SEM for real estate businesses allows for campaign optimization, increased leads and higher revenue. Segmentation strategies vary by campaign. A lot of professionals recommend segmenting keywords that have more than a thousand searches a month, while others have their own segmentation strategies.
Decision trees play a major role in how segmentation takes place based on performance deltas.
What are Performance Deltas?
SEM benchmarks often talk about “deltas.” If a decision tree is used for segmentation, deltas will be a key part of the decision-making process. Deltas are a form of internal benchmarking that use division to find the difference in performance between keywords.
If a performance delta is not large enough, making a change to the campaign may not make a measurable difference.
Segmentation can take several paths, but four main branches need to be considered in the segmentation process:
Your campaign has a budget, and deciding how to divide your budget is key to optimizing campaigns. In the performance path, your budget is based on how well a certain keyword is performing.
An optimized, properly segmented campaign will be able to maximize dollars spent to increase ROI.
The performance path is often broken down into three performance thresholds:
- 30%+ delta puts the lead down the customer path
- 10% – 30% delta puts the lead into the messaging path
- Less than 10% delta should remain “as is” since the difference is not large enough
The customer path determines if a campaign is targeting new or existing customers. “Remarketing” and “Customer Match” allow for a campaign to easily determine if a person is an existing or new customer.
New customers may have been exposed to your brand before, and they can often be put in their own regional segments where you can generate higher click-through-rates. A region may have been exposed to your brand, or there may be little competition, so your campaign may perform exceptionally well in the region.
Isolating these potential customers and providing custom landing pages can help increase conversions even more.
Existing customers may need a different message to help bring them back to your business.
SEM for real estate can have a short lifecycle for customers. For example, you may offer real estate investment options and find that after a year, an existing customer may have little-to-no chance of returning.
Segmenting and not advertising to these individuals may be an option. You may also find that an existing customer is more likely to make a purchase, so you may put them on their own messaging path.
Different audiences often need different messages to turn them into customers. Messages may differ by keyword or audience. If you find that the message will change, segmentation will allow for the right messages to reach the right consumers.
Messages may change by region. If a region has little competition, you may have a different message that focuses’ on customer pain points rather than savings over the competition.
Region-specific messages can increase click-through-rate by 25%.
Messages start to get complicated when targeting a lot of regions. The message for one region or city can be drastically different compared to other regions. Small tweaks by region may be worthwhile, or the delta may be too low and the same message may be used for multiple regions.
SEM managers use decision trees to optimize campaigns, but when audience segments grow too large, decision trees can make a manager’s life very difficult. Smart bidding requires a manager to have enough data available to make decisions. If a manager doesn’t have enough data available, decision trees may not be the best use of time for campaign optimization.
If a segment is too small and an active bid will not lead to 15 conversions in a month, the segment may not need to be broken out. After making the decision to segment an audience, the initial time investment will lead to a campaign that is highly optimized and easier to manage afterward.
Contact us to discuss how we incorporate SEM for real estate businesses to generate more leads and increase revenue using these same segmentation practices.