Comments on: Putting the Short Tail to Work http://www.makeitbloom.com/blog/putting-the-short-tail-to-work A Blog on Paid Search Marketing, Web Analytics, and Online Marketing Sat, 08 May 2010 13:09:26 -0700 hourly 1 http://wordpress.org/?v=3.0.1 By: xurxo http://www.makeitbloom.com/blog/putting-the-short-tail-to-work/comment-page-1#comment-13 xurxo Fri, 18 Jan 2008 16:43:16 +0000 http://www.makeitbloom.com/blog/putting-the-short-tail-to-work#comment-13 @Jacques: You've raised some interesting questions. In regards to keyword price along the tail, this really depends on the market you're advertising in. In most cases, the total cost of a short tail keyword may be more expensive due to the higher search volume. However, the average CPC of a long tail keyword may be much higher but with lower search volume. Taking "book a luxury hotels in Sydney" as an example: if the searcher is more advanced in the purchase cycle vs the query "Sydney hotels" and may convert better, this most likely will be reflected by the competitiveness on this keyword resulting in a higher CPC. Overall, this longer tail keyword may receive less search volume and less overall costs but the average CPC could be much higher since the value of the keyword is higher. Since it's critical to achieve a desirable cost per acquisition (CPA) and since short tail keywords generally can be of lower value from a strict ROI standpoint, the strategy remains to experiment and test in a controlled manner and make ongoing adjustments. As for the equilibrium point, short answer: Yes, it's not easy to pinpoint! There are many variables that are in a constant state of flux. Ex. Click costs, seasonality and competitiveness of the market just to name a few. The important thing is to test, measure, and improve continuously in a structured and as controlled process as possible to maximize desired results. @Barry: Thanks for the stumble and the sphinn! @Jacques:
You’ve raised some interesting questions. In regards to keyword price along the tail, this really depends on the market you’re advertising in. In most cases, the total cost of a short tail keyword may be more expensive due to the higher search volume. However, the average CPC of a long tail keyword may be much higher but with lower search volume. Taking “book a luxury hotels in Sydney” as an example: if the searcher is more advanced in the purchase cycle vs the query “Sydney hotels” and may convert better, this most likely will be reflected by the competitiveness on this keyword resulting in a higher CPC. Overall, this longer tail keyword may receive less search volume and less overall costs but the average CPC could be much higher since the value of the keyword is higher. Since it’s critical to achieve a desirable cost per acquisition (CPA) and since short tail keywords generally can be of lower value from a strict ROI standpoint, the strategy remains to experiment and test in a controlled manner and make ongoing adjustments.

As for the equilibrium point, short answer: Yes, it’s not easy to pinpoint! There are many variables that are in a constant state of flux. Ex. Click costs, seasonality and competitiveness of the market just to name a few. The important thing is to test, measure, and improve continuously in a structured and as controlled process as possible to maximize desired results.

@Barry:
Thanks for the stumble and the sphinn!

]]> By: Barry Welford http://www.makeitbloom.com/blog/putting-the-short-tail-to-work/comment-page-1#comment-6 Barry Welford Wed, 16 Jan 2008 19:10:04 +0000 http://www.makeitbloom.com/blog/putting-the-short-tail-to-work#comment-6 This looks a most useful approach, Xurxo. I thought it deserved a wider audience, so I Sphunn and Stumbled it. :) This looks a most useful approach, Xurxo. I thought it deserved a wider audience, so I Sphunn and Stumbled it. :)

]]> By: Jacques Warren http://www.makeitbloom.com/blog/putting-the-short-tail-to-work/comment-page-1#comment-5 Jacques Warren Tue, 15 Jan 2008 23:54:01 +0000 http://www.makeitbloom.com/blog/putting-the-short-tail-to-work#comment-5 Hi Xurxo, Quite interesting. I would like you to develop a little (in another post) on how that Short/Long Tail strategy plays out with keywords being more expensive in the Short, and usually having a smaller conversion rate, whereas Long Tail phrases would be cheaper with a better conversion rate, since the visitor has refined his/her search and is more advanced in the purchase cycle. Well, that's what I would think (I may be wrong here). So, I guess determining the equilibrium of both Short/Long Tails for maximum revenue at a minimum cost can be very hard. Any thoughts? Hi Xurxo,

Quite interesting. I would like you to develop a little (in another post) on how that Short/Long Tail strategy plays out with keywords being more expensive in the Short, and usually having a smaller conversion rate, whereas Long Tail phrases would be cheaper with a better conversion rate, since the visitor has refined his/her search and is more advanced in the purchase cycle. Well, that’s what I would think (I may be wrong here).

So, I guess determining the equilibrium of both Short/Long Tails for maximum revenue at a minimum cost can be very hard. Any thoughts?

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