With every new AdWords change, there are always new strategies that evolve to take advantage of the system changes. This thread is specifically for strategies for the new min cpc system, for other posts please see the bottom of this post for links.
1. Launching new products
In the past, it's been very difficult to launch a brand new product with search. With new products, often you need to create search volume & awareness. If no one knows of a product name, no one searches for it.
The first thing that came to mind when I heard about this system was: I can bid on keywords like Google, Microsoft, AOL, help, information, windows, etc without being disabled?
How to take advantage of this?
These campaigns are not about clicks. They are about impressions. Impressions are free. The ability to bid on these high volume keywords, even with a high min CPC, to create total impressions could be very effective. The ability to get a new product in front of potentially millions of people a day, essentially the same as a banner campaign (without the CPM cost), without worrying about disabled keywords can be very powerful.
Creating ads that bring awareness to a product, but do not induce clicks would be a skill in itself. How many new products would love to get 1 million impressions, 10,000 clicks (a 0.1% CTR, respectable for totally non targeted keywords) a day?. Even if the minimum KW cost rose to $5/click, that is essentially a $0.05 CPM - try finding that CPM anywhere else on the net.
Obviously, a second campaign should be launched to take advantage of those actually searching for the product you're creating awareness for.
There's definitely some potential to use this strategy for more than new product launches, but a product awareness campaign like this would be interesting to test.
2. Demographic Targeting
I've run several campaigns that are based around keywords that target a demographic, not necessarily related to the search in question.
This strategy involves looking at who buys a particular product, or offer (the same way email/direct marketing/snail dm works), and then finding searches/products that fit that demographic, and pushing a product/offer through that particular channel.
Keywords like 'buy trucks online', 'psp hacks', 'cosmo quizzes', each target a particular demographic.
At present, about 25-%75% of all demographic based keywords are disabled due to low CTRs (and it's often the higher search volume ones).
This keyword disabling now goes away. If general interested demographic traffic can be converted (and it can), then suddenly this opens up a much more stable way to use keyword demographic targeting for many offers.
Of course, ROI must continue to be measured, but a good offer should convert 2-15% of all users (depending on price points, offer variables, etc). Being able to determine a profitable keyword bid (just like any other search based keyword), and then target demographic based keywords based upon a particular bid means that a whole new set of keyword inventory is open for testing.
These are my initial two strategies for the new system.
Comments complaining about the new system will be deleted. Please keep this thread about stratedgies and comments about these targeting systems. For other info on the new system, please post in the appropriate threads below:
General discussion: [webmasterworld.com...]
Feature requests: [webmasterworld.com...]
How it's impacted your account: [webmasterworld.com...]