Logic361 is an analytics firm that specializes in analyzing pay-per-click performance for internet retailers. They focus on helping internet retailers identify and eliminate needless advertising expense while increasing their overall pay-per-click performance.

Logic361’s automated reporting insures that:

-Critical insights are transparent
-High priorities are easily distinguished from low priorities
-Paid search priorities are reported on and managed consistently

Last week I had a good conversation with the President of Logic361, Stephen Schramke and received some further insight into his company.

Manoj: What makes your product unique? – What’s your competitive advantage?

Stephen Schramke: We have not come across a company yet that focus strictly on PPC analytics. We believe that our focus is unique and that our reports provide a view into this type of data that can not be achieved with spreadsheets or other analytics program. We also believe that we have several competitive advantages in the way do our data mining and present the data. Navigating our reports is very snappy especially considering the average account is pulling reports from 2 gigs of data.

Manoj: Who are your competitors?

Stephen Schramke: At this point we are not aware of any direct competitors. Indirect competitors include companies that provide ppc management and bidding applications and companies that sell analytics solutions. Eventually, several of these categories will probably merge.

Manoj: I see the reports are pulled in through an API can you explain the process as well as list the engines that you can pull information from?

Stephen Schramke: Yes, we do pull Adwords reports via API but we are not limited by having to use an API to get the data. As such, we are able to analyze data from all of the 1st and 2nd tier search engines. For example, the complimentary Adwords snapshot analysis report we provide is based on standard ad performance data that can be downloaded from anyone’s Adwords account and emailed to us. The typical client file that we process daily is 250 to 800 meg’s of data (uncompressed.) The data is mined and analyzed via a sophisticated proprietary database application, packaged for presentation (optimized) and made available for review/assessment via a secure login utilizing a standard web browser. Analysis reports are updated 5 days a week.

Manoj: So the Snapshot analysis pulls 3 sections primarily of reports, which report section is your favorite and why?

Stephen Schramke: Manoj, this is tough question… I love all of our report sections equally! My definite favorite however is the financial report section. When I was responsible for manually reviewing analysis reports I was guilty of only looking at summary performance reports every couple of days. What I like most about our financial section reports is that they provide distinctly separate reporting for keywords that are “workers” verses keywords that are “slackers.” It became crystal clear from analyzing ton’s of historical PPC data that relying on “averages” is costly and can quietly rob an organization of significant profits. Our reports make it easy to identify keyword “workers” that should get higher budgets, higher CPC’s and if they are really good… their own ad group. “Slackers” on the other hand are closely scrutinized based on aging and get the ax if they have less than a favorable statistical probability of producing desired results within a specified timeframe.

Manoj: Do you have any videos or other tutorials or information to assist the audience with understanding the use of your application?

Stephen Schramke: One of our major goals in developing our service was to minimize the need for training and/or tutorials. The goal from the beginning has been to focus strictly on actionable data that could be squeezed into the fewest number analysis reports possible. It would have been a lot easier to create dozens of reports but we wanted experienced paid search people to say “Very cool. I have never looked at my data this way. Wow! This is amazing I can very quickly see and drill into priorities.”

We were also conscious that there are a lot of organizations and agencies struggling to find experienced SEM talent and that there is a need to bring new talent up to speed quickly. We structured the flow of our reports to speed the training process and provide guard rails for management to easily monitor and quickly course correct if necessary.

With all that said, if customers ask for videos and tutorials we will quickly make them our highest priority.

Manoj: Can you talk a little about your pricing model?

Stephen Schramke: We are typically able to identify 10% to 30% of ad spend that can be eliminated within the 1st month and still generate the same or better results. We charge $300 a month per advertising account we monitor and analyze and don’t require a contract. We also have reseller and private label programs for agencies and affiliates that sell or service our target market.

Manoj: Who is your target market?

Stephen Schramke: Internet retailers who spend $10K to $1M a month in ppc advertising.