Core Concepts of Paid Search Marketing


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  • Key Takeaway: Consumers more likely to engage and click on mobile ads with multiple extensions vs just one extension. Make your mobile campaigns as rich as possible to ensure maximum consumer engagement

    Ad with multiple extensions includes
    Location Extension
    Call Extension
    Merchant Rating

  • Improving your conversion rate has benefits, but here’s how it can improve your PPC strategy. Let’s say you increase your conversion rate from 5% to 6%. In simple terms, that means for every 100 clicks, you now get 6 customers instead of 5. That’s an extra customer, but for the same spend. Nice.
    That means, you’re making more money. Making more money means you can: Pocket the extra cash (more profit), or now, you can increase the amount you pay (bid) for keywords or placements. Turns out there is a very simple equation which can help you determine the maximum you can pay per click and break-even. And a big part of that break-even formula depends on conversion rate.
  • Core Concepts of Paid Search Marketing

    1. 1. Microsoft Confidential Core Concepts of Paid Search John Gagnon @jmgagnon
    2. 2. @jmgagnon @bingads Step back. Look up. @jmgagnon | @bingads Step back and look up
    3. 3. Black Friday in the parking lot @jmgagnon | @bingads| #SESDenver @jmgagnon
    5. 5. How much do auto insurers pay per click to run their ads on Bing? Microsoft Confidential @jmgagnon
    6. 6. Keyword: Cost per click: $50+ Cheap Auto Insurance Microsoft Confidential @jmgagnon
    7. 7. Microsoft Confidential What we’re talking about today Ad CopySearch FunnelValue a Click @jmgagnon
    8. 8. People Looking for Products/Services Business Offering Services Willing to pay Right info Right time Good exp. @jmgagnon
    9. 9. Microsoft Confidential Anatomy of a search page: Query, Search term, Keywords Sponsored results (paid ads) Organic results (non-paid listing) Local listing, free to businesses that sign up @jmgagnon
    10. 10. On Bing click-through-rate for the #1 search result is 9.7%. For the #4 result, it drops to 1.9%.3 60% of all organic clicks go to the top three organic search results.2 75% of users never scroll past the first page of results.1 Why is SEO and SEM such a big deal? SEO and SEM has one goal: To move websites to the top of the search results page. 1. HubSpot May 2012; 2. Marketingsherpa, February 2007; 3. Slingshot SEO December 2011 Microsoft Confidential @jmgagnon
    11. 11. How much does Jimmy Choo pay per click to run shoe ads on Bing? @jmgagnon
    12. 12. How much does Jimmy Choo pay per click to run shoe ads on Bing? Keyword: Cost per click: $1-$2 Jimmy Choo Shoes @jmgagnon
    13. 13. Microsoft Confidential Why: Margins + customers, not clicks @jmgagnon Product Revenue $150 - $400 per month for 6+ $600+ Margin $400 $100 Of 100 Clicks, how many Sales 12 1-2 prefer buy in-store window shoppers Compare online and buy Product Auto Insurance Jimmy Choo
    14. 14. Microsoft Confidential Translate business terms into online marketing concept @jmgagnon CPA $400 $100 Conversion Rate 12% or 0.12 1% or 0.01 2% or 0.02 Cost per Click $48 $1.00 $2.00 Margin per Sale Sales per 100 Clicks Pay per Click Product Auto Insurance Jimmy Choo
    15. 15. Microsoft Confidential Above the fold or below the fold: where would you rather be? @jmgagnon
    16. 16. There’s good reason to fight for the top 73% 19% 6% 2% @jmgagnon
    17. 17. 0 100 200 300 1 2 3 4 5 6 7 8 9 10 Clicks Position Example: Number of clicks by Position @jmgagnon
    18. 18. Microsoft Confidential Be #1: Break even CPC @jmgagnon
    19. 19. Advice: “Start with a Joke” Perfect! There are 1000’s of Lawyer Jokes! @jmgagnon
    20. 20. Introducing... Negative KWs
    21. 21. How much money you make per action Conversions per click The most you can responsibly pay for a click – and still make money CPA CVRx = Break-even CPC Calculate your break-even CPC @jmgagnon
    22. 22. Break-even CPC = $1 Break-even CPC Sale price: $35 Cost to London Fog-$10 CPA $25 CPA X = For every 100 clicks, the ad gets 4 conversions. CVR = 4% CVR This is London Fog’s profit from the sale. If you pay more than this per click, you’re losing money Break-even CPC makes you smarter with your dollars @jmgagnon
    23. 23. CPA Conversion Rate Break-even CPC $25 4% $1.00 $25 4.5% $1.12 $25 5% $1.25 Increase conversion rate or CPA (aka margin) How do we increase our break-even CPC? x x x = = = @jmgagnon
    24. 24. Landing page testing How do we increase our conversion rate? @jmgagnon
    25. 25. Microsoft Confidential Search Funnel @jmgagnon
    26. 26. 26 Search Page Search 1 2Search Box Convert4Landing Page3 From landing page makes purchase From search page clicks on ad From search box ad shows on search page called called called Click ConversionImpression Searcher’s Flow @jmgagnon
    27. 27. Search Page Search 1 2Search Box Convert4Landing Page3 Clicks Clicks Conversions Impressions How many clicks you get per 100 impressions. Helps indicate the effectiveness of your ad copy How many conversions you get per 100 clicks. Helps indicate the effectiveness of your landing page =Click thru Rate =Conversion Rate Impression ConversionClick Searcher’s Flow @jmgagnon
    28. 28. 28 Search Page Search 1 2Search Box Convert4Landing Page3 Step #1 matters. What are they looking for? @jmgagnon
    29. 29. Initial Research: “Advertise My Business” Specific Field: “Online Marketing Tips” Add More Refinement: “Search Marketing” Specific Brand: “Advertise on Bing” How do you search? @jmgagnon
    30. 30. Initial Research: “Advertise My Business” Specific Field: “Online Marketing Tips” Add More Detail: “Search Marketing” Specific Brand: “Advertise on Bing” Funnel: Not all keywords alike Purchase Interest @jmgagnon
    31. 31. Initial Research: “advertise business” Specific Brand: “Advertise on Bing” Advertise Market Paid Search Sponsored Search Marketing SEM Bing Yahoo Specific Field Name: “Search Marketing” Add More Refinement: “Online Marketing Tips” Online Internet Pay per click PPC adCenter Account Outline @jmgagnon
    32. 32. 3 Minute Drill • Write down the most important services/products that make sense for you to sell online. • What are some differences between you& your competitors? Awards? Family Business? • Seasonal Offers or Promotions? • What are your goals for online? How much is a lead/sale worth? • When are your peak times? 32 Keywords Bid Ad Copy @jmgagnon
    33. 33. 2 Key Building Blocks • Keywords. What are your customers searching? • Ad Copy. In a few characters, tell your customers why they should buy from you and not your competitors. 33 Seattle Florist Seattle Florists Flowers in Seattle Red Roses Wedding Florist Flower Delivery Floral Arrangements Seattle Florist Same day Seattle flower delivery. Courteous Reliable Family Florist. A wizard will help you walkthrough how to set these up. There are tools for generating keywords. And you may wish to look for ideas from your competitors for ads. @jmgagnon
    34. 34. Think of Ad Group like a Product, Service or Brand • Example: Seattle Florist, Red Roses, Wedding Florist, Flower Delivery, Nursery/Seed, Floral Arrangements, Cookie Platters Good Rule of Thumb • 10-30 keywords per ad group • 2-4 Ads per ad group • Match your ad to what people are searching for 34 Keyword Ad Copy Keyword Keyword Keyword Ad Copy Ad Group Wedding Florist Quick Quote Seattle Wedding Florist Wedding Flowers Wedding Bouquet Seattle Bride Product: Weddings AD: AD: KW: KW: KW: KW: Build a Solid Foundation @jmgagnon
    35. 35. Microsoft Confidential Effective Ads @jmgagnon
    36. 36. 36 Seattle Florist Same day local flower delivery. Courteous Reliable Family Florist. Test which messages your customers respond to most. A. Seattle Family Florist Same Day Seattle Delivery. A Reliable Family Florist For Mom B. 7 Clicks/ 100 Impressions 11 Clicks/ 100 Impressions Test and Repeat @jmgagnon
    37. 37. How do we break down an online program to drive sales? Visit: @jmgagnon
    38. 38. How do we break down an online program to drive sales? AD COPY TESTING FRAMEWORK @jmgagnon
    39. 39. Microsoft Confidential The framework for ad copy testing ® Probability of conversion Clarity of the value proposition (why) Friction of elements of process Motivation of the user (when) Incentive to take action Anxiety about entering information C = 4m + 3v + 2(i-f) -2a @jmgagnon
    40. 40. The framework in action FOCUS VALUE PROP ANXIETY FRICTION INCENTIVE MESSAGING High Quality, Durable, Best Selling Low Price Guarantee, Starting at $10, Bargain, Wholesale Pricing Over 5,000 items, Huge Selection Since 1984, As Seen on TV, NY Times No Booking Fees, One-time, No Minimum Ends by Date, Limited Time Missing Out, Don’t, Why Ships Within 1 Day, Inventory Available Free returns, 30 day returns, no hassle Within Minutes, Quick & Easy, 3 Steps Up to 50% off, Save Extra 25% Free Whitepaper, Buy One Get One Free Shipping, Free Overnight TACTICS Quality Low Price Selection Credibility No Hidden Fees Time Limit Highlight Loss vs. Gain Quick Turnaround Return Policy Ease of Use Discount Freebie Free Shipping @jmgagnon
    41. 41. Microsoft Confidential What we’ve covered Ad CopySearch FunnelValue a Click @jmgagnon