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Retail PPC Secrets - Pete Whitmarsh - IRX 2015

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PPC is innovating all the time, with new features and techniques bringing new opportunities. Find out how automation for PPC ads can be really beneficial for retailers.

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Retail PPC Secrets - Pete Whitmarsh - IRX 2015

  1. 1. © Search Laboratory Ltd 2014. All rights reserved. Leeds T: +44 113 212 1211 London T: +44 207 147 9980 Retail PPC (is hard!) IRX 2015 Pete Whitmarsh – 25/03/15
  2. 2. Background
  3. 3. Intro – aka. Why should I care? 0 500 1000 1500 2000 2500 3000 2007 2008 2009 2010 2011 2012 2013 2014 Annual Number of Searches (Billion) Annual Number of Searches (Billion)
  4. 4. Total % of clicks to paid 20.00% 22.00% 24.00% 26.00% 28.00% 30.00% 32.00% 34.00% 36.00% 2009 2010 2011 2012 2013 2014 Text Ad + PLA Click-Through Rate Text Ad Click-Through Rate
  5. 5. Which position? Top 3 are important CTR on lower positions decreasing 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 2009 2010 2011 2012 2013 2014 Click-Through Rate in Paid Positions Position 1-3 Position 4+
  6. 6. Evolving SERPs 2010 NOW 45% Paid 88% Paid
  7. 7. Setting Targets
  8. 8. Target setting AOV = £60 Average margin = 30% Average profit per sale = £18 CPA target = £15 Product AOV Margin Profit per Sale A £30 30% £9 B £60 20% £12 C £90 40% £36
  9. 9. Target setting Don’t use CPA as a target (Unless you only have one product) …or number of clicks, conversions etc.
  10. 10. ROI / ROAS / Cost of sale Average margin = 30% Target Cost of Sale = 25% Target ROAS = 400% Product AOV Margin Profit per Sale A £30 30% £9 B £60 20% £12 C £90 40% £36
  11. 11. Target ROAS / ROI Can be used… …but only if you have a static margin Encourages lower volume ROI Spend
  12. 12. Profit Spend Profit Profit increases to a point Hard to know what shape this curve is Ultimate goal is to find the point of diminishing returns Point of diminishing returns
  13. 13. Profit The best measure of success Give your agency the right data to provide this – Cost price of items – Margins per item If possible, don’t cap the budget
  14. 14. Valuing Clicks
  15. 15. Valuing clicks Understand the value of every click Core principle of PPC Simplest form… 𝑃𝑟𝑜𝑓𝑖𝑡 𝑝𝑒𝑟 𝑠𝑎𝑙𝑒 × 𝐶𝑜𝑛𝑣𝑒𝑟𝑠𝑖𝑜𝑛 𝑟𝑎𝑡𝑒 = 𝐶𝑙𝑖𝑐𝑘 𝑝𝑟𝑖𝑐𝑒
  16. 16. The bidding problem What is the conversion rate of a keyword with 1 conversion from 10 clicks? Only 95% sure that the Conversion Rate is between 0.25% and 44.5%
  17. 17. The bidding problem Determining the conversion rate on broad high-volume terms is easy The problem occurs in low-volume long tailed terms Solution: – Look to other similar terms
  18. 18. What else influences conversion rate? Time Season Location Device Weather Previous visits to site Make suitable adjustments to take advantage of this
  19. 19. Time of day Opportunity to adjust bids based on performance 0 5 10 15 20 25 30 35 40 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Conversion rate Average Conversion Value
  20. 20. Location performance Best converters (>5.5%) Worst converters (<4%)
  21. 21. The full value of a click Understand the full value of a click by considering – Paths to other campaigns or channels – Lifetime value – In store visits – Cross device conversions – Referrals – Brand awareness – Micro conversions – Returns
  22. 22. Large product inventories
  23. 23. Consider Different levels of keywords Men’s Shoes Men’s smart shoes Men’s black leather shoes Men’s black Ted Baker shoes Ted Baker MARTT shoes black MARTT shoes Ted Baker black lace ups Men’s black derby shoes Size 9 designer shoes Men’s dress shoes
  24. 24. Granularity
  25. 25. What happens when… Price changes? Product goes out of stock? Product comes back in stock? Product gets renamed? URL changes? New colour gets released?
  26. 26. Category level
  27. 27. What happens when… Minimum price changes? Minimum priced item goes out of stock? New cheapest item? Range decreases to 4?
  28. 28. The problem of scale Granularity is easy for a small set of products, but… We often have a colossal number of potential Ad Groups Keeping up-to-date is a difficult problem
  29. 29. How do we solve it? More people or less granularity? Equivalently: – More operating costs or lower return? How about a third option…
  30. 30. Creation Updating Bidding Error checking Integration Automation Keywords Ads Ad groups Campaigns Prices Stock Sales Pauses Keyword-level Structured Mathematical Double checks Manual & automated Ad platform API
  31. 31. Brand Bidding
  32. 32. Bidding on brand Do you… – Bid on brand terms? – Avoid brand terms? – Test whether it actually makes a difference?
  33. 33. Brand bidding Our methodology – 20 minute randomised intervals – Paid vs Organic report Recent results: Queries Clicks CTR Both shown 16525 15004 91% Organic Only 26129 19020 73% Increase in CTR 18% Extra Clicks as a Result of PPC Ads 2975 Total Cost £990.07 Cost per EXTRA click £0.33
  34. 34. Product Listing Ads / Google Shopping
  35. 35. PLAs Top recommendations – Get your title right – High quality images – Keep feed up-to-date – Normalise colour terms – Calculate your bids – Split brand and non-brand – Use negative keywords – Consider the competition
  36. 36. Going Global
  37. 37. Global Market
  38. 38. Considerations Website: – Local payment methods – Localised address fields PPC accounts: – Research how people search – Research what messages people respond to – Research what competitors are doing
  39. 39. Make sure you get it right… Don’t just translate People search differently People respond to different messages
  40. 40. …Even in English Pants / trousers Thongs / flip-flops Sneakers / trainers Sweaters / jumpers Court Shoes / pumps Braces / suspenders Vest / waistcoat
  41. 41. Takeaways
  42. 42. Takeaways Paid search is still growing Pick sensible targets – not CPA Calculate bids and bid adjustments according to performance Use automation to take it to the next level Test brand term performance Get your PLAs right Go global – but be sensible
  43. 43. Email: Tel: Web: www.searchlaboratory.com Twitter: @searchlabs Contact details Pete Whitmarsh Peter.Whitmarsh@searchlaboratory.com 0113 2121211

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