Want to know how your competitors are doing when it comes to search marketing? Our search editor takes a peek inside a new service from Hitwise that answers the question.
The process of creating, managing and successfully executing a search marketing initiative is an ever-changing and inherently complicated endeavor. The right combination of creative and keyword selection at the right cost seems simple enough, but what are your competitors up to?
Gap analysis -- the practice of analyzing keywords that send traffic into your competitors' websites and comparing them to your keywords -- has become standard in the search engine marketing space. One key question remains in the process though; just how well do those competitive keywords convert?
The online intelligence firm Hitwise recently announced a new service that allows advertisers a peek into the keywords that drive the consuming public to make a conversion decision. I took this new service for a test drive last week.
Ten million surfers can't be wrong
Hitwise's 10 million panelists provide the insights for conversion activity on hundreds of thousands of sites. Since most users value their privacy, it really should come as no surprise that all the information accumulated from data partnerships with multiple internet service providers comes anonymously.
Many marketers are struggling to understand their own data accumulated from online advertising reports and site analytics, so adding another dimension to data collection and understanding might not be a welcome addition.
Information overload not withstanding, Hitwise can provide information on a variety of desired action or conversion variables, such as subscription sign up, incentive downloads and actual purchase points. Of course, the accumulated knowledge goes far beyond applications in search.
Keywords are just the beginning
How about a cross section of popular, purchase-inducing site areas from your biggest competitor? Think you could use lifestyle profiles on each content area?
Prime examples of interesting and arguably useful information were provided in the form of top activity on CBS.com. While most people would need a map and guidebook to decipher the endless barrage of CSI spin-offs, it is worth noting that in the context of analyzing competitive activity, multi-channel intelligence is available.
If you happen to be struggling with abandonment rates, why not check out how other sites are making it easier for visitors to make a purchase? Detailed analysis of how users connect with a site and potential purchase behavior are key points of consideration as you tweak content and shopping technologies to make them more efficient for users.
Don't tell me what I already know
Yahoo! and Google provide the highest volume of directive traffic to my site. Brilliant, thanks for the update. Sure, marketers want to squeeze every penny out of a marketing initiative, and competitive intelligence often provides some clues to how others in your category are faring in the internet wild.
Expedia.com, for example, saw the bulk of its traffic from the big two search engines, while MSN showed the highest rate of conversion for the week ending July 23, 2005. Of course, adding another layer to that analysis indicates that while MSN showed the highest conversion rates, conversion volume was disproportionately low.
Even though MSN converts at a higher rate, the lack of volume does not make up for higher conversions-- try to contain your surprise.
The keyword level reporting information also tells us that Expedia's top converting terms have the word "Expedia" in it. Again, exceptional brand term performance should be no surprise to anyone.
On the other hand, phrases that contained "hotel" generated a significant amount of traffic for Expedia but very few conversions. This might signify the lack of emphasis travelers place on flying, but it might also spell opportunity for competitors.
The price of knowledge
Hitwise places the annual cost of a subscription at about $50,000. Adding a cross-section report with competitive conversion activity will bump that figure up another $15,000 to $50,000 per year. Very complex reports comparing thousands of keywords will increase costs exponentially.
In the end, data in and of itself might not provide the illumination you seek, but the end analysis might be worth it for you. Developing an understanding of how to allocate conversion-based advertising content and non-revenue-generating content from a competitive perspective might be helpful to you, and that is why you retain the services of a firm like Hitwise.
There is a big dividing line between need-to-have information and nice-to-have information in the online universe. Before running right out there and asking for every piece of information under the sun, spend some time gaining understanding in what you have and what you can't survive without.
Kevin Ryan is the Chief Executive Officer of Kinetic Results and iMedia's Search Editor. Read full bio.