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Chasing quality over quality score 2018 pubcon

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PubCon Pro session on the mechanics of quality score and why it's important to treat quality score as a health indicator, instead of a KPI. This talk discusses structure, campaign strategy, and a case study of a client who focused on profit/

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Chasing quality over quality score 2018 pubcon

  1. 1. Chasing Quality over Quality Score Navah Hopkins
  2. 2. | 2@navahf @wordstream e: nhopkins@wordstream.com #pubcon Agenda • Why Do We Panic? • Mechanics of Quality Score • What Does Chasing Quality Look Like? • Case Studies • Worked in digital marketing since 2008 • Work with agencies and advertisers across WordStream’s international customer base. • I’m a proud pet mom and just adopted dog named HK About Me: #PPCPuppy
  3. 3. 3| Confidential Why do we panic?
  4. 4. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 4 63,000 US Accounts in Q3 2018 Average QS in US is 5.6 1 2 3 4 5 6 7 8 9 10 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 Number of accounts • QS 1 = 8% • QS 2 = 6% • Q3 = 12% • Q4 = 10% • Q5 = 13% • Q6 = 12% • Q7 = 13% • Q8 = 11% • Q9 = 7% • Q10 = 8%
  5. 5. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 5 We want to be exceptional!
  6. 6. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 6 It Won’t Surprise Anyone To See This Chart of Average CTR by QS $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 1 2 3 4 5 6 7 8 9 10 CTR Average CPC 63000 US accounts in Q2 2018
  7. 7. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 7 But What if We Take Branded Campaigns/Ad Groups Out of the Picture? $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 1 2 3 4 5 6 7 8 9 10 Average CTR and Average CPC for Q2 2018 Average CTR without branded CTR Including Branded Average CPC without branded Average CPC with branded • Quality score of 6 beat 7 with cheaper clicks and higher CTR • Quality score of 9 beat 10 with higher CTR (flat CPC) • Quality Score of 1 had cheaper CPC than QS 2-7
  8. 8. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 8 Conversions and Impression Share follow a similar trend 0 50 100 150 200 250 300 350 400 450 500 0% 10% 20% 30% 40% 50% 60% 70% 80% 1 2 3 4 5 6 7 8 9 10 Average Impression Share & Average Conversions By QS Q2 2018 Impression Share with branded Impression Share without branded Conversions Without Branded Conversions With Branded 63000 US accounts in Q2 2018
  9. 9. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 9 • Higher click through rate (CTR) and auction prices tend to be lower. • Perfect keyword to ad, to landing page relevancy. • Home pages tend to get the lion share of development and design (experience) Why do Branded campaigns have such a strong impact on quality score?
  10. 10. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 10 Just because you have a good quality score, doesn’t mean your leads are converting.
  11. 11. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 11 Same Quality Score – drastically different results
  12. 12. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 12 Certain strategic objectives are predisposed to lower quality scores.
  13. 13. 13| Confidential Mechanics of Quality Score
  14. 14. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 14 Let’s break down Quality score into its base elements
  15. 15. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 15 CTR Suffers If We Don’t Rank In The Top 4 0 0.5 1 1.5 2 2.5 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% 1 2 3 4 5 6 7 8 9 10 Average CTR and Position by Quality Score (Account Level) General CTR General Average Position
  16. 16. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 16 Historical CTR Can Suffer if There Isn’t Enough Volume – Some Industries Will Always Struggle Here
  17. 17. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 17 Boring Ads Kill CTR
  18. 18. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 18 Expanded Text Ads and ETA++ Mean Your Copy Is Due For A Revisit! Description text would have made great headlines!
  19. 19. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 19 It’s Hard To Build Relevancy If Campaign Structure is Flawed
  20. 20. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 20 Sort By Impressions to See Where Ad Networks are Trying to Put Your Money 60% of impressions Budget will only go to “winners” instead of everything
  21. 21. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 21 Broad Keywords Can Drag Your Budget into Unintended Auctions 162% More Than Average
  22. 22. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 22 If landing pages don’t deliver on your ad’s promise, you lose relevancy.
  23. 23. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 23 Don’t put prospects/customers to sleep waiting for your site to load!
  24. 24. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 24 Users shouldn’t have to hunt through a text-wall to contact you.
  25. 25. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 25 We live in a mobile first world – don’t build bad mobile experiences Wall of Text Unclickable Number Tiny Menu
  26. 26. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 26 If we “solved” for those elements we would have a healthy account.
  27. 27. 27| Confidential What Does Chasing Quality Look Like
  28. 28. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 28 • Too many targets • Too wide a range in auction price • Too many objectives Budgets Underperform When:
  29. 29. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 29 Most Advertisers Struggle to Achieve 50%+ of Available Impressions Based on 2973 accounts with at least $.01 in search spend Average impression share is 47%
  30. 30. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 30 3% cheaper & perfect conversion rate! What Auctions Will Give You a Positive ROAS
  31. 31. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 31 Are There Parts of Your Business That Shouldn’t Get Access To Budget
  32. 32. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 32 Any Redundancies to Clean Up? Catching all “logo design” keywords on mod broad
  33. 33. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 33 CTR and Conversion Rates Tell You If Your Message is Landing
  34. 34. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 34 All of This is Meaningless if Your Audiences Aren’t Aligned With Your Value Proposition
  35. 35. 35| Confidential Case Study
  36. 36. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 36 Koru K9 Story
  37. 37. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 37 • Balanced in-home dog training • Board and train programs • Group classes for specializing dogs (police, service, etc) Koru K9 provides:
  38. 38. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 38 • 79 in-home engagements: $2,521 average customer value = $199,159 gross revenue • 13 Board and Train: $4,037 average = $52,487.5 gross revenue ($251,646.5 total) In February they “crushed” it
  39. 39. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 39 That means we achieved 38X return on ad spend!
  40. 40. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 40 They obviously wanted to fuel the beast and go for more leads!
  41. 41. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 41 May report
  42. 42. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 42 • 73 in-home engagements: $2,521 average customer value = $184,033 gross revenue • 37 Board and Train: $4,037 average = $149,369 gross revenue ($333,402 total) May’s numbers looked off until we looked at the metrics that mattered
  43. 43. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 43 We outperformed Feb by 130%...but not all the metrics showed that Feb 2018 • CPA: $25.13 • Search Conversion Rate: 11.62% • Search CTR: 4.68% • Average QS: 6.96 May 2018 • CPA: $45.02 • Search Conversion Rate: 5.78% • Search CTR: 5.51% • Average QS: 6.89
  44. 44. 44| Confidential Action Items
  45. 45. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 45 Treat Quality Score As A Health Indicator – Not A KPI
  46. 46. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 46 Honor Your Budget – Don’t Ask It To Do Too Much
  47. 47. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 47 Build Branded Campaigns, Not Ad Groups
  48. 48. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 48 Strive to be the best in and set goals in line with your industry
  49. 49. | @navahf @wordstream e: nhopkins@wordstream.com #pubcon 49 Judge the Success of Your Campaigns By Profit, Not Vanity Metrics
  50. 50. @navahf @wordstream e: nhopkins@wordstream.com #pubcon © Copyright 2017 WordStream, Inc. All rights reserved. Thank you!

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