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Chasing quality over quality score 2019 do

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Session on understanding quality score, and optimizing for profit instead of a specific score. Includes lessons learned around account structure, landing pages, and ad copy

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Chasing quality over quality score 2019 do

  1. 1. Chasing Quality over Quality Score Navah Hopkins
  2. 2. | 2@navahf @wordstream e: nhopkins@wordstream.com Agenda • Why Do We Panic? • Using Quality Score as a Health Indicator • 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. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 4 How many of you have heard of the goldfish study?
  5. 5. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 5 So this was actually disproved
  6. 6. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 6 We are capable of great focus, but only if we care
  7. 7. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 7 How many of you read the Acquisio study that told us to strive for 7 quality scores?
  8. 8. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 8 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%
  9. 9. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 9 We want to be exceptional!
  10. 10. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 10 We want discounts on clicks!
  11. 11. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 11 We want good impression share!
  12. 12. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 12 It Won’t Surprise Anyone To See This Chart of Average CTR by QS 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 CTR 63000 US accounts in Q2 2018
  13. 13. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 13 Or this one on Average CPC $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 1 2 3 4 5 6 7 8 9 10 Average CPC Average CPC
  14. 14. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 14 But What Happens When We Remove Branded Campaigns and Ad Groups 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 CTR without branded 63000 US accounts in Q2 2018
  15. 15. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 15 A similar impact is felt in CPC $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 1 2 3 4 5 6 7 8 9 10 Average CPC Average CPC without branded
  16. 16. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 16 • 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 Filtering out Branded:
  17. 17. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 17 Impression Share With & Without Branded 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 63000 US accounts in Q2 2018
  18. 18. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 18 Conversions With & Without Branded 0 50 100 150 200 250 300 350 400 450 500 1 2 3 4 5 6 7 8 9 10 Average Conversions By QS Q2 2018 Conversions Without Branded Conversions With Branded 63000 US accounts in Q2 2018
  19. 19. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 19 • Quality score of 2 beat 3 and 5 on impression share • The gap in conversions between 8-10 vanishes when you remove branded • Quality Score of 6 beat out 7 on conversions Filtering out Branded:
  20. 20. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 20 • 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?
  21. 21. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 21 Certain strategic objectives are predisposed to lower quality scores.
  22. 22. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 22 Just because you have a good quality score, doesn’t mean your leads are converting.
  23. 23. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 23 Same Quality Score – Drastically Different Results
  24. 24. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 24 Quality Score is a health indicator, not a KPI!
  25. 25. 25| Confidential Using Quality Score as a Health Indicator
  26. 26. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 26 Let’s break down Quality score into its base elements
  27. 27. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 27 If we “solved” for those elements we would have a healthy account.
  28. 28. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 28 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
  29. 29. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 29 Historical CTR Can Suffer if There Isn’t Enough Volume – Some Industries Will Always Struggle Here
  30. 30. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 30 Boring Ads Kill CTR
  31. 31. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 31 Expanded Text Ads Mean Your Copy Is Due For A Revisit! Description text would have made great headlines!
  32. 32. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 32 It’s Hard To Build Relevancy If Campaign Structure is Flawed
  33. 33. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 33 Sort By Impressions to See Where Ad Networks are Trying to Put Your Money 60% of impression s Budget will only go to “winners” instead of everything
  34. 34. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 34 Serving For Auctions Your Ads Can’t Win On Will Hurt Relevancy. Audit Broad Keywords!
  35. 35. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 35 Broad Keywords Can Drag Your Budget into Unintended Auctions 162% More Than Average
  36. 36. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 36 Am I Forcing A Relationship That Won’t Work, Or Am I Not Honoring The Keyword/Ad Group/Campaign’s Needs?
  37. 37. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 37 If landing pages don’t deliver on your ad’s promise, you lose relevancy.
  38. 38. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 38 Don’t put prospects/customers to sleep waiting for your site to load!
  39. 39. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 39 Users shouldn’t have to hunt through a text-wall to contact you.
  40. 40. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 40 We live in a mobile first world – don’t build bad mobile experiences Wall of Text Unclickable Number Tiny Menu
  41. 41. 41| Confidential What Does Chasing Quality Look Like
  42. 42. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 42 • Too many targets • Too wide a range in auction price • Too many objectives Budgets Underperform When:
  43. 43. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 43 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%
  44. 44. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 44 3% cheaper & perfect conversion rate! What Auctions Will Give You a Positive ROAS
  45. 45. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 45 Are There Parts of Your Business That Shouldn’t Get Access To Budget
  46. 46. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 46 Any Redundancies to Clean Up? Catching all “logo design” keywords on mod broad
  47. 47. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 47 CTR and Conversion Rates Tell You If Your Message is Landing
  48. 48. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 48 All of This is Meaningless if Your Audiences Aren’t Aligned With Your Value Proposition
  49. 49. 49| Confidential Case Study
  50. 50. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 50 • Balanced in-home dog training • Board and train programs • Group classes for specializing dogs (police, service, etc) Koru K9 provides:
  51. 51. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 51 Which month was my client happier with me? 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
  52. 52. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 52 Koru K9 Story
  53. 53. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 53 • 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
  54. 54. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 54 That means we achieved 38X return on ad spend!
  55. 55. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 55 They obviously wanted to fuel the beast and go for more leads!
  56. 56. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 56 May report
  57. 57. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 57 • 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
  58. 58. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 58 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
  59. 59. 59| Confidential Action Items
  60. 60. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 60 Treat Quality Score As A Health Indicator – Not A KPI
  61. 61. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 61 Honor Your Budget – Don’t Ask It To Do Too Much
  62. 62. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 62 Build Branded Campaigns, Not Ad Groups
  63. 63. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 63 Strive to be the best in and set goals in line with your industry
  64. 64. | @DigitalOlympus @navahf @wordstream e: nhopkins@wordstream.com 64 Judge the Success of Your Campaigns By Profit, Not Vanity Metrics
  65. 65. @navahf @wordstream e: nhopkins@wordstream.com #DigitalOlympus © Copyright 2019 WordStream, Inc. All rights reserved. Thank you! Questions? nhopkins@wordStream @navahf

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