McCain's Paid Search Marketing Campaign Still A Mystery To "Experts"

(In the interest of full disclosure I'm Chief Internet Strategist for Connell Donatelli Inc the company responsible for Senator McCain's Online Advertising.  I personally take an interest :-) in the Paid Search Program)

Sorry I didn't respond to this article sooner, but I was attending possibly the greatest Springsteen Concert since the Nassau Coliseum shows from 1980-1981.  3 hours 16 minutes, 30 songs, fan requests, on and on and Blinded By The Light, Incident, Spirits, Rosie, and 5 songs from BTR. 

Anyway, this article in Politico called McCain's Internet edge: Ad Price while on the surface seems positive, is short sighted and shows once again that self-proclaimed "internet experts" have no clue when it comes to online advertising and particularly search marketing.  Here's what has me perplexed as to the general understanding of search marketing in this arena:

• advertisements targeted to users searching for “John McCain” on the Internet cost nearly twice as much as those targeting users searching for “Barack Obama.”
• Google sells ads in a constant, nearly instantaneous auction in which advertisers bid on individual search terms.
• But Republican new media consultant David All thinks one reason for the price difference may be that the McCain campaign itself is bidding up the price of “John McCain” related ads.
• “It’s a free market, and John McCain’s campaign has said very publicly that they’re investing resourced into online advertising,” says All.
• The high prices, though, could be evidence of a problem for the McCain campaign. Because of the vast interest in their candidate online, the Obama camp simply may not feel it has to bid as highly for ads on “Barack Obama.”

The main problem with the article is that even though it mentions quality score, it purposely tries to paint a picture that bid cost is the major factor for determining the cost an advertiser pays and backs it up with a quote from David All who thinks McCain is bidding up the price of John McCain.  And, it plays into that there could be problems for McCain because Obama doesn't have to bid as high (totally inaccurate).  David's quote could not be possibly more wrong and shows a complete lack of understanding of how paid search works especially for Google and demonstrates the overall lack of experience in running online advertising campaigns.

Now I can't go into specifics into the McCain search campaign, but allow me to enlighten you search novices especially the ones in the political industry.  If you really want a detailed explanation see this post I wrote called My Tips for Setting You Google Ad Prices.  Basically your maximum bid price is NOT the most important factor in your paid click price; it is relevancy and quality score.  If your ad and landing page are very relevant to the words you are buying and you make brilliant ads, you are rewarded by Google with a higher quality score and YOU PAY LESS PER CLICK.   The reverse also works true. It also works that way for Obama and McCain.

The McCain campaign or ANY OTHER ADVERTISER does NOT need to bid up the price on their branded keyword.  If they have experienced online marketers they will PAY LESS per word than someone else.    

Bidding up prices on keywords is a poor strategy for any marketer especially the ones that own the brand name.  You don't need to bid up words, especially if you have back end metrics like ROI or conversion into sales.   You should be setting your bid prices based on hitting your metrics not "how much you pay for a click".

The only advantages that McCain's search campaign has over everyone else is that we are experienced in search marketing (I've personally been doing some form of search marketing since 1998), we have very relevant ads, we enjoy high quality scores, the landing pages will always be relevant (McCain name is ALWAYS on the landing page), and we measure the campaign based on ROI. 

Bidding up your own branded keyword is not a good strategy.  As is guessing what is really happening behind someone's search campaign when all you are really trying to do is get face time in the press.

PardonMyFrench,

Eric

BTW - check out the celebrity quiz over at the RNC. http://www.gop.com/CelebrityQuiz/

Comments

[David All]

Eric --

I appreciate your expertise in this space and I believe you may have misinterpreted my remarks.

First off, the reporter reached out to both campaigns for comment: "Neither campaign responded to a request for comment from Politico." That's your choice. I'm not sure how you argue that I'm just trying to get "face time in the press" because a reporter calls me.

Second, posting my full comments may help put the comments into context:

But Republican new media consultant David All thinks one reason for the price difference may be that the McCain campaign itself is bidding up the price of “John McCain” related ads.

“It’s a free market, and John McCain’s campaign has said very publicly that they’re investing resource[s] into online advertising,” says All.

He argues that’s a smart bet for the McCain team: they’re clearly getting a healthy click-though rate for their ads. And they seem aggressive: one of the ads viewers see when searching for “Barack Obama” looks as if it was placed by the McCain campaign. “Obama for president?” the ad asks. “Why not learn more about John McCain for president.” The ad links to McCain’s campaign website.

Though not published, I pointed out the facts that you all have said very publicly that you're getting an ROI of 4:1 for online advertising -- and that's a relevant point to note when talking about online advertising. Those results are difficult to argue with.

With regard to competition for "John McCain" I pointed out that the RNC Convention -- for example -- along with many other advertisers are/were bidding on the term (we were for a client) which is one of the factors likely responsible for driving the cost of the keyword up.

At the end of the day -- you all are getting a solid ROI so it doesn't really matter the cost as long as it continues to produce those results, right?

Anyway, I hope this helps clarify my comments. If I'm off-base, feel free to email me at David at DavidAllGroup.com.

David

[PardonMyFrench]

David,

Purposely bidding up the price an advertiser pays is a ridiculous tactic and to even suggest it in an interview is off-base; even when you print the full extent of the quote. There are multiple variables that Google uses to determine your actual CPC so just increasing your maximum bid price as you suggested that we do is just not something anyone should focus on even when measuring ROI.

Eric

[David All]

Any idea which firm is buying online advertising for the GOP Convention?

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It’s a free market, and John McCain’s campaign has said very publicly that they’re investing resources into online advertising, says All.

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Really useful list. Marketing Campaign Still A Mystery To Experts.

[Justin Seibert]

@Eric - Thank you for the follow up and shedding some information on the McCain strategy. Wish I had found this earlier, but just updated my post on the difference in paid search campaigns between Obama and McCain today on Election Day. Don't want to spam your links, but would love your thoughts.

[Mesothelio]

Anyway, I hope this helps clarify my comments. Those results are difficult to argue with.

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This is a good article. He argues that’s a smart bet for the McCain team: they’re clearly getting a healthy click-though rate for their ads.

[bath and body]

Nice BLOG. The McCain campaign or ANY OTHER ADVERTISER does NOT need to bid up the price on their branded keyword.

[PardonMyFrench]

You are correct bath and body. I spoke with David All and he believes he wasn't quoted properly and as David pointed out to me, Politico called the campaign and nobody was able to take the interview.

Eric

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