catalog (OR they have it as 321rty_a).

Customers will be able to search for and find your Blue Widget only if they already know of and are looking for it.  Without the SKU in their catalog, a CSE can’t promote it (editorially) nor is it available for comparison against similar products.   Consumers simply shopping widgets likely won’t find your blue choice because the other types, those in the CSE catalog, appear first.  The sku will not receive as much visibility nor traffic from the CSE and you will be asking why your competitive pricing, aggressive offer, and optimized feed are not delivering results.

Make no mistake, these considerations and their challenges are not limited to my consumer electronics industry.  While not all product types are catalogued by CSEs, hard good, some clothing, and certainly, books, music, DVD, and video game retailers should talk with the CSEs:

• Screen their catalogs for your top selling products and look for Product Pages on the CSE
• Understand how their catalog is managed and kept up to date
• Work to map your product data to what the CSE expects
• Demand more of the CSE. As a brand, you have some weight to throw around in expecting comparison shopping engines feature your products. You should find that Comparison Shopping sites are anxious and more than willing to help ensure their catalog is comprehensive and accurate.