Two Weeks Until Winter Break?

Wow, time flies when you’re having fun.  I’m sure many of my fellow TEMBA 2012ers are feeling the same thing, where did this semester go?  After two mid-terms, a management project, a looming statistics project, and several debates on British Candies, I’m sure we are all excited about the much needed break (although we still have work).  I thought I would share what I have learned so far in the TEMBA program. (For those who are unfamiliar with TEMBA, it is the Texas Evening MBA Program at McCombs)

1.  What’s the best management decision?  It “depends”

2.  Bryan Dimery must have a frequent buyers card at the HEB Bakery

3.  There must be a giant warehouse somewhere at UT that has stockpiles of those hideous clear British mints (another hypothesis is that they self-replicate)

4.  It requires a team of 7 students to operate the projector in one of the AT&T Executive Classrooms

5.  You have a 500 MB download limit per week while on the UT system…. so no Usenetting in class

6.  I am still confused on Population 3 and/or Bobby’s Pile

7.  I am curious to see how many gold stars I have collected in Statistics, and how I can redeem these with Professor Sager

8.  TEMBA Professors, Faculty, and Staff are extremely accommodating and helpful

Overall, I had my doubts going into the program.  However, after the first semester I feel much more confident that it was the right choice.  The next 7 semesters should be quite interesting.

-Jeffrey Shih (shihzy@gmail.com)

Social Media ROI

One of the hotter topics facing many e-commerce businesses is having a quantified way of measuring the ROI of Social Media.  Many companies typically have some “soft” data, but usually can’t make the correlation between increased in sales/revenue/etc… and Social Media.  This is a particularly important subject for retailers, as many companies are adopting Social Media Marketing.  (See Table Below):

So how do we measure ROI for Social Media?  Well, if you are Best Buy or Dell, you can blast discount coupons all over your Twitter, then go on television and promote your Twitter account (which by the way, has worked VERY well).  But is that really Social Media Marketing?  I mean, the companies are using Twitter right?  To me, it appears to be just another “traditional” online marketing channel (over glorified email list).

Truthfully, companies are more concerned about how engaging with their customers through Facebook, Twitter, etc.. can really boost the bottom line.  Is it worth it to hire someone to sit at Facebook all day?  Maybe.  On one side, how meaningful is it to have a 1:1 ratio of employee to customer interaction?  On the other hand, hard numbers might not matter as much (or even a 1:1 ratio) if the general community/public PERCEIVES the company as socially engaging with the concerns and needs of customers.  Anyway you see it, not having a plan for using Social Media can be a seriously wasted opportunity (See Table Below).

-Jeffrey Shih (shihzy@gmail.com)

Dealing with the Unknown, the WONDERFUL World of Unemployment

Whether you have been fired, laid off, or completely sick of your job, being unemployed can be a daunting experience.  Your financial and career path fears are often more exaggerated during the entire process.  I have compiled a list of things to keep the mind and body motivated while not having the STRESSFUL (and sometimes monotonous) routine of a 9-5 job:

1.  Exercise – this helps keep your energy and spirits up.

2.  Read – find things you enjoy to do or are of interest.

3.  Sleep Regularly – don’t get in the habit of oversleeping, a fresh mind is a healthy mind.

4.  Do Something Constructive – whether its writing a business plan, learning to play an instrument, or picking up a new skill, its important to continue learning.

5.  Build Up Relationships – improve relationship with loved ones, friends, or colleagues.  Money and work are not the most important things in life.

6.  Eat Healthy – forget about going out to eat.  Spend this time to cook for yourself and you might learn some new recipes.

7.  Do Things That Make You Happy – probably the most important concept.  Find things that you did not have time to do while you were working and expand on it.

8.  Start a Business – there is an old saying, opportunity comes during times of crisis.  Even though it would appear that starting a business in this economic climate would be completely illogical, some of the greatest companies in the world starting during times of great uncertainty (FedEx, HP, GE, CNN, etc..).  Just because Venture Capitalist opportunities might not be out there, this doesn’t mean you can’t TRY to start a business.

In essence, not having a job can be a rather pleasant experience.  The possibilities of new opportunities and experiences are endless.   Always remember, have a positive attitude and enjoy the time off before getting back into the trenches!

-Jeffrey Shih (shihzy@gmail.com)

Optimizing Ad Rotation for CPC Campaigns Only Good for Google

After a recent discussion about Optimizing Ad Rotation on Google with a colleague in Austin (moseschang.com),  I came to the realization that Google doesn’t take into account conversion rates or conversions as a metric when “optimizing” ad rotation weights.  Since Google only makes money from the number of clicks going to your ad, it would make sense for Google to “optimize” the ads with the best clicks and CTR, not taking into account the primary goal of most companies, which are conversions (although CPM campaigns have fundamentally different merits and goals).

The topic was brought up when I discovered that certain ads, which had better conversion rates but lower CTR, were weighted less in Google’s Search Ads.  Here is a way you can get better data and performance on your ads:

1.  Rotate the Ads Evenly

2.  Set a certain time metric (1 month, 1 Quarter, etc..) to run the ads

3.  After this time, gather the data on each ad (CTR, Impressions, Conversions, Cost Per Conversion, etc..).

4.  Develop a comfortable index (using the data) to compare your ads relative to each other (simple ex.  Index = (Conversions * Conversion Values) – (Clicks * Cost per Click))

*note:  not all companies have the same goals in campaigns, please keep this in mind

5.  Find which ads work better and which don’t

In this day and age, its easy to just let some massive “system” do things for you.  It’s clear that Google’s idea of “optimization” and your company’s idea can be significantly different.  But as the fight for ad space gets more intense and competitive, its important to do proper research in order to make sure your audience is getting the correct message and your company is getting the right bang for the buck.

-Jeffrey Shih (shihzy@gmail.com)

Google Keyword Tool (Beta)

Google recently added a Keyword Tool functionality into all Adwords accounts.  To access this, click on any of your campaigns, then click on the Opportunities tab.  From there,  select Keyword Tool under Tools.  Searchengineland has a screenshot of this here.  Although this is similar to other SEM tools that broaden your keyword searches, having it integrated into your Google Adwords accounts makes it very convenient.  You may be surprised to find out new search phrase markets previously undiscovered!

-Jeffrey Shih (shihzy@gmail.com)