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Chasing Quality Over Quality Score Search Marketing Summit

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Data backed review of why focusing on quality score is a mistake and what to focus on instead to ensure campaigns are profitable and clients are happy with PPC work.

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Chasing Quality Over Quality Score Search Marketing Summit

  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 have a dog named HK About Me:
  3. 3. 3| Confidential Why do we panic?
  4. 4. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 4 How many of you have heard of the goldfish study?
  5. 5. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 5 So this was actually disproved
  6. 6. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 6 We are capable of great focus, but only if we care
  7. 7. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 7 How many of you read the Acquisio study that told us to strive for 7 quality scores?
  8. 8. |#SMSSYD19 @navahf 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. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 9 We want to be exceptional!
  10. 10. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 10 We want discounts on clicks!
  11. 11. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 11 We want good impression share!
  12. 12. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 12 It Won’t Surprise Anyone To See This Chart of Average CTRby 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. |#SMSSYD19 @navahf 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. |#SMSSYD19 @navahf 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. |#SMSSYD19 @navahf 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. |#SMSSYD19 @navahf 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. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 17 Impression Share with and 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. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 18 Conversions with and 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. |#SMSSYD19 @navahf 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. |#SMSSYD19 @navahf 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. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 21 Just because you have a good quality score, doesn’t mean your leads are converting.
  22. 22. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 22 Certain strategic objectives are predisposed to lower quality scores.
  23. 23. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 23 Many Advertisers Fall Into the Trap of Conflating High Scores With Quality.
  24. 24. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 24 Same Quality Score – drastically different results
  25. 25. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 25 Quality Score is a health indicator, not a KPI!
  26. 26. 26| Confidential Using Quality Score as a Health Indicator
  27. 27. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 27 Let’s break down Quality score into its base elements
  28. 28. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 28 If we “solved” for those elements we would have a healthy account.
  29. 29. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 29 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
  30. 30. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 30 Historical CTR Can Suffer if There Isn’t Enough Volume – Some Industries Will Always Struggle Here
  31. 31. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 31 Boring Ads Kill CTR
  32. 32. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 32 Expanded Text Ads Mean Your Copy Is Due For A Revisit! Description text would have made great headlines!
  33. 33. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 33 It’s Hard To Build Relevancy If Campaign Structure is Flawed
  34. 34. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 34 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
  35. 35. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 35 Serving For Auctions Your Ads Can’t Win On Will Hurt Relevancy. Audit Broad Keywords!
  36. 36. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 36 Broad Keywords Can Drag Your Budget into Unintended Auctions 162% More Than Average
  37. 37. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 37 We need to ask ourselves: is this keyword/ad group failing me, or am I failing it by not honoring its needs
  38. 38. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 38 If landing pages don’t deliver on your ad’s promise, you lose relevancy.
  39. 39. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 39 Don’t put prospects/customers to sleep waiting for your site to load!
  40. 40. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 40 Users shouldn’t have to hunt through a text-wall to contact you.
  41. 41. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 41 We live in a mobile first world – don’t build bad mobile experiences Wall of Text Unclickable Number Tiny Menu
  42. 42. 42| Confidential What Does Chasing Quality Look Like
  43. 43. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 43 • Too many targets • Too wide a range in auction price • Too many objectives Budgets Underperform When:
  44. 44. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 44 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%
  45. 45. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 45 3% cheaper & perfect conversion rate! What Auctions Will Give You a Positive ROAS
  46. 46. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 46 Are There Parts of Your Business That Shouldn’t Get Access To Budget
  47. 47. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 47 Any Redundancies to Clean Up? Catching all “logo design” keywords on mod broad
  48. 48. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 48 CTR and Conversion Rates Tell You If Your Message is Landing
  49. 49. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 49 All of This is Meaningless if Your Audiences Aren’t Aligned With Your Value Proposition
  50. 50. 50| Confidential Case Study
  51. 51. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 51 • Balanced in-home dog training • Board and train programs • Group classes for specializing dogs (police, service, etc) Koru K9 provides:
  52. 52. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 52 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 Which month was my client happier with me?
  53. 53. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 53 Koru K9 Story
  54. 54. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 54 • 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
  55. 55. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 55 That means we achieved 38X return on ad spend!
  56. 56. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 56 They obviously wanted to fuel the beast and go for more leads!
  57. 57. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 57 May report
  58. 58. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 58 • 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
  59. 59. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 59 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
  60. 60. 60| Confidential Action Items
  61. 61. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 61 Treat Quality Score As A Health Indicator – Not A KPI
  62. 62. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 62 Honor Your Budget – Don’t Ask It To Do Too Much
  63. 63. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 63 Build Branded Campaigns, Not Ad Groups
  64. 64. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 64 Strive to be the best in and set goals in line with your industry
  65. 65. |#SMSSYD19 @navahf e: nhopkins@wordstream.com 65 Judge the Success of Your Campaigns By Profit, Not Vanity Metrics
  66. 66. @navahf e: nhopkins@wordstream.com #SMSSYD19 © Copyright 2017 WordStream, Inc. All rights reserved. Thank you!

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