Slides from my talk at the Search Advertising Show at BrightonSEO. I explain the biases in paid search that eat away at your profit, how to reverse these by bidding on profit, and how to use that to drive profitable growth. This is the approach noopd's technology takes to guarantee profitable growth for merchants.

1. The End of Unprofitable
Marketing
Nicolas Huber
no pd
@huber_nick

2. Misnomers and biases of paid
search
De-risk your ad spend
Achieve profitable growth
@huber_nick #brightonSEO

3. #brightonSEO
https://sparktoro.com/blog/what-if-performance-advertising-is-just-an-analytics-scam/ @huber_nick

4. #brightonSEO
“somewhere between 60-99% of the people exposed
to [your ads] would have purchased anyway.“
@huber_nick

5. #brightonSEO
“If you have the patience and discipline to
focus on profitability over unprofitable growth,
grab it.”
@huber_nick

7. #brightonSEO
@huber_nick

8. #brightonSEO
@huber_nick

9. #brightonSEO
Icon made by Freepik from www.flaticon.com
Source: https://www.searchenginewatch.com/2018/03/26/why-google-shopping-is-
dominating-retail-search-marketing/
82% of search ad spend
87.9% of clicks
Retail:
@huber_nick

10. @huber_nick #brightonSEO

11. Will Raynolds, MozCon 2019 Keynote speech: https://www.youtube.com/watch?v=FFGT3LGcEjY
15%
@huber_nick #brightonSEO

12. Incognito:
Watch store
@huber_nick
#brightonSEO

13. @huber_nick
#brightonSEO

14. @huber_nick
#brightonSEO

15. #brightonSEO
THERE IS A LOT OF WASTE IN YOUR AD SPEND
@huber_nick

16. Understand the biases of Google Shopping
Bid on profit
Grow profitably
#brightonSEO
@huber_nick

17. Misnomers and
biases
#brightonSEO
@huber_nick

18. ROAS = Return / Ad Spend
#brightonSEO
@huber_nick

19. ROAS = Return (Revenue) / Ad Spend
#brightonSEO
ROAS is a revenue share
@huber_nick

20. #brightonSEO
“… [The] economic value added […]
from advertising all require the costs to
be deducted from sales revenue."
@huber_nick

21. ROAS = (Revenue - Ad Spend) / Ad Spend
#brightonSEO
aka ROI or POAS
@huber_nick

22. #brightonSEO
“A return can be expressed as a percentage
derived from the ratio of profit to investment”
Investopedia
@huber_nick

23. #brightonSEO
?
@huber_nick

24. #brightonSEO
Bias 1: Promoting low margin products
@huber_nick

25. #brightonSEO
Margin: Low
Price: Competitive
@huber_nick
ROAS: 10

26. #brightonSEO
Margin: Average
Price: Average
Margin: Low
Price: Competitive
@huber_nick
ROAS: 10

27. #brightonSEO
Margin: Low
Price: Competitive
Margin: Average
Price: Average
Margin: High
Price: High
@huber_nick
ROAS: 10

28. #brightonSEO
Margin: Low
Price: Competitive
Conversion: Easy
Margin: Average
Price: Average
Conversion: Average
Margin: High
Price: High
Conversion: Difficult
@huber_nick
ROAS: 10

29. #brightonSEO
Margin: Low
Price: Competitive
Conversion: Easy
Margin: Average
Price: Average
Conversion: Average
Margin: High
Price: High
Conversion: Difficult
@huber_nick
ROAS: 10

30. @huber_nick
#brightonSEO
Incognito:
Watch store

31. @huber_nick
#brightonSEO

32. #brightonSEO
Bias 2: Promoting popular products
@huber_nick

33. #brightonSEO
number
of
sales
0
625
1250
1875
2500
days to sale
0
2
4
6
8
10
12
14
16
18
20
22
24
26
28
30
32
34
36
38
40
42
44
46
48
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52
54
56
58
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62
64
66
68
70
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124
126
128
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132
134
136
138
140
142
144
146
148
150
152
154
156
158
160
162
164
167
169
173
175
@huber_nick

34. #brightonSEO
0
50
100
150
200
250
Canon EF 50mm f/1.8 STM
Canon EF 24-105mm f/4 L IS USM
Canon EOS 5D III
Canon EF-S 18-55mm f/3.5-5.6 III
Nikon AF-S 35mm f/1.8G DX
Fujifilm XF 18-55mm f/2.8-4 R LM OIS
Nikon AF-S 50mm f/1.8G
Canon EF-S 10-18mm f/4.5-5.6 IS STM
Nikon AF-S 18-55mm f/3.5-5.6G DX VR
Canon EF 50mm f/1.8 II
Canon EF 75-300mm f/4-5.6 III
Nikon AF-P 18-55mm f/3.5-5.6G DX VR
Canon EOS 5D IV
Sony E PZ 16-50mm f/3.5-5.6 OSS
jifilm NP-W126s Battery for Fujifilm X-Pro 2
Nikon D750
Canon EF 50mm f/1.4 USM
Canon EF-S 18-55mm f/3.5-5.6 IS STM
Sony Alpha A7 III
Sony Alpha A6000
Canon EF-S 18-55mm f/3.5-5.6 IS II
Sony NP-FW50 Battery
Canon EF 70-200mm f/2.8 L IS II USM
Canon EOS 6D
Fujifilm X-T3
Canon EOS 5D II
Nikon EN-EL15 Battery
Nikon D7200
Olympus M.Zuiko ED 40-150mm f/4-5.6 R
Canon EF-M 15-45mm f/3.5-6.3 IS STM
Canon EF 17-40mm f/4 L USM
Canon EOS 80D
Canon EOS 7D
Sony FE 28-70mm f/3.5-5.6 OSS
Canon LP-E6 Battery
Nikon FTZ Mount Adapter
Nikon D3300
Canon EF 24-70mm f/2.8 L USM
Nikon AF-S 18-105mm f/3.5-5.6G ED VR
Canon EF 100mm f/2.8 L IS USM Macro
Nikon AF-S 24-70mm f/2.8G IF-ED
Canon EF 85mm f/1.8 USM
Canon Mount Adapter EF-EOS R
Canon EF 24-70mm f/2.8 L II USM
Fujifilm X-T2
Canon EOS 7D II
Canon EOS 70D
Olympus M.Zuiko ED 45mm f/1.8
Olympus M.Zuiko ED 14-42mm f/3.5-5.6 EZ
Canon EF 70-200mm f/4 L USM
Canon 430EX II Speedlite
Fujifilm XC 15-45mm f/3.5-5.6 OIS PZ
Canon EF 100-400mm f/4.5-5.6 L IS USM
Fujifilm XF 35mm f/2.0 R WR
Canon EOS 600D
Fujifilm XF 35mm f/1.4 R
Canon EF-S 24mm f/2.8 STM
onic Lumix G Vario 12-32mm f/3.5-5.6 ASPH
Canon EF-S 18-55mm f/3.5-5.6 II
Nikon AF-S 70-300mm f/4.5-5.6 G IF ED VR
Canon EOS 1300D
Nikon D7000
Canon EF 70-300mm f/4-5.6 IS USM
Nikon D3200
Nikon D810
Canon EF-S 55-250mm f/4-5.6 IS
Canon EOS 60D
Canon EF-S 55-250mm f/4-5.6 IS STM
Fujifilm XF 55-200mm f/3.5-4.8 R LM OIS
Fujifilm XF 27mm f/2.8
Nikon AF 50mm f/1.8D
Nikon AF-S 55-300mm f/4.5-5.6 G VR DX
Fujifilm X-T20
Nikon D5300
Nikon D7100
Canon EF 40mm f/2.8 STM
Nikon AF-S 18-55mm f/3.5-5.6G ED DX VR II
Fujifilm X100V
Nikon D500
-600mm f/5-6.3 DG OS HSM C, Canon EF Fit
Fujifilm XF 23mm f/2 R WR
Nikon AF-S 85mm f/1.8G
Canon EOS 700D
G Vario 12-60mm f/3.5-5.6 ASPH Power OIS
10-20mm f/4-5.6 EX DC HSM, Canon EF-S Fit
Fujifilm X100F
Fujifilm X-T1
Sony FE 50mm f/1.8
Nikon Nikkor Z 24-70mm f/4 S
Canon 580EX II Speedlite
AF 70-300mm f/4-5.6 Di LD Macro, Nikon Fit
Canon EF-S 18-55mm f/3.5-5.6 IS
Canon EF-EOS M Mount Adapter
Nikon EN-EL14a Li-ion Battery
Canon LP-E6N Battery
Nikon AF-S 24-120mm f/4G ED VR
Canon LP-E17
Panasonic Lumix G 25mm f/1.7 ASPH
Fujifilm XF 10-24mm f/4 R OIS
Nikon D800
first time
repeat
first time
repeat
Arranged by popularity
@huber_nick

35. #brightonSEO
0
50
100
150
200
250
Canon EF 50mm f/1.8 STM
Canon EF 24-105mm f/4 L IS USM
Canon EOS 5D III
Canon EF-S 18-55mm f/3.5-5.6 III
Nikon AF-S 35mm f/1.8G DX
Fujifilm XF 18-55mm f/2.8-4 R LM OIS
Nikon AF-S 50mm f/1.8G
Canon EF-S 10-18mm f/4.5-5.6 IS STM
Nikon AF-S 18-55mm f/3.5-5.6G DX VR
Canon EF 50mm f/1.8 II
Canon EF 75-300mm f/4-5.6 III
Nikon AF-P 18-55mm f/3.5-5.6G DX VR
Canon EOS 5D IV
Sony E PZ 16-50mm f/3.5-5.6 OSS
jifilm NP-W126s Battery for Fujifilm X-Pro 2
Nikon D750
Canon EF 50mm f/1.4 USM
Canon EF-S 18-55mm f/3.5-5.6 IS STM
Sony Alpha A7 III
Sony Alpha A6000
Canon EF-S 18-55mm f/3.5-5.6 IS II
Sony NP-FW50 Battery
Canon EF 70-200mm f/2.8 L IS II USM
Canon EOS 6D
Fujifilm X-T3
Canon EOS 5D II
Nikon EN-EL15 Battery
Nikon D7200
Olympus M.Zuiko ED 40-150mm f/4-5.6 R
Canon EF-M 15-45mm f/3.5-6.3 IS STM
Canon EF 17-40mm f/4 L USM
Canon EOS 80D
Canon EOS 7D
Sony FE 28-70mm f/3.5-5.6 OSS
Canon LP-E6 Battery
Nikon FTZ Mount Adapter
Nikon D3300
Canon EF 24-70mm f/2.8 L USM
Nikon AF-S 18-105mm f/3.5-5.6G ED VR
Canon EF 100mm f/2.8 L IS USM Macro
Nikon AF-S 24-70mm f/2.8G IF-ED
Canon EF 85mm f/1.8 USM
Canon Mount Adapter EF-EOS R
Canon EF 24-70mm f/2.8 L II USM
Fujifilm X-T2
Canon EOS 7D II
Canon EOS 70D
Olympus M.Zuiko ED 45mm f/1.8
Olympus M.Zuiko ED 14-42mm f/3.5-5.6 EZ
Canon EF 70-200mm f/4 L USM
Canon 430EX II Speedlite
Fujifilm XC 15-45mm f/3.5-5.6 OIS PZ
Canon EF 100-400mm f/4.5-5.6 L IS USM
Fujifilm XF 35mm f/2.0 R WR
Canon EOS 600D
Fujifilm XF 35mm f/1.4 R
Canon EF-S 24mm f/2.8 STM
onic Lumix G Vario 12-32mm f/3.5-5.6 ASPH
Canon EF-S 18-55mm f/3.5-5.6 II
Nikon AF-S 70-300mm f/4.5-5.6 G IF ED VR
Canon EOS 1300D
Nikon D7000
Canon EF 70-300mm f/4-5.6 IS USM
Nikon D3200
Nikon D810
Canon EF-S 55-250mm f/4-5.6 IS
Canon EOS 60D
Canon EF-S 55-250mm f/4-5.6 IS STM
Fujifilm XF 55-200mm f/3.5-4.8 R LM OIS
Fujifilm XF 27mm f/2.8
Nikon AF 50mm f/1.8D
Nikon AF-S 55-300mm f/4.5-5.6 G VR DX
Fujifilm X-T20
Nikon D5300
Nikon D7100
Canon EF 40mm f/2.8 STM
Nikon AF-S 18-55mm f/3.5-5.6G ED DX VR II
Fujifilm X100V
Nikon D500
-600mm f/5-6.3 DG OS HSM C, Canon EF Fit
Fujifilm XF 23mm f/2 R WR
Nikon AF-S 85mm f/1.8G
Canon EOS 700D
G Vario 12-60mm f/3.5-5.6 ASPH Power OIS
10-20mm f/4-5.6 EX DC HSM, Canon EF-S Fit
Fujifilm X100F
Fujifilm X-T1
Sony FE 50mm f/1.8
Nikon Nikkor Z 24-70mm f/4 S
Canon 580EX II Speedlite
AF 70-300mm f/4-5.6 Di LD Macro, Nikon Fit
Canon EF-S 18-55mm f/3.5-5.6 IS
Canon EF-EOS M Mount Adapter
Nikon EN-EL14a Li-ion Battery
Canon LP-E6N Battery
Nikon AF-S 24-120mm f/4G ED VR
Canon LP-E17
Panasonic Lumix G 25mm f/1.7 ASPH
Fujifilm XF 10-24mm f/4 R OIS
Nikon D800
first time
repeat
Clear examples of Google bias to
popular products for new customers
@huber_nick
Arranged by popularity
first time
repeat

36. #brightonSEO
number
of
sales
0
625
1250
1875
2500
days to sale
0
2
4
6
8
10
12
14
16
18
20
22
24
26
28
30
32
34
36
38
40
42
44
46
48
50
52
54
56
58
60
62
64
66
68
70
72
74
76
78
80
82
84
86
88
90
92
94
96
98
100
102
104
106
108
110
112
114
116
118
120
122
124
126
128
130
132
134
136
138
140
142
144
146
148
150
152
154
156
158
160
162
164
167
169
173
175
56% 44%
?
@huber_nick

37. Critically
evaluate how
biases affect you
#brightonSEO
@huber_nick

38. Bid on profit
#brightonSEO
@huber_nick

39. PP
RP
RRP
List price
Bonus
Rebate
market environment
ROAS
gross
margin
#brightonSEO
@huber_nick

40. PP
RP
RRP
List price
Bonus
Rebate
market environment
gross
margin
#brightonSEO
@huber_nick
P&P
warehousing
shipping cost
payment processing
VAT
online costs
stock levels
profit
Advertising

41. #brightonSEO
What percentage of my true profit
am I willing to spend on ads for this
product?
@huber_nick

42. PAS = (PROFIT - Ad Spend) / Ad Spend
#brightonSEO
PAS is a PROFIT share
PROFITABLE AD SPEND
@huber_nick

43. #brightonSEO
@huber_nick

44. #brightonSEO
@huber_nick

45. #brightonSEO
“… the jump from ROAS to POAS is similar
in scale to that from CPA to ROAS; you’re
simply adding more granularity.”
Discipline
@huber_nick

46. margin
cost of goods
PAS
costs of sales
PRODUCT
DATA
#brightonSEO
@huber_nick
profit share
+

47. #brightonSEO
Bidding on profit
de-risks your ad
spend
@huber_nick

48. Grow profitably
#brightonSEO
@huber_nick

49. #brightonSEO
@huber_nick

50. #brightonSEO
Value strategy
Growth strategy
@huber_nick

51. #brightonSEO
Value strategy
=
Profit
Ad spend
@huber_nick

52. #brightonSEO
Margin: Low
Price: Competitive
@huber_nick
Profit share: 30%

53. #brightonSEO
Margin: Low
Price: Competitive
Margin: Average
Price: Average
@huber_nick
Profit share: 30%

54. #brightonSEO
Margin: Low
Price: Competitive
Margin: Average
Price: Average
Margin: High
Price: High
@huber_nick
Profit share: 30%

55. #brightonSEO
Margin: Low
Price: Competitive
Appeal: Low
Margin: Average
Price: Average
Appeal: Average
Margin: High
Price: High
Appeal: High
@huber_nick
Profit share: 30%

56. #brightonSEO
Margin: Low
Price: Competitive
Appeal: Low
Margin: High
Price: High
Appeal: High
@huber_nick
Profit share: 30%

57. last click attribution
to Google shopping 80,719
0
175,000
350,000
525,000
700,000
ROAS (10) PAS
2019 sales
> € 240,000 savings
#brightonSEO
@huber_nick

58. #brightonSEO
Growth
=
Profit
Ad spend
@huber_nick

59. #brightonSEO
Profit exc. ad (£) 7.5
Sales (x) 100
Ad cost (£) 250
Profit(£):500
Profit exc. ad (£) 750
Sales (x) 1
Ad cost (£) 250
Profit(£):500
@huber_nick
£25
£2500

60. #brightonSEO
Profit exc. ad (£) 7.5
Sales (x) 100
Ad cost (£) 250
Profit(£):500
Profit exc. ad (£) 750
Sales (x) 1
Ad cost (£) 250
Profit(£):500
Ad spend:
£500
Profit:
£1000
@huber_nick
£25
£2500

61. #brightonSEO
Profit exc. ad (£) 7.5
Sales (x) 100
Ad cost (£) 250
Profit(£):500
Profit exc. ad (£) 750
Sales (x) 1
Ad cost (£) 250
Profit(£):500
Ad spend:
£500
Profit:
£1000
£
@huber_nick
£25
£2500

62. #brightonSEO
Profit exc. ad (£) 7.5
Sales (x) 50
Ad cost (£) 150
Profit(£):225
Profit exc. ad (£) 750
Sales (x) 2
Ad cost (£) 350
Profit(£):1150
@huber_nick
£25
£2500

63. #brightonSEO
Profit exc. ad (£) 7.5
Sales (x) 50
Ad cost (£) 150
Profit(£):225
Profit exc. ad (£) 750
Sales (x) 2
Ad cost (£) 350
Profit(£):1150
Ad spend:
£500
Profit:
£1375
@huber_nick
£25
£2500

64. #brightonSEO
Ad spend:
£500
Profit:
£1375
37.5%
@huber_nick
£25
£2500

65. #brightonSEO
Bidding on profit
can safely drive
growth
@huber_nick

66. Bidding on profit can safely drive growth
Bidding on profit de-risks your ad spend
Critically evaluate how biases affect you
#brightonSEO
@huber_nick

67. noopd guarantees your profitable growth
hello@noopd.com