Video 50: Why Segmentation Is Critical to Insurance Pay-Per-Click Advertising
*Hi, it’s Aaron from AgentMethods. I am back at the flipchart again, and I’m talking more pay-per-click advertising and pay-per-click campaigns, and ways you can use pay-per-click campaigns and generate leads for your insurance website, and ways you can do this profitable so that you’re making money off of them. And remember a couple days ago, I talked about the pay-per-click funnel, which I have kind of sketched out here which begins with keywords that you’re bidding on and ads that show, and then those ads clickthrough to a landing page or some page on your site, and then that page has an offer or call to action that gets people to become leads. And I mentioned before that from the keyword and the ads, we’ve got the clickthrough rate onto the landing page, and then on the landing page, we’ve got the bounce rate, and then finally there’s your conversion on your offer. So when agents I see set up pay-per-click campaigns, what they tend to do is they go into one of the big pay-per-click marketing offers, like Google or Bing, and they go and they create a big bucket of words that are related to their business that they want to target, and they write a couple of ads and point that to their homepage. *
*I want to talk about why it’s really important to segment down your campaigns, to zero-in as close as possible onto a related group. And so let’s think about an agent who maybe wants to market different types of PNC policies around auto, so they have RV policies, they’ve got motorcycle policies, and they’ve got classic car insurance, as well as traditional auto insurance. And so they might go and they might create a keyword group that has the things they sell, and then they’re going to write an ad that “great insurance agent in Washington State, affordable rate, learn more,” and that’s going to go to their homepage. And so when they show an ad to somebody who’s looking for RV insurance, they’re going to see the same ad as somebody who’s looking for classic car insurance. And that’s going to be kind of a general ad. It’s going to go to a website that might talk about insurance, but it’s probably not going to talk specifically about the kind of insurance that they do. And so that’s going to mean that their clickthrough rate is just going to be lower because they’re not going to have the very focused keywords in their ad that the person’s searching on. *
*And then when the person gets to their webpage, they’re not going to see those keywords in the headline and they’re not going to see them in the offer, in the call to action, and so that means their bounce rate’s going to go up. So they’re going to end up paying more per click and they’re going to see a lower conversion rate. Now, imagine instead they segmented out RV and auto and classic car and motorcycle and wrote an ad that was specifically targeted on just insuring an RV, you know, maybe “don’t buy the wrong RV insurance, learn the 10 classic mistakes.” And they have that go to a page that’s very focused and it mentions insuring your RV, 10 classic mistakes with some good content and a good call to action. And they do the same thing for motorcycles, they do the same thing for classic cars. They create three different very segmented campaigns with different ads, with specific language of the keywords; with different landing pages with the keywords in the headlines, with imagery that relates; and with an offer that ties in exactly to the search keyword the searcher’s targeting. *
*Now, if they created these three different groups, they’re going to see that their clickthrough rate is going to up, and when their clickthrough rate goes up, their cost per click is going to go down and they’re going to see their ad showing up higher than their competitors, and then they’re going to see that on the landing page, the bounce rate is going to go down because the searcher is going get there and they’re going to answer the question, “Am I at the right place? Yes, I am,” and their conversion rate’s going to go up because the offer is targeted on exactly what they’re selling. *
*Now, something else will happen, as well, which is that because they are targeting a specific set of phrases for a specific market with ads, they’re going to see that the cost per click goes down; the more specific the keyword is, the few bidders there are on it. So take the word insurance, tons of bidders; take the word car insurance, quite a few bidders; take the word classic car insurance, you’re going to have few; and then maybe Maserati insurance or vintage Porsche insurance, and as you get to be more and more specific, the cost per click keeps going down. And so by segmenting out their campaigns as narrowly as possible, they’re going to reduce the cost per click, they’re going to increase the clickthrough rate, they’re going to increase the stay or reduce the bounce rate, and they’re going to increase conversion for their campaigns. *
So my advice to you is if you’re doing Adwords campaigns, if you’re doing Bing search campaigns, to go in and segment your campaigns down; break them into different silos, different groups, and keep tightening down these groups so that you can really make sure that you’re optimizing the campaign as much as possible. If you don’t, you’ll burn through a lot of money and you won’t know what’s working and what is. If you do, you can really zero in on exactly where you’re getting your best return and fine tune your advertising to see the most success possible.
So that’s my information for day. Go segment your campaigns and you’ll see that you’ll get a lot more for your money if you do that. I will have more on pay-per click campaigns tomorrow. Thanks for watching.