Advanced Pay-Per-Click for eCommerce
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Drive up average order value: How YOU can get more products into the buyer's cart ...

Drive up average order value: How YOU can get more products into the buyer's cart
Lifetime Value: Do you really understand yours?
Additional actions: Combat a longer purchase cycle by sharing valuable content you already have
Mobile PPC for eCommerce: Straight talk from Google, plus how to integrate Bing
Automate your keyword portfolio? Why you should consider going old-school


In this information-dense hour, we'll share right-now strategies for busy marketing leaders (and wannabe leaders) who are under pressure to drive more sales, plus real-life stories of eCommerce PPC successes. We'll answer your questions and send you packing with ideas to implement right now.

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Advanced Pay-Per-Click for eCommerce Presentation Transcript

  • 1. Advanced forPay-Per-Click eCommerce TRADA WEBINAR SERIES
  • 2. Meet Your SpeakersMatt HesslerDirector of Account Management, Trada13 years of PPC and SEO@fasterstill
  • 3. Meet Your SpeakersBill D’AlessandroFounder, Elements BrandsManages a portfolio ofhigh quality consumer products brands@BillDA
  • 4. Meet Your SpeakersAnna SawyerHead of Content, TradaAdWords Qualified, AdCenter EnthusiasticDigital Marketing Educator@annafsawyer
  • 5. Advanced Pay-Per Click foreCommerceAre you under pressure to drive more sales? Right-now strategies and real-life eCommerce success. Lifetime Value and Average Order Value Additional conversion actions Mobile PPC for eCommerce Automation or human-driven?
  • 6. Why is Lifetime Value so important?Pay-per-click marketing levels theplaying field for advertisers that But why can the giants of pay-per-aren’t giants... because you are click afford to spend so much morerewarded for relevance as well as on a single click?price. Your Company
  • 7. These guys know their LTV. d to r a Can Walmart afford r spend $15 foto d fo f on a click fortaa stapler? $10 a ar n an alm 5 o n Wd $1 er? Ca en l sp 0 st ap $1
  • 8. Big companies know how much theycan afford to acquire a customer.First understand your Average Order Value (AOV)and your Lifetime Value (LTV) Understanding these metrics isn’t difficult, but you will need to know them to be able to compete in PPC.
  • 9. How much can you pay for a sale? It seem reasonable that if you areselling a t-shirt for $10, and your profit margin is 50%, you can only spend $5 on a PPC ad marketing that t-shirt in order to break even. But...
  • 10. Look a little closer. yourAverage $70 Order Value is $70 and once you’ve sold to a customer, because you market to them effectively, they tend to buy from you 6x/year for 5 years. Plus, you have an awesome referral program and your average customer refers 1 friend.
  • 11. What Can You Afford to Acquire a Customer? | DON’T LOSE TO THE COMPETITIONSo how much Value (LTV) spend toUnderstanding Lifetime can youacquire a customer?Lifetime value is the amount of revenue an average customer will generate during the span of their relationship with your business, andit’s another easy-to-calculate metric. When you understand your LTV, you can compare the revenue generated by a customer to the costsassociated with acquiring it - and set an effective CPA. # of Transactions NUMBER OF TRANSACTIONS PER MONTH In this simple equation, x determine how many transactions an average # of Months AVERAGE NUMBER OF MONTHS AVERAGE CUSTOMER IS RETAINED x x Profit Margin PROFIT MARGIN PER CUSTOMER = LTV customer makes in a $ of Average Order AVERAGE ORDER SIZE month, and multiply it by the number of months a This will give you a very basic number. customer tends to last. You may choose to consider additional Then, take this number values, such as discounts given or the amountAssuming a 60% profit of referral revenue a customer and multiply it by your brings over her “lifetime”. margin per customer, your AOS. Finally, multiply customer LTV could be as by the percent profit $1260. C O N S I D E R T H I S V E RY margin you make from BASIC EXAMPLE much as each customer over her A health club sells membership “lifetime”. packages. The club has three packages at different prices, and their calculated AOS is $110.
  • 12. It gets even more interesting! Your buyers don’t all look the same. Calculate LTV for your different buyer profiles. You may be able to spend more to acquire customers who spend more.
  • 13. You’re up against giants. How much have you spent at calculating Starbucks in your lifetime? Lifetime Value a case study » One way to analyze acquisition strategy and estimate marketing $$ $ $ costs is to calculate the Lifetime Value (“LTV”) of a customer. Roughly $ $ defined, LTV is the projected revenue that a customer will generate during their lifetime. In this graphic we’ll briefly cover how to calculate LTV and how to use LTV to help solidify your marketing budget. $ $ $ Special thanks to @avinash. Case Study: Starbucks » Despite the shaky economy, Starbucks is opening new stores around the world. In 2012, Starbucks expects to open 600 new locations internationally, about 25 percent of which will be in China. It’s no secret that Starbucks’ acquisition strategy is closely scrutinized and routinely copied. Using rough sales figures from 2004, we’re able to estimate the LTV of an average Starbucks customer. The sales data from Starbucks may not reflect current marketing trends, and is only provided to illustrate the steps necessary to calculate LTV. average ltv $14,099Source: KISSMetrics
  • 14. But you’re more advanced than most.Huge companies live and die SMBs and mid-marketby LTV metrics. They have a companies usually aren’tton of data velocity and they that smart. The vast majorityanalyze it constantly. of businesses use a very basic cost-benefit analysis.
  • 15. (This paper will help you.) I’ll share this whitepaper in your follow-up email after the webinar.
  • 16. Increase AOV, and you can spendmore in PPC. Not included: sword and shield Free shipping with an order threshold Would you like fries with that? (Related items) Classic upsell (Most popular!) from buycostumes.com
  • 17. Combat a long purchase cycleStay on the radar withadditional actions likenewsletter and blog signups. Offer value and keep your company top of mind for the buyer. Prompt a buy earlier by sharing product announcements and sales. 17
  • 18. Use a data-driven approach–andtalk to your customers. Research what your competitors are doing to increase cart size, and read forums/blogs to see how people use your products. Listen to your customers. Survey and call them. Measure and track what customers order over time, and look for patterns.
  • 19. The state of mobile PPC forbuyers Buyers use mobile to research, to compare in-store, and to make purchases. Mobile search makes up 25% of all searches. - Covario 2013 4 out of 5 smartphone owners use their devices to shop, and 25% engage in online shopping exclusively via mobile. - Radware 2012
  • 20. The state of mobile PPC foreCommerce advertisersOnce again, you have an ... the vast majority of mid-advantage. While the biggest market and smallerretailers are really investing advertisers don’t have ain mobile... sophisticated strategy.
  • 21. Google’s enhanced campaigns The enhanced campaigns update will force the issue for eCommerce marketers. You need to make sure you’re prepared to take advantage of mobile.
  • 22. Mobile for eCommerce: 3 steps1 Make sure you have Responsive design means landing pages designed your website is built to be to handle a mobile buyer. readable, usable and conversion-centric on any device.If you don’t have a responsive site,you may already have mobile-optimized pages hosted in a sub-directory. Enhanced campaignsmakes it very easy to select URLs andset their device preference.
  • 23. Mobile for eCommerce: 3 steps2 Important Considerations Before Switching To Enhanced Campaigns Gather data before you switch to enhanced campaigns, to determine bid multiplier settings. EXAMPLE 1 Determine different click costs and conversion rates for all devices. This Consideration will help youIMPACT MOBILE’S understand mobile’s impactHow in the CampaignsbusinessAdWords, segment by device. Scrollhowthe find on youryour view in rely onand and tablets? Here’s to to out: much does business mobile will help you set a realofPPCbid expand Total = all campaigns. Let’s look at the campaign your client. multipliers. bottom the list to of
  • 24. Mobile for eCommerce: 3 steps3 Bing looks more and more like Google If you’re not on Bing, there are buyers out there looking who can’t find you Use Bing. Importing your AdWords data is easy–including enhanced campaigns’ mobile settings (coming soon!)
  • 25. More Enhanced Campaigns. I’ll share this whitepaper in your follow-up email after the webinar.
  • 26. Automation?
  • 27. Automation talk is everywhere! The vast majority of mid-sized companies don’t use big automation tools. You use: An agency An in-house solution or team
  • 28. Yes, we need automation. One person alone cannot effectively: update and create ads for each product take them down when the inventory is out of stock Constantly A/B test ads and incrementally increase performance Bid knowledgeably at the keyword level Model keyword performance and predict results
  • 29. Big automation tools are really cool. Real-time relevant contentPros Data visualization Predictive analysis But you need a TON of data velocity to make itCons work And you need to be a big fish to be able to afford it Also, any robot tool still needs a human to manage it
  • 30. We also need people. An algorithmic product cannot effectively: Generate highly targeted keywords for buyers, and manage them intuitively Write compelling ads that think like buyers Use information from the marketing team’s other programs to inform strategy Spot errors and FAILS Hide the fact that it’s a robot, not a person
  • 31. People (agencies/in-house teams) are really cool! Can solve problems and manage ad campaigns for buyersPros You don’t need to build new people when Google changes the rules Expensive, complicated and time-consuming toCons hire, make space for, manage in-house teams A large in-house team is required to have time and diversity of strategy to manage complex eCommerce campaigns Agency models are often motivated to spend your budget. Plus... who’s really doing the work?
  • 32. The ideal scenarioYou could have a team of experts doing They would be paid based onthe work of PPC on your behalf. They performance goals you set,would work with your in-house person, meaning they would fight to getwho would manage strategy. YOU results.They would collaborate within an Your in-house team would haveapplication that would allow them control over their strategy andto see the performance data they visibility into ALL the data.need to succeed.
  • 33. You can have both.Trada is the world’s only performance-basedonline advertising marketplace. When you join Trada, we assign a highly specialized team of paid search experts (Optimizers) to work on your PPC campaigns. We have a global community of certified paid search experts.
  • 34. Optimizers and Trada partners aresupported by the Trada Marketplace. Our automated Optimizer Matching™Trada’s Marketplace is where our algorithm makes sure your Optimizerglobal community of certified team is qualified based on experience,PPC experts work. historical performance and other factors. Your Company
  • 35. Optimizers do work, you maintaincontrol, Trada supports it all. Your Optimizer team does the dailyYour dedicated work of campaign research, ad copyaccount manager acts and testing, and constant refinement.as strategic partnerand Optimizer liaison. !  createand test targeted ad copy !  generate keyword lists !  manage bid prices !  respond quickly to campaign requests
  • 36. ighly specialized experts and execution. Goals are finally aligned.ed experts—Optimizers—creating and testing strategies. Youy with proprietary features like the ability to measure return Trada is performance based: you set goals,ow experts work to beat them.re Our unique method of goal alignment is not justnd Traditional agencies charge a feature - it is the driving force in our marketplace. You set goals, your Trada team a percent of marketing ule. spend. They are motivated works to beat them, and they are compensated to spend your budget. for their success. 15% of marketers with Only marketers Only 1 in 5 are satisfied withare marketers their agency’s with their satisfied their PPC performance agency’s performance The agency model for PPC is outdated. It was designed for
  • 37. Trada’s customers Seth from Dr Vita loved that his Optimizer team would react immediately to the need for ads for a new product–within hours, ads would be running live on the networks.
  • 38. Trada’s customers We’d love to analyze your current PPC and determine if Trada is a fit for a partnership with you. Type “I’d like a demo” into the chat box.
  • 39. ? Don’t forget to check your email for these two essential whitepapers! @BillDA @fasterstill@annafsawyer 39