For people that are always probing the secrets to Google Adwords, testing different ads that get a better clickthrough rate, so that you can reduce your costs, is an ongoing game.
Taguchi gives a new level of this testing.
For those not familiar with the Taguchi method, the basic idea is that instead of simple split testing, you can test many variables at once. So instead of testing two web pages, each with a different headline, you can test 40 different versions of the page, like different headlines, different graphics, different forms, including a testimonial or not, shifting the order of copy, whatever you can think of.
What the system does then is uses some complicated math to figure out which factors contribute the most to your desired outcome, and you can then rapidly look at all the factors and make your optimized page.
The way marketers have been testing things for years, simple A/B split testing, is much different. You make two pages, each with a different headline, and do a test to find the winner.
Then you make two different pages where you change something else, and find a winner from that. By the time you have tested all 40 elements, you would have spent a lot of money and time in testing indeed!
One of my first thoughts when I started reading about this method was how it could be applied to Adwords. If you could test for one keyword, all the combinations that could get your ad the best response and optimize it dynamically, that would be pretty hot.
At the bottom of this article I'll give you a lot of interesting links I found so you can learn more about Taguchi and all the software that is available, and if you find something new I'd appreciate it if you drop me a line and let me know.
Now, for Adwords enthusiasts, the obvious question is, can Taguchi help me optimize automatically to get the best Adwords ads out there and destroy my competition? Well, the answer is a tentative yes
The interview the profit doctors did with the guy who talked about the "Taguchi method" of multi-testing many variables at once, instead of simple a/b split testing, got me interested in looking to see if there were any resources that cost less than $150,000 per test.
Actually at the SES convention there was a company called http://www.optimost.com/ , which did tests like this for companies like ask.com and ebay, for around $30,000 per test, and I am sure they are using the Taguchi method for this.
They have refined their stuff and have programs for ad agencies, and their system is very sophisticated, and very expensive.
There is another company that does this for fortune 500 companies called http://www.fortpoint.com/ that has clients like colombia house, accenture, wal mart, timberland, monster, Zales, sharper image, you get the idea.
Obviously this is a pretty cool service to use for ourselves, and then possibly to offer to our clients for big bucks.
I did a little searching and there is a guy who has actually made a software for $247 that uses this method, and he has a tutorial on how it works here:
http://www.splittestaccelerator.com and the demo at:
http://www.splittestaccelerator.com/STA_Demo/STA_Demo.html
The demo has some html code in it, but you could get the idea watching it how to set this up.
This one is the most user friendly, and uses my favorite technology, php/mysql. You install it on your website.
The Taguchi method can be used for a lot of other things besides marketing, like in manufacturing where you want to test a whole bunch of different factors of design of a piston or engine, for example, something to get optimum results.
If you are a math wizard, and can handle a program with kind of an arcane interface, for 2000 bucks you can buy this program that runs on your desktop, or get an academic version for 99 bucks.
http://nutek-us.com/wp-q4w.html#orderqt4 is where to go for that. It is a bit of an egghead solution.
Also of interest is this, http://convertmoretraffic.com/split-testing-software/, which requires you to have a membership where you keep paying each month.
So far, the $247 guy is my favorite.
Here's a bunch of other links to learn more if you are interested:
http://www.qualitytrainingportal.com
http://www.isixsigma.com/library/content/c020311a.asp
http://www.marketing-ideas.org/Taguchi-Method.php?PC=blogger-Taguchi-Method
www.Taguchinow.com
http://www.ee.iitb.ac.in/~apte/CV_PRA_Taguchi_INTRO.htm very eggheaded tutorial
www.design.caltech.edu/Research/Publications/90f.pdf
http://www.vertster.com this guy offers a system for 250 bucks a month
http://www.nysscpa.org/cpajournal/old/14903851.htm
http://www.sitespect.com/?OVRAW=Taguchi%20method&OVKEY=Taguchi&OVMTC=advanced These guys are similar to optimost- no prices probably means its pretty expensive
http://www.amazon.com/ mostly has books about the Taguchi method. Hopefully this taguchi amazon link willl get you there.
Even more:
http://www.chambal.com/csin/9780872634688
http://www.aicos.com/Courses/TaguE.html
http://www.isixsigma.com/forum/showthread.asp?messageID=31014
http://www.dnh.mv.net/ipusers/rm/loss.htm
http://www.eng.morgan.edu/~amalash/R-DES.html
http://www.loc.gov/catdir/toc/wiley041/2004011335.html
http://ntrs.nasa.gov/archive/nasa/casi.ntrs.nasa.gov/19940012609_1994012609.pdf
If you find some more interesting links, or better yet, some php/mysql software we can all use, please send them to me and I'll include them in future versions of this article.
Steve Blom is one of the founders of In Touch Media Group (ITOU), a publicly traded company. For free adwords tips, tutorials and online videos, visit http://www.adwordstraining.org