To: Company Management

From: Prashant Pratap Singh (61710779)

Date: March 13, 2017
Subject: Search Advertisement effectiveness analysis report.

This is to inform you that we have concluded the effectiveness analysis of our search ads using available dataset.
The following report lists out the key issue, analysis and suggested step forward to improve the effectiveness of
ads in coming years.

Key Discussion Points

1. Is it worthwhile for the company to continue using branded keywords?
2. Is the company using the right mix of broad match, phrase match, and exact match keywords?
3. Is it possible to reap benefits using dayparting, concentrating the ad spend during the weekdays when
business managers are likely to be working in their offices?
4. What is the search term efficiency index for ABCDEmail, and how to increase this number?
5. What should ABCDEmail do to be smarter about the keywords or types of keywords to bid on so that it will
at least be at overall break-even in terms of the lifetime value of acquired customers? Would it help to
develop a set of operational and strategic guidelines for selecting keywords?
6. Overall, is our search engine advertising budget adequate? Are we over-spending or under spending?

Discussion & Recommendation(s)

1. Discussion: To understand the effectiveness of the branded keywords, we ran regression for Click-Through-
Rate and Conversion per dollar spent with branded and Non-branded keywords as independent variables
(Exhibit 1 & 2). It can be inferred from the exhibits that it gives a statistically significant result with positive
coefficient, which implies that spending more on branded keywords would increase the CTR and thus
conversions. Also, it can be inferred from the Exhibit 3 that Branded keywords performs better than the Non
Branded Keywords on almost all the parameters such as high CTR, significantly Low Cost per click and high
conversion rate.
Recommendation: It is worthwhile for the company to continue using branded keywords.

2. Discussion: As per our analysis, the Dollar spent on Exact Match Type keyword is less than spent on Phrase
Type Keyword. However, the effectiveness of Exact Match Type keyword is better than the other two (Exhibit
4). Also, spending more on Exact match keyword would also reduce the unwanted traffic on the website and
thus would improve the user experience.
Recommendation: Currently company is spending more on the Phrase Keywords than Exact Type keyword,
which is better. Thus, company should optimize its expenditure mix with reference to conversion and click
through rate.

3. Discussion: We have carried out the daypart analysis to understand the distribution of conversion rates,
click-through-rate and cost per click with respect to the hour of the day on weekend and weekdays (Exhibit
 5 & 6). The analysis shows that parameters are better on weekends and weekend has significantly high click-
through-rate.
Recommendation: As per analysis, company should spend placing ads over the weekends to take advantage
of high conversion rates.

4. Discussion: Search term efficiency of an advertising program is the cost of search terms that were clicked
and converted at least once, divided by the total cost incurred for all search terms. According to this index,
if you get rid of all the nonperforming search queries, you will have an efficiency index of 1.
Recommendation: The search term efficiency of the company is 38.9% (Exhibit 7). This can be increased by
reducing non-converting keyword expenditure.

5. Discussion: As per data and historical evidence it is known that the CLV of a typical customer over a 3 year
period is $300 and anywhere from 2 to 4 (for simplicity assumed 3) conversions will translate into a paid
subscription. TextAds-Keyword data was used to find Negative NPV keywords and allocating budget only on
the seemingly positive NPV keywords. Results in Exhibit 9.
Recommendation: It is recommended to stop allocating budget to the non performing keywords (Exhibit 8)
and allocate requisite budget in the positive NPV keywords (Exhibit 9). This would improve the profitability
of the company with significantly reduced expenditure.

6. Discussion: It can be inferred from the above discussion that the company has spent a lot on the non-
performing keywords (almost 60%). Also, in terms of type of keywords (Exact, Phrase, Broad) the allocation
if not optimum and thus has a scope of improvement.
Recommendation: Company should focus on improving its search term efficiency, filter out keywords, and
reduce the non-performing keywords (Exhibit 8). It can further optimize cost allocation on the type of
keyword match with more emphasis on the exact match keyword for its benefits discussed above. Utilizing
daypart analysis result we can spend to place more ads on the weekend and take the advantage of the high
conversion rate during those days.

RESULT:

The whole analysis suggest that the ROI could be improved from almost 0% ( -1794.32 / 675553.12 = -0.27%)
to almost 62% (73910.60/118989.40 = 62.12%) (Exhibit 9). Thus, we strongly recommend the
implementation of these recommendations.

PROFIT with Statusquo $ (1,794.32)

Total Cost $ 675,553.12
ROI -0.27%
 EXHIBIT 1: Regression CTR vs Various Parameters

EXHIBIT 2: Regression Conversion per Dollar Spent vs Various Parameters

 EXHIBIT 3: Branded vs Non Branded keywords

EXHIBIT 4: Broad match vs Phrase match vs exact match keywords

EXHIBIT 5: Daypart Analysis Weekend vs Weekday

EXHIBIT 6: Daypart Hourly Analysis Weekend vs Weekday

 EXHIBIT 7: Search Term Efficiency

Search Term Efficiency (A/B) 38.90%

(A) Cost of Keywords which were clicked and converted $ 236,641.72
(B) Cost of all the keywords $ 608,288.39

EXHIBIT 8: Keyword as per their types, which are resulting in loss for the company.

Phrase Type Match Keyword

Keyword with Zero Conversions Cost Keyword with Zero Conversions Cost
ABCDEmail eblast $0.00 email-list email $3.10
ABCDEmail email marketing reviews $0.00 icontact.com $3.38
ABCDEmail email reviews $0.00 www constantcontact com $4.56
ABCDEmail newsletter $0.00 email flyers real estate agents $4.60
ABCDEmail templates $0.00 email-list.com $5.44
best email design $0.00 ABCDEmail email marketing $5.81
constant contact email marketing $0.00 constant contact email $6.46
constant contact inc $0.00 yourmailinglistprovider $7.67
constant contact marketing $0.00 constantcontact $7.88
constant contact newsletters $0.00 myABCDEmail com $13.72
constant contacts $0.00 constantcontact.com $15.96
constant email $0.00 emaillist $19.77
constant email marketing $0.00 top email marketing software $25.89
design html email $0.00 email sales pitch examples $26.59
design your own email $0.00 ABCDEmail mailing $30.31
e marketing campaign $0.00 bulk email marketing $81.29
email marketing services $0.00 email broadcasting software $101.01
email-list email marketing $0.00 email writing samples $116.88
free email blast templates $0.00 bulk email service $152.46
free html email creator $0.00 email design templates $187.31
yourmailinglistprovider.com $0.00
yourmailing list provider $0.00
wwwconstantcontactcom $0.00 Keyword with Negative CLV Profit Profit
www.icontact.com $0.00 ABCDEmail email service $ (73.37)
www yourmailinglistprovider com $0.00 emailnow powered by ABCDEmail $ (95.04)
www icontact com $0.00 best email marketing services $ (133.16)
www email-list com $0.00 examples of newsletters $ (242.25)
icontacts $0.00 template for email marketing $ (372.42)
icontact email marketing $0.00 ABCDEmail email newsletter $ (410.40)
icontact email $0.00 my ABCDEmail email $ (859.98)
ABCDEmail email system $2.38 making a newsletter $(1,086.56)
constant contact newsletter $2.61 email blast service $(1,317.63)
 Broad Type Match Keyword
Keyword with Zero Conversions Cost Keyword with Negative CLV Profit Profit
ABCDEmail and email marketing $0.00 email marketing campaign $ (31.33)
ABCDEmail email news letters $0.00 newsletter free template $ (60.09)
ABCDEmail vs aweber $0.00 how to create a newsletter $ (136.81)
ABCDEmail vs campaign monitor $0.00 mailchimp email services $ (139.40)
ABCDEmail vs mail chimp $0.00 newsletter templates $ (141.95)
best holiday email templates $0.00 newsletter samples $ (157.55)
create an e newsletter $0.00 create an email newsletter $ (176.21)
e mail marketing provider $0.00 ABCDEmail nashville $ (181.25)
e mail marketing vendors $0.00 ABCDEmail email marketing reviews $ (182.01)
email newsletter designs $0.00 email marketing service $ (183.77)
email newsletters ABCDEmail $0.00 email marketing campaign sample $ (192.84)
e-marketing campaign software $0.00 how to make a newsletter $ (199.98)
free e-marketing campaign $0.00 e-marketing sample $ (242.91)
happy holidays email templates $0.00 icontact email $ (243.27)
holiday email template design $0.00 www.myABCDEmail.com $ (272.46)
how to create an email newsletter $0.00 e newsletter design $ (277.42)
how to write a bad news letter $0.00 email newsletter templates $ (291.18)
my ABCDEmail email reviews $0.00 email ABCDEmail $ (309.06)
myABCDEmail email newsletters $0.00 best newsletter design $ (325.24)
vertical response opt in email $0.00 christmas email templates $ (331.88)
mailchimp vs ABCDEmail $2.15 email newsletter template $ (341.59)
christmas email template design $3.85 email addresses for marketing $ (364.34)
holiday email templates html $4.04 email marketing provider $ (378.38)
ABCDEmail vs. aweber $4.18 create a newsletter $ (384.29)
christmas html email template $4.29 newsletter $ (388.77)
free christmas email template $4.81 newsletter design $ (390.79)
e marketing campaign $5.04 icontact email marketing $ (406.56)
ABCDEmail vs mailchimp $5.94 ABCDEmail nashville $ (412.93)
merry christmas email template $6.94 opt in email marketing $ (425.10)
happy holiday email templates $7.44 mailchimp templates $ (458.21)
my ABCDEmail service $9.54 newsletter templates $ (462.41)
holiday email designs $9.73 emailnow powered by ABCDEmail $ (478.76)
myABCDEmail reviews $10.05 email by ABCDEmail $ (488.51)
best e-marketing service $11.89 e newsletters $ (526.44)
how to create email newsletter $13.83 email layout design $ (624.39)
vertical response solutions $20.06 free holiday email templates $ (670.36)
email provider ABCDEmail $22.17 newsletter designs $ (674.49)
constant contact email surveys $23.11 my ABCDEmail.com $ (679.85)
myABCDEmail newsletters $28.44 ABCDEmail email reviews $ (691.95)
icontact email marketing services $29.55 mail chimp templates $ (705.88)
free christmas email templates $29.66 constant contact email survey $ (723.39)
holiday email newsletter templates $33.20 newsletter software $ (736.44)
free email blast templates $33.36 ABCDEmail newsletters $ (747.59)
christmas email designs $33.87 news letter template $ (755.66)
emailnow ABCDEmail $40.39 newsletter service $ (782.21)
ABCDEmail email marketing services $41.17 best email marketing campaign $ (783.93)
holiday email design $42.32 e newsletters $ (800.19)
christmas email template free $45.96 ABCDEmail nashville $ (811.23)
e newsletter $49.13 my ABCDEmail reviews $ (823.66)
christmas newsletter templates $50.84 best e marketing service $ (882.45)
power by ABCDEmail $51.21 send newsletters $ (926.60)
template for e marketing $51.31 free html email creator $ (1,001.10)
digital newsletter $51.82 christmas email template $ (1,011.44)
ABCDEmail vs constant contact $58.79 newsletter samples $ (1,119.95)
myABCDEmail com login $62.41 sample email marketing campaigns $ (1,400.30)
e marketing campaign software $63.01 online newsletter $ (1,408.03)
my ABCDEmail online $65.31 newsletter maker $ (1,492.35)
christmas email design $68.46 online newsletter service $ (1,674.41)
holiday newsletter templates $73.14 email broadcast services $ (1,773.33)
online newsletter maker $77.55 newsletter designs $ (2,059.53)
ABCDEmail vs. mail chimp $87.61 sample newsletters $ (2,129.04)
christmas card email templates $95.46 news letter templates $ (2,234.86)
holiday email templates $96.19 software for e marketing $ (2,801.28)
online newsletter templates $96.90 www my ABCDEmail.com $ (2,968.05)
how to design a newsletter $100.38 my ABCDEmail.com $ (3,659.10)
newsletter service $111.09 newsletter examples $ (4,320.27)
enewsletter $111.63
top email marketing campaign $117.61
free e marketing campaign $122.67
html newsletter $125.59
bad news letter sample $127.46
holiday email templates free $154.23
constant contact email marketing solutions $158.96
constant contact email marketing service $261.35
newsletter marketing $298.75
mail chimp templates $449.14
samples of newsletters $546.32
constant contact templates $623.91
 Exact Type Match Keyword
Keyword with Zero Conversions Cost Keyword with Zero Conversions Cost
ABCDEmail cost $0.00 create an email newsletter $5.30
ABCDEmail eblast $0.00 newsletter design $5.94
ABCDEmail email blast $0.00 email newsletter template $6.32
ABCDEmail email campaign $0.00 examples of newsletters $6.33
ABCDEmail email now $0.00 best email design $7.44
ABCDEmail email review $0.00 design email template $7.80
ABCDEmail email reviews $0.00 my ABCDEmail reviews $7.96
ABCDEmail emails $0.00 html newsletter $8.18
ABCDEmail inc nashville $0.00 create online newsletter $8.59
ABCDEmail mailing $0.00 ABCDEmail email newsletter $9.13
ABCDEmail nashville tn $0.00 online newsletter templates $9.83
ABCDEmail online $0.00 ABCDEmail email marketing services $9.88
ABCDEmail sign up $0.00 email newsletters $10.90
ABCDEmail trial $0.00 email marketing providers $11.37
ABCDEmail website $0.00 how to design a newsletter $11.39
best e-marketing $0.00 samples of newsletters $11.50
constant contact email survey $0.00 best email marketing service $12.62
constant contact emails $0.00 e mail marketing templates $13.53
constant contact templates $0.00 best newsletter design $15.41
cost of ABCDEmail $0.00 create a newsletter $17.78
top email marketing campaign $0.00 how to create a newsletter $17.88
powered by ABCDEmail email $0.00 e marketing template $19.84
online newsletter service $0.00 ABCDEmail email marketing reviews $20.25
myABCDEmail templates $0.00 email marketing ABCDEmail $21.08
myABCDEmail template $0.00 enewsletter $23.34
myABCDEmail reviews $0.00 newsletter free template $24.85
myABCDEmail email marketing $0.00 newsletter maker $24.87
myABCDEmail email $0.00 top email marketing campaigns $25.91
my ABCDEmail templates $0.00 how to create email newsletter $27.73
my ABCDEmail pricing $0.00 icontact email marketing $30.39
my ABCDEmail email templates $0.00 email marketing design $31.92
my ABCDEmail email marketing $0.00 news letter templates $36.41
mailchimp email services $0.00 e-marketing campaigns $40.63
icontact email $0.00 bulk emails $41.69
free html email creator $0.00 html newsletter templates $45.48
free email blast templates $0.00 top email marketing service $50.03
email now $0.00 online newsletter maker $54.07
email marketing software reviews $0.00 email marketing template $68.15
email marketing designs $0.00 online newsletter $69.36
email marketing blast $0.00 e marketing campaign $74.88
e newsletter design $0.00 sample newsletters $110.76
e newsletter $0.00 best email marketing campaigns $139.66
e marketing campaigns $0.00 how to make a newsletter $185.60
design your own email $0.00 mailchimp templates $268.86
design html email $0.00 constant contact $2,111.39
create email marketing $0.00
myABCDEmail pricing $0.15 Keyword with Negative CLV Profit Profit
ABCDEmail mail service $0.16 my ABCDEmail trial $ (14.48)
powered by ABCDEmail $0.26 email blast $ (24.61)
www myABCDEmail $0.31 www myABCDEmail.com $ (118.46)
www myABCDEmail com $0.31 free email marketing templates $ (125.33)
my ABCDEmail com $0.43 email marketing providers $ (203.90)
www ABCDEmail $0.65 my ABCDEmail email marketing $ (255.69)
www ABCDEmail com $1.06 e mail marketing services $ (316.02)
ABCDEmail mail $1.23 newsletter software $ (401.04)
ABCDEmail marketing $1.70 news letter template $ (440.07)
myABCDEmail com $2.14 holiday email template $ (922.29)
ABCDEmail templates $2.18 ABCDEmail com $(1,359.44)
ABCDEmail email marketing review $2.68 free newsletter templates $(3,540.06)
EXHIBIT 9: Final List of Keywords to be used by the company for profitable results.
KeywordText KeywordMatchType Cost of Acquisation Profit / Customer Acquisation
Content Exact $ 2.13 $ 297.87
email templates Exact $ 7.22 $ 292.79
ABCDEmail Broad $ 8.05 $ 291.95
newsletter Broad $ 14.81 $ 285.19
email marketing template Exact $ 16.47 $ 283.53
ABCDEmail email Exact $ 19.02 $ 280.98
email marketing Exact $ 30.09 $ 269.91
myABCDEmail Exact $ 36.01 $ 263.99
myABCDEmail Exact $ 37.20 $ 262.80
email marketing services Broad $ 47.43 $ 252.57
create email marketing Exact $ 51.84 $ 248.16
email blast Exact $ 53.85 $ 246.15
ABCDEmail email marketing Exact $ 61.14 $ 238.86
my ABCDEmail Broad $ 63.81 $ 236.19
best email marketing service Exact $ 63.90 $ 236.10
email newsletter Broad $ 66.39 $ 233.61
my ABCDEmail Exact $ 67.11 $ 232.89
newsletters Broad $ 68.72 $ 231.28
free email marketing campaigns Broad $ 69.66 $ 230.35
ABCDEmail email Exact $ 70.45 $ 229.55
email flyer Phrase $ 72.42 $ 227.58
ABCDEmail newsletters Broad $ 76.69 $ 223.31
email marketing blast Exact $ 79.14 $ 220.86
free newsletter templates Phrase $ 81.16 $ 218.84
ABCDEmail email marketing Exact $ 89.30 $ 210.70
powered by ABCDEmail Broad $ 90.75 $ 209.25
newsletter Broad $ 92.17 $ 207.83
email marketing design Broad $ 93.48 $ 206.52
email newsletters Exact $ 94.24 $ 205.76
myABCDEmail com Exact $ 95.34 $ 204.66
ABCDEmail email Broad $ 103.48 $ 196.52
ABCDEmail mail Exact $ 103.95 $ 196.05
email newsletter templates Broad $ 118.63 $ 181.37
#NAME? Broad $ 118.65 $ 181.35
email campaign services Exact $ 124.86 $ 175.15
email flyer Exact $ 128.64 $ 171.36
free holiday templates Exact $ 130.89 $ 169.11
html newsletter templates Broad $ 142.32 $ 157.68
ABCDEmail com Phrase $ 148.65 $ 151.35
e mail marketing templates Broad $ 148.65 $ 151.35
ABCDEmail newsletter Exact $ 149.24 $ 150.77
ABCDEmail marketing Phrase $ 155.01 $ 144.99
email design Broad $ 158.73 $ 141.27
email newsletter Broad $ 164.54 $ 135.47
newsletters Broad $ 167.13 $ 132.87
e marketing template Exact $ 168.51 $ 131.49
ABCDEmail newsletter Exact $ 171.14 $ 128.87
email layout design Broad $ 181.26 $ 118.74
bulk emails Broad $ 182.85 $ 117.15
email blast software Broad $ 183.72 $ 116.28
create online newsletter Phrase $ 191.87 $ 108.14
ABCDEmail.com Exact $ 204.36 $ 95.64
design your own email Broad $ 209.54 $ 90.46
ABCDEmail marketing Broad $ 219.66 $ 80.34
opt in email lists free Broad $ 225.62 $ 74.39
email marketing tools Broad $ 235.05 $ 64.95
constant contact Exact $ 236.51 $ 63.49
free email blast Phrase $ 241.11 $ 58.89
email blast service Exact $ 244.26 $ 55.74
best email marketing campaign Broad $ 254.15 $ 45.85
christmas email templates free Phrase $ 270.06 $ 29.94
myABCDEmail.com Broad $ 280.56 $ 19.44
email stationery templates Broad $ 292.27 $ 7.73
ABCDEmail email service Broad $ 299.36 $ 0.64
email marketing designs Broad $ 301.88 $ (1.88)
COST PROFIT
TOTAL
$ 118,989.40 $ 73,910.60