Thursday, June 28, 2007
Insult Canada, Then Justify Your Insult With Facts
'Doing Search' Only Counts If You're Seen
by Gord Hotchkiss, Thursday, June 28, 2007
I'M NOT MAKING ANY FRIENDS with Ontario Tourism. Two weeks ago I said in this column they weren't using search. I was quickly corrected by the tourist bureau's Nick Pedota, who told me my claim was "wildly inaccurate" and that Ontario Tourism in fact has "an extensive search program." But based on the following searches I did while in Toronto, Ontario Tourism didn't show for: Ontario vacations, Ontario resorts, Toronto vacations, Ontario getaways and Ontario holidays. According to Google Trends' keyword research tool, these are the most common searches for Ontario, by a substantial margin.
If You're Not Seen, You're Not Doing Search
Here's the reality of search marketing. It's one thing to say "we're doing search" internally -- and it's a totally different thing to have the searcher realize that yes, you're doing search. The smart thing to do here would be to give Pedota and Ontario Tourism the retraction they're looking for and say I made a mistake (which I did). But this proves too good an example of the disconnect I see all the time; managing a search campaign to budgets, not objectives. I stand by my original claim: Canadian advertisers aren't clueing into the power of search.
Nick wasn't really in a mood to share many details of the bureau's campaign, but he did share that they're were bidding on thousands of "targeted keyphrases" and were using heavy geo-targeting to focus on their prime markets (Ontario and the border states). He said that's simply "smart marketing". I can't disagree. It makes sense to target in on your best clicks first, especially if budgets are limited.
Where's the Money Going?
But in this case, are budgets really limited? Let me share some things I was able to dig up on Ontario Tourism's site. First of all, the tourist bureau is doing print (lots of print) and TV (lots of TV). The goal? To drive people to its Web site. Full-page 4-color ads are running multiple times in over 70 dailies and weekly newspapers and 9 magazines. One 4-color full-page ad in the Toronto Star would run about $54,000 (there's a certain amount of guessing here, as print rate cards are really a mathematical exercise in confusion and frustration). Circulation of the Toronto Star is 350,000 (on an average day). An excellent conversion rate for a newspaper ad would be 0.5% That means, ideally, 1,750 people would actually visit the Ontario Tourism website. Now, I have never in my life seen a newspaper ad convert this well, but even if it did, that would be a cost per visitor of $30.85. If the ad doesn't work that well, the average cost climbs dramatically. And you pay whether or not the ad works.
What People Actually Use
Now, courtesy Yahoo Canada and a recent survey, let's look at what actual travelers cite as the most important influencers in making travel plans. Search and Web sites are tied for number one and two, used by 51% of respondents in a recent survey. Newspapers and print? Only used by 7%. But yet, only 2.1% of Canadian ad budgets get spent on search, and 42% gets spent on newspapers and magazines. I couldn't get any specific percentages for Ontario Tourism, but one only has to look at their campaign page to see that search is very likely getting only a fraction of what's going to newspapers and magazines. And don't even get me started on the TV buys.
The Search Story
So, where is Ontario Tourism in the search results? As Pedota shared, they're only geo-targeting the prime markets, and then only for a 3-month period (April through June). Only 1 of the 7 highest traffic key phrases I found (using an Ontario IP) returned an ad or an organic listing for Ontario Travel (the site also hasn't been organically optimized). More specific phrases, like Ontario Summer Vacations or Ontario Wine Getaways, did return more ads.
But by bidding on specific phrases (even thousand of "long tail" ones) and not on the more popular ones, Ontario Tourism is catching less than 10% of all the people using search to plan a vacation in Ontario. And unless you're in the top-sponsored ad locations (which few of the ads I saw were) you're actually only being seen by a small percentage of those searchers (usually 10% to 30% of them) on the results pages you do appear on. So, according to 97 out of 100 people who are using search to find the official site for Ontario Tourism, the tourism bureau is not "doing search." By the way, you could maintain top spot in Google and Yahoo for all the top traffic phrases for less than $2 per visitor. Remember, that ad in the Toronto Star cost, at a minimum, 15 times that!
Again, let's recap. What's the purpose of the campaign? To drive people to the Web site. And not just any one -- THE official Web site of Ontario Tourism, the site most people are looking for on these key phrases.
And You're Spending Your Money Where?
Is it really "smarter" to ignore 97% of the people who are actively searching online to find you, so you can spend more money running ads in newspapers for the 99.5% of people who have no interest in your site at all? And the real irony here is that if people don't click on a search ad, you don't pay! Take a fraction of that budget from the Toronto Star and blow out the geo-targeting and time parameters and go for the high-traffic phrases. After all, there might be people in Saskatchewan or Nova Scotia that are planning a trip to Ontario. Or, perhaps they're planning their trip in September, or February. If not, it's not costing you anything. Try getting the Toronto Star to offer the same pricing model!
Is this really smarter marketing? You decide. The readership of this column includes some of the smartest marketers on the planet. Blog about this and give me your opinion. Maybe I'm missing something, but I've decided I shouldn't apologize for trying to get advertisers to spend money more effectively. After all, in this case, it's really our money they're spending. At least, it would be if I were an Ontario taxpayer. Something tells me after this column, it might be a good thing I live 2000 miles away. As I said, I'm not making any friends in Ontario.
Post your response to the public Search Insider blog.
Gord Hotchkiss is the president of Enquiro, a search engine marketing firm. He loves to explore the strategic side of search and is a frequent speaker at Search Engine Strategies and Ad:Tech. Check out his blog at http://www.OutOfMyGord.com
Search Insider for Thursday, June 28, 2007: http://publications.mediapost.com
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Canada, It's Time To Clue Into Search!
by Gord Hotchkiss, Thursday, Jun 14, 2007 11:30 AM ET
I've never hid the fact that I'm Canadian. I'm fervently proud of that fact, and more than willing to take the good-natured ribbing I often get on the road from my American friends. I usually bear the brunt of some Canadian joke on a panel (often, I'm the one telling it) and I'm more than happy to act as a one-person tourism bureau. But this week, at SES Toronto, I've got to say that when it comes to search marketing, Canadian advertisers have their heads up their ass.
Being a Canadian, I've pondered long and hard about whether to soften that comment. After all, heaven forbid it comes off sounding rude. Saying someone, anyone, especially your fellow countrymen, have their heads up their ass sounds so, well, American. It's unequivocal, to the point, in your face, aggressive: everything that Canadians generally aren't. We've had it bred and/or frozen out of us.
But after looking at the facts, I couldn't come to any other conclusion. The irony is that Canadians (I hope myself included) have played a major role in shaping the North American search industry. People like Barbara Coll, Todd Friesen, Andrew Goodman, Ian McAnerin, Ken Jurina and Jim Hedger are considered world-class in the game. But most of us are shaping the industry working with American clients. It's because Canadian advertisers haven't woken up to search yet, and there's just no excuse for that, because Canadian customers are light years ahead of them.
Canada's wired!
Canadians use the Internet more than anyone else in the world. According to comScore (responsible for all the stats in this paragraph), we spend more time online, have more wired households, are more sophisticated in our online behavior, do more searches. Pick your metric, Canada is ahead of the pack when it comes to online usage. For example, when we look at average hours spent online per month, Canadians are top with 40 hours, followed by Israel with 37.4 and South Korea with 34. The U.S. is in 8th place with 29.4. Canada also leads the pack in online reach, with 70% of households wired. This time, the U.S. comes in second with 59%. Average pages viewed per visitor? Canada comes in tops with 3800. The U.K. is second with 3300 and the U.S. clicks in with 2500.
See a pattern emerging? We spend a hell of a lot of time online up here. And much of that time is looking for something to buy. Canadians are the world's best shoppers. We research every purchase down to the nitty-gritty detail. The Internet was created for shoppers just like us.
But what about the advertisers?
I'm writing this at SES Toronto. By common consensus with most Canadian search marketers I've talked to, Toronto seems to be the epicenter of the orifice that Canadian advertisers have lodged their collective heads in. The city doesn't get it, the province doesn't get it, the country doesn't get it. When it comes to search, Canada (with a few exceptions) is clueless.
I remember my first SES in Toronto. I had been attending the U.S. shows for a few years previously, and it was with more than a hint of nationalistic pride that I attended the first Canadian show. But my jaw soon dropped at the questions I was fielding from the audience. This group was at least three years behind the U.S. market. That was four years ago. Since then, the U.S. has dramatically outpaced Canadian growth in search savviness. And if you look elsewhere, almost every market I'm familiar with, including the U.K, France, Italy, Germany and even China is rapidly gaining on the U.S. But Canada still seems to be blundering its way forward, overlooking the fact that Canadians spend a huge amount of time online using search engines. It's to the point where it's unforgivable.
Show us the money!
Here are just a few of the stats I pulled from comScore, Yahoo Canada and other sources:
* Canadians spend $28.05 in online advertising per Internet user. The US spends $71.43.
* 21% of Canadians media usage is online, but it gets 6% of the budget.
* In contrast, newspapers and magazines get a 7% share of total media usage, but capture 42% of Canadian ad budgets,
* The U.S. spends almost twice as Canada per capita on search marketing.
I did a few searches from my hotel in Toronto to see if the big brands show for common searches. They don't. The quality of sponsored ads up here is abysmal. If you were planning a vacation in Ontario, don't expect to see the official tourism site for the Ontario government in the top sponsored ads. They don't do search. If there's anything our research has shown, it's that you need relevance in top sponsored to encourage interaction with this real estate. Until you get quality advertisers, sponsored is No Man's Land.
So, in an atypical move for a Canadian, I'm railing against the cluelessness of our advertising community. Next time I come to Toronto, you'd better have your act together. Canadian shoppers get it, why don't you?
By the way, sorry if this sounds harsh. Must be all the time I'm spending out of the country. Hopefully my passport won't get revoked.
Gord Hotchkiss is the president of Enquiro, a search engine marketing firm. He loves to explore the strategic side of search and is a frequent speaker at Search Engine Strategies and Ad:Tech. Check out his blog at http://www.outofmygord.com
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