Pro Marketer, Carl Brabander, on the state of SEM in Canada

The IAB says that the average percentage of spend for a Canadian company on Search Engine Marketing (SEM) activities accounts for around 33% of their online marketing budget, while a recent report from Emarketer shows that the USA is around 44% and the UK is well over 55%. I recently spoke with Pro Marketer, Carl Brabander (see BIO below), about why he thinks this is?

The Brits vs. the North Americans:

It's cultural. The British marketers are more scientific than their North American counterparts. While we're busy letting our agencies talk us into rich media and flash animations, the Brits are looking at the numbers and making tactical decisions based on predictive modelling and ROI calculations.

Companies that have crunched the numbers and looked at SEM vs. other Online Channels are shifting more into SEM, simply because it is more profitable. There are great tools out there for tracking and optimising paid search campaigns, but companies that rely on a traditional agency to book their online media probably don't have the information or tool they need to make that decision, and the client then gets sold on the idea of spending big bucks to "build the brand" on the web, just like they do offline.

Of course a strong brand is essential to your success on the web - and the proof is that for the big guys like Citibank or Fairmont Hotels, their company names probably drive more search traffic for them than generic terms like "mortgage rates" or "Hotel Montreal Deal". But these guys use TV and print to build demand for their brands, and that's the hard part. Paid Search or SEM is relatively easy and cost-effective if it is used to havest the demand.

The Canadians vs. the Americans:

The difference here has to do with the cost of media in our countries. Canadian banner real estate has always been more expensive. On the other hand, more competitors bidding for keywords in the USA are driving up the cost of Paid Search Results. So, for the exact same media plan, a Canadian Marketer will spend relatively more on Banner Ads and less on SEM efforts as keyword buys are relatively cheap and will ultimately eat-up a smaller portion of the overall budget.

About Carl Brabander (The Bio)

Carl is a professional marketing strategist with a decade of internet, mass, and direct marketing experience. He is currently embedded in the insurance industry, driving campaign strategy and website architecture for a Canadian market leader. In his spare time, Carl plays in a band, squanders money on Ebay impulse purchases, and blogs under a fake name in an effort to overthrow a corrupt small-town mayor.

PTO Today has a strong Partner Value Proposition

I recently spoke with John Driscoll, VP Sales & Business Development for PTO Today. John was kind enough to answer some questions regarding their Partnership Marketing programs and the PTO Today Value Proposition. Here is what he had to say.....

1. When looking to partner with another brand, what criterion must they hold for you to be willing to team up with them?

By virtue of the audience we reach (moms/families with K-8 children) we inherently attract "family friendly" brands. The primary litmus test we use when deciding to partner with someone is whether the brand is a good fit for the program we are seeking a sponsor for. Even before that we make sure any programs we develop are compelling for our audience. That means something like a Family Movie Night at a school (sponsored by Hollywood Video) versus say a "Family Allergy Night". I use that example because we actually had an allergy product brand come to us with a lot of money looking to do something like that. It's not so much "ethics" that prevent us from doing things like that as it is that we want our audience to say "everything that has ever come from PTO Today makes sense for us and has been a great program". That way our audience remains receptive to our offerings and it obviously works better for the client as well.

2. Why would a brand want to partner with PTO?

Probably the primary reason companies seek out partnerships with us is that it allows them to reach a very targeted audience in a unique way, with the added value of an implied endorsement from the school. They are looking to leverage our connection to school parent groups (PTO & PTA groups) as an efficient and effective conduit for reaching families of school-aged children. In addition there are several "in-school" marketing companies that reach kids/families by offering free curriculum materials to teachers. There has been some criticism that this is an "intrusion into the classroom". Our programs and offering take place outside of curriculum time - as for example with our School Family Nights program, as well as our Back2School 2007 program.

3. What are PTO’s partnership objectives? (i.e., awareness, revenue, added value for members, etc….)

Yes they are twofold. Its very much a growing part of our business model and its a key part of our revenue growth. At the same time we are fortunate that the programs we've developed our typically free to our audience and programs that they respond very favorably to, so it helps us build a stronger and deeper connection which in turn allows us to deliver more for our sponsor clients. It's very much a circular dynamic in terms of having sponsored programs which in turn strengthens our relationship to our groups, thus allowing us to do even more for clients moving forward.

4. Are there any specific brands that you would like to partner with?

I would say that any family focused brand can be a good partner for us. A good example of a perfect fit for us is Leapfrog Enterprises. They are a leader in children's educational toys/software. Because we connect with parents who are highly involved in their child's education we deliver the perfect audience for them. Conversely their product offerings are relevant and of great interest to our audience. The one area where I think we could serve both our audience and the client well that we'd like to explore some more is the technology arena. I really think we could do some interesting things for someone like Microsoft or HP, or Dell.

Execution, Execution, Execution....

You can agree on a Marketing Partnership deal, but if both parties do not do what they said they would do, then I guarantee you that it will not work. When speaking about Marketing Partnerships, I am often asked what can be done to ensure that everyone complies with the pre-agreed effort and here is what I usually say:

1. Ensure that you have communicated clear obligations for both brands.
2. Ensure that costs related to those aforementioned obligations are clearly calculated in advance, so that there are not surprises.
3. Be sure to designate the appropriate human resource staff to carry out all obligations.
4. Be aware of the expected performance when launching and monitor success levels.
5. Communicate with your partner Brand regularly to ensure compliance
6. Refer to the 'what do we do if this isn't working' section of your partner agreement, should you run in to issues...

Marketing Partnerships are strategic affiliations between brands, but still require the same level of execution that any direct campaign requires. With clear obligations and responsibilities along with the resources required to do the job ready to go....you can increase your chances 0f making it work by ten-fold....