The Algorithmic Solution for Search Marketing Optimization

Efficient Frontier – Resources

The highly complex search marketing industry presents challenges to the marketer that demand sophisticated solutions. The search engine marketplace can adopt solutions similar to those that revolutionized financial markets. Just as the algorithmic approach of modern portfolio theory revolutionized financial investing, PageRank and the search engines’ subsequent algorithms revolutionized the searcher experience and search engine marketplaces. Thus, applying portfolio algorithms to keyword marketplaces is the only logical effective approach that can fully navigate the search space to ensure maximum return.

Figure 3: Portfolio Theory Applied to Search Engine Marketing
Portfolio Theory Applied to Search Engine Marketing 
The triangles on the chart represent possible portfolio allocations.

Treemaps can be applied to your search campaign. In the fictitious example used here, the smallest rectangles represent individual keywords, and the size of the rectangles indicates spend. The keywords are grouped by campaign, and finally by search engine. The color indicates ROI, with red representing poor ROI, and purple representing positive ROI. The shade of the color indicates how negative or positive the ROI is, with white representing average ROI. You could also use revenue, CPA, impressions, CTR, CPC, or any other metric to size or color your rectangles.

Search Tree Map

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