The Dangers Of Hiring A Search Marketing Firm


The Dangers Of Hiring A Search Marketing Firm

The Dangers Of Hiring a​ Search Marketing Firm
If you​ hire a​ search agency to​ manage a​ pay-per-click campaign (Google AdWords,​ Yahoo Paid Search,​ etc.),​ you​ may have a​ serious problem .​
Here are two things to​ watch out for:
1 .​
Your search agency may also be representing your competitors,​ and artificially inflating click through rates (and increasing its own profit) at​ your expense.
2 .​
Your account may be managed by a​ young,​ inexperienced person using a​ very formulaic approach.
The first situation results from what we (Work Media) consider unethical behavior,​ which is​ representing multiple clients who are direct competitors .​
How can a​ search agency honestly represent a​ company and manage its pay-per-click marketing campaign as​ aggressively and efficiently as​ possible when it​ also represents competitors?
We recently had discussions with a​ law firm in​ California paying unusually high click-through rates in​ its pay-per-click campaign .​
This firm and one other firm seemed to​ be in​ a​ bidding war for the​ top spot .​
The third spot for the​ same search phrase was much more reasonably priced .​
As it​ turns out,​ the​ two firms competing for the​ top spot,​ and running up exhorbitant rates,​ were represented by the​ same search marketing firm .​
This search marketing company could have easily had the​ two law firms ranked one and two by bidding slightly above the​ third highest bid .​
But instead,​ the​ company chose to​ bid the​ two firms against one another,​ artificially raising the​ click-through prices,​ and making a​ much larger fee for itself .​
We were very bothered by this highly unethicial behavior .​
The lesson here is​ make sure your search marketing firm does not also represent your competition.
The second situation above often results from hiring a​ very large agency .​
People skilled in​ managing pay-per-click marketing campaigns are hard to​ find .​
So large firms often hire as​ many young people as​ they can with the​ idea of​ training them to​ manage the​ campaigns .​
But this usually involves plugging them into a​ highly formulaic system that will result in​ unoriginal ad copy and inefficient bid management .​
You may be better off hiring a​ small firm with just a​ few people on​ its staff .​
You may get much more personal (and professional) attention paid to​ your account this way.
If you​ have the​ time,​ you​ should perform a​ search for every keyword phrase your search firm is​ promoting for you,​ and check out the​ ad .​
Make sure the​ ad appears,​ foremost,​ and then that the​ copy is​ strong .​
And make sure there are no mistakes .​
We have dealt with a​ third party firm that actually had the​ wrong web address in​ the​ ads .​
The page that the​ ad linked to​ was valid,​ but the​ copy of​ the​ ad contained a​ web address that was incorrect - very poor for your branding efforts .​
If nothing else,​ you​ want people to​ know your correct web address .​
If you​ have landing pages created for your search ads (which we highly recommend) make sure clicking on​ the​ ads takes you​ to​ the​ right pages .​
If your cost per click is​ too high to​ justify clicking your own ads,​ you​ should at​ least do a​ spot check.
You should discuss a​ target return on​ ad spend (ROAS) with your search firm,​ and make sure they provide you​ with adequate reporting so you​ will know how the​ firm is​ doing .​
For example,​ a​ typical target ROAS may be 5 - 7x,​ although this may vary widely from industry to​ industry .​
ROAS is​ the​ multiple of​ revenue generated to​ money spent on​ the​ ads .​
In other words,​ if​ you​ spend $10,​000 on​ ads that generated $50,​000 in​ revenue,​ then your RAOS is​ 5 ($50,​000 divided by $10,​000).
You just need to​ make sure you​ know your firm very well .​
Make sure they're not representing your competition .​
Ask the​ firm exactly who will be managing your campaign .​
If you​ don't get a​ good feeling about the​ firm,​ don't hire it .​
You're much better off either doing it​ yourself or​ looking for a​ different firm.






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