MnSearch Summit - Session - Larry Kim - 10+ Years Of PPC Experience In Just 40 Minutes
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MnSearch Summit - Session - Larry Kim - 10+ Years Of PPC Experience In Just 40 Minutes

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In my presentation, I’ll share secrets about how AdWords works that even Google doesn’t want you to know. I’ll reveal new data-backed research on how AdWords really works, including how ...

In my presentation, I’ll share secrets about how AdWords works that even Google doesn’t want you to know. I’ll reveal new data-backed research on how AdWords really works, including how important metrics such as your CPC, ad position, and even your cost per conversion are calculated.
I’ll show you how in AdWords, there are winners and losers – and how great it is to be a winner vs. how terrible it is to be a loser. I’ll show how companies going after identical keywords in the same market can pay +/- 400% for the exact same click, and winners convert those clicks at 3-5x higher than average, and reveal the weird tactics that they use. Finally, we’ll translate all of these insights into unconventional PPC strategies to drive conversions up and costs down.

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  • Now guys just a quick warning here. I’ve got like 40 data-packed slides and just 15 minutes to go through them so try to keep up! After all, this is SMX advanced not SMX beginner. <br />
  • Talk about how google makes it very hard for PPC spammers, too. Google shut down millions of spammy accounts year. All keywords/ads are graded with a quality score. The higher your quality score, the higher your ad ranking and lower your cost per click. <br />
  • The first big change I’ve noticed is that Google expects way more performance from your ads. They’ve raised the bar in terms of the quality they expect from your ads. Here I’m showing some research into expected click through rates across a few thousand advertiser accounts and found that the average click through rates for any given ad position is much higher than you might expect -- and keeps trending even higher. So why should you care? <br />
  • Done <br />
  • Talk about how google makes it very hard for PPC spammers, too. Google shut down millions of spammy accounts year. All keywords/ads are graded with a quality score. The higher your quality score, the higher your ad ranking and lower your cost per click. <br />
  • I’ve heard people say that it’s not possible to get high quality scores in your specific industry (as if google has a personal grudge against you and your industry). Keep in mind that quality score is based on beating an expected average click through rate for a given ad position. So by definition, in any industry, essentially around half of the accounts out there have above average quality scores, the other half don’t. <br /> To prove this, I recently segmented average quality scores by industry and found that in all industries, there were (surprise surprise) both high and low average quality scores for every industry! <br />
  • For example, I looked at specifically at B2B companies (the purple dots in this graph) and found that the calculations used to determine their Quality Scores weren’t a heck of a lot different from any other industry. <br />
  • What about Finance Companies – the yellow dots in the graph? surely google must be out to get wall street? Again, not a huge difference compared to other industries. <br />
  • Same with Ecommerce companies – the orange dots in this graph. Again, their quality score calculations were very similar to every other industry out there. So if you hear anyone say that It’s not possible to get a high quality score – I think that could be a bit of a cop-out – the problem could be their strategy. <br />
  • I’ve heard people say that it’s not possible to get high quality scores in your specific industry (as if google has a personal grudge against you and your industry). Keep in mind that quality score is based on beating an expected average click through rate for a given ad position. So by definition, in any industry, essentially around half of the accounts out there have above average quality scores, the other half don’t. <br /> To prove this, I recently segmented average quality scores by industry and found that in all industries, there were (surprise surprise) both high and low average quality scores for every industry! <br />
  • Talk about the reasons why we thought that there could be a great opportunity here. <br />
  • Talk about the process of defining different audiences based on where they visited on our website, so that we can message to them differently in our ads. Talk about how we didn’t have to use managed placements because we already have people visiting the site and we’re merely trying to convert them. <br />
  • Describe how we target different ads to different audiences. Mention that even though there are ad builders available from google, we designed our own. <br />

MnSearch Summit - Session - Larry Kim - 10+ Years Of PPC Experience In Just 40 Minutes Presentation Transcript

  • 1. CONFIDENTIAL – DO NOT DISTRIBUTE 1 The Weirdest Intro to PPC Ever! 10+ Years of PPC Experience in Just 40 Minutes Larry Kim, Founder/CTO, WordStream June 27, 2014
  • 2. About Me Larry Kim (@larrykim) • Founder & CTO of WordStream • Commander of the Google AdWords Quality Score Rebellion • Had a Kid 7 Weeks Ago (#ppckid) Larry Kim (@larrykim) #wordstream
  • 3. Today’s Agenda: Weirdest Intro to PPC Ever 1. How AdWords Really Works 2. Winning at AdWords the Weird Way – Tips for Writing Killer Ads / Picking Keywords – Tips for Writing Amazing Offers – User Context & Mobile Search – Converting Customers with Remarketing Larry Kim (@larrykim)
  • 4. CONFIDENTIAL – DO NOT DISTRIBUTE 4 Pick the Red or Blue Pill
  • 5. The Rules of the AdWords Game
  • 6. Understanding the AdWords Auction CONFIDENTIAL – DO NOT DISTRIBUTE 6
  • 7. How Quality Score Impacts Ad Position • AdWords is Like Real Estate: It’s all about Location! Larry Kim (@larrykim) #mnsearch
  • 8. How is Quality Score Actually Calculated?
  • 9. Google Expects WAY More of Your Ads! Larry Kim (@larrykim) #mnsearch
  • 10. QS is Based on Your CTR vs. Expected CTR! Larry Kim (@larryim) #mnsearch
  • 11. What’s an Average Quality Score in 2014?
  • 12. Avg. Quality Score Has Been Falling. • Today, average score is 5/10. Previously was 7/10! Larry Kim (@larrykim) #mnsearch
  • 13. How Does Quality Score Impact Cost Per Click?
  • 14. How Quality Score Impacts Actual CPC Larry Kim (@larrykim) #mnsearch
  • 15. CONFIDENTIAL – DO NOT DISTRIBUTE 16
  • 16. How Does Quality Score Impact Impressions?
  • 17. Impression Share vs. Quality Score • AdWords is Like Real Estate: It’s all about Location! Larry Kim (@larrykim) #wordstream #mnsearch
  • 18. How Does Ad Position Impact Conversion Rates?
  • 19. Do Certain Ad Positions Convert Better?? Larry Kim (@larrykim)
  • 20. Conv. Rate vs. Average Search Position Larry Kim (@larrykim)
  • 21. How Does Quality Score Impact Cost Per Action?
  • 22. Cost Per Conversion Greatly Impacted by QS Larry Kim (@larrykim) #mnsearch
  • 23. The Impact of Quality Score on Cost Per Conversion Larry Kim (@larrykim) #mnsearch
  • 24. But High QS Not Possible In My Industry! Larry Kim (@larrykim) #wordstream
  • 25. B2B Industry Quality Scores Larry Kim (@larrykim) #mnsearch
  • 26. Finance Industry Quality Scores Larry Kim (@larrykim) #mnsearch
  • 27. Ecommerce Industry Quality Scores Larry Kim (@larrykim) #wordstream
  • 28. But Google Says Don’t Obsess Over QS! Larry Kim (@larrykim) #wordstream
  • 29. “Low CTR” = Losing PPC Strategy
  • 30. Quick Recap 1. Below Avg. CTR = Low QS 2. Low CTR ads:  Have Lower Ad Positions (Fewer Clicks)  Often don’t even get displayed  Get penalized w/ up to 400% higher CPCs  Have up to 64% higher cost per conversion Larry Kim (@larrykim) #mnsearch
  • 31. The High CTR Game for AdWords 1. Be Very Picky. Bid on Only the Best Keywords and Get HIGH CTRs. 2. Delete Junk Keywords (Bottom Third of your Account) Larry Kim (@larrykim) #mnsearch
  • 32. How To Write Insanely Great PPC Ads
  • 33. What’s a Good CTR? Larry Kim (@larrykim) #mnsearch
  • 34. • Even the “Winner” is a Loser! CONFIDENTIAL – DO NOT DISTRIBUTE 36
  • 35. Your Best Ad Might Be Crap Larry Kim (@larrykim) #mnsearch
  • 36. How Great Can My CTR Be?? (You’d be surprised)
  • 37. Click Through Rate Varies A Lot!! Larry Kim (@larrykim) #mnsearch
  • 38. Some Ads Do 2x, 3x or 6x Above Avg!? Larry Kim (@larrykim) #mnsearch
  • 39. Under-Performing vs. Unicorns Percentile Vs. Expected CTR Name Bottom 50% Below Expected CTR Under- Performing Advertisers Top 15% 2X Higher Awesome Advertisers Top 5% 3x Higher Super Awesome Advertisers Top 1% 6x Higher!! Unicorns Larry Kim (@larrykim) #mnsearch
  • 40. @larrykim Ad Unicorns?! (6x Avg. CTR!)
  • 41. Ad Text Testing • Same Story – 20% of Ads Generate 92% of Spend • 20% of Ads Generated 65% of Impressions • But CPA, CTR, and Conversion Rates vary @larrykim, @perrymarshall
  • 42. 1. Keywords With High Commercial Intent Larry Kim (@larrykim) #mnsearch
  • 43. Does Dynamic Keyword Insertion Matter?
  • 44. What is Dynamic Keyword Insertion? Larry Kim (@larrykim) #mnsearch
  • 45. 2. Dynamic Keyword Insertion (DKI) Larry Kim (@larrykim) #mnsearch
  • 46. 2. DKI Doesn’t Produce As Many Unicorns Larry Kim (@larrykim) #mnsearch
  • 47. Do Ad Extensions Matter?
  • 48. What Are “Ad Extensions”? 50 Larry Kim (@larrykim) #mnsearch
  • 49. 3. Ad Extensions Impact on Click Through Rate Larry Kim (@larrykim) #mnsearch
  • 50. 3. Ad Extensions Impact on Quality Scores Larry Kim (@larrykim) #mnsearch
  • 51. How To Write “Unicorn” Ads
  • 52. 4. Most Ads Suck. Create Emotional Ads. 54 Larry Kim (@larrykim) #mnsearch
  • 53. Creating “Emotional” Ads Larry Kim (@larrykim) #mnsearch
  • 54. An Example: Larry Kim (@larrykim) #mnsearch
  • 55. Versus… Larry Kim (@larrykim) #mnsearch
  • 56. These Emotions Make Things Spread Online Larry Kim (@larrykim) #mnsearch Source: Buzzsumo
  • 57. You Need To Test 100 Ads To Find 1 Unicorn.
  • 58. Relative Abundance Name Percentile Relative Abundance Vs. Expected CTR Awesome Ads Top 15% 1:6.7 2X Higher Super Awesome Ads Top 5% 1:20 3x Higher Unicorns Top 1% 1:100 6x Higher!! Larry Kim (@larrykim) #mnsearch
  • 59. You’re Not Testing as Many Ads as You Think… Larry Kim (@larrykim) #mnsearch
  • 60. It’s Not as Hard As You Think
  • 61. Most Small Businesses Aren’t That Active Larry Kim (@larrykim) #wordstream #mnsearch
  • 62. 85% of Impressions are From 5% of Ads Larry Kim (@larrykim) #mnsearch
  • 63. Converting Clicks Into Leads
  • 64. The Great Landing Page Optimization Fairy Tale • We Changed the: – Font Type – Spacing – Button Color – Image – Etc. • We got a 5% Increase in Conversions!!* Larry Kim (@larrykim) #mnsearch
  • 65. Typical Conversion Rate Optimization Test • PTD- Premature Testing Dilemma (aka “Optimizatitis”) – The Early Lead Disappears! – We want to believe our hard work paid off but we are often deluding ourselves… Larry Kim (@larrykim) #mnsearch
  • 66. Conventional Landing Page Optimization is Over-Rated • Small Changes Result in Small Changes • The x% Increase you think you got probably isn’t significant! Larry Kim (@larrykim) #mnsearch
  • 67. Re-Arranging Deck Chairs On the Titanic Larry Kim (@larrykim) #mnsearch
  • 68. What’s a Good Conversion Rate?
  • 69. What’s a Good Conversion Rate? Larry Kim (@larrykim) #mnsearch
  • 70. Unremarkable vs. Unicorns Distribution Point Conversion Rate Vs Average Comments Average 2.35% Unremarkable Top 25% 5.31% 2x Awesome Top 10% 11.45% 3-5x Unicorns Larry Kim (@larrykim) #wordstream
  • 71. “top 10% of accounts have a CVR 3x average” rule Larry Kim (@larrykim) #mnsearch Distribution Point All accounts Ecommerce Legal B2B Finance Median Conversion Rate 2.35% 1.84% 2.07% 2.23% 5.01% Top 25% Conversion Rate 5.31% 3.71% 4.12% 4.31% 11.19% Top 10% Conversion Rate 11.45% 6.25% 6.46% 11.70% 24.48%
  • 72. Aim For 2-5x Increases Not 2-5%! Larry Kim (@larrykim) #mnsearch
  • 73. @larrykim Landing Page Unicorns?! (+3x Avg. Conversion Rate!)
  • 74. What Do Landing Page Unicorns Look Like?
  • 75. 1. Change The Offer Larry Kim (@larrykim) #wordstream
  • 76. The New Offer: CONFIDENTIAL – DO NOT DISTRIBUTE 78
  • 77. How to Know if your Offer Stinks • Average or Below Average Conversion Rates • Ask Your Customer! CONFIDENTIAL – DO NOT DISTRIBUTE 79
  • 78. 2. Change The Flow. Larry Kim (@larrykim) #mnsearch
  • 79. 2. New Flow: Registration At End Larry Kim (@larrykim) #mnsearch
  • 80. Changing the Flow: Let Them Choose Larry Kim (@larrykim) #mnsearch
  • 81. You Need To Try Out 10 Landing Pages To Find 1 Unicorn
  • 82. Relative Abundance Name Percentile Relative Abundance Vs. Expected Conversion Rate Awesome Landing Pages Top 25% 1:4 2x Higher Unicorns Top 10% 1:10 5x Higher!! Larry Kim (@larrykim)
  • 83. Larry Kim (@larrykim)
  • 84. This is the same landing page with different spacing… Larry Kim (@larrykim) #mnsearch
  • 85. Again, It’s Not as Hard AsYou Think
  • 86. 80% of Traffic Goes to 10% of Landing Pages Larry Kim (@larrykim) #mnsearch
  • 87. The Bar for Landing Page Excellence is (Very) Low Larry Kim (@larrykim) #mnsearch
  • 88. You Don’t Need Dozens of Landing Pages… Larry Kim (@larrykim) #mnsearch
  • 89. But You Don’t Need Dozens of Landing Pages… Larry Kim (@larrykim) #mnsearch
  • 90. Understanding Mobile PPC
  • 91. Larry Kim (@larrykim) Source: BIA/Kelsey
  • 92. Larry Kim (@larrykim) OMG a Call Button!!
  • 93. Larry Kim (@larrykim) #mnsearch Call Extensions Radically Change The Flow! Calls to Businesses worth on Average 3x More Than Clicks to Websites!! 4. Captured Lead 2. Calls Business 2. Clicks On Ad Desktop Search Conversion Funnel 3% Avg. Conversion Rate Mobile Conversion Funnel 1. Sees Ad 1. Sees Ad 3. Visits Website Landing Page 3. Lead Captured!!
  • 94. Larry Kim (@larrykim) No, You Don’t Need A Mobile Website!
  • 95. Larry Kim (@larrykim) #mnsearch Avg. CTR Drops Off VERY Fast on Mobile
  • 96. Larry Kim (@larrykim) #mnsearch Mobile Impression Share VERY Competitive
  • 97. Converting Traffic with Remarketing
  • 98. Typical Conversion Rates Are in Single Digits of people who visit a website leave without completing the actions marketers want them to take ~97% Your Ad Your Site X - of people abandon their shopping cart without completing a purchase 70% Larry Kim (@larrykim) #mnsearch
  • 99. How Remarketing Works Larry Kim (@larrykim) #mnsearch
  • 100. Typical Reach of Remarketing… 1. Reach 2. Frequency 3. DiversityOn various pagesReach more users Reach them frequently Of the typical remarketing audience, find Reach them on between As they visit 20 or more pages on a typical day across 84% …within a month 10-18 days … or more out of the month 5-10 sites … of which all pages and sites have ad space available to Google Display Network buyers Larry Kim (@larrykim) #mnsearch
  • 101. Audience Definition Strategy • Funnel and Product Based List Segmentation Larry Kim (@larrykim) #mnsearch
  • 102. WordStream’s Remarketing Ads • Ads that both reinforce your brand while driving to a conversion! Larry Kim (@larrykim) #mnsearch
  • 103. Impact on Repeat User Rate • New Visitor Rate Fell From 79.8% to 66.63% • (Meaning, Visitors are Now Returning) Larry Kim (@larrykim) #mnsearch
  • 104. Impact on User Engagement • Time on Site Increased from 1:33 to 4:35 (TRIPLED!!) Larry Kim (@larrykim) #mnsearch
  • 105. Remarketing = Your Secret Weapon Larry Kim (@larrykim) #mnsearch
  • 106. 1. Delete Bottom Third of your Search Marketing Campaigns (Worst Crap In Your Account) 2. Redeploy Budget to Remarketing!! Larry’s Crazy PPC Strategy!! Larry Kim (@larrykim) #mnsearch
  • 107. Summary: Weirdest Intro to PPC Ever 1. Just Say No to Low CTR! 2. Write Insane Ads that Get 3x Avg. CTR 3. Crazy Offers that Get 3x Conversion Rates 4. Use Mobile Search to Triple ROI 5. Convert Customers with Remarketing Larry Kim (@larrykim) #mnsearch
  • 108. Thank You MNSearch & ThinkSEM! Larry Kim (@larrykim) #mnsearch Slides: bit.ly/mnsearch2014