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How to increase conversions and lower CPA for Google Display Network using AdMetrica
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How to increase conversions and lower CPA for Google Display Network using AdMetrica


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  • Already have some algorithms for searchNeed more powerful offering to help clients be more successfulDisplay network is mostly ignored by all platform providers. Until now.Bryan will describe the offering in great detail in a minuteVery excited to have completed this acquisitionCompletely new dimension to our platformNow we can focus on bringing the absolute best results to our clientsOptimization of display on GDN – done!RTB?Optimization Search and FB are nextClients will benefit – more conversions, lower CPAHappier clients Bigger budgets
  • Transcript

    • 1. How to increase conversions and lower CPA for Google Display Network using AdMetrica
    • 2. House Keeping• The webinar is recorded and will be made available• The slides will also be available• Q&A session at the end of the webinar• Use the Chat box to submit your questions at any time
    • 3. Presenters Marc Poirier Bryan MinorCo-Founder and CMO Chief Scientist
    • 5. Integration with Acquisio• The technology we’re about to discuss needs experts to setup and make adjustments• Fully managed solution for now• We help you sell it to your clients• Focus on accounts with LOTS of conversions• Works GREAT with general interest offers like retail, dating, magazine subscriptions, membership offers, education, lead gen, etc.• First integration is already “completed”
    • 6. About GDN• No details on exact size of business• Tied with FB for Display Revenue but growing faster (emarketer)• AVG CTR 0.4% - 10x higher than FB• CPC model• Lots of inefficiencies in market = opportunity!!• Very different from search• Can bring scale to ad campaigns if done right• Can also be a huge disappointment when done wrong• Opportunity for advertisers is significant
    • 7. ScienceOpsAlgorithmic expertise in astrophysics, genetics, and online advertising
    • 8. Google Display NetworkThe first technology devoted exclusively to optimizing GDN conversions.
    • 9. AdWords APIThe Algorithms of AdMetrica run within Google AdWords (via API).
    • 10. Purpose• CPA target + Conversion volume + Spend control
    • 11. GDN Revenue Growth
    • 12. Performance Advertising Growth
    • 13. GDN Display Market Share 2011 Display Ad Spend(in Billions $ with and Market Share %) $5.8, 19% Other Display International GDN US GDN$6.5, 21% $18.1, 60%
    • 14. CPA at volume
    • 15. Ad Placement?
    • 16. Scope of AdMetricaClient Client Landing PurchaseAd Keyword URL Ad Thank- orCreative Lists Placement Selection Page Registration you Page Bidding Budget AdMetrica
    • 17. Variables OptimizedFive Conv. Variables 1. Keyword Lists 2. Ad Placement 3. Bid Pricing 4. Budget Control 5. Ad Selection
    • 18. Keywords Keyword lists are constantly (algorithmically) sampled, tested and rewarded according to live 1. Keyword Lists performance data and quality score feedback. This gains access to an ever-expanding number of GDN pages that convert.
    • 19. Ad Placement Ad-to-page placements are controlled down to the URL level, increasing a given ad’s relevance (and 2. Ad Placement its CTR) by more closely fitting the ad to the content of the page.
    • 20. Bids Algorithms bid in a live and dynamic process that 3. Bid Pricing allows for far greater control over bid pricing. This enables either suppression of CPA or, if desired, incremental bid increases to gain conversion volume
    • 21. Daily Budget By monitoring of daily budgets hourly, algorithms can 4. Budget Control allocate budgets only to campaigns that warrant it. This lowers CPA by cutting off underperforming campaigns, and feeds budgets to high performance campaigns.
    • 22. Ads Metrics-based analysis allows for comparative 5. Ad Selection performance evaluation between ad creatives This allows for an objective measurement of ad performance.
    • 23. Not for Humans Decisions: 100,000+/day/campaignTo effectively gain conversions at the right price, an enormousnumber of decisions are made by AdMetrica’s algorithms.The daily job of properly managing a GDN account (i.e. choosingkeyword list combinations, making budgeting adjustments, targetingURL’s for ad placement, and fine tuning bid prices) requires anaverage of over 100,000 decisions.For this, a human would be need to make 1.2 decisions everysecond – with perfect accuracy.
    • 24. 2 Stage Conversions
    • 25. 2 Stage Conversion Approach• Stage 1 • Customer joins site with a free membership • Customer information acquired• Stage 2 • Conversion event with revenue • Campaign Quality of conversions • Feedback drives the process
    • 26. Target = $1.40 Mean = 1.39, SD = 0.27 140 120 100 80Frequency 60 40 20 0 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 2.2 2.4 avgCPA
    • 27. Old Bid Algorithm March 26-31: CPA Accuracy for US 45.00 40.00 35.00Avg. # of Conv./Campaigns 30.00 25.00 26-Mar-12 20.00 27-Mar-12 28-Mar-12 15.00 29-Mar-12 10.00 30-Mar-12 31-Mar-12 5.00 TOTAL 0.00 CPA Accuracy as a % of Target (Target Varies by Campaign)
    • 28. New Bid Algorithm May 18-23: CPA Accuracy for US 80.00 70.00 60.00Avg. # of Conv./Campaign 50.00 18-May-12 40.00 19-May-12 30.00 20-May-12 21-May-12 20.00 22-May-12 10.00 23-May-12 TOTAL 0.00 CPA Accuracy as a % of Target (Target Varies by Campaign)
    • 29. Case Study #1 – MRD1• CPA decreased • CPC targeting optimization on major solo site – 30% decrease • Mobile advertising • Dropped overall CPA by 30%+ • 35% cheaper than average• Conversions increased • Mobile increased volume by 180%+ • Audiences increased volume by 15%+ • More solo site targeting increased volume by 10%+
    • 30. Online Dating campaigns• CPA decrease • Decreased by 30% due to fine grain targeting • Focused optimization of bidding on the very best sites• Conversion increase • Great solo placement (domain) targeting increased by 40%+ • Increased Side door targeting increased by 20%+
    • 31. Google Search Activity Tsunami Effect Google Search* AdMetrica GDN Conv.s (sweepstakes) (sweepstakes) AdMetrica captures surges of $ CPA conversions (and plummeting (sweepstakes) $3.25 CPA’s) accompanying sudden 8,000 spikes in Google’s general search traffic volume. $3.00 7,000 $2.75 6,000 AdMetrica GDN Conv # AdMetrica GDN CPA $2.50 5,000 dddddddddddddddddfdffffggfffffffffffffffffffffffffffffffffffffffffffffgfffffffffffvggd z $2.25 Google Search 4,000 Vol. $2.00 3,000 $1.75 2,000 $1.50 1,000 $1.25 0Google Display Network ad engine engineGoogle Display Network conversion * Source: Google Trends
    • 32. Light Box Sales Funnel
    • 33. Clients“The (Google) display network has always been cloaked in mystery, butAdMetrica seems to have cracked the code. This technology allows us to scalefaster while lowering costs. I’ve never seen anything quite like it.” – Joe Davison, eComm. Mgr., Meredith Media“American Family has never seen conversion numbers like this; it tookAdMetrica only 3 days to outperform our prior GDN numbers by more than100%.” – Scott Krauss, Mtg. Mgr., Am.Family, Time Inc.
    • 34. Getting started with AdMetrica1. Paperwork complete2. Provided by client • Ads for campaigns • Sales funnels (landing page to thank you page) • Performance data on previous efforts • Account access granted for MCC access3. Kickoff meeting4. Initial keyword lists created and approved5. Initial launch6. 30 day incubation period