Powering PPC ROI


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Powering Pay Per Click ROI: strategy and technology that works

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  • Welcome to “Powering your pay per click ROI through strategy & technology that works
  • Before one can do anything in Search you need to understand it’s place in the marketing universe
  • The marketing universe can be divided into two parts – (click) push and pull marketing. (click) Push marketing consists of your traditional marketing channels, all geared to “push” your message to the consumer (click) Social media crosses the boundary, allowing you to push your message and allows consumers to pull what they want to hear (click) Search is unique in that its the only channel that is pure “pull” and is solely controlled by the consumer.
  • Put simply, push is where you create the want, while pull the consumer tells you what they want. SO WHAT DOES THIS MEAN FOR YOU? (click)
  • Seth Godin probably said it best: online, “no one cares about YOU!”
  • Search, like most of the internet is a selfish and vain medium where everything is about ME. My interests, my social network, my blog and my mail.
  • This means that with every search you gain valuable insight into your consumers intent. When one looks at the numbers, you realise how important search has become.
  • This means that with every search you gain valuable insight into your consumers intent. When one looks at the numbers, you realise how important search has become.
  • Now that you understand how relevant search is within the marketing mix, you need to change your model and buy keywords based on your consumer’s stated intent.
  • Here’s a simple example. If you are bidding on a broad term like ‘CRICKET’ (click) and you sell cricket bats & gear (click)
  • You will have a diminishing ROI.
  • Why? Lets look at the example again but in more detail (click)
  • Meet Bruce, Bruce loves cricket. He’s looking to buy a new cricket bat, specifically a Rick Ponting Kookaburra bat.
  • Bruce is also an avid online shopper, and knows he can find just about anything online. So this is where he goes to find his new bat.
  • Bruce searches on Google for a “Ricky Ponting Kookaburra cricket bat” while you are running a standard PPC campaign on Adwords. Google matches Bruce’s request to your Cricket broad keyword (click) and displays your ad. Your ad is very generic since its not relevant to a specific product, and is possibly displayed with many other ads related to cricket in one way or the other. Bruce decides to (click) on your ad. Disappointingly he finds himself on your homepage, appropriate for your keyword and ad, but not for him. This will mean he has to search further through your site to find the bat he wants. The problem with this is that Bruce’s experience has thought it its much easier to go back to Google and click on other ads or search again. (click)
  • The result, you missed a valuable opportunity to convert Bruce into a satisfied customer while making a nice profit on the sale. Instead you paid for his click and probably lost the sale to a competitor.
  • Here’s what should happen. Match to exact term, accessing the power of the long tail. A very relevant Ad, most keywords bolded. Exact landing page, 1 click a way from buying and increasing your ROI. So what's the secret? (click)
  • YOU FIND THE UNDERLYING exacts that generated clicks on your Broad and Phrase match types.
  • Here’s how to use your broad and phrases as research tools. You bid on Cricket broad at an appropriate CPC. Remember, a higher bid on a broad does not necicerraly translate into a better position but rather expands your matching radius. “expanded broad match”. Once you receive clicks, you can find the underlying exacts by using 3 rd party software or Google’s search query report. Now that you know what users are searching for, analyse the data and identify what is not relevant your offer (click) and then extract the ones that are. (click)
  • Now you load the new exacts with relevant adcopy and landing pages, while negative matching the irrelevant terms.
  • Now that you have created a sustainable keyword ecosystem based on your consumers stated intent, its important to price the terms competitively and within your ROI targets.
  • Price the Head (high volume, high converting, highly competitive and data rich keywords) by using their historic data. Bla bla bla
  • Clicks vs position model
  • Cpc vs position model
  • Price the tail. This is the area most neglected and the hardest keywords to price due to their lack of data. Bla bla bla
  • Lets look at some real examples where we implemented this strategy at clicks2customers.
  • Large niche retailer, Existing campaign (>3 years old) that was profitable on the old strategy. Why fix what’s not broken? Because like most campaigns, the neglected part (broads/phrase/tail) held vast untapped volume and revenues.
  • The second example is from a Large Australian Retailer. The client approached us to take over his campaign from the traditional agency. We applied the same strategy here and managed to improve on all metrics within 2 months.
  • Recap.
  • The end, Questions?
  • Powering PPC ROI

    1. 1. R O I p o w e r ing $ strategy & technology that works pay per click www. clicks 2 customers .com
    2. 2. universe SEARCH SEARCH understanding Search in the marketing Step 1 .
    3. 3. search < pull push > mobile broadcast print direct pr online offline universe social
    4. 4. push > < pull you create the W.A.N.T consumers tell you what they W.A.N.T
    5. 5. no one cares about YOU! - Seth Godin Online,
    6. 6. S e a r c h is about me me me me me me me me me me me me me all ^ me me me me me me me me me me me me
    7. 7. S e a r c h consumer intent consumer intent consumer intent consumer intent consumer intent every 25% - number of n e w searches every day 22 Billion – e x panded searches in the USA in June 2009 every day 730 Million - nu m ber of se a rches per day 3 seconds – aver a ge user t akes to s c an your ad 182 Million – expec t ed new sear ch es a day insight
    8. 8. S e a r c h consumer intent consumer intent consumer intent consumer intent consumer intent every US adspend declines -9.8% in 2009 US Online adspend increases 15.8% in 2009 US online adspend 2008 = $23.4 Billion: Search = 45% / Banner Ads = 21% / Classifieds 14% Online = 12% of global adspend in 2009 - Projected to be 15% in 2011 Ad$pend
    9. 9. <ul><li>Banner ads are completely ignored - in effect invisible. </li></ul><ul><li>Website visitors habitually ‘tune them out’ - Perceived low relevance and credibility. </li></ul>Eye tracking study - ‘Banner Blindness’ Jakob Nielsen - UseIt.com Banner Ads vs. Paid Search: = 10 x the cost / 1/10 th the ROI Banner Ads: = Extremely expensive = Extremely Low Click Through Rate = Low Conversion Rate = Low ROI = Low Revenue
    10. 10. <ul><li>Paid Search ads are habitually viewed and clicked. </li></ul><ul><li>User expectation of Paid Search ads: “ Relevance and Value” </li></ul>EyeTools - Eye Tracking Study Paid Search Ad Visibility (Shown in percentage of participants looking at an ad in this location) Ad Position - Visibility 1 – 60% 2 – 50% 3 – 40% 4 – 30% 5 – 20% 6 – 10% 7 – 10% 8 – 10% Natural Search Results Paid Search Results Up to 3 x clearly identified Paid Search Results Eye tracking study - Google search results Paid Search Ads: = Extremely Low Cost = Highly Relevant = High Click Through Rate = High Conversion Rate = High ROI / Revenue
    11. 11. Step 2 . intent o s u n c m e r change your model! buy keywords based on your ‘ s stated
    12. 12. YOU BID on broad match: CRICKET YOU SELL CRICKET BATS & GEAR +
    13. 13. = R OI diminishing
    14. 14. WHY?
    15. 15. Meet Bruce
    16. 16. Bruce
    17. 17. Cricket Tickets Watch the ODI live Book your tickets online! www.youtickets.com.au Cricket Workshops Play Cricket? This is for you . Book Now! www.youworkshops.com.au Y O U CRICKET Buy Cricket Gear Online Great prices on Cricket bats & gear. Buy Now! www.youcricket.com.au click Bruce RICKY PONTING KOOKABURRA CRICKET BAT www.youcricket.com.au shirts shoes pants balls hats bats wickets gloves pads
    18. 18. go back to start don’t collect a sale cl ic k “ missed opportunity”
    19. 19. Cricket Bats Looking for Cricket Gear? Buy from us online www.youcricketbats.com.au Cricket bats Buy cricket bats online. Huge range . buy Now! www.youcricketgear.com.au Y O U Kookaburra Bats Ricky Ponting Kookaburra bats . Buy Now! www.youcricket.com.au click www.youcricket.com.au bats > kookaburra BUY NOW! click = $$$ Bruce [RICKY PONTING KOOKABURRA CRICKET BAT]
    20. 20. [e x act] find the marks the spot underlying
    21. 21. [cricket] “ cricket” CRICKET Cricket ODI Cricket bats Cricket gear Cricket games Cricket store Sydney cricket stadium Cricket score Cricket australia Cricket south africa wickets Cricket shoes Cricket training Cricket workshop Cricket teams Kookaburra Salix cricket bats x x x x x x x x x [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] Ricky Ponting Kookaburra Cricket Bat
    22. 22. [e x act] - negative match Load new And Irrelevant terms relevant adcopy relevant landing page
    23. 23. Step 3 . pricing Manage thousands of keywords through smart
    24. 24. HEAD pricing the last 3 months data evaluate per position bidding click vs. position model cpc vs. position model his t oric data price based on recent historical data and seasonality factors combine portfolio pricing and rule based pricing per keyword portfolio price keywords with sufficient data by modelling keyword behaviour
    25. 27. tail pricing the establish the click-rate distribution lack sufficient data to build a rational behaviour curve divide into collections of associated keywords and price as a group data little apply a Bayesian approach modify keyword’s expected behaviour based on accumulated information
    26. 28. [is] Beli e. vin g. Seeing,
    27. 29. clicks cost of sale old strategy R O I power ing Optimized and Profitable campaign ( 3 years old) analysed consumer intent (CI) bid on exacts based on CI priced head and tail smartly LARGE – NICHE – RETAILER power ing R O I old strategy
    28. 30. LARGE – AU – RETAILER old strategy old strategy ROI powering ROI powering cost per action sales analysed consumer intent (CI) bid on exacts based on CI priced head and tail smartly month month
    29. 31. universe intent pricing analysed Consumer Intent (CI) bid on exacts based on CI priced head and tail smartly
    30. 32. www. clicks 2 customers .com united states united kingdom south africa australia san diego | london | cape town | sydney high performance search