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Intro to SEM For MBA Students At Kellogg

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Intro to Search Engine Marketing (SEM), pay-per-click advertising and Google Adwords for Troy Henikoff's "Entrepreneurial Tools For Digital Marketing" course at Northwestern's Kellogg School of Management. Elan Mosbacher. VP of Marketing @ SpotHero. January 2016.

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Intro to SEM For MBA Students At Kellogg

  1. 1. SEM FOR MBAs Elan Mosbacher January 2016 Guest Lecture Entrepreneurial Tools For Digital Marketing (MKTG-961) January 2016 1
  2. 2. AGENDA • Introduction • Why SEM Matters • About me • SEM vs. SEO • How SEM Works • Everything else 2Copyright or confidentiality statement.
  3. 3. WHY SEM MATTERS 3Copyright or confidentiality statement.
  4. 4. Google Trends: Superbowl 4Copyright or confidentiality statement.
  5. 5. Google Trends: Drones 5Copyright or confidentiality statement.
  6. 6. Google Trends: Bitcoin 6Copyright or confidentiality statement.
  7. 7. Google Trends: Uber vs. Lyft 7Copyright or confidentiality statement.
  8. 8. Google Trends: MBA vs. SEM Copyright or confidentiality statement. 8 Source: Google Trends https://www.google.com/trends/explore#q=SEM%2C%20MBA&cmpt=q&tz=Etc%2FGMT%2B6 MBA DEMAND DOWN 60% SEM DEMAND UP 400%
  9. 9. SEM is a major investment for most startups 9Copyright or confidentiality statement. https://en.wikipedia.org/wiki/List_of_public_corporations_by_market_capitalization https://investor.google.com/earnings/2015/Q3_google_earnings.html • Google is top 5 publicly traded company • > ¾ of Google’s revenue comes directly from SEM • After headcount, SEM is often biggest line item for startups
  10. 10. About me • Elan Mosbacher • Serial Startup Marketer • >$10 Million in SEM Management • VP Marketing @ SpotHero • SpotHero is an on-demand parking marketplace – Techstars Chicago – $27M In Venture Capital – 75 Employees – Top 10 iOS app in iTunes Navigation Category • Advised dozens of companies from Techstars Chicago alumni to startups across the globe via clarity.fm/elan, a site for on-demand startup advice 10Copyright or confidentiality statement.
  11. 11. SEM VS. SEO 11Copyright or confidentiality statement.
  12. 12. SEM WARNING 12Copyright or confidentiality statement.
  13. 13. SEM vs SEO 13Copyright or confidentiality statement.
  14. 14. SEM’s Advantages • Immediate traffic to your website • Flexible budget • Easy to scale • Optimized for testing • Measureable and data rich • Full control over targeting & ad copy • Capture existing demand resulting in relatively high ROI 14Copyright or confidentiality statement.
  15. 15. SEM/PPC 1st Digital Marketing Tactic 15Copyright or confidentiality statement.
  16. 16. HOW SEM WORKS 16Copyright or confidentiality statement.
  17. 17. SEM Advertising Account Structure 17Copyright or confidentiality statement.
  18. 18. Let’s start with Keywords 18Copyright or confidentiality statement.
  19. 19. Keywords • What Keywords Are You Customers Looking For? – Google Keyword Planner – Google Instant / Google Suggest – Uber Suggest – SpyFu / SEM Rush – SKUs, or names of products and services you sell 19Copyright or confidentiality statement.
  20. 20. Keywords: Keyword Planner 20Copyright or confidentiality statement.
  21. 21. Keywords: Keyword Planner 21Copyright or confidentiality statement.
  22. 22. Keywords: Google Instant / Suggest 22Copyright or confidentiality statement.
  23. 23. Keywords: Uber Suggest 23Copyright or confidentiality statement.
  24. 24. Keywords: SpyFU or SEMRush 24Copyright or confidentiality statement.
  25. 25. Keywords: Match Types 25Copyright or confidentiality statement. Not Relevant Less Targeted More Targeted Negative Match: -games Won’t show for: parking games Broad Match: parking Show: parking, best place to park Broad Match Modifier: +chicago + parking Show: chicago monthly parking, parking in chicago Not: Evanston parking Phrase Match: “chicago parking” Show: chicago parking rates, best chicago parking Not: Chicago cubs parking Exact Match: [chicago parking] Show: chicago parking Not: chicago parking rates, loop parking, parking chicago PRO TIP: When in doubt, use a more targeted keyword match type.
  26. 26. Tip: Focus on the long tail keywords 26Copyright or confidentiality statement.
  27. 27. Keyword Summary • Brainstorm keywords • Be sure to use the right match type • Be sure to use negative keywords • Group them into buckets of similar themes – Brand – Geo – By product or service – By stage of the funnel (e.g. ideas vs. compare vs. buy) • Tip 1: Use the “search query” tool to find new exact match and new negative match terms • Tip 2: This is an ongoing process. You do it regularly, not just once. 27Copyright or confidentiality statement.
  28. 28. Ads & Ad Groups 28Copyright or confidentiality statement.
  29. 29. Ads & Ad Groups • Themes of keywords go in a bucket called an ad group • On the front of the bucket, you’ll have an ad 29Copyright or confidentiality statement. Adgroup 1 Adgroup 2 Adgroup 3 Brand Terms Product Terms Service Terms
  30. 30. Ads & Ad Groups 30Copyright or confidentiality statement.
  31. 31. Ads & Ad Groups 31Copyright or confidentiality statement.
  32. 32. Ads & Ad Groups • Use the keywords in your ad • Test at least two ad copy versions – Headlines – Descriptions – Display URL – Ad Extensions • Make sure your keyword, ad and landing page offers match 32Copyright or confidentiality statement.
  33. 33. Quality Score & Bidding • Bidding – You set a max CPC you are willing to pay – Google looks at CPC, CTR & Quality score to determine what you pay – Better CTR means Google makes more money – Better CTR means higher quality score – Example: $1 x 1M or $1M x 1 • Quality Score: – How relevant is your ad & landing page to the search term? – How strong is the click-through rate relative to others? – How good is the User Experience on the landing page? – Relevant ads are better for the user and make Google more money • Therefore, Google reward higher quality score accounts with lower CPC 33Copyright or confidentiality statement.
  34. 34. Quality Score & Bidding Tips • Quality Score Tips: – Tight buckets of keywords themes in adgroups – Tailor ad copy to intend of search, include keyword – Split test ads to boost click-through-rate (CTR) – Build landing page to meet needs to search 34Copyright or confidentiality statement.
  35. 35. Accounts & Campaigns 35Copyright or confidentiality statement.
  36. 36. Accounts & Campaigns • Campaigns are where you set budget, targeting & distribution – Product line, geo, service type, etc – You have have multiple per product, geo, or service • When your accounts get big enough (100ks keywords), you may open multiple accounts with one search engine under one MCC account 36Copyright or confidentiality statement.
  37. 37. Ways to Measure SEM is about balancing costs and volume • CPM = Cost Per 1000 impressions • CPC = Cost Per Click • CPL = Cost Per Lead • CPA = Cost Per Action or Acquisition • ROAS = Return on Ad Spend • GM = Gross Margin • CAC:LTV = Customer Acquisition Cost : Lifetime Value • Payback = How many months until you break even? 37Copyright or confidentiality statement.
  38. 38. Tips for getting started • Ask: Is SEM right for you? – Budget? Demand Levels? Competition? Profitability (e.g. eCommerce > social network)? • Get Google right before you use Bing • Be sure your web analytics and conversion tracking are set up properly • Keywords: Avoid broad match, which is the Google default because it makes them the most money • Ad Groups: Get a granular as possible: – 1 keyword : 2 a/b tested ads : 1 dedicated landing page • Bidding: Bid on: – Your brand terms – Long tail terms – Terms with purchase intent (e.g. rates, compare, vs., buy) – The specific products you sell (e.g. SKU #) • Focus on one thing at a time – More volume (keywords) – Better CTR (ads) – Better conversion rates (landing pages) • Start small and grow slowly, or you can waste a lot of money • Learn! Ask for help! • Hire help! – One-time audit > ongoing monthly retainer 38Copyright or confidentiality statement.
  39. 39. Additional Resources Terms to know: SEM SEO PPC CTR CPM Campaign Ad Group Ad Copy Keyword Exact Phrase Broad Broad Modifier Quality Score Where to get started Google Adwords Certification (To learn) Google Adwords Account (To start) Google Keyword Planner (To build) Google Adwords Editor (To scale) 39Copyright or confidentiality statement.
  40. 40. Here’s how to find me Elan Mosbacher elan@spothero.com / @mosbacher clarity.fm/elan | linkedin.com/in/elanmosbacher 40Copyright or confidentiality statement.

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