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Creating An Ad Testing Framework By Brad Geddes

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From the SMX East 2014 Conference in New York City, NY. SESSION: Creating, Testing & Optimizing Paid Search Ads. PRESENTATION: Creating an Ad Testing Framework - Given by Brad Geddes, @bgTheory, Founder - Certified Knowledge. #SMX #22B

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Creating An Ad Testing Framework By Brad Geddes

  1. 1. Brad Geddes Founder, Certified Knowledge Founder, AdAlysis Author, Advanced Google AdWords @bgTheory Creating an Ad Testing Framework SMX East COPYRIGHT CERTIFIED KNOWLEDGE 2014 @bgTheory
  2. 2. The Brainstorm Creating an Ad Testing Framework COPYRIGHT CERTIFIED KNOWLEDGE 2014 @bgTheory
  3. 3. Research Your Initial Ad Ideas Ad Ideas Inspirations • Social mentions • Customer support inquiries • Your forums • Company reviews • Competitive research • Brainstorming • Previous Marketing Efforts • Customer onboarding interview • Search query data • Etc… COPYRIGHT CERTIFIED KNOWLEDGE 2014 3 @bgTheory
  4. 4. Ask The Big Questions First • Are consumers price sensitive? (discounts, prices in ads) • Does Location matter? (use geographies in ads) • Does shipping matter? (Free or Rush shipping) • Is selection important? (large, exclusive, variety, etc) • How much does quality matter? (cheap, luxury) • What’s your best CTA? (Call, Shop, Find, Discover, etc) • Should your display URL be products, geo, CTAs, or something else? • Do we need to pre-qualify clicks? (b2b vs b2c) • etc… Copyright Certified Knowledge 2014 4 @bgTheory
  5. 5. (Optional) Put This Data Into A Spreadsheet COPYRIGHT CERTIFIED KNOWLEDGE 2014 5 @bgTheory
  6. 6. Do a Keyword Density Analysis Note: This can be used for discovering new keywords COPYRIGHT CERTIFIED KNOWLEDGE 2014 6 @bgTheory
  7. 7. Determine How You Want to Segment Ad Tests • Your brand • 3rd party brands • Products • Informational • Long tail • By buying cycle entrance • Etc… Copyright Certified Knowledge 2014 7 @bgTheory
  8. 8. If on Mobile: Segment Ideas by Device Mobile CTR Desktop CTR Call Us 11.2% (includes calls) 5.2% Contact Us 4.1% 6.9% Example.com/Things 4.2% 5.3% M.example.com/things 8.2% N/A (or example.com/mobile) Find the Nearest Store 7.6% 4.5% Shop Now 2.1% 5.8% COPYRIGHT CERTIFIED KNOWLEDGE 2014 8 @bgTheory
  9. 9. Start With Multi-Ad Group Testing Creating an Ad Testing Framework COPYRIGHT CERTIFIED KNOWLEDGE 2014 @bgTheory
  10. 10. List Out Your Ad Tests • Examples: ­GEO vs Non-GEO headlines ­Call us vs Learn More CTAs ­Brand vs Non-Brand Headlines COPYRIGHT CERTIFIED KNOWLEDGE 2014 10 @bgTheory
  11. 11. Multi-Ad Group Testing Setup Ad Group D2 1 Shop Now! 1 Free Shipping! 1 Price $ 2 Shop Now! 2 Free Shipping! 2 Price $ 3 Shop Now! 3 Free Shipping! 3 Price $ Etc… Etc… COPYRIGHT CERTIFIED KNOWLEDGE 2014 11 @bgTheory
  12. 12. (Optional) Label Ads for Easy Filtering COPYRIGHT CERTIFIED KNOWLEDGE 2014 12 @bgTheory
  13. 13. Use Pivot Tables or Software to Analyze the Data COPYRIGHT CERTIFIED KNOWLEDGE 2014 13 @bgTheory
  14. 14. You Now Have Answers to Big Questions • Don’t use brand names in non-branded ad groups • GEOs increase CPI; break out campaigns by GEO • Call Us works best on a mobile device • Learn more works best on a desktop device • Etc… Copyright Certified Knowledge 2014 14 @bgTheory
  15. 15. Next Steps • If you have more big questions to answer; do more rounds of multi-ad group testing • If not; then move to A/B testing ­Easiest to start with your top ad groups (by impressions) COPYRIGHT CERTIFIED KNOWLEDGE 2014 15 @bgTheory
  16. 16. Ad Rotation & Minimum Data Creating an Ad Testing Framework COPYRIGHT CERTIFIED KNOWLEDGE 2014 @bgTheory
  17. 17. Minimum Viable Data Data after 97 impressions Ad Impressions Clicks CTR Z-Score Confidence Control 40 1 2.5% N/A Ad 2 33 5 15.15% 1.88 97.03% Ad 3 24 0 0% -1.01 15.57% Data after 3163 impressions Ad Impressions Clicks CTR Z-Score Confidence Control 1023 23 2.25 N/A Ad 2 993 29 2.92% 0.95 82.9% Ad 3 1147 56 4.88% 3.35 99.96% COPYRIGHT CERTIFIED KNOWLEDGE 2014 17 @bgTheory
  18. 18. Always Use Rotate for Testing COPYRIGHT CERTIFIED KNOWLEDGE 2014 18 @bgTheory
  19. 19. What You Expect To See COPYRIGHT CERTIFIED KNOWLEDGE 2014 19 @bgTheory
  20. 20. If Optimize for Conversions is On – Which Ad Should Show the Most? COPYRIGHT CERTIFIED KNOWLEDGE 2014 20 @bgTheory
  21. 21. Examples Weren’t Easy To Find: But There Were Many More Examples Than I Expected to Find COPYRIGHT CERTIFIED KNOWLEDGE 2014 21 @bgTheory
  22. 22. Choosing Winning Metrics Creating an Ad Testing Framework COPYRIGHT CERTIFIED KNOWLEDGE 2014 @bgTheory
  23. 23. Ad Testing Metrics • CTR (click through rate) • Conversion rate • CPA (cost per action) • CPI (conversion per impression) • ROAS (return on ad spend) You don’t have to only use one metric! COPYRIGHT CERTIFIED KNOWLEDGE 2014 23 @bgTheory
  24. 24. Lead Gen Types • I want the most leads regardless of incremental costs ­B2B long sales cycles ­Telephone staff • I want the most leads under a specific average CPA ­Ecommerce with large variations in revenue by sale • I want the most leads possible, but no lead should be over $Y ­Affiliates ­Lead gen with tight revenue focus • I want Y leads a month at the cheapest CPA ­Local business that can only handle a certain amount of leads a month COPYRIGHT CERTIFIED KNOWLEDGE 2014 24 @bgTheory
  25. 25. I want the most leads regardless of incremental costs • The Top CPI as is Always the Winner COPYRIGHT CERTIFIED KNOWLEDGE 2014 25 @bgTheory
  26. 26. I want the most leads under a specific average CPA 1. Eliminate ads above target CPA 2. Pick the highest CPI ad COPYRIGHT CERTIFIED KNOWLEDGE 2014 26 @bgTheory
  27. 27. I want the most leads possible, but no lead should be over $Y • For Each Keyword: 1. Eliminate ads above target CPA 2. Pick the highest CPI ad COPYRIGHT CERTIFIED KNOWLEDGE 2014 27 @bgTheory
  28. 28. I want Y leads a month at the cheapest CPA 1. Extrapolate data as if each ad received 100% of the impressions 2. Find ad with lowest CPA that can reach Y leads/month COPYRIGHT CERTIFIED KNOWLEDGE 2014 28 @bgTheory
  29. 29. Recap • Start with a big brainstorm / research session to gather ad ideas • Determine your ad testing segments • Ask the ‘big questions’ first through multi-ad group testing • Use that data to create rules around ad creation • Move to A/B testing on your top ad groups • Determine how you are going to pick winning ads • Repeat forever COPYRIGHT CERTIFIED KNOWLEDGE 2014 29 @bgTheory
  30. 30. Visit adAlysis.com For Powerful Ad Testing Made Easy • S COPYRIGHT CERTIFIED KNOWLEDGE 2014 30 @bgTheory

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