Pay-Per-Click Marketing Principles Part 1


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Pay-Per-Click Marketing Principles Part 1

  1. 1. Pay-per-click Marketing Principles : Part 1 A Quick & Easy Guide to Understanding Pay-per-click Terminology, Strategic Structure & Set-up
  2. 2. Neil Lemons <ul><ul><li>Built & managed search engine marketing & search engine optimization programs & strategies since 2005 </li></ul></ul><ul><ul><li>Managed, built & evaluated dozens of accounts, 100s of campaigns annually spending millions of dollars in clicks through Google AdWords, Yahoo! Search Marketing & Microsoft adCenter </li></ul></ul><ul><ul><li>Experience in dozens of industries & verticals , many with very high returns </li></ul></ul><ul><ul><li>Tested & earned official Google AdWords Professional Certification in 2007 & also trained three others leading to a Google Certified Company recognition </li></ul></ul><ul><ul><li>Implemented SEM & SEO strategies for names such as: AT&T WiFi, Feed The Children, National Breast Cancer Foundation, CURE International, Lucky Brand Jeans, Roots International , Children’s Medical Center, Comedy Defensive Driving School ®, Texas Teachers </li></ul></ul><ul><ul><li>Created “Most Read Thread” on Google AdWords in world-renowned SEO/SEM learning site SEOChat : 32 Useful AdWords Tips for Intermediate to Experienced Users </li></ul></ul><ul><ul><li>Wrote landmark whitepaper guide on AdWords: 21 AdWords Mistakes Business Owners Make & How to Avoid Them </li></ul></ul><ul><ul><li>Education Background – BS in Journalism: Major Advertising , Minors: Marketing, Psychology </li></ul></ul>
  3. 3. Notable Past Internet Marketing Clients
  4. 4. Other Internet Marketing Clients <ul><li>John Teakell – Defense Attorney </li></ul><ul><li>Power Jack - Foundation Repair </li></ul><ul><li>Alexa Rose - Jeweler </li></ul><ul><li>Evanesque - Medical Spa </li></ul><ul><li>Daired’s – Salon & Medical Spa </li></ul><ul><li> – Indie Music Community </li></ul><ul><li>Erickson Partners, LLC – Business Valuations </li></ul><ul><li>N-Bone – Organic Dog, Cat & Ferret treats </li></ul><ul><li>Matt Arnold - Defense Attorney </li></ul>
  5. 5. The Four Pillars of Online Marketing <ul><li>Search Engine Marketing(SEM) </li></ul><ul><li>**Pay-per-click (PPC) </li></ul><ul><li>Banners & Display Networks </li></ul><ul><li>Local Business Listings & Reviews </li></ul><ul><li>Product Search </li></ul><ul><li>Shopping Comparison Engines </li></ul><ul><li>Conversion Optimization </li></ul><ul><li>Search Engine Optimization(SEO) </li></ul><ul><li>Organic Traffic </li></ul><ul><li>Keyword Research </li></ul><ul><li>Optimized Content Strategies </li></ul><ul><li>Incoming & Internal Linking </li></ul><ul><li>Online Public Relations </li></ul><ul><li>Site Architecture </li></ul><ul><li>Social Media Marketing (SMM) </li></ul><ul><li>Social Networking Sites </li></ul><ul><li>Blogging On & Off Site </li></ul><ul><li>Video On & Off Site </li></ul><ul><li>Content Creation </li></ul><ul><li>Engagement & Conversations </li></ul><ul><li>Email Marketing </li></ul><ul><li>Building Targeted Lists </li></ul><ul><li>Opt-in Drivers </li></ul><ul><li>Message Strategy </li></ul><ul><li>Open Rates </li></ul><ul><li>Direct Response Offers </li></ul>**This Presentation Only Covers Pay-per-click, the Biggest Area of SEM.
  6. 6. Pay-per-click Marketing Principles : Table of Contents <ul><li>Quick History of Pay-per-click </li></ul><ul><li>Pay-per-click Effectiveness </li></ul><ul><li>Search Share: The Big Three </li></ul><ul><li>Pay-per-click Terminology Defined </li></ul><ul><li>Account Architecture </li></ul><ul><li>Knowing Your Networks </li></ul><ul><li>Setting-up Your Account for Success </li></ul><ul><li>Structuring Your Account for Success </li></ul><ul><li>Confronting Common Pay-per-click Mistakes </li></ul><ul><li>PPC Tools to Optimize Your Efforts </li></ul>
  7. 7. Quick History of Pay-per-Click <ul><li>In February 1998, (Bill Gross ) presented a pay-per-click search engine proof-of-concept to the TED conference in CA. </li></ul><ul><li>In November 2001, Yahoo! partnered with Overture (name change) & started syndicating listings. In July 2003, Yahoo! bought Overture for $1.63 billion. </li></ul><ul><li>In December 1999, Google started search engine advertising CPM style. In October 2000, the self-managed AdWords system was introduced, still CPM. PPC in current form was introduced in 2002. </li></ul><ul><li>In 2009, Google made 23 billion, 97% of their income from AdWords. </li></ul><ul><li>*According to Wikipedia & Google Investor relations FAQs </li></ul>
  8. 8. marketing sherpa: Effectiveness of PPC Objectives Bottom Line: Paid search is better for direct response leads, traffic, and on-site sales, not branding.
  9. 9. comScore Releases July 2010 U.S. Search Engine Rankings July results released August 17, 2010, by comScore, Inc. (NASDAQ: SCOR), a leader in measuring the digital world.
  10. 10. Speculative Client: Dallas Medical Spa <ul><li>Located in Uptown Dallas </li></ul><ul><li>Offers laser hair removal, Botox, microdermabrasion spray tanning, other services. </li></ul><ul><li>Conversion goal: Set-up appointment through contact form or call them to set an appointment. </li></ul>
  11. 11. Pay-per-Click Terminology <ul><li>Keyword Match Types – broad, phrase, exact, negative </li></ul><ul><li>Impression – Ad displayed, not clicked. </li></ul><ul><li>Cost-per-thousand Impressions (CPM) </li></ul><ul><li>Click-through Rate (CTR) – Clicks/Impressions </li></ul><ul><li>Conversion – rate, cost-per, amount. </li></ul><ul><li>Return on Ad Spend (ROAS) </li></ul><ul><li>Maximum cost-per-click – 1 st page bid est. </li></ul><ul><li>Cost-per-click (actual) </li></ul><ul><li>Quality Score (QS) – All around, based on relevancy & max CPC. </li></ul>
  12. 12. Keyword Match Type: Broad <ul><li>spray tan </li></ul><ul><li>Ad may show for: </li></ul><ul><li>spray tanning </li></ul><ul><li>spray on tan sunless tan </li></ul><ul><li>sunless tanning airbrush tanning home spray tanning products </li></ul><ul><li>spray tanning equipment for sale </li></ul>
  13. 13. Keyword Match Type: “Phrase” <ul><li>“ spray tan” </li></ul><ul><li>Ad may show for: </li></ul><ul><li>spray tan spa spray tan salon spray tan solution </li></ul><ul><li>Ad won’t show for: </li></ul><ul><li>spray tanning airbrush tan sunless tanning </li></ul>
  14. 14. Keyword Match Type: [Exact] <ul><li>[spray tan] </li></ul><ul><li>Ad may show for: </li></ul><ul><li>spray tan </li></ul><ul><li>Ad won’t show for: </li></ul><ul><li>spray tan spa spray tan salon spray tan solution </li></ul>
  15. 15. Keyword Match Type: -Negative <ul><li>-spray tan </li></ul><ul><li>Negative Keywords: </li></ul><ul><li>-products </li></ul><ul><li>-equipment </li></ul><ul><li>-home </li></ul><ul><li>-for sale </li></ul><ul><li>Ad won’t show for: </li></ul><ul><li>spray tan products </li></ul><ul><li>spray tan equipment for sale </li></ul><ul><li>home spay tan </li></ul>
  16. 16. What is a Conversion? An arbitrary action taken on a website by a user deemed valuable. This could be an onsite purchase (direct value) or action bringing a visitor closer to a purchase (projected value). <ul><li>Product purchase </li></ul><ul><li>Contact form submitted </li></ul><ul><li>Report download (exchanged for email) </li></ul><ul><li>Free Software Trial Download </li></ul><ul><li>Online application filled out </li></ul><ul><li>Appointment request </li></ul><ul><li>Newsletter subscription </li></ul><ul><li>Seminar registration </li></ul><ul><li>Phone call </li></ul>
  17. 17. Conversion – All of these different types of conversions are measured the same way: unique pageview. <ul><li>Seeing Map & Directions </li></ul><ul><li>Thank you for your purchase </li></ul><ul><li>Thank you submitting your question </li></ul><ul><li>Thank you for subscribing to our newsletter </li></ul><ul><li>Thank you for downloading our report </li></ul><ul><li>Bottom line: Only way to measure conversion tied back to specific keywords, ads, is a unique pageview. </li></ul>
  18. 18. How to Create an Ad w/ Killer Click-Through <ul><li>Matches user’s query exactly (bolding) </li></ul><ul><li>Differentiates itself from other advertisers (USP) </li></ul><ul><li>Stands out in appearance & message </li></ul><ul><li>Call-to-action (CTA) </li></ul>
  19. 19. AdWords Account Architecture
  20. 20. 10 Crucial Steps to Starting a PPC Account <ul><li>Campaign Organization & Naming </li></ul><ul><li>Adgroup Organization & Naming </li></ul><ul><li>Geo-Targeting (IP & Keyword) </li></ul><ul><li>Ad Serving Rotation & Rate </li></ul><ul><li>Distribution Networks </li></ul><ul><li>Ad Scheduling </li></ul><ul><li>Tagging Destination URLs </li></ul>
  21. 21. AdWords Account Architecture: Campaigns
  22. 22. AdWords Account Architecture: Adgroups
  23. 23. AdWords Account Architecture: Keywords
  24. 24. Knowing Your Networks <ul><li>G o o g l e S e a r c h </li></ul><ul><li>Search Partners </li></ul><ul><li>Display Network </li></ul><ul><li>Mobile Network </li></ul><ul><li>By default, your ads are displayed to all four. </li></ul>
  25. 25. Google’s Search Partners
  26. 28. <ul><li>The Nine Components of a Profitable Pay-per-click Account </li></ul><ul><ul><li>Profitable Cost-Per-Conversion: The cost of a sale is less than the price of the product or average customer at the adgroup level (consider margins). </li></ul></ul><ul><ul><li>Extremely High Click-Through-Rate (10% +): Brand-based keywords at the adgroup level. </li></ul></ul><ul><ul><li>Above Average (2%+) Click-Through-Rate : Generic category based keywords at the adgroup level. </li></ul></ul><ul><ul><li>Relatively Low Impression # Per Click: Least amount of irrelevant impressions by filtering out common unrelated keywords triggering ads (use 100s of negative keywords). This goes for brand-based campaigns as well. </li></ul></ul><ul><ul><li>Consistency: Most relevant keyword-to-ad-to-landing page match possible. </li></ul></ul><ul><ul><li>Attractive & Compelling Ads : For a high click-through rate, use every eye-catching advantage possible (bolding, local extention, saturation). </li></ul></ul><ul><ul><li>Consistent & Constant Testing: Use a/b split testing of new ad copy on large volume keywords to increase click-through-rate & conversions over time. </li></ul></ul><ul><ul><li>Channel Separation : Separate channels into campaigns for different audiences (Display Network, Mobile). </li></ul></ul><ul><ul><li>High Quality Score (s): This is a 1-10 rating assessed at the keyword level, but is also averaged account-wide and at the adgroup level (conversion does not apply). </li></ul></ul>