Stealth SEM

Wednesday, October 19, 2005 | 2 comments

I am working on a stealth-mode Search Engine Marketing technology right now, that is showing early signs of being able to optimize Paid Search Advertising Campaigns on Google by 50% within days …

As ad dollars keep migrating online, Google and Yahoo are pulling huge growth based on their SEM and other online advertising offerings. Yahoo reported a solid quarter, surpassing analyst expectations thanks to strong ad sales. Advertising revenue climbed 46% to $1.16 billion in the quarter, accounting for 87 percent of Yahoo’s revenue.

Consequently, companies are also scrambling right now to figure out their SEM strategies, and there is a serious dearth of skills in the industry in this area. Keywords range from hundreds to tens of thousands, depending on the size of the Ad budget. It is a nightmare balancing these huge list of keywords, ad groups, corresponding messaging, and optimizing CPC, CPA, leads … And then, the Internet is a dynamic place. Things change all the time. Re-indexing changes your once optimized campaign to a non-performing one in a heartbeat.

Not fun!

I have written extensively about Software As a Service (SaaS), and SEM appears to me to be a great SaaS opportunity. But I will report back in a few months, as we accumulate the metrics for this new SEM service, and validate the opportunity.

Meanwhile, one thing is for sure: the pain is acute!

ps. If you are feeling this pain, and want to beta test the technology, please feel free to email me.

Comments

I wonder if you are beating Google’s Nash optimizations. For example, this article by Cringely outlines an attempt to quantify Google’s algorithm, but apparently Google takes a loss in the short run, to make more money for itself in the long run.
http://www.pbs.org/cringely/pulpit/pulpit20051013.html

Sandeep Wednesday, October 19, 2005 at 11:11 PM PT

By definition, right? Third party providers have no reason to look after Google’s interest, while Google does. Hence, you would never get the maximum level of optimization possible from Google.

Sramana Mitra Thursday, October 20, 2005 at 11:25 AM PT

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