Managing The "Short Head" of Search

We analyzed data from a number of Google AdWords accounts to find the average percentage of PPC spend that is generated by an account's top 10 highest spending keyword phrases. These charts show that based on our sample, the 5 highest spending keyword phrases in a typical account comprised 52% of the total account spend. The 10 highest spending keyword phrases meanwhile accounted for 60% of the total PPC account spend. Notice in the chart below that on average the single highest spending keyword phrase in an account typically represents over 34% of the total PPC account spend. As the "short head" of your search campaigns, that handful of phrases obviously carries a lot of weight in determining the success or failure of your account. Every search marketer should know what his top 10 highest spending keywords are and be aggressively testing, measuring and evaluating numerous ad creative and landing page variations. For those of you who advertise in Yahoo Search Marketing, be sure to flag these keyword phrases on your "watch list" so you can easily manage them from your dashboard.

Most web analytics provide an easy to use report that will identify your highest spending keyword phrases. There are a couple other key metrics in your analytics you'll want to look at when optimizing these keyword phrases. An indication of the effectiveness of your landing page is measured by the bounce rate - the percentage of visitors who land on your landing page and then exit without going any further into the site. The bounce rates associated with your "short head" keyword phrases should be the lowest values on your report. And, if you're an eCommerce site, you'll want to pay close attention to your return on ad spend (ROAS = Revenue/click costs). This metric is a more accurate reflection of the profitability of your keyword phrases than CPA because it also takes into account the revenue generated from those keyword phrases. A combined approach of appropriately managing the "short head" and the "long tail" of your accounts is obviously a sound strategy. Allocate your time and testing resources based on the potential return. Be sure not to get carried away by the seemingly endless possibilities of the "long tail" at the expense of your highest spending "short head" keyword phrases.