Search Engine Success: The Cognos Pay-Per-Click Marketing Campaign

In late 2005, Cognos decided to get serious about search. It recognized what ITSMA research has shown for several years: Buyers no longer wait to be sold; instead, they proactively research their options on the Web. Cognos wanted to be the company that showed up when people searched on terms that were core to its business.

For paid search, Cognos knew it had its work cut out for it: In 2004, its pay-per-click (PPC) marketing focused on branding and captured just nine incidental leads. Today, the companys Google-focused PPC marketing campaign generates more than 1,000 leads a month. To turn its PPC campaign around, Cognos took a number of steps, including:

1. Buyer research
2. Identification and implementation of best practices
3. Campaign management
4. Measurement

Buyer Research

Searchers tend to be in the right frame of mind to accept a relevant offer. Therefore, what companies need to do to convert prospects into leads is to figure out the most efficient way to give them exactly what they want when they want it. For this reason, precise targeting is essential. Cognos not only conducted customer analysis to understand its audience, it also researched the kinds of collateral that were most effective at different points in the buying cycle so that it could supply relevant materials at the most opportune times.

Based on its research, the Cognos marketing team built a business case for the company’s PPC campaign that outlined the market opportunity. Senior management bought into the idea, providing a dedicated budget and dedicated people to manage the campaign.

Identification and Implementation of Best Practices

Cognos has found that identifying and implementing best-practice search marketing techniques have required substantial time and effort, which continues today. Due to the nature of the project and Cognos’ expertise in performance management, marketers can measure results in real time, so they follow a trial-and-error cycle to continuously improve them. Some of the most important variables they consider include:

1. Keyword analysis. This includes determining what words are important to the organization, what words customers actually search for, and whether or not the searchers that use these keywords tend to turn into leads and revenue. Similarly, the same keyword can be targeted in different ways, with different associated costs and results. For example, keywords can be selected for broad or exact matching. If the match type is broad, the search engine will display results that include the keyword as part of a longer group of words entered by the user; if it is exact, the search engine only shows ads that match the keyword alone. Other options like choosing singular versus plural keywords or purposely targeting misspelled keywords are also considered. Each choice impacts the ROI for each keyword.
2. Ad copy. Statistics inform decisions on how best to craft the short, 95-character Google ads. Repeating the user’s keyword, using a call to action, identifying an incentive such as a white paper, choosing what URL to display, deciding when to use capital letters: Each detail has a direct and measurable impact on whether or not an ad gets clicked. Google and other engines also allow for multiple versions of the same ad. Cognos must choose whether to display the most “popular” ad more often for additional clicks or to eschew clicks in favor of circulating the different ads more evenly for a higher-quality click. The right choice is different for each keyword.
3. Ad position. Cognos can dictate its average ad position on Google, ranging from the top position to the last. Top positions get more visibility and more clicks but not necessarily more leads. Lower positions get less visibility and fewer clicks but not necessarily fewer leads. The right choice is different for each ad and keyword combination.
4. Landing pages. Once clicked, each ad delivers a user to a landing page. Many advertisers deposit these visitors on a standard page such as their homepage. Often, there is too much information and little that speaks directly to the interest of the user. To capture more leads, Cognos currently has more than 30 customized landing pages for the PPC campaign. These include the user’s keyword in the title, a repeat of the incentive, little text, and only two options for action. Completing a truncated form allows the user to get the advertised incentive. For users who fear forms or who are not ready to convert, there is also an escape “No thanks” button that goes to a relevant page on Cognos.com. Web statistics show that visitors who choose the “No thanks” button often convert somewhere else on the site.

Campaign Management

This project has succeeded with the help of a diverse but unified virtual team. In house, there is a senior manager who controls budget and approvals, as well as a dedicated program manager who functions as head of the virtual team. Other Cognos members include a Web developer who builds landing pages and other Web content and a Web reporter who manages statistics. Externally, a representative from each search engine is available to help with specific issues, and staff members from a media-buying agency contribute their time and expertise as well.

This structure required new types of collaboration across the entire marketing team. Writers now work in concert with the Web team, and other outbound marketing teams now work more closely with the Web marketing team. The marketing programs team regularly funds a portion of the PPC program in exchange for a list of highly qualified prospects. This team then nurtures these prospects through the marketing funnel with additional promotions, offers, and incentives until each prospect is deemed ready for handoff to sales. Because much of the demand generated by search marketing comes from prospects who are just starting their research, search marketers can provide the Cognos lead-nurturing program with names for the top end of its funnel.

Measurement

Establishing end-to-end reporting to demonstrate the value of the campaign from start to finish has been important, since it can be quite a challenge to convince others of the importance of search without proven results. In response, Cognos has leveraged its own business intelligence software for analysis and reporting to draw on a number of different data sources, including Google Analytics, Eloqua, and Salesforce.com.

Results

The results Cognos has achieved with its PPC campaign are impressive. From its humble beginning as a brand awareness program that generated nine incidental leads per year, the program has evolved into a demand generation campaign that now captures over 1,000 leads per month and serves as the company’s third best source of Web leads. Cognos’ average conversion rate for May 2007 was 25% higher than the industry average, and its average cost per conversion was $34. Furthermore, while its PPC costs are measured in thousands per annum, forecast sales pipeline revenue from the PPC campaign is measured in millions.

By overhauling its approach to paid search, Cognos has satisfied its customers’ needs, beat industry benchmarks, and increased its marketing ROI. “Ultimately,” said Brian O’Grady, Cognos’ PPC manager from Search Warrant Online Marketing, “search marketing campaigns work because the customers target themselves.”

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