How can you drive conversions for an unknown product using listing ads?

In #5, we spoke with Reina Toyoizumi and Ryota Watanabe of Nextedge Dentsu Inc. about the basics and evolution of "search-linked advertising." This time, they delve into specific examples, including techniques for increasing click-through rates, and discuss actual operational scenarios.

*Nextedge Dentsu Inc. became "Dentsu Digital Inc." on July 1, 2016.

Incorporating specific words into ad copy attracts users

――Last time, we discussed approaches to keywords that get clicked. Now, let's talk about the ad copy displayed after a search. How is ad copy created?

Toyoizumi: For example, Google has character limits like 15 to 38 characters, so we create copy within those constraints. Dentsu Inc. has many copywriters, so we can leverage their expertise when needed—that's a real strength.

Watanabe: It's true that ad copy created by copywriters often achieves higher click-through rates. This is effective when focusing on a single product, like a new release. However, in industries with millions or tens of millions of products, it's impossible for copywriters to handle each one individually.

In such cases, we prioritize speed above all else. For example, with e-commerce companies handling large product volumes, using automated keyword insertion tools to generate ad copy—even if the Japanese phrasing isn't perfectly precise—can sometimes result in a higher overall CTR.

――Search results pages typically display around 10 to 15 paid search ads, alongside relevant information in the organic search results. Are there techniques to make users actually read the ad copy?

Toyoizumi: There are techniques to make users think "This seems to match my search purpose, or at least it looks like it." The key is to highlight specific benefits about the product or service that capture user interest, such as price, the number of items available, or proven results.

While many clients emphasize price or product range with claims like "lowest price" or "largest selection" to differentiate from competitors, being more specific—such as "Starting at ¥3,000, over 400 products"—can better attract users actively searching for specific items.

Watanabe: It's often mistakenly believed that ad copy quality is solely determined by click-through rate, but conversion rate is also crucial. Since pay-per-click ads charge per click, broad search keywords can be inefficient unless clicks are targeted only to users highly compatible with the promoted product. In such cases, ad copy that is more specific and uniquely compelling becomes vital.

Combine organic search via SEO with paid search ads to capture market share

――Paid search ads are labeled as "Ads," but some users might simply avoid clicking them altogether.

Watanabe: That's true; some users only look at organic search results. However, many users also scroll down through the results.

Toyoizumi: When someone wants to buy something immediately, they might deliberately click an ad slot. That said, as you pointed out, data shows that higher-ranking organic search results also have higher click-through rates. Therefore, when proposing paid search ads to clients, we simultaneously implement SEO measures, aiming to capture market share through a combination of ads and organic search. If necessary, we may also propose creating landing pages.

Watanabe: For landing pages, the key is how well you present information that matches what the searcher is looking for. We optimize elements like the copy displayed, product information, button colors, sizes, and positions based on the target audience's age and gender. Creating landing pages requires more time and cost than crafting text copy for search ads, demanding stronger analytical and hypothesis-building skills. At Nextedge Dentsu Inc., our specialized landing page optimization consultants sometimes support analysis and test design.

――Could you share a successful case where SEM, including search ads, actually drove conversions?

Watanabe: Earlier, I mentioned that conversion rates on e-commerce sites differ slightly between desktop and smartphone users. For example, users accessing via smartphone around 8 AM or 5 PM—perhaps during commute times—tend to have lower conversion rates. Conversely, users accessing via desktop between 12 PM and 2 PM—likely during break times—show higher conversion rates.

Search ads operate on a bidding system. By bidding higher CPCs during peak sales hours and securing more top-position ad placements, you can maximize revenue. Ideally, bids should be adjusted hourly by device type to match these fluctuations. However, no such system existed until now. Therefore, Nextedge Dentsu Inc. developed an original tool that adjusts bid prices hourly by device. By implementing hourly bid adjustments even during late nights and holidays, overall conversions increased by 30%, and mobile conversions quadrupled compared to pre-implementation levels.

Optimizing bid prices and creatives across various conditions leads to infinitely complex rules, eventually limiting manual operations. That's precisely why leveraging technology overcomes these limitations and fundamentally improves advertising effectiveness. This became a proven model case.

Optimizing Landing Pages to Drive Conversions for Low-Awareness Products

Toyoizumi: For product categories or brands that lack name recognition, we need to be strategic about keyword selection. Let me share a successful case study where we solved this challenge.

We promoted a new product for a certain PC manufacturer, but the product category itself was not yet established. In fact, the keywords representing the product category were the names of competing products released by leading manufacturers. To put it simply, it was like the early days of smartphones when "smartphone" meant "iPhone."

In such cases, no matter how many keywords derived from your own product name or category you register, search volume remains low. Conversely, competitor product names get searched frequently. However, even if you run listing ads using those keywords, the client's landing page often lacks the information users are seeking. Ultimately, getting users to purchase the client's product seemed difficult.

Therefore, we launched a third-party comparison site that contrasted the competitor's product with our own. By directing traffic from competitor product keywords to this comparison site, we aimed to help users understand our product as well. While this might seem like creating a landing page, it was actually a more advanced strategy.

Watanabe: The major impact gained from creating a comparison site is the ability to capture user behavior. It might not directly lead to conversions, and the results obtained as a listing ad itself might be small. However, using the data gained from it as marketing data could potentially trigger a review of the entire sales strategy.

With current listing ads, we can capture various data beyond just clicks and acquisitions. Therefore, we feel it's essential not only to optimize acquisitions and efficiency but also to develop the capability to leverage this data to understand the entire business and take new initiatives.

Leveraging technology to keywordize vast amounts of data

――The examples so far have mainly been B2C. Can PPC ads also be effective in B2B?

Toyoizumi: Absolutely. Here's an example where search ads contributed to business growth: a company dealing in screws. Our approach was straightforward—we added keywords like product model numbers and groove widths. Since searchers are professionals, they look for specific screws precisely, searching using detailed information like model numbers and groove widths.

Watanabe: Just registering them might sound simple. The problem was the sheer volume of product data the client had—5 quadrillion entries. That's one order of magnitude above a trillion. That's where our specialized data processing team really proved their worth. Specifically, they aggregated and analyzed data like product names and specifications, transforming it into usable search keyword data. This process took a full year. In some cases, it might have been deemed impossible, but thanks to Nextedge Dentsu Inc.'s specialized team handling the data processing, we could effectively utilize search ads. As a result, it became a growth engine for the client's business.

――Finally, could you share some know-how for effectively utilizing search ads?

Watanabe: Nowadays, few clients run only search ads. While requests to "improve search ad CPA" are common, improving it solely through search ads is rare. Fundamentally, it's best to take a holistic approach: determine how much of the advertising budget to allocate to search ads, how to coordinate with other ads and multiple devices, and how to leverage the acquired data for marketing.

Toyoizumi: The ideal is to create your own search keywords. For example, if a client's product is "organic cosmetics," use mass advertising or online word-of-mouth to rephrase "additive-free cosmetics" into something else. That way, competitors won't target that keyword, giving you near-monopoly status. Achieving that would be impressive.

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Contact: Nextedge Dentsu Inc. info@nxtg.dentsu.co.jp