Online marketing can be profitable - very profitable. In a still immature marketplace, most companies can find and exploit a niche in their sector. But it's also a business that has spawned hundreds of new terms. SEM. SEO. PPC. CPC. QS. CPA. CPM. BPF. CPS. SERPS. CTR. EPC. Alt Tags. PFI. PPI. CPL. The terminology is confusing - even for those of us in the online marketing business - and so are the options available to advertisers.
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That's why many companies turn to a specialist Search Engine Marketing company for help. However, it's a rapidly growing industry and it's attracting a lot of money. The amount of money flowing in attracts both the practitioners and the chancers. So how do you choose and how can you tell the cowboys from the craftsmen?
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Here are five tell-tale signs that you should look out for when selecting a paid search partner. There are many more, but if they can't provide you with satisfactory answers to these simple questions, the alarm bells should be ringing.
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1. Outsourcing - does the agency do all it's campaign development, copywriting and management in the UK? Outsourcing is not bad in and of itself, but agencies don't like to tell you they are doing it because they are loath to pass on the savings they make to you. NB Look out for the use of terms like "strategic partnership" - this is often a sneaky way of saying they outsource!
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2. DPA - an acronym you do need to know about. Incredibly our research shows that a significant proportion of even the largest online marketing agencies are not registered with the Data Protection Registrar. Ask for their DPA number and see what happens. You might like to remind them that it's a criminal offence to hold data electronically without being registered!
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3. BPF - this is Best Practice Funding - in effect it's a commission that Google pays to agencies. Has the agency you are talking to/using mentioned this to you? Did they make it clear they could be getting as much as 15% BPF from Google on your paid search expenditure?
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4. BPF TTFN - having mentioned it above, Google are scrapping BPF in January. Ask any agency you are considering what effect this will have on their fees. Will they carry on as they are or will they be increasing your fees to cover the reduction in their income? Ask now so you aren't surprised in Jan 09.
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5. What's mine is yours - one of our maxims is "plan for the end". No matter how well you get on with your agency, one day you will probably want to move on. Incredibly, despite paying fees for months or even years, some agencies will tell you that the campaign data is theirs. Some (even major agencies) will give you a list of your keywords but will not give you a copy of the entire account history. They WILL give you lots of excuses, but not the critical information that your new agency might need. Insist up front that if (when!) you move on, you will be transferring the account data as well.
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There's a little caveat to this point - ask the agency if they will be setting up a paid search account exclusively for you or will they be creating campaigns within their own Google account. A reputable agency will set your account up for you and you alone. Why might they not do this as a matter of course? Agencies get more BPF commission if they have the accounts in one place.
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Bulldoza Agency Matching helps companies find the right agency for their needs. We've focussed on spotting the signs that might indicate a paid search agency to avoid, but of course the biggest issue is finding the right agency for your needs with the right fit and approach. If you are looking for a Search Engine Marketing company then we'd be happy to help.
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The pointers above relate to paid search agencies only. There are companies that will help you with buying ads on search engines. The tips are less directly relevant to companies offering Search Engine Optimisation. But beware - there is even more "smoke & mirrors" in SEO than paid search!
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To find out more about Bulldoza or to see how we could help you find the right agency for your needs, please feel free to get in touch using the contact form.

