Right on Target

Case Study: Affiliate marketer profits by fully leveraging the targeting tools of Sponsored Search

Self-proclaimed “retired computer geek” Don Tuttle is a man who’s always tried to stay ahead of the curve when it comes to making money online. His current line of work, commonly known as affiliate marketing, involves using search advertising to send traffic to third-party companies, and when a sale is made, Tuttle gets a commission.

To do this, Tuttle uses all of the popular paid search providers, but he identifies Yahoo! Search Marketing as his favorite, primarily due to its powerful and more extensive targeting capabilities, and to the high quality of customer support. In a business where having access to key information about users—and then using it to reach the right prospects with the right message—is essential to making a profit, Tuttle shows that being bigger is not always better.

Using pay-per-click
In 2005, after a less-than-successful foray into selling items on eBay, Tuttle recognized a growing opportunity in the field of affiliate marketing, and decided to dive in. “I don’t own the products or the companies I promote; I’m more like a commissioned salesman,” he says. Tuttle keeps a close eye on his advertising expenses, to ensure that they don’t exceed the commissions he receives from the traffic that the ads generate. “I’m very bottom-line oriented,” he explains. “Cost-per-conversion is the metric I primarily use. And like a lot of people, I didn’t succeed at first, but once I got the hang of it, I’ve been very happy with pay-per-click advertising, and with Yahoo!.”

Tuttle uses all of the targeting options available to him in the Sponsored Search interface, but identifies geotargeting as the most valuable one to his account. “Yahoo!’s geo-targeting has enabled me to find areas that are hotbeds for what my ads offer, as well as those areas that don’t convert well,” he says. “Being able to stop my advertising in these low-performing areas has probably been the biggest factor in improving my ROI.” Tuttle explains that by picking each state and metro area independently, an advertiser can automatically get statistics on conversions by state and DMA, using the Yahoo! analytics tools.

The campaign scheduling (dayparting) feature has also proved useful to Tuttle’s business: “I’ve found that there are certain things that work better on certain days of the week and at certain times of the day, and once you figure that out it’s pretty consistent across all of the ad networks.”

Adding demographic targeting
Having covered the “where” and the “when” of the traffic he’s targeting, Tuttle also closely monitors the “who,” and makes adjustments to his bidding and ad copy accordingly. “One of the best features that Yahoo! has over Google is the fact that you can get demographic information from the account interface,” he says. “You can get age groups and the male/female ratios of the people searching on your keywords, and you just can’t get that on Google.” Simply by turning on the Demographic Reporting feature, Tuttle had additional options available to him in the Reporting section of the account to provide this transparency. When combined with the free analytics tools in his account, this data became much more valuable. “I was able to learn that although one of my sites was much more heavily trafficked by women, the male visitors actually converted better,” Tuttle continues. “Using this data, I’ve targeted the male audience more strongly by bidding higher for this traffic, and I improved my conversion ratio as a result.”

The Results
Tuttle praises Yahoo!’s excellent customer support: “My Yahoo! rep Justin Hill has been wonderful. I can spend over six figures a year with Google, and I still don’t have a rep. Justin creates campaigns, comes up with new ideas, and runs reports. The campaign results and incredible support have led me to triple Yahoo!’s share of my overall advertising budget.” With Hill’s help, Tuttle recently used the extensive targeting and demographic information to refine his campaigns, with outstanding results. “My expenses were getting out of hand before I did this,” he remembers. “But when I started making better use of geo-targeting, dayparting and demographic targeting, I was able to reduce my overall cost-peracquisition by 40 percent. Anything that improves the transparency of where my clicks are coming from, and what’s working and what isn’t, is pure gold.”

— The Team