Commentary

Full-Circle Testing

Carat Fusion has come up with a way to test online offers quickly and inexpensively. David Roth, director of search engine marketing at the agency, refers to it as "the tail wagging the dog." Carat uses "paid search to refine our offers for other [online media], which then generate the demand that search catches and converts into a sale," Roth says, adding, "It comes full circle, starting and ending with search."

Carat began using the method in late 2005, when a consumer electronics client was trying to come up with the right offer. "They wanted to know, 'Should we do free shipping? Rebates? Savings? What kinds of messages are going to resonate with consumers?' So our group said, 'We think we can tell you which offer will work best,'" Roth recalls.

Using already booked paid search space, Carat tested rebates and instant savings offers against a control, obtaining results in a matter of days for practically no cost. Adds Roth: "We did the test, evaluated the results, and turned around to the rest of the online media team and said, 'Here's your best offer.'"

The winning offer ran in display ads, in e-mail marketing, and on the landing page. The results were "better than what we were used to seeing in search results," Roth says.

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