Archive for the 'pay for placement' Category

Simple Product, Flat Fee, Proven Performance

Simple product, flat fee, proven performance – those are the ingredients for a successful local advertising offering to small and medium sized businesses.  Google’s new Local Listing Ads seem to have the right ingredients.  There are lessons here for all local advertisers.

Simple Product

Small business owners are busy running their business.  They don’t have the time or inclination to figure out complex products.

In Google’s case the offering is simple to set-up and easy to understand.  To set-up up local listing ads, you just have to:

  1. Claim and verify your Google listing (a good idea any way).
  2. Select your landing page – which defaults to a very functional Place Page provided by Google (so you can almost ignore this step).
  3. Select the categories where you want the ad to appear.

Google then creates your ad automatically (based on the information in your listing) and presents it based on the category  a user is searching, the location where they are searching and the location of your business.  All optimization is performed by Google.  There are no controls to tweak and monitor.  The ads automatically include a tracking number (more on this below)

Flat Fee

The business owner pays a flat monthly fee which is apparently based on their location and the categories they’ve targeted.  There is no bidding – it’s no haggle-free pricing.

Oh – and the first month is free.

Proven Performance

Google provides detailed information through Local Business Center that includes:

  1. How many people saw your ad.
  2. How many clicked on it.
  3. How many got directions to your business.
  4. How many people called your business.

And – whenever you receive a call you get a whisper telling you ‘this call brought to you by Google’.

The service is fully transparent.  At the end of the first Free month a business owner will easily be able to assess whether or not the service is providing value to them for the fee they are paying.

Applying the Recipe

All providers of local advertising can follow the same recipe:

Simple Product – This has always been a strength of traditional media like the print yellow pages.  People understand how the product works.  Someone visits you in person to set the product up!  But many digital offerings fall short by failing to ensure a functional landing page is used.  Google has addressed this with their Place Pages which are designed for optimization.  A landing page is an integral part of a complete digital solution – without one there are a lot of wasted clicks.

Flat Fee – I’ve said this many times.  Small businesses want simple pricing – combined with proven, transparent performance.  People too often link the idea of performance driven advertising with variable, performance driven pricing.  This just scares a lot of small business people.

Proven Performance – This is the most important part: you have to deliver the leads to the merchants and PROVE that you’ve delivered those leads.  Google’s service is fully transparent.  As a merchant you don’t control where and when you ad get’s placed, but you do know how well it’s performing and can choose to carry on or not.  As I’ve written before, all forms of advertising should be tracked – including print media.  Imagine a small business owner hearing ‘this call brought to you by the print yellow pages’ every time someone called a number from the book.  That would prove value in the media to them.

More on Local Listing Ads from Mike Blumenthal and Greg Sterling.

Want a review of your local advertising product  strategy?   Contact me at eric AT predictabuy.com.

The Evolution of Pay for Placement

As factors such as reviews become increasingly important in the filtering and ranking of local information, the way local advertising is presented changes.  Traditional pay for placement schemes are replaced by relevant sponsorship.

Pay for placement finds its origins in the Yellow Page book where advertisers pay to be more visible by purchasing larger ads and colour.  This works well in a printed book because the normal mode of usage is to flip through several pages in a category of interest.  Larger ads tend to catch one’s attention and allow the advertiser to communicate more information to a potential buyer.

Ads for Movers in the Yellow Page Book

Ads for Movers in the Yellow Page Book

As yellow page publishers moved online, they replicated this pay for placement approach but replaced the idea of a larger advertisement with being placed higher in the list.  In a pure pay for placement scheme the results are primarily ranked on the basis of payment by advertisers.

Search results for movers from Yellowpages.ca

Search results for movers from Yellowpages.ca

When reviews are added to the equation, a purely commercial ranking of results becomes problematic since the user is expecting results that are ranked on the basis of the reviews and any suggestion of commercial interference in these rankings undermines the credibility of the site.  Yelp, a site focused on community generated reviews for local products and services, adopts the elegant approach of allowing sponsored listings at the top of the search results.  This sponsored result is still relevant to the user’s inquiry and also has it’s own reviews.  The sponsor get’s to choose a review to highlight in their listing.

Search results for movers in San Francisco on Yelp

Search results for movers in San Francisco on Yelp

Of course, Google has always enforced a clear separation between what they call ‘organic’ search results and sponsored search results.  This is the very basis of AdWords.  And in practice, the net effect of the Google approach looks very similar to the Yelp appoach.  The difference is that in the Google approach the sponsored advertising could potentially be anything whereas in the Yelp approach the sponsored result is one selected from the ‘organic’ results and elevated to the top of the list.

Google results for a search for movers in Edmonton.

Google results for a search for movers in Edmonton.

As users expect searches for local products and services to be ranked on the basis of reviews or other factors that are personally or contextually relevant to them we are likely to see approaches such as Yelp’s becoming the ‘norm’ for local advertising.


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