Live from DMA06: Power Segmentation Is Key to Better SEM

San Francisco—In the span of a few short years, search engine marketing has come to dominate the online world. But rising prices mean that fewer marketers can afford to pay for top listings on search engines such as Google, Yahoo!, or MSN. What’s a marketer to do? Kevin Lee, executive chairman of Did-it Search Marketing, told DMA06 attendees on Monday to focus on power segmentation.

Practitioners of power segmentation bid on keywords in conjunction with analyzing searchers’ demographics and the time of day and the day of week that they conduct their searches. Lee said that inspecting the metrics of the types of people seeing the ads at different times of the day is important to discovering when your prime bidding time should be.

In fact, he said, marketers often find their power segment just by analyzing the time of day that people search for a given keyword. Lee explained that it’s not wise to pay top dollar all of the time because the listing is not as valuable round-the-clock. Marketers can achieve the same results without paying as much by paying top dollar only when their most valuable customers and prospects are searching for them.

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