PINFO

Multi-Term Searches Get High Conversion

Marketers who restrict their keyword buying to a short list of broad search terms may be missing out on potentially high-value customers. A new study released by search-optimization firm Oneupweb indicates that multiple keyword searches, where users input three and four search terms at a time, deliver considerably higher conversion rates than single-term searches.

Through reviewing data on thousands of real searches tracked during July, October and December of last year via the company's proprietary search analytics tool, ROI Trax, Oneupweb found that conversion rates rose steadily from single-term searches to four-term searches, declining thereafter.

For example, in July 2004, the study found that the average conversion rate for single-word phrases was roughly 10 percent. For four-word phrases, the rate jumped to more than 20 percent.

Campaigns are eligible that use at least three distinct communication channels, including both traditional and non-traditional media. There is no limit in terms of the number of communication channels used and the length of the execution.

"Longer searches drive a more qualified user," said Lisa Wehr, Oneupweb president. "They are already through the education process. They are in buying mode."

The study also found that the conversion for single-word searches lessens when corporate names are removed from the study. Users who include corporate brand names are further along in their decision process, while those who search using more generic terms are not, according to Oneupweb. During the same July time period, the conversion rate for single-term searches was around 8 percent minus corporate terms, jumping to 33 percent for four-term searches.

While Oneupweb's research deals exclusively with "natural" search terms, Wehr believes there are obvious applications for marketers active in the red-hot paid search space.

"I think it would definitely apply across both verticals," she said. "The end result in either case is conversion."

But many companies are failing to recognize the value of multiple-term searches, sticking to a short list of in- demand words, says Wehr. "There are a lot of companies buying very broad keywords and are paying a high [cost-per-click]," she said.

Part of that strategy may be simply that many companies value certain terms for branding as much as conversion. But competition is a factor. "It's an auction, and a lot of people get caught up in that," said Wehr. "Companies are dukeing it out for the sake of dukeing it out."

That scenario is a tough one for small- and mid-sized businesses to navigate. Wehr says that these companies can benefit the most from expanding their list of search terms. For example, for a smaller technology company, trying to outbid giants like Dell and IBM for search terms like "computer" can be a losing proposition. "If you are a small reseller in Hoboken, New Jersey, what are the chances of making that profitable?" said Wehr.

That's why these businesses should consider multiple-term searches. While the level of traffic for these searches is much lower than more broad, single-term searches (more users search for "computer" than "computer for my office"), small- to mid-sized companies can attempt to aggregate search traffic through multiple-term buys, while enjoying greater conversion potential.

Of course, buying search terms, particularly more varied and interchangeable word combinations, can be time- intensive. However, "there are really good tools out there," said Wehr. "There should be less overhead in the end."