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PUBCON 2014: Hacking AdWords - Winning at PPC the Weird Way by Larry Kim, WordStream, Inc.
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PUBCON 2014: Hacking AdWords - Winning at PPC the Weird Way by Larry Kim, WordStream, Inc.


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How to win at AdWords the Weird Way

How to win at AdWords the Weird Way

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  • 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.
  • Done
  • Thanks guys. Hit me up if you need help with your paid search campaigns. (you got that right, I said paid search).
  • Transcript

    • 1. CONFIDENTIAL – DO NOT DISTRIBUTE 1 Hacking Adwords: Winning at PPC the Weird Way Larry Kim (@larrykim) Founder/CTO, WordStream, Inc. March 19, 2014
    • 2. Win This $25 Gift Certificate!! • Include the hashtag #wordstream and #pubcon in your tweets • May the best tweet win! :) Larry Kim (@larrykim) #wordstream #pubcon
    • 3. Epiphany #1: What is Quality Score and Why Does it Matter?
    • 4. How Quality Score Impacts Ad Position • AdWords is Like Real Estate: It’s all about Location! Larry Kim (@larrykim) #wordstream #pubcon
    • 5. How Quality Score Impacts Actual CPC Larry Kim (@larrykim) #wordstream #pubcon
    • 6. Epiphany #2: What’s an Average Quality Score in 2014?
    • 7. Avg. Quality Score Has Been Falling. • Today, average score is 5/10. Previously was 7/10! Larry Kim (@larrykim) #wordstream #pubcon
    • 9. Cost Per Conversion Greatly Impacted by QS Larry Kim (@larrykim) #wordstream #pubcon
    • 10. The Impact of Quality Score on Cost Per Conversion Larry Kim (@larrykim) #wordstream #pubcon
    • 11. Epiphany #3 How is Quality Score Calculated?
    • 12. QS is Based on Your CTR vs. Expected CTR! Larry Kim (@larrykim) #wordstream #pubcon
    • 13. Quick Recap So Far 1. QS plays huge role in determining CPC and Avg. Position and cost per conversion 2. QS is largely based on beating the expected click through rate for your ad position 3. So Winning at AdWords Requires Writing Ads with Above Average CTR. Larry Kim (@larrykim) #wordstream #pubcon
    • 14. Epiphany #4: Google Expects (Much) More Of Your Ads
    • 15. Which Ad Wins? a)Ad A –32,423 Impressions –453 clicks (1.4% CTR) –Average Position: 2.8 b)Ad B –36,223 Impressions –760 clicks (2.1% CTR) –Average Position: 3.0 Larry Kim (@larrykim) #wordstream #pubcon
    • 16. Trick Question! Both Ads Suck. • Neither ad is worth declaring a “Winner”. • Not even the 2.1% CTR in the 3.0 Avg. Position. • Why?? Larry Kim (@larrykim) #wordstream #pubcon
    • 17. What’s a Good CTR? Larry Kim (@larrykim) #wordstream #pubcon
    • 18. • Even the “Winner” is a Loser! CONFIDENTIAL – DO NOT DISTRIBUTE 21
    • 19. Even the “Winning” Ad is a Loser! Larry Kim (@larrykim) #wordstream #pubcon
    • 20. Epiphany #5: What’s a Good CTR These Days? (You’d be surprised)
    • 21. What’s a Good Search CTR? (Account Avg. CTR’s) Larry Kim (@larrykim) #wordstream #pubcon
    • 22. But Lots of Variance!! Larry Kim (@larrykim) #wordstream #pubcon
    • 23. 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) #wordstream #pubcon
    • 24. @larrykim Unicorns?! (6x Avg. CTR!)
    • 25. What Unicorns (Top 1%) Look Like Larry Kim (@larrykim) #wordstream #pubcon
    • 26. 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
    • 27. 1. Keywords With High Commercial Intent Larry Kim (@larrykim) #wordstream #pubcon
    • 28. 2. Dynamic Keyword Insertion (DKI) Larry Kim (@larrykim) #wordstream #pubcon
    • 29. 2. DKI Doesn’t Produce As Many Unicorns Larry Kim (@larrykim) #wordstream #pubcon
    • 30. 3. Ad Extensions Impact on Quality Scores Larry Kim (@larrykim) #wordstream #pubcon
    • 31. 3. Ad Extensions Impact on Click Through Rate Larry Kim (@larrykim) #wordstream #pubcon
    • 32. Epiphany #6 How To Write “Unicorn” Ads
    • 33. 4. Most Ads Suck. Create Emotional Ads. 36 Larry Kim (@larrykim) #wordstream #pubcon
    • 34. Creating “Emotional” Ads Larry Kim (@larrykim) #wordstream #pubcon
    • 35. An Example: Larry Kim (@larrykim) #wordstream #pubcon
    • 36. Versus… Larry Kim (@larrykim) #wordstream #pubcon
    • 37. Epiphany #7 You Need To Test 100 Ads To Find 1 Unicorn.
    • 38. 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) #wordstream #pubcon
    • 39. You’re Not Testing as Many Ads as You Think… Larry Kim (@larrykim) #wordstream #pubcon
    • 40. Epiphany #8 It’s Not as Hard As You Think
    • 41. Most Small Businesses Aren’t That Active Larry Kim (@larrykim) #wordstream #pubcon
    • 42. 85% of Impressions are From 5% of Ads Larry Kim (@larrykim) #wordstream #pubcon
    • 43. Epiphany #9 Life is Great for Unicorn Accounts
    • 44. Here’s What It Looks Like IRL Larry Kim (@larrykim) #wordstream #pubcon • Grade Your Account at
    • 45. Quality Score Average of 8.8/10!! Larry Kim (@larrykim) #wordstream #pubcon
    • 46. 14% Click Through Rate!! Larry Kim (@larrykim) #wordstream #pubcon
    • 47. Consistent Account Activity CONFIDENTIAL – DO NOT DISTRIBUTE 50
    • 48. Mostly Targeting Long Tail Keywords! Larry Kim (@larrykim) #wordstream #pubcon
    • 49. Negative Keywords Larry Kim (@larrykim) #wordstream #pubcon
    • 50. 89% Impression Share Larry Kim (@larrykim) #wordstream #pubcon
    • 51. Epiphany #10 Life Stinks for Low QS Accounts
    • 52. The Bottom 4% of Accounts IRL Larry Kim (@larrykim) #wordstream #pubcon
    • 53. Avg. Quality Score 3.8/10 Larry Kim (@larrykim) #wordstream #pubcon
    • 54. Avg. CTR of 1.32% Larry Kim (@larrykim) #wordstream #pubcon
    • 55. No Activity in Last Quarter Larry Kim (@larrykim) #wordstream #pubcon
    • 56. Awful Keyword Targeting Larry Kim (@larrykim) #wordstream #pubcon
    • 57. No Negative Keywords CONFIDENTIAL – DO NOT DISTRIBUTE 60
    • 58. 61% Impression Share LOST Larry Kim (@larrykim) #wordstream #pubcon
    • 59. Epiphany #11 Don’t Pursue a Low CTR Strategy (Low QS)
    • 60. Quick Recap 1. Low CTR = Low QS 2. Low CTR ads don’t even get displayed 3. They get penalized with up to 400% higher CPCs 4. Dramatically increases cost per conversion Larry Kim (@larrykim) #wordstream #pubcon
    • 61. Epiphany #12 How to Scale Your PPC?
    • 62. Quick Recap 1. Above Average CTR Keyword/Ads = Great Success. 2. Below Average CTR Keyword/Ads = Train Wreck 3. So … Delete the bottom third of your account and re-deploy that spend to remarketing Larry Kim (@larrykim) #wordstream #pubcon
    • 63. Average CPC’s by Industry and Network Larry Kim (@larrykim) #wordstream #pubcon
    • 64. Average Conversion Rates by Industry Larry Kim (@larrykim) #wordstream #pubcon
    • 65. Average CPA’s for Search & Display, by Industry Larry Kim (@larrykim) #wordstream #pubcon
    • 66. Your Questions Thank You PUBCON! Benchmark your AdWords account today! Today’s Slides: Larry Kim (@larrykim) #wordstream #pubcon