Online marketing is an increasing reality for many New Zealand businesses but when you match our adoption of online spending with other countries, we’re far behind the curve. In isolation that might seem insignificant – we’re a different market – but why have been slow to adopt this medium? Here’s the thing, as businesses we have been slow to adopt the online SEM (search engine marketing) space, but as consumers we haven’t. There is a very real disconnect between how we personally behave online to how we behave online as businesses, particularly in the larger urban centres.
Let’s have a look at a typical NZ business: builders. Now let’s look at some of their keywords and find out what the local monthly search volumes were for the last month:
- Builders 110,000 monthly local searches
- Certified Builders 1,600 monthly local searches
- Builders Auckland 5,400 monthly local searches
- [Builders Auckland] (exact keyword match) 720 monthly local searches
Even if you only wanted to be found for an exact match for Builders Auckland and could only manage to convert 2% of this search volume, you would have converted 14.4 customers in the last month. That’s an average of 3.3 new customers every week. If you were a builder in Auckland, wouldn’t you like a piece of this pie?
The beauty of learning from overseas markets is that we can review the growth both in competition and dollar spends in SEM and tell you a couple of key points that matter to you now as a business not investing in this market.
(1) Competition will only increase and so will the rates – get into the space while it’s still a really good deal financially. Cost per click in places like U.S. or the U.K. are incredibly expensive. For example, words that cost on average $5-$12 a click in these markets, still cost a fraction of the price here, but this will change.
(2) Google ranks ads based on their relevancy, the website the ad sends visitors to and your overall Quality Score. If you’re in a competitive market spending the same dollars as your competitor, but they’ve got more relevant ad copy, more relevant information on their website and have been advertising for a lot longer than you, then Google will choose to give them a better placement than you. The beauty of working hard to develop a good Quality Score is that simply by having a better score, your ad has a better chance of displaying higher than your competitor even though you might be paying the same or even less for the same keywords.
(3) Good ad copy, good website copy, good Quality Score takes time; the sooner you get onto this the easier it will be to compete in your industry. Otherwise you literally will be left behind when it becomes absolutely necessary to be running out front.
Here’s one way to look at it.
Google AdWords are like a live version of “direct marketing”. In traditional direct marketing you build an offer that is tailored to a specific targeted segment of your customers and then mail it out or call them to make the offer so the offering is very relevant and typically direct marketing has a good conversion rate.
PPC works exactly the same but in real-time, you build a campaign around relevancy to what the customer wants or is searching for and then pull them through with creative ad texts to the relevant pages on your website which display your offering. For PPC, you build a direct marketing campaign that runs in real-time as your customers are searching for that product or service.
If you want to talk about how we can help you renovate your online marketing, please drop us an email, and we’ll make sure you don’t get left behind.