MAXIMIZING THE RETURN ON INVESTMENT OF LOCAL BUSINESS AD SPEND ON SEARCH ENGINE ADVERTISING USING MULTIVARIATE ANALYSIS
Local businesses using on line search advertising to attract customers have a difficult time determining the effectiveness of various search terms or how much to bid for each term or search phrase. Local businesses typically fall into a national category. This national category has words and terms related to it which consumers and businesses use to search for providers and information within the category. Multivariate analysis can be used across target words and terms, negative words and terms, product profit margin, product sales volume, customer value, and click thru success to determine an index value for each search term. This analysis can be used to determine the best potential ad budget for a paid search campaign and the best phrases to deploy and optimal bid rates.
1 . A system for dynamically managing on line advertising bids for key terms and phrases, the system comprising of a multiple phase interview process and a computer having stored instructions which, when used in conjunction as a process performs the steps of:
receiving data to derive a national list of key words and phrases;
receiving and assigning values to the national list of terms and phrases and calculating an index value of said terms and phrases comprising of profit margin, selling price, long term value, and other values;
receiving data comprising of local costs for online advertising of the search terms and phrases;
receiving data comprising of local variables related to the national search terms and phrases as they apply to a local individual business, this data comprising of local search terms and phrases;
calculating a suggested on line advertising budget for any specific individual local business;
receiving data from said specific local business in regards to the specific budget;
calculating a list comprising of the most cost effective search terms and phrases for the individual local business with suggested bids comprising of bid rates for each individual search term or phrase and suggested negative terms to apply to the bids.
2 . The system of claim 1 comprising of a multiple phase interview process and a computer having stored instructions which, when used in conjunction as a process performs the steps of:
receiving data from the individual local business website comprising of time spent on site, pages visited, purchases made;
receiving data from the national search engines where the search terms and phrases had bids placed comprising of total impressions, ad position, click through rate, cost per click;
calculating a local index value for each of the individual business search terms and phrases
calculating a refined list of comprising of the most cost effective search terms and phrases for the individual local business with suggested bids comprising of bid rates for each individual search term or phrase and suggested negative terms to apply to the bids.