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Search Exchange 2014 - Larry Kim's AdWords Presentation
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Search Exchange 2014 - Larry Kim's AdWords Presentation

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  • Show how the keyword expansion is easier using a tool. Explain that we’re following the same best practices that Brad Suggested.
  • 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.
  • 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.
  • 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?
  • Done
  • 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.
  • 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.
    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!
  • 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.
  • 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.
  • 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.
  • 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.
    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!
  • Done
  • Talk about the reasons why we thought that there could be a great opportunity here.
  • 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.
  • Describe how we target different ads to different audiences. Mention that even though there are ad builders available from google, we designed our own.
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  • Transcript

    • 1. CONFIDENTIAL – DO NOT DISTRIBUTE 1 The Weirdest Intro to PPC Ever! 10+ Years of PPC Experience in Just 50 Minutes Larry Kim, Founder/CTO, WordStream July 28, 2014
    • 2. Win a $25 Amazon Gift Card!! • Include the hashtag #searchex and (@larrykim) in your tweets • Prizes Awarded For Either: –Best Tip –Funniest Tweet Larry Kim (@larrykim) #searchex
    • 3. About Me Larry Kim (@larrykim) • Founder & CTO of WordStream • Commander of the Google AdWords Quality Score Rebellion • Had a Kid 10 Weeks Ago (#ppckid) Larry Kim (@larrykim) #searchex
    • 4. 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 – Exciting New Features Larry Kim (@larrykim) #searchex
    • 5. CONFIDENTIAL – DO NOT DISTRIBUTE 5 Pick the Red or Blue Pill
    • 6. The Rules of the AdWords Game
    • 7. Understanding the AdWords Auction CONFIDENTIAL – DO NOT DISTRIBUTE 7
    • 8. How Quality Score Impacts Ad Position • AdWords is Like Real Estate: It’s all about Location! Larry Kim (@larrykim) #searchex
    • 9. How is Quality Score Calculated?
    • 10. Google Expects WAY More of Your Ads! Larry Kim (@larrykim) # searchex
    • 11. QS is Based on Your CTR vs. Expected CTR! Larry Kim (@larryim) #searchex
    • 12. What’s an Average Quality Score in 2014?
    • 13. Avg. Quality Score Has Been Falling. • Today, average score is 5/10. Previously was 7/10! Larry Kim (@larrykim) #searchex
    • 14. How Does Quality Score Impact Cost Per Click?
    • 15. How Quality Score Impacts Actual CPC Larry Kim (@larrykim) #searchex
    • 16. CONFIDENTIAL – DO NOT DISTRIBUTE 17
    • 17. How Does Quality Score Impact Impressions?
    • 18. Impression Share vs. Quality Score • AdWords is Like Real Estate: It’s all about Location! Larry Kim (@larrykim) #wordstream #searchex
    • 19. How Does Ad Position Impact Conversion Rates?
    • 20. Do Certain Ad Positions Convert Better?? Larry Kim (@larrykim) #searchex
    • 21. Conv. Rate vs. Average Search Position Larry Kim (@larrykim) #searchex
    • 22. How Does Quality Score Impact Cost Per Action?
    • 23. Cost Per Conversion Greatly Impacted by QS Larry Kim (@larrykim) #searchex
    • 24. The Impact of Quality Score on Cost Per Conversion Larry Kim (@larrykim) #searchex
    • 25. But High QS Not Possible In My Industry! Larry Kim (@larrykim) #searchex
    • 26. B2B Industry Quality Scores Larry Kim (@larrykim) #searchex
    • 27. Finance Industry Quality Scores Larry Kim (@larrykim) #searchex
    • 28. Ecommerce Industry Quality Scores Larry Kim (@larrykim) #wordstream
    • 29. But Google Says Don’t Obsess Over QS! Larry Kim (@larrykim) #searchex
    • 30. New Quality Score White Paper Larry Kim (@larrykim) #wordstream
    • 31. “Settling The Quality Score”? Link To PDF File: http://bit.ly/qs-whitepaper Larry Kim (@larrykim) #wordstream
    • 32. Key Finding #1: They’re Downplaying QS Quality Score Is a Helpful Diagnostic Tool, Not a Key Performance Indicator •Why: Your Quality Score is like a warning light in a car’s engine that shows how healthy your ads and keywords are. It’s not meant to be detailed metric that should be the focus of account management -- Source: New Google White Paper on Quality Score. Larry Kim (@larrykim) #searchex
    • 33. But Wait – What About This?: QS is important in order for your ads to be successful … QS plays a key role in determining your ad's position and how much you'll pay for a click. In general, the more relevant your ad, the higher your QS – and the higher your QS, the better your position and the less you will have to pay for a click...Being successful with AdWords means getting your products or services in front of the people who are most likely to become your customers and a high Quality Score can help make that happen. -- Source: What is AdWords Quality Score and Why Does It Matter?" from Google (2011) Larry Kim (@larrykim) #searchex
    • 34. CONFIDENTIAL – DO NOT DISTRIBUTE 35
    • 35. Remember: Quality Score Graded on a Curve Larry Kim (@larryim) #wordstream
    • 36. CONFIDENTIAL – DO NOT DISTRIBUTE 37
    • 37. “Low CTR” = Losing PPC Strategy
    • 38. 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) #searchex
    • 39. 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) #searchex
    • 40. How To Write Insanely Great PPC Ads
    • 41. What’s a Good CTR? Larry Kim (@larrykim) #searchex
    • 42. • Even the “Winner” is a Loser! CONFIDENTIAL – DO NOT DISTRIBUTE 44
    • 43. Your Best Ad Might Be Crap Larry Kim (@larrykim) #searchex
    • 44. How Great Can My CTR Be?? (You’d be surprised)
    • 45. Click Through Rate Varies A Lot!! Larry Kim (@larrykim) #searchex
    • 46. Some Ads Do 2x, 3x or 6x Above Avg!? Larry Kim (@larrykim) #searchex
    • 47. 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) #searchex
    • 48. @larrykim Ad Unicorns?! (6x Avg. CTR!)
    • 49. 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
    • 50. 1. Keywords With High Commercial Intent Larry Kim (@larrykim) #searchex
    • 51. Does Dynamic Keyword Insertion Matter?
    • 52. What is Dynamic Keyword Insertion? Larry Kim (@larrykim) #searchex
    • 53. 2. Dynamic Keyword Insertion (DKI) Larry Kim (@larrykim) #searchex
    • 54. 2. DKI Doesn’t Produce As Many Unicorns Larry Kim (@larrykim) #searchex
    • 55. Do Ad Extensions Matter?
    • 56. What Are “Ad Extensions”? 58 Larry Kim (@larrykim) #searchex
    • 57. 3. Ad Extensions Impact on Click Through Rate Larry Kim (@larrykim) #searchex
    • 58. 3. Ad Extensions Impact on Quality Scores Larry Kim (@larrykim) #searchex
    • 59. How To Write “Unicorn” Ads
    • 60. 4. Most Ads Suck. Create Emotional Ads. 62 Larry Kim (@larrykim) #searchex
    • 61. Creating “Emotional” Ads Larry Kim (@larrykim) #searchex
    • 62. An Example: Larry Kim (@larrykim) #searchex
    • 63. Versus… Larry Kim (@larrykim) #searchex
    • 64. You Need To Test 100 Ads To Find 1 Unicorn.
    • 65. 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) #searchex
    • 66. You’re Not Testing as Many Ads as You Think… Larry Kim (@larrykim) #searchex
    • 67. It’s Not as Hard As You Think
    • 68. Most Small Businesses Aren’t That Active Larry Kim (@larrykim) #searchex
    • 69. 85% of Impressions are From 5% of Ads Larry Kim (@larrykim) #searchex
    • 70. Converting Clicks Into Leads
    • 71. 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) #searchex
    • 72. 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) #searchex
    • 73. 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) #searchex
    • 74. Re-Arranging Deck Chairs On the Titanic Larry Kim (@larrykim) #searchex
    • 75. What’s a Good Conversion Rate?
    • 76. What’s a Good Conversion Rate? Larry Kim (@larrykim) #searchex
    • 77. 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) #aearchex
    • 78. “top 10% of accounts have a CVR 3x average” rule Larry Kim (@larrykim) #searchex 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%
    • 79. Aim For 2-5x Increases Not 2-5%! Larry Kim (@larrykim) #searchex
    • 80. @larrykim Landing Page Unicorns?! (+3x Avg. Conversion Rate!)
    • 81. What Do Landing Page Unicorns Look Like?
    • 82. 1. Change The Offer Larry Kim (@larrykim) #wordstream
    • 83. The New Offer: CONFIDENTIAL – DO NOT DISTRIBUTE 85
    • 84. How to Know if your Offer Stinks • Average or Below Average Conversion Rates • Ask Your Customer! Larry Kim (@larrykim) #searchex
    • 85. 2. Change The Flow. Larry Kim (@larrykim) #searchex
    • 86. 2. New Flow: Registration At End Larry Kim (@larrykim) #searchex
    • 87. Another Example of Changing The Flow Larry Kim (@larrykim) #searchex
    • 88. Changing the Flow: Let Them Choose Larry Kim (@larrykim) #searchex
    • 89. You Need To Try Out 10 Landing Pages To Find 1 Unicorn
    • 90. 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)
    • 91. Larry Kim (@larrykim)
    • 92. This is the same landing page with different spacing… Larry Kim (@larrykim) #searchex
    • 93. Again, It’s Not as Hard AsYou Think
    • 94. 80% of Traffic Goes to 10% of Landing Pages Larry Kim (@larrykim) #searchex
    • 95. The Bar for Landing Page Excellence is (Very) Low Larry Kim (@larrykim) #searchex
    • 96. You Don’t Need Dozens of Landing Pages… Larry Kim (@larrykim) #searchex
    • 97. But You Don’t Need Dozens of Landing Pages… Larry Kim (@larrykim) #searchex
    • 98. Understanding Mobile PPC
    • 99. Larry Kim (@larrykim) Source: BIA/Kelsey
    • 100. Larry Kim (@larrykim) OMG a Call Button!!
    • 101. Larry Kim (@larrykim) #searchex 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!!
    • 102. Larry Kim (@larrykim) #searchex No, You Don’t Need A Mobile Website!
    • 103. Larry Kim (@larrykim) #searchex Avg. CTR Drops Off VERY Fast on Mobile
    • 104. Larry Kim (@larrykim) #searchex Mobile Impression Share VERY Competitive
    • 105. Converting Traffic with Remarketing
    • 106. 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) #searchex
    • 107. How Remarketing Works Larry Kim (@larrykim) #searchex
    • 108. 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) #searchex
    • 109. Audience Definition Strategy • Funnel and Product Based List Segmentation Larry Kim (@larrykim) #searchex
    • 110. WordStream’s Remarketing Ads • Ads that both reinforce your brand while driving to a conversion! Larry Kim (@larrykim) #searchex
    • 111. Impact on Repeat User Rate • New Visitor Rate Fell From 79.8% to 66.63% • (Meaning, Visitors are Now Returning) Larry Kim (@larrykim) #searchex
    • 112. Impact on User Engagement • Time on Site Increased from 1:33 to 4:35 (TRIPLED!!) Larry Kim (@larrykim) #searchex
    • 113. Remarketing = Your Secret Weapon Larry Kim (@larrykim) #searchex
    • 114. +1000 AdWords Updates PerYear
    • 115. Gmail Ads #SEMhacks
    • 116. Subject Line & Teaser: #SEMhacks Desktop Search Conversion Funnel Mobile Conversion Funnel X -
    • 117. Email Ad: #SEMhacks Desktop Search Conversion Funnel Mobile Conversion Funnel X -
    • 118. YouTube Ads #SEMhacks
    • 119. Example Ads #SEMhacks Desktop Search Conversion Funnel Mobile Conversion Funnel X -
    • 120. Hundreds of New Features / Year #SEMhacks
    • 121. 1. Delete Bottom Third of your Search Marketing Campaigns 2. Redeploy Budget to Remarketing and Other New Features Crazy PPC Strategy!! Larry Kim (@larrykim) #searchex
    • 122. 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) #searchex
    • 123. Thank You Search Exchange! Larry Kim (@larrykim) #searchex Slides: bit.ly/searchex2014

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