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10 Years of Bidding, 10 Lessons Learned: Large Enterprise Advertisers By Ian Lopuch

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From the SMX East 2014 Conference in New York City, NY. SESSION: A Deep Dive Into Bidding Strategies & Bid Modifiers. PRESENTATION: 10 Years of Bidding, 10 Lessons Learned: Large Enterprise Advertisers - Given by Ian Lopuch, @IanLopuch, VP Customer Acquisition - eHealth. #SMX #23B

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10 Years of Bidding, 10 Lessons Learned: Large Enterprise Advertisers By Ian Lopuch

  1. 1. 10 Years of Bidding, 10 Lessons Learned: Large Enterprise Advertisers Ian Lopuch Vice President, Customer Acquisition, eHealth #SMX | @ianlopuch
  2. 2. Ian Lopuch: About Me • 10 years of digital marketing experience • $200 MM+ career spend • Bidding, Bid Technology Enthusiast § Experience with manual bidding, building bidding platforms/ technologies, leveraging enterprise-level bid management systems • Stanford Computer Science Major #SMX | @ianlopuch | 2
  3. 3. Lesson #1: Traditional CPA-Based Bidding Is Bad • What about the lifetime value of your customers? § Will they come back and buy more in a month? • What about attach rate? § Did they purchase multiple products? • What about relative value of different products? § Did they buy the $100 product or $200 product? Not this kind of CPA! • CPA limits your ability to optimize. It may have worked in the past, but is unlikely to work as well going forward as competition increases. #SMX | @ianlopuch | 3
  4. 4. Lesson #2: Traditional CPL-Based Bidding Is Worse • CPA misses the full picture, CPL misses even more. • Not all leads are created equally. • If your business requires a long, offline sales process, build a quality based feedback loop into your CPL-based bidding. § With aggressive account segmentation, leverage a multiplier-based feedback loop. Quantity Does Not Equal Quality #SMX | @ianlopuch | 4
  5. 5. Lesson #3: Modern CPA and CPL-Based Bidding (With Aggressive Feedback Loops) Works #SMX | @ianlopuch | 5 • Have granular tracking in place. • Track conversions on your back end, and consistently score their effectiveness. • Pass feedback into your bidding in the form of a multiplier, differentiating keywords based on the true value of the conversions (or leads). • This solution is an approximation of revenue-based bidding. The Faster The Loop The Better
  6. 6. Lesson #4: Great Account Structure & Segmentation Makes Your Bidding Excel • Before you even start bidding, invest in a solid account structure. #SMX | @ianlopuch | 6 • Segment wherever possible. § Geo, network (search vs. syndication), match type, keyword theme, device • Incorporate differences in conversion rates and back end performance (see prior feedback loop tip) when bidding. Quality Foundation & Framing, The Basis For A Strong House
  7. 7. Lesson #5: Revenue-Based Bidding Is The Future • Why are we here? What do we do as digital marketers? • We acquire, retain, and develop customers. • Ultimately, we drive revenue with the lowest possible cost. • Find a way to incorporate revenue into your bidding on a keyword level. Incorporate current revenue and future projected revenue discounted to present value. Skyrocket Your Bidding Into The Future With Revenue Integration #SMX | @ianlopuch | 7
  8. 8. Lesson #6: Buy A World-Class Bidding Platform • On an enterprise level, it’s really expensive/problematic to bid manually. • Building your own platform requires huge overhead, and you’ll become obsolete. • How do you keep up with the future, such as revenue-based bidding, with lowest possible investment? • Leverage the world-class bid management platforms. Let Your Platform Do The Heavy Lifting #SMX | @ianlopuch | 8
  9. 9. Lesson #7: Think About The Entire Stack; Search Bidding Cannot Be A Silo #SMX | @ianlopuch | 9 • The market is competitive, and will consistently get more competitive. • Search technology is not a standalone application anymore. § What about integration with your website analytics, retargeting, and email? • Digital marketing is multi-channel and fluid, the stack creates value and drives conversions.. § Search is expensive; the stack optimizes media yield. The Future of Digital Marketing Technology, The Stack
  10. 10. Lesson #8: No Sales Yet? Leverage Your Data Layer • Your analytics platform has so much data. § Time on site, pages viewed, shopping cart full, checkout process started, for example. • How do you bid keywords that haven’t driven sales revenue yet? Those incremental touch points (yes, even leads) add value to your bidding strategy. § Just scale down credit given to intermediate steps and limit exposure. • Great technology stacks make this easy. There’s Immense Bidding Value In Your #SMX | @ianlopuch | 10 Data Layer
  11. 11. Lesson #9: Search Clicks Provide Some of the Best Value Around #SMX | @ianlopuch | 11 • Search clicks are incredibly valuable. • If you just look at last click attribution, you are missing half the value of Search and will bid too low. • Have a great attribution strategy in place to give value to those assisting conversions. § Quick hack: Have your conversion pixels loading persistently. Search Clicks Are Pure Gold
  12. 12. Lesson #10: Avoid Competing With Yourself • Search bidding drives incredible brand awareness and long-term residual value. • Large company with partnership deals? • Coordinate with your business development and affiliate teams. Don’t get into a situation where you’re competing with yourself. • Internal campaigns are always better. Don’t Compete With Yourself! #SMX | @ianlopuch | 12
  13. 13. Bonus Lesson #11: Be Careful, Things Can Go Wrong • Enterprise-level digital marketing is a high stakes game. • Bid and budget changes create risk. • Have the right safety precautions in place. § Test plans, rollback plans, 24/7 monitoring, conservative budgets, avoid testing during seasonal peaks, only work with trusted platforms, give out your API key very sparingly. Avoid Bidding Mistakes, Be Careful #SMX | @ianlopuch | 13
  14. 14. Thank you! • Questions? • Contact me: § @ianlopuch § ian.lopuch@ehealth.com #SMX | @ianlopuch | 14

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