Posts Tagged ‘Response Rate’

Taguchi Method: The Key In Ad Optimization?

Saturday, October 31st, 2009

For people who are looking for the secrets on how to master ad optimization, your prayers have been answered. With the help of Taguchi method your ad can land 10 or more times on the results pages. There is no doubt that you have probably heard of people trying to conquer Google Adwords by testing different ads that get a better click-through rate, since doing so can reduce costs considerably. Now the Taguchi method raises this kind of testing a couple of notch higher.

Just what is the Taguchi Method? The Taguchi method is actually a technique use for designing experiments that converge on an ideal product solution. It was developed in the late 1940s by a Japanese inventor named Dr. Genichi Taguchi, who was then working as an engineer at NTT (a Japanese phone company). The method has been used in designing cars and computers. So if you were wondering why the quality of Japanese cars is so high, that is all due to Taguchi.

Now you are probably wondering how this kind of method became associated with advertising. Well, the credit for that would have to go to James Kowalick who introduces the use of the Taguchi Method to significantly increase the response rate for ad campaigns.

The basic idea of the Taguchi method is to test as many variables as possible all at once. Now if you applied that in ad optimization, instead of testing two web pages (each with a different headline), you can test 40 different versions of the page, like different headlines, different graphics, different forms, including a testimonial or not, shifting the order of copy, whatever you can think of.

Then the system applied some complicated mathematical technique to determine which factors contribute the most to your goal. Then you can immediately look at all the factors and easily make your optimized page. Compare to the old ways that is easy as breeze.

Before what marketers use is the simple A/B split testing, which is very different. What you do here is make two pages, each with a different headline, and do a test to find the winner. After which you then make two different pages where you change something else, and then you find a winner from that. So by the time you have tested all 40 elements, you would have spent a lot of money and time in testing alone!

If you are still unconvinced as to whether or not the Taguchi method is indeed acceptable to use in ad optimization then take a look at the web. A quick search on the net will show you just how many people are using this method in order to improve their rankings. If that is not proof enough and notice how many optimization software that are based on the Taguchi method are being sold online. There is a very high demand for them. So, if people are willing to pay for it then it must be truly worth it.

But you do not have to spend money. You yourself could see the difference whether or not this method will work on your ad. Another way to take advantage of the Taguchi method in order to improve your ad is to apply it in Adwords. Just imagine, if you could test for one keyword, all the combinations that could get your ad the best response and optimize it dynamically, that would make your site pretty hot!

The big question is, can Taguchi help me optimize automatically to get the best Adwords ads out there? Well, the answer is yes. The interview the profit doctors did with the guy who talked about the “Taguchi method” of multi-testing many variables at once, instead of simple a/b split testing, got me interested in looking to see if there were any resources that cost less than $150,000 per test.

Success stories regarding the use of the Taguchi method in advertising abounded the net. One of the common examples cited is at the SES convention there was a company that conducted tests like this for companies such as http://ask.com and eBay, for about $30,000 per test. It was obvious that they were using the Taguchi method for this. They have refined their materials and are now providing programs for ad agencies. Admittedly, their system is now very sophisticated and of course very expensive.

Another company that does this for fortune 500 companies has clients like Colombia house, Accenture, Wal mart, Timberland, Monster, Zales, sharper image, and other big name companies. So, there is no need to say that this is a good service to use for ourselves, and then possibly to offer to our clients for big bucks. You?ll see dozens of stories like this along with a couple of testimonials from people who claim to have conquered ad optimization by simply applying the Taguchi method.

For years the Taguchi method had been successfully used for a lot of other things. For instance in manufacturing, if you want to test a whole bunch of different factors of design of a piston or engine, for example, something to get optimum results. The Taguchi method is use, so why not use it to optimize your ads?

Today, there are a lot of ad optimization programs that use the Taguchi method. All of them are easily accessible over the Internet, with their prices varying from cheap to exorbitant. For example, if you are good in math and can handle a program with kind of an arcane interface for just 2000 bucks you can buy a program that runs on your desktop. You can also get an academic version for 99 bucks.

But the bottom line is this. If you are trying to increase your profits and at the same time reduce your costs with the help of your online marketing campaign, you need to use “taguchi thinking” in order to get the results that you want.

Just how many times have you heard the old clinch, “If you are not testing you are wasting time and money.” Keep in mind that underneath all of the traffic generation techniques and the newest promotional methods, testing is still fundamental.

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Responsive Email Is A Key To Successful Email Marketing

Wednesday, October 28th, 2009

Creating and sending a promotional email letter that receives the maximum response rate is at the heart of any successful online business. But what is a ?responsive email?? How do you compose it? There are a few principles a responsive email letter is based on. If you follow them, you?ll never be at disadvantage:

The Subject line. The subject line is a presentation of your message. I would even say that it is the subject line determines whether the recipient will open your message or not. If you send a commercial letter, your main purpose is to have the recipient open your message. So, the subject line must to intrigue and rouse the people?s curiosity. Put some ?tease? in your subject but do not reveal what your message is about completely. Teases should speak to the offer that the recipient is going to find inside the letter ? but not too much ? make them open it to find out for sure. A good tease may sound like: ?Discover the new technique how to??, or ?The amazing inside secrets??, or ?Download the new improved version of? ? etc.

The salutation. Yes, a personalized message beginning with ?Dear John,? is better. It looks more professional and makes a feel that you care about every prospect individually. A personalized message helps build credibility in relationship between you and your prospects. That?s why on your opt-in form you should ask your subscribers to provide their first name together with the email address.

The message body. We?ll examine two aspects here: content ? what your message is about and presentation ? in what manner you present the information.

Message content. This is where people often get confused. What to tell to the readers so they would want to buy from you? Tell them about the benefits of your product. Remember that people don?t care about you personally or your organization, they do want to know how they can benefit from your offer, how your offer can solve their problems or make their lives easier. That?s what they need.

A great idea that always works for your is a free bonus or special offer. You should give them something for free in addition to their purchase.

Typical offers may include:

? Special Reports - you are simply promising them an instant access to some free content after their purchase.

? Software Trials - if you are developing and promoting your own software programs, you could promise a free trial of the new version of your software, or an other software in the form of a download.

? Discounts- you can offer discounts on particular goods when they become available, and the only way to gain access to these discounts is by purchasing your product.

? Email mini-course - you can also offer people an email mini-course that will teach them something specific about their market, and will then allow you continue communicating with them in the future.

? E-books ? if you sell an e-book, you could offer it for free to your subscribers who purchase your product.

? Tips and News ? similar to the email mini-course. You are just promising to send them regular emails with useful content that helps make their lives easier.

Always end the body of the letter with clear instructions what action you want the reader to take. There must not be any ambiguity. The reader must exactly know what you want him to do now.

But don?t stop there. Add a ?P.S.? and ?P.P.S.? that persuade the reader to buy from you, repeat the offer and call-to-action.
Text presentation. You may have a lot to say about your product benefits and your offer. But the trick is to say it in a way that is easy to read, and clearly lays out the main aspects. People are busy and they don?t have much time to spend on one email. Keep in mind that people don?t read the message, they scan it. So, you have to structure your letter in a manner that all important information grabs the reader?s attention.

Don?t write in long sentences. Separate the text in paragraphs with 4-5 sentences in each paragraph. Use bullets to represent your offer benefits. Use underlining, bold and italics as ways to call attention to important elements but do it wisely.

The closing. It should always be done by the most senior person in your organization ? preferably someone with a title. This is about credibility.

You should always remember that you can create several email messages and test one email approach versus another. Simply divide your list in two groups, and send the version A to one half, and the version B to the other. Then compare the results. What version is more responsive and what is not. You can then use the more successful version of you email letter for future communication with your prospects.

Take care of these aspects and your email marketing efforts will be rewarded!

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