Episode 1: Goal Setting for Paid Search
Are your marketing goals lining up with the goals you've set to grow your business overall? Many business owners or executive teams set goals for their online marketing to drive profit to the company. Unfortunately, the current digital marketing landscape makes it difficult to reach digital marketing goals that have a focus on profit: Generally speaking, digital marketing has increased in competition and the real estate available for paid ads has shrunk (mainly on Google which controls a vast majority of search volume). This has forced companies to further emphasize customer lifetime value activities (such as email and loyalty programs) to drive business profit. Instead of driving profit from the first order on paid search, companies now may only break-even on that initial order (some companies even lose money on the first order-on purpose). The solution is to focus less on marketing ROI and focus more on the overall business objectives, like increasing market share: Revisit the goal every two months to see how email and loyalty channels are impacted by the increase of new customers. In theory, both of those channels will be driving much higher volumes of sales at extremely profitable levels. Even if profit doesn’t match up exactly, the sales volume will be making a noticeable dent in competitors. Customers that buy from your website through non-brand search and shopping are customers that were likely going to purchase from a competitor if you didn’t get them. They didn’t have any brand or site loyalty when making the search. Over time, investing in non-brand search/shopping more aggressively will also have what we call, The Halo Effect. Don’t let any changed goal continue for more than two months into the new year without analyzing the data to make sure that it is driving the intended outcome. Having goals that don’t drive the business in the right direction aren’t necessarily bad, but can have unintended consequences when left unreviewed. LINKS "I Have Bad Goals, You Have Bad Goals, We ALL Have Bad Goals" by Ryan Garrow TRANSCRIPT JON MACDONALD: Ryan, I know you've spent a lot of time communicating with business owners and marketing teams about their goals with online marketing. To put these goals in perspective, we have to discuss overall business goals, and that's to me where things get really interesting, because their current marketing goals are not driving the online business towards an overall business goal. The business or individual usually has set a bad goal and the best time to review those I would think is at the beginning of a new budget year, which is typically the start of a calendar year. Ryan, today let's talk about setting more appropriate goals to online marketing and align that with business objectives. How does that sound? RYAN GARROW: Sounds awesome. It's one of my favorite topics actually. I get into this all year actually. I'll be talking to business owners as they're thinking about becoming a client or working with us. Or even if I'm just out having a beer after a conference, I always love talking about goals. It's been a big part of my life, and how I operate so I'm constantly setting goals, revisiting them, and business strategy and goal setting go so hand in hand that it just becomes a topic I naturally get to probably in almost every conversation with business owners or marketing teams. So often, I find that there are well intentioned people throughout an organization that set what seems to be an appropriate goal for their team, and then they get down the road 6 months to 12 months, and maybe they hit their goal, but it drove the business in a completely different direction then it actually been anticipated. Without all the stops in place, you really revisit that goal and decide, "Is this actually working and are we actually accomplishing what we're trying to accomplish?" It can be very fascinating conversation in that process. I'm excited about this topic for sure. JON: I recognize and maybe our listeners don't know, but you run several online businesses yourself, right? RYAN: Yes, my wife and I have probably more than our fair share [laughs] that we run. JON: I would think one is a fair share so the fact that you have more than that is awesome. That speaks to the fact that you put a lot of what you preach into practice, right? RYAN: Yes, there's actually not a scenario in which I will advise a business owner or marketing team to do something that I'm probably not already doing or I haven't learned from and therefore advise them correctly based on my own misgivings or wasted money. JON: I imagine in your day, you've probably set a bad goal or two. RYAN: The list is ongoing and my wife likes to remind me of those [laughs]. One funny one recently, I was so mad at myself for this one. We were launching a brand and we decided to launch it on Amazon. Partially for the education, but also because I had been built up as a digital marketer to fear Amazon, and th...