Sharp SEM Analysis 2009
- 1. Sharp Reorg Analysis (6/7/09) My initial thoughts/observations on the Sharp reorg – I’ve divided this into four areas: CTR, Conversion Rates, AOV, and Opportunities. Click through Rate From 6/2 – 6/6, Sharp’s overall CTR was 1.97% - similar to what it was before Phase 3 reorg (1.88%). This result was expected as there was basically no change in ad copy for high traffic Sharp keywords during the Phase 3 reorg. For perspective, here are selected stats for our top brands since the 5/4 Phase 2 reorg: Brand CTR C-Rate Orders Poulan 6.78% 1.50% 449 Frigidaire 5.25% 4.14% 1,191 Denon 4.73% 1.32% 10 Whirlpool 4.27% 3.28% 1,548 Maytag 4.22% 4.34% 1,724 LG 4.07% 3.41% 177 Pioneer 3.71% 1.52% 77 Haier 3.66% 2.32% 42 Alpine 3.62% 2.84% 39 Clarion 3.59% 2.01% 8 RCA 2.72% 2.30% 114 Brother 2.66% 1.96% 13 Toshiba 2.13% 2.88% 320 Amana 2.07% 1.04% 34 Sony 2.00% 2.34% 1,314 Sharp (6/2 - 6/6) 1.97% 4.08% 98 Sanyo 1.89% 2.30% 35 Vizio 1.89% 1.51% 11 Sharp (5/4 - 6/2) 1.88% 4.19% 520 Panasonic 1.84% 3.92% 1,473 Hitachi 1.84% 2.70% 159 Zenith 1.84% 1.58% 37 Samsung 1.83% 3.79% 853 General Electric 1.77% 1.42% 203 Yamaha 1.67% 2.02% 29 Hewlett Packard 1.67% 1.11% 7 Kenwood 1.57% 2.13% 73 JVC 1.49% 3.33% 509 JennAir 1.18% 1.07% 15 Philips 0.75% 1.07% 104 Canon 0.48% 1.06% 11 Clearly some brands have much higher CTRs when the core group of keywords and ad copy are very similar. Generally speaking, CTR for big-ticket appliance manufacturers are markedly higher than 1
- 2. the CE and computer brands. I suspect the differences in CTR can be chalked up to a combination of: 1) High-traffic general keywords for the large CE brands generate lots of impressions but the ads are not relevant to what the user is looking for (hypothetical e.g. - we’ll show up for “sony” even though only 5% of users entering that are not looking for parts or accessories whereas 10% of users entering “maytag” are looking for parts) 2) People really need parts for appliances (rarely just browsing for accessories) 3) Appliance part shoppers might be more brand agnostic than CE/computer shoppers (brand meaning website in this case) To illustrate point #1 above, here are the top five keywords by impressions with select stats between 5/4 and 6/2 for four brands: Whirlpool, Maytag, Sony, and Sharp Avg Orders C-Rate Campaign Keyword Match Type Imprs Clicks CTR Pos (1-PC) (1-PC) Maytag maytag Broad 649,687 12,080 1.86% 3.8 333 2.76% Maytag maytag Exact 80,590 5,723 7.10% 1.9 289 5.05% Maytag maytag parts Broad 33,625 5,422 16.12% 2.4 241 4.44% Maytag maytag parts Exact 23,416 7,877 33.64% 1.4 470 5.97% Maytag maytag accessories Broad 15,446 653 4.23% 5.2 26 3.98% Maytag Top 5 802,764 31,755 3.96% 1,359 4.28% Sharp sharp Phrase 280,077 2,131 0.76% 3.7 38 1.78% Sharp sharp Exact 86,426 648 0.75% 1.2 28 4.32% Sharp sharp parts Broad 58,999 2,619 4.44% 2.9 70 2.67% Sharp sharp electronics Broad 42,663 602 1.41% 2.4 20 3.32% Sharp sharp microwave Broad 23,104 290 1.26% 4.7 11 3.79% Sharp Top 5 491,269 6,290 1.28% 167 2.66% Sony sony Exact 1,031,059 3,443 0.33% 1.8 114 3.31% Sony sony parts Broad 378,973 16,637 4.39% 3.3 265 1.59% Sony sony accessories Broad 202,208 4,240 2.10% 4 46 1.08% Sony sony.com Broad 181,691 5,188 2.86% 2.2 180 3.47% Sony Sony TV Parts Broad 75,974 2,680 3.53% 2.2 85 3.17% Sony Top 5 1,869,905 32,188 1.72% 690 2.14% Whirlpool whirlpool Broad 624,403 14,193 2.27% 4.7 279 1.97% Whirlpool whirlpool parts Broad 140,296 8,656 6.17% 5.5 252 2.91% Whirlpool whirlpool Exact 128,442 6,300 4.90% 2.5 266 4.22% Whirlpool whirlpool parts Exact 26,150 9,914 37.91% 1.1 468 4.72% Whirlpool whirlpool dishwasher Broad 22,816 208 0.91% 6.7 9 4.33% Whirlpool Top 5 942,107 39,271 4.17% 1,274 3.24% The performance of the top five keywords tells the CTR story in a nutshell– the high traffic keywords (notably the generic, non-targeted, containing just-the-brand keywords) for certain brands do generate sales, but the ads are simply not clicked on as often. The word “sharp” is already ambiguous and a common adjective which doesn’t help our efforts. 2
- 3. For an apples to apples comparison, here are select stats for exact searches for the same type of keyword: Avg Orders C-Rate Campaign Keyword Match Type Imprs Clicks CTR Pos (1-PC) (1-PC) Maytag maytag parts Exact 23,416 7,877 33.64% 1.4 470 5.97% Sharp sharp parts Exact 774 189 24.42% 1 10 5.29% Sony sony parts Exact 3,701 1,173 31.69% 1 54 4.60% Whirlpool whirlpool parts Exact 26,150 9,914 37.91% 1.1 468 4.72% Not surprisingly, we do much better with CTR (and conversion rates) for targeted searches when a user is indicating they want parts. Applying more negative keywords may improve CTR for brands such as Sharp but it still may be difficult to significantly boost CTR without jeopardizing orders and revenue – it could be a reality we have to live with. However, one benefit of the reorg is that we can see how CTR varies within brands across different model and part categories. This analysis is limited by the lack of accumulated date in the Phase 3 reorg, but here’s a snapshot of selected stats for Sharp ad groups with at least 500 impressions, sorted by CTR. Avg Avg Orders C-Rate Orders Ad Group Imprs Clicks CTR Cost Revenue ROI CPC Pos (1-PC) (1-PC) (M-PC) Remote Controls 1,533 120 7.83% $0.35 $42 2 7 5.83% 8 $264 91% Adapters 1,161 89 7.67% $0.51 $45 1.9 4 4.49% 4 $185 22% TV Remote Controls 718 54 7.52% $0.47 $25 1.6 5 9.26% 5 $245 192% Microwave Trays 741 53 7.15% $0.60 $32 2.1 4 7.55% 4 $161 52% Vacuums 1,488 73 4.91% $0.44 $32 4.9 6 8.22% 9 $223 106% Televisions 3,092 136 4.40% $0.48 $65 4.9 4 2.94% 4 $161 -26% Camcorders 3,246 121 3.73% $0.52 $62 2.7 2 1.65% 2 $60 -71% Microwaves 11,259 379 3.37% $0.65 $248 4.3 31 8.18% 35 $1,503 82% Appliances 3,709 92 2.48% $0.63 $58 4.5 5 5.43% 5 $144 -25% Electronics 6,811 166 2.44% $0.62 $103 2.4 6 3.61% 8 $638 87% General Terms 82,236 1,055 1.28% $0.45 $476 3.2 20 1.90% 24 $2,099 32% Projectors 743 6 0.81% $1.25 $7 6 0 0.00% 0 $0 -100% Lamps 4,706 22 0.47% $0.90 $20 3.3 0 0.00% 0 $0 -100% In this context, we can see again how the performance of general terms drags down the CTR for the whole brand. Note that the ROI for general terms indicates it’s still a cost effective ad group. 3
- 4. Conversion Rate From 6/2 – 6/6, Sharp’s overall conversion rate was 4.08% - similar to what it was before the Phase 3 reorg (4.19%). This result was also expected since virtually all high traffic Sharp keywords were already directed to winning landing pages prior to Phase 3. Once again, the chart from the first page: Brand CTR C-Rate Orders Maytag 4.22% 4.34% 1,724 Sharp (5/4 - 6/2) 1.88% 4.19% 520 Frigidaire 5.25% 4.14% 1,191 Sharp (6/2 - 6/6) 1.97% 4.08% 98 Panasonic 1.84% 3.92% 1,473 Samsung 1.83% 3.79% 853 LG 4.07% 3.41% 177 JVC 1.49% 3.33% 509 Whirlpool 4.27% 3.28% 1,548 Toshiba 2.13% 2.88% 320 Alpine 3.62% 2.84% 39 Hitachi 1.84% 2.70% 159 Sony 2.00% 2.34% 1,314 Haier 3.66% 2.32% 42 RCA 2.72% 2.30% 114 Sanyo 1.89% 2.30% 35 Kenwood 1.57% 2.13% 73 Yamaha 1.67% 2.02% 29 Clarion 3.59% 2.01% 8 Brother 2.66% 1.96% 13 Zenith 1.84% 1.58% 37 Pioneer 3.71% 1.52% 77 Vizio 1.89% 1.51% 11 Poulan 6.78% 1.50% 449 General Electric 1.77% 1.42% 203 Denon 4.73% 1.32% 10 Hewlett Packard 1.67% 1.11% 7 JennAir 1.18% 1.07% 15 Philips 0.75% 1.07% 104 Canon 0.48% 1.06% 11 Amana 2.07% 1.04% 34 Sharp has one of the higher conversion rates compared to other brands. One likely reason is that the Sharp keywords we aggressively compete for via SEM are remote controls and microwave parts – strong categories for PartStore. (Note: According to ConsumerReports, Sharp is the number 2 microwave brand in the US, behind GE). Sharp may also be a brand with better data and/or robust vendor coverage which would help account for the high conversion rates. This will be more evident as the Phase 3 reorg is rolled out across the Brand 1 account and comparing ad groups is possible. 4
- 5. Ad groups with at least 500 impressions sorted by C-Rate: Avg Avg Orders C-Rate Orders Ad Group Imprs Clicks CTR Cost Revenue ROI CPC Pos (1-PC) (1-PC) (M-PC) TV Remote Controls 718 54 7.52% $0.47 $25 1.6 5 9.26% 5 $245 192% Vacuums 1,488 73 4.91% $0.44 $32 4.9 6 8.22% 9 $223 106% Microwaves 11,259 379 3.37% $0.65 $248 4.3 31 8.18% 35 $1,503 82% Microwave Trays 741 53 7.15% $0.60 $32 2.1 4 7.55% 4 $161 52% Remote Controls 1,533 120 7.83% $0.35 $42 2 7 5.83% 8 $264 91% Appliances 3,709 92 2.48% $0.63 $58 4.5 5 5.43% 5 $144 -25% Adapters 1,161 89 7.67% $0.51 $45 1.9 4 4.49% 4 $185 22% Electronics 6,811 166 2.44% $0.62 $103 2.4 6 3.61% 8 $638 87% Televisions 3,092 136 4.40% $0.48 $65 4.9 4 2.94% 4 $161 -26% General Terms 82,236 1,055 1.28% $0.45 $476 3.2 20 1.90% 24 $2,099 32% Camcorders 3,246 121 3.73% $0.52 $62 2.7 2 1.65% 2 $60 -71% Projectors 743 6 0.81% $1.25 $7 6 0 0.00% 0 $0 -100% Lamps 4,706 22 0.47% $0.90 $20 3.3 0 0.00% 0 $0 -100% Most the ad groups with sizeable traffic have very respectable conversion rates. General terms, as we’d expect, have lower conversion rates. There’s really not enough data to make any conclusions about projectors and lamps at this point. Televisions and camcorders appear to be underperforming. FYI: • Sharp’s North America LCD market share was 9.4% in Q1 2009. Source • Sharp doesn’t sell new camcorders as of March 2006 - Source - so it’s probably not surprising this is a dying category. Note: Camcorder technology evolves quickly these days (recording formats become obsolete) so there may be less of an incentive to fix an old camcorder compared to other CE categories. 5
- 6. AOV Phase 3 of the reorg will also shed light on AOV. Of course we were always able to calculate AOV based on how parts are categorized and classified in our system, but it may be illuminating to see how AOV shakes down by ad group now that like terms are more grouped together. AOV for all ad groups that have recorded at least one order (6/2 – 6/6): Total Ad Group Revenue AOV Orders Camcorder Cables 1 $92 $92 General Terms 24 $2,099 $87 Electronics 8 $638 $80 TV Remote Controls 5 $245 $49 Adapters 4 $185 $46 Microwaves 35 $1,503 $43 Microwave Trays 4 $161 $40 Televisions 4 $161 $40 Microwave Filters 1 $40 $40 Part Numbers 1 $36 $36 Remote Controls 8 $264 $33 Camcorders 2 $60 $30 Appliances 5 $144 $29 Vacuums 9 $223 $25 Fax Machines 2 $28 $14 Microwave Waveguide Covers 1 $11 $11 Notes & Observations • “Electronics” and “Appliances” are general vertical terms like “sharp electronics parts” or “sharp appliances.” • “Remote Controls” are non model-category specific terms like “sharp remote control,” so the user was not necessarily looking for a television remote. • “Microwaves” are general microwave terms - it’s probably safe to assume that many of these orders were microwave trays based on the similar AOVs. • “Part Numbers” are keywords with the brand+part number that existed in an ad group in the old structure. • No idea what camcorder cable would cost so much (it’s possible the user ultimately bought something else). 6
- 7. Opportunities Opportunities to improve the performance of the Sharp campaign are apparent after just five days since the reorg. The ad groups identified in yellow highlight should probably be buttressed with more keywords if possible – They’ve converted on relatively few keywords thus far with a positive ROI: Total Total Avg C-Rate Ad Group Cost Rev AOV Imprs Clicks CTR ROI Orders Keywords Pos (1-PC) Part Numbers 1 293 $0 $36 $36 175 1 0.57% 2.7 5900% 100.0% Microwave Trays 4 186 $32 $161 $40 741 53 7.15% 2.1 52% 7.6% Camcorders 2 86 $62 $60 $30 3,246 121 3.73% 2.7 -71% 1.7% General Terms 24 62 $476 $2,099 $87 82,236 1,055 1.28% 3.2 32% 1.9% Microwaves 35 31 $248 $1,503 $43 11,259 379 3.37% 4.3 82% 8.2% Remote Controls 8 20 $42 $264 $33 1,533 120 7.83% 2 91% 5.8% Microwave Filters 1 13 $2 $40 $40 38 4 10.53% 1.9 515% 25.0% Televisions 4 8 $25 $161 $40 718 54 7.52% 1.6 92% 9.3% TV Remote Controls 5 8 $65 $245 $49 3,092 136 4.40% 4.9 13% 2.9% Vacuums 9 7 $32 $223 $25 1,488 73 4.91% 4.9 106% 8.2% Adapters 4 7 $45 $185 $46 1,161 89 7.67% 1.9 22% 4.5% Appliances 5 7 $58 $144 $29 3,709 92 2.48% 4.5 -25% 5.4% Mic. Waveguide Covers 1 5 $1 $11 $11 14 2 14.29% 1.4 240% 50.0% Fax Machines 2 5 $3 $28 $14 67 5 7.46% 5.1 199% 20.0% Electronics 8 5 $103 $638 $80 6,811 166 2.44% 2.4 87% 3.6% Camcorder Cables 1 2 $0 $92 $92 13 1 7.69% 2.3 7558% 100.0% Vacuum Cleaners The vacuum category has been very efficient so far – performing well with few keywords. In fact, there are only seven total keywords associated with vacuums – four of which have recorded clicks. The sole keyword that’s converted (sharp vacuum parts, on broad match) has had an average position of just 5.2. Match Avg Avg Orders C-Rate Orders Keyword Imprs Clicks CTR Cost Revenue CPC Pos (1-PC) (1-PC) (M-PC) Type sharp vacuum parts Broad 615 38 6.18% 0.37 $14 5.2 6 15.79% 9 $223 sharp vacuum cleaner Broad 540 16 2.96% 0.42 $7 5.1 0 0.00% 0 $0 sharp vacuum cleaner parts Broad 194 14 7.22% 0.55 $8 3.4 0 0.00% 0 $0 sharp canister vacuums Broad 115 5 4.35% 0.81 $4 3.9 0 0.00% 0 $0 Note: This source says Sharp is no longer releasing new vacuums but Sharp’s official website shows they’re still supporting at least a dozen models in the US. A full compliment of vacuum related keywords should be added including a focus on specific part categories such as bags, attachments, brushes, beaters, belts, cords, light bulbs, pedals, and hoses. 7
- 8. Fax Machines Likewise, the fax machines ad group has generated two conversions on five clicks with low average position – moreover this was accomplished with just five total keywords in the ad group. A full compliment of fax machine related keywords should be added including a focus on specific part categories such as trays, laser units, transfer rollers, roller cassettes, fuser lamps, feed tires, drum units, ADF sensors, fuser assemblies, separator pads, slit glass, repair kits, power supplies, and toners (if we can be competitive in the toner market). Aquos LCD TVs We have no keywords that include the word “aquos.” AQUOS is the series name of Sharp LCD televisions – probably Sharp’s most marketed product line in the last decade. As previously mentioned, Sharp’s market share of the North America LCD televisions is approximately 10%. Adding Aquos keywords across all applicable TV ad groups is a no-brainer and we may want to account for possible misspellings given the unusual name. Insight Cooking Products Sharp makes an assortment of cooking appliances (microwave ovens, ranges, range hoods, standalone warming drawers, and unique cooktop+microwave drawers) that are sold under the Insight and Insight Pro series labels. Aside from microwaves and the relatively obscure drawer units, Sharp is not a strong player in the oven/range/cooktop market. Still, we have very few keywords for these products and none that incorporate the “insight” line. There is an opportunity for increased keyword coverage in this area. SharpVision Projectors It’s not apparent how many projector lamp sales Sharp has generated through AdWords, but the answer is very few – As best as I can glean, since the 5/4 Phase 2 reorg, there has been less than 5 total projector lamp sales generated from targeted keywords where the user has explicitly indicated they’re looking for a bulb or lamp. Sharp manufacturers both projection TVs (at least they have in the past) and home theater/multimedia projectors that require lamps. As a result, knowing the model categories isn’t obvious as many keywords are applicable to both categories. In any case, adding keywords that reference the “SharpVision” line of projection products can only help. A quick note about TV display technologies and their market share from a 2008 IEEE paper: “The Projection TV share is expected to be 1.3% for 2009, and it is expected to be 0.5% for 2010.” “…Flat-Panel TVs are expected to have 99% of the market share by 2010” “..the past king of TV display technologies, the CRT, is forecasted to have less than 1% market share by 2010.” 8
- 9. Air Conditioners Sharp is a small player in the US air conditioner market, but very much on the radar in this sizeable model category. Still, we have a paucity of air conditioner keywords (less than 10) and are missing some obvious ones like “sharp air conditioner parts.” Business Copiers, Printers, Scanners (?) I’m not sure how well PartStore fares in these competitive categories, but we have very few keywords for these products that Sharp most certainly sells. I would recommend adding keywords and keeping a close eye on conversion rates and ROI. The two conversions for fax-machines suggest there may be more movement in these categories than we’d suspect. Lowering Bids for Camcorders Sharp camcorders have been discontinued for 3 years and the ad group with general camcorder terms has not performed well. I would suggest lowering bids for such ad groups. General Recommendations Adding New Keywords I favor relying on the manufacturer’s website as the principal source to identify what model categories are being sold and then accordingly adding new ad groups and keywords (or enhancing existing ad groups with more keywords). The tricky part is knowing which model or part categories 1) we don’t have good data or vendor coverage for OR 2) are not competitive from an SEM standpoint. Vendor Relations should be able to assist us with both issues. Of course keywords that fall into these categories would be excluded from the new keyword upload. For Sharp – In addition to the main site (www.sharpusa.com) – there’s a link off the Sharp Direct site that shows categories for parts and accessories which will be helpful to reference against: http://www.sharp-cart.com/ecom/accessories.htm Deleting Non-Performing Ad Groups Keywords for certain model categories were probably created en masse and are not really relevant for the brands they currently exist within. At some point, ad groups that get no impressions and seem illogical should just be deleted. If for no other reason, irrelevant keywords slow down account reports in Ad Words and unnecessary ad groups clutter the online interface. 9
- 10. Air Conditioners Sharp is a small player in the US air conditioner market, but very much on the radar in this sizeable model category. Still, we have a paucity of air conditioner keywords (less than 10) and are missing some obvious ones like “sharp air conditioner parts.” Business Copiers, Printers, Scanners (?) I’m not sure how well PartStore fares in these competitive categories, but we have very few keywords for these products that Sharp most certainly sells. I would recommend adding keywords and keeping a close eye on conversion rates and ROI. The two conversions for fax-machines suggest there may be more movement in these categories than we’d suspect. Lowering Bids for Camcorders Sharp camcorders have been discontinued for 3 years and the ad group with general camcorder terms has not performed well. I would suggest lowering bids for such ad groups. General Recommendations Adding New Keywords I favor relying on the manufacturer’s website as the principal source to identify what model categories are being sold and then accordingly adding new ad groups and keywords (or enhancing existing ad groups with more keywords). The tricky part is knowing which model or part categories 1) we don’t have good data or vendor coverage for OR 2) are not competitive from an SEM standpoint. Vendor Relations should be able to assist us with both issues. Of course keywords that fall into these categories would be excluded from the new keyword upload. For Sharp – In addition to the main site (www.sharpusa.com) – there’s a link off the Sharp Direct site that shows categories for parts and accessories which will be helpful to reference against: http://www.sharp-cart.com/ecom/accessories.htm Deleting Non-Performing Ad Groups Keywords for certain model categories were probably created en masse and are not really relevant for the brands they currently exist within. At some point, ad groups that get no impressions and seem illogical should just be deleted. If for no other reason, irrelevant keywords slow down account reports in Ad Words and unnecessary ad groups clutter the online interface. 9