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HeroConf 2019 Chasing Quality Over Quality Score

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Session from HeroConf 2019 discussing quality score, why not to focus on it, and what to focus on instead.

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HeroConf 2019 Chasing Quality Over Quality Score

  1. 1. @navahf nhopkins@wordstream.com Chasing Quality Over Quality Score Navah Hopkins| WordStream
  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. @navahf nhopkins@wordstream.com How many of you have heard of the goldfish study?
  5. 5. @navahf nhopkins@wordstream.com Disproved 2 Years Later
  6. 6. @navahf nhopkins@wordstream.com We are capable of great focus, but only if we care
  7. 7. @navahf nhopkins@wordstream.com How many of you read the Acquisio study that told us to strive for 7 quality scores?
  8. 8. @navahf nhopkins@wordstream.com 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. @navahf nhopkins@wordstream.com We want to be exceptional!
  10. 10. @navahf nhopkins@wordstream.com We want discounts on clicks!
  11. 11. @navahf nhopkins@wordstream.com We want good impression share!
  12. 12. @navahf nhopkins@wordstream.com 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. @navahf nhopkins@wordstream.com 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. @navahf nhopkins@wordstream.com 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. @navahf nhopkins@wordstream.com 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. @navahf nhopkins@wordstream.com • 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. @navahf nhopkins@wordstream.com 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. @navahf nhopkins@wordstream.com 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. @navahf nhopkins@wordstream.com • 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. @navahf nhopkins@wordstream.com • 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. @navahf nhopkins@wordstream.com Certain Strategic Objectives Are Predisposed To Lower Quality Scores.
  22. 22. @navahf nhopkins@wordstream.com Just Because You Have A Good Quality Score, Doesn’t Mean Your Leads Are Converting.
  23. 23. @navahf nhopkins@wordstream.com Same Quality Score – Drastically Different Results
  24. 24. @navahf nhopkins@wordstream.com Quality Score Is A Health Indicator, Not A KPI!
  25. 25. 25| Confidential Using Quality Score as a Health Indicator
  26. 26. @navahf nhopkins@wordstream.com Let’s Break Down Quality Score Into Its Base Elements
  27. 27. @navahf nhopkins@wordstream.com If We “Solved” For Those Elements We Would Have A Healthy Account.
  28. 28. @navahf nhopkins@wordstream.com 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. @navahf nhopkins@wordstream.com Historical CTR Can Suffer if There Isn’t Enough Volume – Some Industries Will Always Struggle Here
  30. 30. @navahf nhopkins@wordstream.com Boring Ads Kill CTR
  31. 31. @navahf nhopkins@wordstream.com Expanded Text Ads Mean Your Copy Is Due For A Revisit! Description text would have made great headlines!
  32. 32. @navahf nhopkins@wordstream.com It’s Hard To Build Relevancy If Campaign Structure is Flawed
  33. 33. @navahf nhopkins@wordstream.com Sort By Impressions to See Where Ad Networks are Trying to Put Your Money 60% of impressio nsBudget will only go to “winners” instead of everythin g
  34. 34. @navahf nhopkins@wordstream.com Serving For Auctions Your Ads Can’t Win On Will Hurt Relevancy. Audit Broad Keywords!
  35. 35. @navahf nhopkins@wordstream.com Broad Keywords Can Drag Your Budget into Unintended Auctions 162% More Than Average
  36. 36. @navahf nhopkins@wordstream.com We Need To Ask Ourselves: Is This Keyword/Ad Group Failing Me, Or Am I Failing It By Not Honoring Its Needs
  37. 37. @navahf nhopkins@wordstream.com If Landing Pages Don’t Deliver On Your Ad’s Promise, You Lose Relevancy.
  38. 38. @navahf nhopkins@wordstream.com Don’t Put Prospects/Customers To Sleep Waiting For Your Site To Load!
  39. 39. @navahf nhopkins@wordstream.com Users Shouldn’t Have To Hunt Through A Text-Wall To Contact You.
  40. 40. @navahf nhopkins@wordstream.com 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. @navahf nhopkins@wordstream.com • Too many targets • Too wide a range in auction price • Too many objectives Budgets Underperform When:
  43. 43. @navahf nhopkins@wordstream.com 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. @navahf nhopkins@wordstream.com 3% cheaper & perfect conversion rate! What Auctions Will Give You a Positive ROAS
  45. 45. @navahf nhopkins@wordstream.com Are There Parts of Your Business That Shouldn’t Get Access To Budget
  46. 46. @navahf nhopkins@wordstream.com Any Redundancies To Clean Up? Catching all “logo design” keywords on mod broad
  47. 47. @navahf nhopkins@wordstream.com CTR and Conversion Rates Tell You If Your Message is Landing
  48. 48. @navahf nhopkins@wordstream.com All of This is Meaningless if Your Audiences Aren’t Aligned With Your Value Proposition
  49. 49. 49| Confidential Case Study
  50. 50. @navahf nhopkins@wordstream.com • Balanced in-home dog training • Board and train programs • Group classes for specializing dogs (police, service, etc) Koru K9 provides:
  51. 51. @navahf nhopkins@wordstream.com 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?
  52. 52. @navahf nhopkins@wordstream.com Koru K9 Story
  53. 53. @navahf nhopkins@wordstream.com • 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. @navahf nhopkins@wordstream.com That means we achieved 38X return on ad spend!
  55. 55. @navahf nhopkins@wordstream.com They obviously wanted to fuel the beast and go for more leads!
  56. 56. @navahf nhopkins@wordstream.com May report
  57. 57. @navahf nhopkins@wordstream.com • 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. @navahf nhopkins@wordstream.com 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. @navahf nhopkins@wordstream.com Treat Quality Score As A Health Indicator – Not A KPI
  61. 61. @navahf nhopkins@wordstream.com Honor Your Budget – Don’t Ask It To Do Too Much
  62. 62. @navahf nhopkins@wordstream.com Build Branded Campaigns, Not Ad Groups
  63. 63. @navahf nhopkins@wordstream.com Strive To Be The Best In & Set Goals In Line With Your Industry
  64. 64. @navahf nhopkins@wordstream.com Judge The Success Of Your Campaigns By Profit, Not Vanity Metrics
  65. 65. @navahf nhopkins@wordstream.com Thank You! Questions? Navah Hopkins| WordStream nhopkins@wordstream.com / @navahf

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