How To Always Survive Algorithm Updates Using AI: The Ultimate Search Engineer’s Guide via @sejournal, @mktbrew

If you’ve ever felt like you’re on a rollercoaster ride with Google’s ever-changing algorithms, you’re not alone.

Google’s Core Algorithm Updates are known for keeping you on your toes, and it’s become increasingly challenging to keep up – not to mention get ahead.

These algorithmic shifts have the power to make or break your website’s performance, so it’s crucial that you understand the specifics of each new update, its effects, and the right course of action.

But how do you stay on top of these search engine updates and optimize your SEO strategy for success?

How do you take advantage of each algorithm change and turn it into an opportunity to rank higher?

In this comprehensive guide, we’ll show you how.

How To Understand Each New Google Core Algorithm Update

Whenever Google rolls out a new update, you no doubt ask, “So, what changed this time?”

And as an SEO professional, your entire strategy rests on the answer to this question.

The impact of an algorithm update can be unpredictable – a change that benefits one website might harm another.

Therefore, it’s important to stay fully informed and continually adapt your SEO strategies to remain competitive.

The key to surviving Google’s constant algorithm shifts is understanding:

Make sure you’re analyzing official statements from Google and only consulting reputable industry resources for insights into the latest algorithm updates.

It’s also important to stick to data-based evidence. (For instance, a report measuring an increase in ranking correlation for a particular algorithm.)

These correlations can be used to uncover patterns that reveal which strategies are effective after the update.

But of course, the buck doesn’t stop at simply understanding each Google algorithm update – there’s much more involved in keeping your website’s rankings intact amidst the changes.

Let’s break down the essential steps needed for you to start mastering Google’s Core Algorithm Updates.

Step 1: Collect & Analyze Pre-Update Data

The data-collection stage helps to form the foundation for your analysis post-update – so the more data you have, the better you’ll understand the update’s effects.

As soon as you hear that a new algorithm is going to be released, you’ll want to start gathering data on your website’s landing pages, including:

  • Rankings.
  • Organic traffic.
  • Backlink profiles.
  • On-page elements.

You’ll also want to segment the pages into relevant groups based on content, keyword focus, or user intent.

Maintain Focus On Your SERP Competitors

But don’t forget about your competitors!

While focusing on your website is important, it’s also crucial to keep an eye on how your competitors are doing.

Be sure to collect data not only on the sites that rank above you but also those below you in the SERPs, as this information will help you identify trends and changes across the landscape.

It’s best to use a tool to help automate the data collection process and provide more comprehensive results.

Pro Tip: There’s a newer SEO technology that many of the more competitive digital marketing teams are using: the search engine model.

Use Search Engine Models To Enhance Your Strategy With Data-Driven Insights & Predictions

Search engine models allow you to define, create, and deploy statistical replicas of any search engine environment.

They’re basically a map that you can use to navigate Google’s algorithms.

These models essentially work by simulating the complex algorithms and ranking factors used by search engines to predict the order in which websites appear in search engine result pages (SERPs).

As one of the leading providers of search engine modeling technology, Market Brew has the advanced tools you need to predict ranking changes with each optimization you do.

Here’s how we recommend you use this technology to collect and analyze your data:

  1. Build 2-3 search engine models for each major area or template of your site. This will give you a representative sample of models that should give you guidance for all of the pages that use that same template. (When a company like Walmart uses Market Brew, they don’t create a million models. They focus on building guidance for each template, which means at a minimum 2-3 models for landing pages/ keywords that use that template.)
  2. Group the models logically into teams. For instance, the models that center around landing pages that use one particular template could be placed together in the same team, to ensure recommendations within a group are consistent, and will allow you to spot patterns that are specific to issues with that part of the site.
  3. By adding the search engine models now, your team will be tracking each competitor site’s history as well. Your team can even tap into Market Brew alerts to be notified when your competitors change their content/ link strategy. Every input and output of every modeled algorithm will be available to you now.

Get the full checklist and make sure your strategy stays on track.

Step 2: Monitor Post-Update Changes & Assess The Impact

To really know the effects of an algorithm change, you’ll need to monitor the rankings and organic traffic of your landing page groups after the update.

Don’t forget to also collect the data for each landing page that shows up in your SERPs – this way, you can sort the winners and losers when all is said and done.

If you’ve set up your search engine models, it’s important to regularly re-calibrate them (preferably every 90 days or so) to reflect the latest ranking changes.

Be sure to track and visualize the changes in weights for each modeled algorithm before and after the update.

Also look through your models to ensure that top-performing sites in these boosted algorithms continue to perform well in their respective SERPs, and sites that were doing poorly are now performing worse.

Conduct An Analysis Of How The Algorithm Update Affects Rankings

From here, you’ll want to conduct a statistical analysis:

  1. Analyze the relationship between ranking changes and each of your SEO software’s algorithms. Create a “fitness” equation that provides a prioritization of tasks based on your team’s objectives, like sorting by task ROI.
  2. Identify patterns and correlations that reveal which strategies are impacted by the update. Copy the winning patterns and remove or replace the losing patterns.
  3. Understand that there could be a confluence of algorithm changes that have caused issues with your landing pages, and not just one specific algorithm change.

Keep up with your progress with this checklist to keep you on task.

Step 3: Adapt Your SEO Strategies & Priorities For Success

So you’ve collected and analyzed your data – now, it’s time to take action.

Start adjusting your SEO strategies based on your statistical analysis from step 2, making sure to emphasize factors that show strong correlations with improved rankings.

Google Analytics 4: From How To Get Started To Pro Tracking via @sejournal, @CallRail

Universal Analytics is being sunset, and everyone is rushing to migrate from UA to Google Analytics 4 (GA4).

In this guide, we’ll help you migrate your custom events and walk you through how to set up GA4 custom events.

Types Of Events That GA4 Automatically Tracks By Default

Google Analytics 4 automatically tracks several events by default, without any additional configuration. Some of these events relevant to web property tracking include:

  • click.
  • file_download.
  • form_start.
  • form_submit.
  • page_view.
  • scroll.
  • session_start.
  • user_engagement.
  • video_complete.
  • video_progress.
  • video_start.
  • view_search_results.

It also collects the following parameters by default:

  • page_location.
  • page_referrer.
  • page_title.
  • screen_resolution.
  • language.

But in most cases, it is not enough for comprehensive tracking, and here is where custom event tracking comes into help.

Let’s look at how to set up custom event tracking in GA4.

How Does Google Analytics Event Tracking Work?

When you perform an action on a website or in the app, GA4 sends requests with detailed information about your activity, called events (formerly “hits” in Universal Analytics).

After receiving those requests, GA4 processes the submitted data, aggregating and organizing it to generate meaningful reports and insights.

How To Set up Custom Event Tracking Manually In GA4

First, I would like to share one of the most powerful sides of GA4: You can create custom events by using other events which meet certain criteria.

Navigate to Events in GA4 and click the Create Event blue button in the top right corner.

Create eventScreenshot from GA4, April 2023

In the popup dialog, click Create.

In the dialog, you can set criteria for when your new custom event should fire.

Here, we created a “newsletter_sign_up” event on the page_view event when the page_location parameter contains “newsletter-confirmation” in the URL (as you read above, GA4 tracks these by default).

Based on your newsletter thank you page URL specifics, it can be different.

Create custom eventScreenshot from GA4, April 2023

And what is even cooler: you can turn that event into a conversion and track sign-ups as conversions.

Pretty easy, isn’t it? This is one of the wonders GA4 brings with it; no coding skills are needed to make this magic happen.

You can use this feature in a bunch of different scenarios. But if you run into a situation where this is still not enough to meet your needs, you might need to set up events with custom parameters.

Below we will discuss advanced techniques for setting up custom events.

How To Set Up Custom Event Tracking With Custom Parameters In GA4

In Universal Analytics, there are four parameters for events you can track, and there is no option to add more parameters:

  • Event Category.
  • Event Action.
  • Event Label.
  • Event Value.

In GA4, there is no longer such a structure, but it comes with more flexibility, as you can define as many event parameters as you want.

The advantage is that you get highly customized event tracking with lots of data, but the downside is that it’s no longer a plug-in-and-play like UA.

Configuring custom event tracking in Google Analytics 4 (GA4) requires several steps.

In order to track events with custom parameters in GA4, you have to start by adding custom dimensions, and there are two ways of doing that: gtag and GTM-based.

First, we’ll discuss gtag-based implementation. If you prefer GTM-based, you can skip this first section and read that part below.

For implementation, follow the step-by-step guide below.

How To Add Custom Dimension In GA4

Navigate to Admin > Property > Custom definitions.

Custom definitions in GA4Screenshot from GA4, April 2023

Click the Create custom dimensions blue button and create an event-scoped custom dimension by entering the dimension name and event parameter.

Event scoped custom dimensionScreenshot from GA4, April 2023

For our guide, let’s start with custom events tracking analogical to Universal Analytics with custom parameters.

  • Event Category.
  • Event Action.
  • Event Label.

Suppose you want to track clicks on your main navigation menu.

In this case, you could set the Event Category to Menu Clicks, the Event Action to the anchor link, and the Event Label to the anchor text.

An example use case for this setup is to change the anchor text of menu items and track which ones attract more clicks, allowing you to optimize your navigation menu for better user engagement and conversion rates.

Per GA4 documentation, you should trigger a gtag event when one clicks on your menu items (we assume links are inside the

  • html tag, which have .menu-item class).  You can see the example code below.
  • The event name “menu_clicks” can be anything you want, and it will have three parameters you provide. This is one approach if you don’t have Google Tag Manager and prefer gtag implementation.

    You can use custom parameters to pass additional values to predefined events, for example, sign_up event. Per GA’s documentation, it supports only one parameter called “method” ( which can be anything, e.g., social login, email, etc. )

    gtag("event", "sign_up", {
    method: "Google"
    });

    By adding custom dimensions, you can also pass additional information such as sign-up subscription plan (for example, “free trial,” “basic,” “premium.”)

    You can add custom dimension”sign_up_plan” and pass along with “method.”

    gtag("event", "sign_up", {
    method: "Google",
    sign_up_plan: "basic",
    });

    To implement all these, you need basic JS programmer skills, which you can quickly learn by using ChatGPT. You can now test the prompt:

    JavaScript code that triggers a gtag custom event with the name ‘menu_clicks’ when a user clicks on a menu item with a parent li tag that has class ‘.menu-item’. Pass the following custom event parameters: ‘event_category’ should be set to ‘Menu Clicks’, ‘event_action’ should be set to the link of the clicked item, and ‘event_label’ should be set to the anchor text of the clicked item.

    Try this prompt, and you will see the magic happening.

    You can copy and paste that code into your CMS code editor, and voila!

    Now, let’s set up the same event tracking using the GTM tag.

    I assume you’ve already installed GA4 via Google Tag Manager and will proceed with the steps from there.

    You would need to add custom dimensions per the steps explained in the section above.

    How To Set Up Event Tracking In Google Tag Manager

    Create a new a new JavaScript variable in GTM that returns clicked anchor’s parent tag class name – because, in GTM, there is no built-in way to get parent DOM element attributes.

    Navigate to Variables > User-Defined Variables and click the New button on the top right corner. In the popup dialog, select Custom Javascript.

    Custom javascript variable in GTMScreenshot from GA4, April 2023

    Copy and paste this code into it.

    function() {
     'use strict';
     try {
           var clickElement = {{Click Element}}; // clickable element DOM object
           var clickParent = clickElement.closest('.menu-item'); //clickable element DOM object parent with class .menu-item
           if (!clickParent) return ''; 
           return clickParent.getAttribute('class'); // if element exist return class attribute
     } catch (err) {
           return '';
     }
    }
    Custom JavaScript variable which returns class name of parent tagScreenshot from GA4, April 2023

    This code returns the parent class attribute of a clicked element when there is a parent with class ‘.menu-item’, or it returns an empty value if there is no such parent element.

    We can use this to ensure that we only detect clicks on menu item links, not other links elsewhere on the page.

    Create a new trigger in GTM that fires on all clicks on elements with a parent

  • that has class of “menu-item”.
  • Navigate to Triggers and click the New button in the top right corner.

    From the popup dialog, select Click – Just Links.

    Add new click event GTM dialogScreenshot from GA4, April 2023
    Add new click event GTM dialog

    Choose Some Link Clicks > Configure it to fire on clicks where the parent element class contains the string “menu-item.”

    Some Link ClicksScreenshot from GA4, April 2023

    Navigate to Tags and add the GA4 Event tag.

    Choose tag typeScreenshot from GA4, April 2023

    Fill in as event name “main_menu_clicks” or whatever you want to name the event, and add custom parameters event_category, event_action, and event_label.

    GA4 - Menu ClickScreenshot from GA4, April 2023

    For event action and label, choose Click Text and Click URL build-in variables.

    Choose a serviceScreenshot from GA4, April 2023

    Choose the trigger of Menu Clicks we created before, and save the tag.

    Add triggerScreenshot from GA4, April 2023

    Publish changes and debug to ensure when you click on your menu items, the event is triggering with all parameters set correctly.

    GTM preview modeScreenshot from GA4, April 2023

    How To Implement Custom Event Tracking By Using dataLayer.push() Method

    If you still prefer custom coding and have GTM, you can use the datalayer.push() method.

    In that case, you would need to add event_category, event_action, and event_label parameters in GTM as dataLayer variables.

    GTM datalayer variableScreenshot from GA4, April 2023

    And on your website section, you should use the code below.

    How Do I Know If Google Analytics Event Tracking Is Working?

    It is also important to check if you see an event log with the same parameters in GA4 debug view. It may happen that GTM will fire, but because of misconfiguration, it will not be passed to GA4.

    GA4 debug viewScreenshot from GA4, April 2023

    In case you have gtag implementation, you should enable debug mode by installing the Chrome extension or by adding one line of code to your GA4 configuration.

    gtag('config', 'G-12345ABCDE', { 'debug_mode':true });

    Always debug and make sure that all custom parameters pass as expected.

    Conclusion

    GA4 is quite challenging and not a plug-and-play analytics tool like Universal Analytics; you need to spend a good amount of time learning it.

    On the other hand, it comes with plenty of new features you can use and enhance your analytics to an unprecedented level.

    By being able to customize the event tracking, you get a powerful skill that even can help you work around some of the attribution models that Google Analytics is sunsetting by tracking users’ first visit source in a custom dimension.

    With this in mind, I will be publishing a step-by-step guide on how to (partially) restore the first attribution model using custom event parameters.

    More resources:


    Featured Image: Andrey_Popov/Shutterstock

    How To Reduce Your Email Bounce Rate & Boost Email Marketing Campaigns via @sejournal, @zerobounce1

    When you’re reaching out to a mass email list with your business offering, the last thing you want is to see that your last email blast didn’t make it to the full audience you aimed for.

    These email bounces waste time and money. But that’s just the tip of the iceberg.

    A bounce rate higher than 2% can shatter your entire email marketing strategy by sabotaging your email deliverability.

    In fact, according to marketing standards, you want your bounce rate to be as close to 0% as possible and never more than 2%.

    See how many bounces your next campaign may get >>>

    The good news? You can take steps to avoid this common problem for good and calibrate your campaigns for better email deliverability.

    Read on to find out how bounces hurt your business and what you can do today to boost your email marketing success.

    What Is A Bounce Rate?

    Your bounce rate is the percentage of emails you send that bounce or do not make it to a recipient’s inbox.

    There are two types of bounces – hard bounces and soft bounces – and each has a different effect on your email marketing campaign.

    In both cases, however, your message won’t make it to the intended recipient.

    What Is A Hard Bounce?

    A hard bounce indicates a permanent issue with the email address.

    It’s invalid or possibly never existed.

    There’s no hope of your email getting through with that address, so make sure to remove it from your email list.

    What Is A Soft Bounce?

    A soft bounce happens when a temporary issue causes your email to not be delivered.

    The mailbox was full, your email was too large, or the domain was down. Your email provider will keep trying to deliver your message, but it may end up permanently bouncing.

    Make sure to remove permanent bounces from your database.

    What’s Wrong With Getting Email Bounces?

    Getting bounces is antithetical to email marketing because you’re sending your emails because you want a real person to open and read them.

    It’s frustrating and demoralizing when that doesn’t happen.

    • Bounces waste money. Email services charge based on the number of email addresses on your list, as well as how many emails you send. If you’re getting bounces, you’re pouring dollars down the drain.
    • Bounces waste time. Why would you put all of this work into your emails only to have them result in a pile of bounces?
    • Bounces affect your email deliverability. They send notice to Internet Service Providers (ISPs) that you’re likely a spammer and should be treated as such. Fewer people will see your emails because they’re now going to the junk folder.

    Is It Possible To Have A 0% Bounce Rate?

    Perfection is unattainable, but it is an ideal to strive for.

    You may want to achieve a 0% bounce rate. However, there are many factors out of your control:

    • A Full Mailbox: Your customer may have a valid email address, but their mailbox is full. This will result in a soft bounce.
    • Issues With Email Providers: The contacts on your list rely on other email providers, so you can’t dictate what happens on their end.
    • Glitches: You’ve likely witnessed an email that bounced for no discernible reason. Sometimes an unexplained phenomenon or glitch is to blame.

    Any of these may be the culprit for a bounce.

    They’re why the expected email marketing bounce rate benchmark is 2%, but it’s also why your target should be to reach perfection – 0%.

    The concept of “aim small, miss small” applies. If you shoot for 0%, you may get close.

    If you try to hit the benchmark, you may veer into the danger zone.

    How To Reduce Your Bounce Rate

    Now that you know the risks of a high bounce rate, let’s explore the most reliable ways to keep bounces at bay and help your emails reach the inbox.

    How To Reduce Your Email Bounce Rate & Boost Email Marketing CampaignsImage courtesy of ZeroBounce.Net, October 2023

    Step 1: Validate Your Email List

    You can remove invalid email addresses from your list once they bounce, but the damage is already done.

    To keep your email deliverability high, you want to avoid bounces in the first place – and the most effective way to do it is by using an email validator.

    An email validation service checks your email list for invalid email addresses so you can remove them before they cause harm.

    The process is easy and fast – on average, you can verify 100,000 contacts in less than an hour.

    Email databases decay at an average rate of 23% a year, so remember to validate your contacts at least once a quarter.

    How To Reduce Your Email Bounce Rate & Boost Email Marketing CampaignsImage courtesy of ZeroBounce.net, October 2023

    Step 2: Set Up An Email Validation API

    After you verify your entire email list, you can go a step further and prevent it from acquiring bad data with an email validation API.

    The API is your second layer of defense against bounces, working in real-time to protect the health of your email list.

    Once you connect the API to your sign-up and registration forms, it blocks invalid emails right at the point of capture.

    For instance, if someone mistypes an email, it prompts them with a message asking them to enter the right address. Aside from that, a trustworthy email validation API blocks bots and fake sign-ups, thus protecting your email deliverability.

    Step 3: Remove Unengaged Subscribers From Your Email List

    Building an email list takes effort, so many companies want to hold on to the email contacts they gather.

    The bigger your list, the higher the ROI is the common mindset.

    20+ Experts Share Insights: 2024 Strategies For Social Media – AI, User-Generated Content & More [Guide] via @sejournal, @semrush

    These developments will roll out faster with the help of generative AI.

    Simply put: Your competitors will gain an advantage if your marketing doesn’t embrace a winning social media formula.

    How To Transform Your Social Media Strategy With This Winning Formula For Success

    In order to elevate your social media strategy with the perfect mix of user-generated content, improved content quality, and generative AI, you should:

    1. Uncover small tasks that SMMs can delegate to AI.
    2. Choose creators who look, talk, and live like your ideal customers.
    3. Let content creators create their content with freedom.
    4. Establish lasting relationships with different creators.
    5. Invest in social media listening tools.
    6. Localize and share UGC content.

    Pro Tip: Create or find a full 2024 social media strategy checklist to help you keep track of your new plan.

    Insight 3: AI Delegation – Pick The Right Social Media Tasks To Give To Generative AI

    Knowing how to safely give tasks to AI is the key to reducing your social media manager’s timespend and freeing up their day to execute these expert social media insights.

    “With AI, content creation will be accomplished with impressive speed and efficiency. Its benefits are genuinely inspiring.”

    – Urvee Tondwalkar, Content Strategist at Urvee Designs & Instagram Coach

    What This Means

    By combining their strengths with AI, marketers can enhance their productivity, creativity, and overall marketing effectiveness.

    Simply put: There are social media tasks that AI literally cannot do.

    Generative AI cannot physically create the human touch required for social media campaigns that truly resonate with your potential customers. AI needs humans, and humans can benefit from AI’s speed.

    How Do I Improve My Workflow With AI?

    “AI tools can be gamechangers for marketers. They can expedite the brainstorming process with data-driven suggestions, optimize content for specific channels, and help automate content repurposing across various platforms.”

    – Lindsey Gamble, Associate Director of Influencer Innovation, Mavrck

    You can utilize AI tools to:

    • Automate routine tasks such as scheduling posts and monitoring social media metrics.
    • Generate copy for your social media content more quickly and efficiently.
    • Analyze user behavior and preferences to deliver personalized content to your audience and record their activity.

    Even though AI can enhance your social media strategy, make sure to regularly review and adapt your social media strategy based on the insights generated by AI, combined with the expertise and intuition of your human marketing team.

    Insight 4: TikTok & LinkedIn Will Be The Top-Performing Social Media Platforms Of 2024

    Thanks to their high engagement capacity and evolving abilities, TikTok and LinkedIn should become your priority platforms.

    “TikTok is still developing exciting new features and tools for creators, advertisers, and regular users. It will likely focus on ecommerce, generative AI, and search in 2024. It also remains the king of short video engagement.”

    – Matt Navarra, Social Media Consultant & Industry Analyst

    What This Means

    TikTok isn’t disappearing from the U.S.

    LinkedIn’s user base has grown to millions of professionals from diverse sectors, making it an invaluable resource for establishing and nurturing B2B relationships.

    Other social media platforms like X and Threads are making big changes, too, so as always, keep your audience in mind when selecting the best platforms for next year’s strategy.

    How To Use TikTok, LinkedIn, Meta’s Facebook & Threads, & X (Formerly Twitter) In 2024

    This year’s trends in social media and their platform efficacy implore you to:

    1. Establish new relationships with TikTok’s content creators.
    2. Activate your LinkedIn profile.
    3. Start conversations: Get your strategy ready for Threads.
    4. Explore Instagram’s latest tools.
    5. Be cautious about X investments.

    Insight 5: Shift Your Social Media KPI Focus Toward Engagement + Shares To Monitor Authenticity

    Engagement is currently a global trend in social media content.

    True social media engagement, such as comments and conversations on shares, can’t be bought. This is a great marker for social media success.

    For all you multi-hat-wearing marketers, think of it as link building and authority. The more shares and engagement on those shares you have, the better the content must be – according to updated algorithm logic.

    “Qualitative metrics – more focused on people who book meetings based on content rather than just clicks or views.”

    –Mandy McEwen, CEO and Founder at Mod Girl Marketing

    What This Means

    By 2024, algorithms will become increasingly intelligent, prioritizing content that stimulates conversation, ignites reactions, and promotes community interaction.

    As a result, social media experts will place a high emphasis on shares as a crucial performance indicator.

    How To Focus On Engagement & Shares Within Your Social Media Content

    This links back to authenticity – a common trend within our 2024 social media expert predictions.

    Be sure to focus your social media management on creating content that inspires discussions and promotes comments and these five key types of social media engagement.

    Insight 6: Reshape Your Social Media Strategy – Become A Visionary

    So far, we’ve seen five great insights that can be incorporated into your next strategy.

    But, what does that strategy look like? You can get the full strategy checklist in our ebook, but here is our high-level outline:

    1. Use authenticity.
    2. Prioritize UGC.
    3. Activate content shares.
    4. Push active listening.
    5. Use Generative AI.
    6. Hire or establish long-term partnerships.
    7. Use AB Testing.
    8. Keep investing in video.

    Get the full checklist.

    Insights 7 – 20: Want To Explore All Expert Social Media Tips For 2024?

    To get the full details of each insight above, as well as 13 additional expert tips, download the full guide below.

    The insights provided by our Visionaries, a diverse team of top voices in Social Media that have made this report possible, are everything you need to create a social media marketing strategy that dominates your competition and expands your social media presence.

    How To Calculate Your Total Addressable Market (TAM) For Powerful SaaS Go To Market Strategies

    This post was sponsored by Directive Consulting. The opinions expressed in this article are the sponsor’s own.

    At a standstill about how to best market your new tool?

    Wishing you could accurately know which ads will return the highest qualified conversion rates?

    Does reaching out to businesses often end in learning that they’re not a good fit for your company?

    When it comes to SaaS marketing, the key to success is knowing what’s truly attainable with your tool’s features and solutions plus the audience that’s open and ready to buy a new tool.

    So, who exactly are these potential B2B customers who are looking for your new tool amid the competition? Your Total Addressable Market (TAM).

    Don’t know what a TAM is or how to create one? You’re not alone.

    Using a TAM list for your advertising reduces that waste, assuring all your advertising dollars are spent on the right companies your sales team would love to talk with.

    For the most powerful go-to-market strategy, your market differentiator will be clear when you consider your true, total addressable market to your SaaS marketing strategy.

    With this guide to creating, building, and knowing your TAM, your upgraded SaaS platform’s GTM strategy will be able to:

    • Guide more productive resource allocation.
    • Improve your budget allocation.
    • Make more accurate pricing decisions.
    • Guide strategic decisions.
    • Create higher-converting advertising.
    • Create your ultimate go-to-market strategy.

    Understanding and creating your total addressable market, or TAM, is essential for any SaaS company.

    If you’re a little uncertain, don’t worry; Directive’s own SaaS PPC experts finessed the exact process here for you. This is based on our own experience as well as hundreds of other SaaS businesses that have used this same process and are seeing serious results.

    First, let’s understand what a TAM is and why it’s important.

    What Is A TAM?

    A Total Addressable Market (TAM) represents the potential market size for a particular product or service.

    It identifies the factors that make up your best-fit customer base.

    It looks at all businesses and individuals that could benefit from or have a need for your offering and afford your pricing based on:

    • Demographic data.
    • Geographic areas.
    • Firmographic data.
    • Technographic factors.

    Why Is Building & Understanding Your TAM Important?

    Understanding your TAM helps your business assess your growth potential and make informed decisions about market entry and resource allocation.

    It’s important because it helps guide your go-to-market strategy.

    TAM is a crucial concept in business strategy and market analysis as it helps companies gauge the total number of potential customers and the size of the revenue potential.

    Most people use third-party data, such as industry targeting on platforms like LinkedIn and Facebook/Instagram, when advertising with paid social media. This approach is flawed because of how each platform categorizes companies in certain industries. This results in a lot of wasted spend on companies you could never work with.

    Using a TAM list for your advertising reduces that waste, assuring all your advertising dollars are spent on the right companies your sales team would love to talk with.

    How To Build A TAM List

    It’s not a good idea to grab the entire market; instead, you should start with a bottom-up approach, looking at our best customers.

    Step 1: Create A Lookalike List Of Your Current VIP Customers

    When building a TAM, you first need to understand the criteria we’ll use to determine the total available market.

    To do this, export a .csv list of your current customers with the following criteria:

    • Company name.
    • Company website.
    • ACV (Average contract value).
    • LTV (Lifetime value) or how long they’ve been a customer.
    • Close rates.
    • Any other information that would be helpful to determine the best customers such as NPS (net promoter score).

    Note: If you don’t have enough customer data, you can pull late-stage opportunity companies to get a more extensive data pull.

    CRM Customer report with client lifespan and MRRImage created by Directive Consulting, October 2023

    From there, you want to upload that list to any data provider such as Zoominfo, Clearbit, Apollo, or Crunchbase. There are many options to choose from, but you’ll want to choose the one best for you.

    You’ll then want to upload that customer list (A CSV file) to the data provider of your choice.

    Once uploaded to the data provider, append any data that would be helpful for your company. At the minimum, this should be:

    • Company name.
    • Company website and domain.
    • Employee size.
    • Industries (categories and tags).
    • Revenue amount (Please note this is most accurate if your potential customers are public companies, private is often inaccurate).
    Appended data in Zoominfo for your TAM analysisImage created by Directive Consulting, October 2023

    Most of these data providers will also provide you with more data alongside the above.

    Depending on your company, there are often other traits you’ll want to add in as a column as well, such as:

    • Emails sent (If an email provider).
    • IT tech spend.
    • X department headcount.
    • Funding rounds and amounts (Especially for software companies).
    • Certain technology used.

    Now we want to export it from the data provider and append it to your customer list so now you’ll have extra columns and data next to your customer list so you can see things such as ACV by employee size range and industries, highest LTV customers by IT tech spend or technology used.

    Step 2: Export “Look-A-Like Audience” Of Best-Fit Customers

    Now that you’ve determined your best-fit customer criteria, you will go back into the data provider and create a list of companies that fit that criteria.

    Once you’ve found all the companies that fit that criteria, you want to export it and manually verify it’s correct.

    Step 3: Manually Verifying Your Data

    Now that you’ve exported the list of “look-a-like” companies from your data provider, the list building isn’t done.

    We still need to go through each of them and manually verify them. This is because none of the data providers are perfect in how they classify industries and companies.

    Download Template – See this template here of a TAM list set up with manual verification and tiering.

    If you don’t go through and check each website, you’ll find companies that shouldn’t be in the industry you chose, we’re acquired, or the website redirects to another (Or worse, a 404 error).

    Your marketing and sales teams can spearhead the manual verification process, or outsource it to VAs with precise instructions to help determine if the company fits within the criteria you chose.

    Example of data pulled from a data provider for manual verification.Image created by Directive Consulting, October 2023

    Don’t Skip The Manual Verification Process

    Do not skip over this part of the process, as it is imperative. On average, across many data providers tested, we found that 50% of the companies on that list won’t be in the right industry.

    This part is critical; if you don’t manually verify the data, you’ll waste a lot of ad spend and resources on companies you could never work with.

    Step 4: Segment Your TAM List

    After manually verifying your TAM, you’ll want to segment it into tiers. The number of tiers will depend on the size of your TAM and the criteria that make a better and higher ACV client. Less is more here, but you want to split the TAM into market segments to better allocate budget and resources.

    For example, if you have 10,000 companies in your TAM list, you could split it into three tiers:

    • Enterprise (Over 1,000 employee companies).
    • Mid-Market ( 100 to 999 employee companies).
    • SMB (Under 100 employees).

    This split allows for better allocation of your budget within the advertising platforms, life cycle stage progression (As larger companies usually have a longer sales cycle), and sales routing (Ex: Enterprise accounts to Enterprise AEs).

    Download Template – See this template here of a TAM list set up with manual verification and tiering.

    Step 5: Aligning Your TAM With Your Go-To-Market Strategy

    Now that you have your manually verified TAM list and segmented, you can use it in your go-to-market strategy.

    This TAM list should be the backbone of your marketing strategy.

    CRM Upload

    The first thing you’ll want to do is upload it into your CRM and tag it with something like “Enterprise TAM, SMB TAM, etc. ” this way, everyone in your org will be able to see what accounts are in your TAM, engagement, market share taken as well as inform strategy.

    Advertising

    It’s a great idea to utilize this list in your paid social advertising. It’s best used with LinkedIn Conversation ads as you can upload the list and target these specific accounts, so you’re wasting your dollars on companies you can’t work with.

    Nearly 50% of your ad spend is wasted pre-impressions if relying on industry targeting.

    You can also do this in programmatic platforms that allow you to upload target accounts for the targeting.

    You can also do this on Facebook and Instagram if using a B2B targeting tool such as Metadata, Clearbit advertising, or Say Primer, where you can import B2B audiences such as your TAM list into Meta for advertising.

    Unfortunately, this isn’t possible with the current native targeting that Meta offers.

    Create Your TAM & Use It

    Creating a TAM is essential for any business, especially for B2B and technology companies. This market research guides every aspect of your go-to-market strategy to help you hit growth goals.

    It requires some upfront work and hours, but you won’t regret it.

    Need help building your TAM or, more importantly, using it in your go-to-market strategy to drive more pipeline and revenue? Our team at Directive would love to meet you 👋


    Image Credits

    Featured Image: Image by Directive Consulting Used with permission.