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Former PPC Best Practices Gone Wild by Larry Kim

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Smx West 2014 Session #Smx #21B - Keeping Your Edge Sharp: Revisiting Fundamentals Of Paid Searchpresentation Former Ppc Best Practices Gone Wild By Larry Kim @@Larrykim Of Wordstream

Published in: Marketing

Former PPC Best Practices Gone Wild by Larry Kim

  1. 1. CONFIDENTIAL – DO NOT DISTRIBUTE 1 Former PPC Best Practices Gone Wild Larry Kim, Founder/CTO, WordStream March 12, 2014 @larrykim
  2. 2. Epiphany #1: Value of Quality Score in 2014
  3. 3. Avg. Quality Score Has Been Falling. • Today, average score is 5/10. Previously was 7/10 Larry Kim (@larrykim)
  4. 4. CONFIDENTIAL – DO NOT DISTRIBUTE 7
  5. 5. The Impact of Quality Score on Cost Per Conversion Larry Kim (@larrykim)
  6. 6. Epiphany #2: Google Expects (Much) More Of Your Ads
  7. 7. Which Ad Wins? a)Ad A –32,423 Impressions –453 clicks (1.4% CTR) –Average Position: 2.8 b)Ad B –36,223 Impressions –760 clicks (2.1% CTR) –Average Position: 3.0 Larry Kim (@larrykim) #wordstream
  8. 8. Trick Question! Both Ads Suck. • Neither ad is worth declaring a “Winner”. • Not even the 2.1% CTR in the 3.0 Avg. Position. • Why?? Larry Kim (@larrykim)
  9. 9. What’s a Good CTR? Larry Kim (@larrykim)
  10. 10. • Even the “Winner” is a Loser! CONFIDENTIAL – DO NOT DISTRIBUTE 13
  11. 11. Even the “Winning” Ad is a Loser! Larry Kim (@larrykim) #wordstream
  12. 12. Epiphany #3: What’s a Good CTR These Days? (You’d be surprised)
  13. 13. What’s a Good Search CTR? (Account Avg. CTR’s) Larry Kim (@larrykim)
  14. 14. But Lots of Variance!! Larry Kim (@larrykim) #wordstream
  15. 15. Under-Performing vs. Unicorns Percentile Vs. Expected CTR Name Bottom 50% Below Expected CTR Under- Performing Advertisers Top 15% 2X Higher Awesome Advertisers Top 5% 3x Higher Super Awesome Advertisers Top 1% 6x Higher!! Unicorns Larry Kim (@larrykim) #wordstream
  16. 16. @larrykim Unicorns?! (6x Avg. CTR!)
  17. 17. What Unicorns (Top 1%) Look Like Larry Kim (@larrykim) #wordstream
  18. 18. Epiphany #4 Quality Score is Mostly Just About Getting Above Average CTRs!
  19. 19. QS is Based on Your CTR vs. Expected CTR! Larry Kim (@larrykim)
  20. 20. Ad Text Testing • Same Story – 20% of Ads Generate 92% of Spend • 20% of Ads Generated 65% of Impressions • But CPA, CTR, and Conversion Rates vary @larrykim, @perrymarshall
  21. 21. 1. Keywords With High Commercial Intent Larry Kim (@larrykim) #wordstream
  22. 22. 2. Dynamic Keyword Insertion (DKI) Larry Kim (@larrykim) #wordstream
  23. 23. 2. DKI Doesn’t Produce As Many Unicorns Larry Kim (@larrykim) #wordstream
  24. 24. 3. Ad Extensions Impact on Quality Scores Larry Kim (@larrykim) #wordstream
  25. 25. 3. Ad Extensions Impact on Click Through Rate Larry Kim (@larrykim) #wordstream
  26. 26. Epiphany #5 How To Write “Unicorn” Ads
  27. 27. 4. Most Ads Suck. Create Emotional Ads. 30
  28. 28. Creating “Emotional” Ads
  29. 29. An Example: Larry Kim (@larrykim)
  30. 30. Versus… Larry Kim (@larrykim)
  31. 31. Epiphany #6 “Always Be Testing”?
  32. 32. Relative Abundance Name Percentile Relative Abundance Vs. Expected CTR Awesome Ads Top 15% 1:6.7 2X Higher Super Awesome Ads Top 5% 1:20 3x Higher Unicorns Top 1% 1:100 6x Higher!! Larry Kim (@larrykim)
  33. 33. Epiphany #7 You Need To Test 100 Ads To Find 1 Unicorn. You need one Great Ad.
  34. 34. You’re Not Testing as Many Ads as You Think… Larry Kim (@larrykim)
  35. 35. Epiphany #8 It’s Not as Hard As You Think
  36. 36. Most Small Businesses Aren’t That Active Larry Kim (@larrykim)
  37. 37. 85% of Impressions are From 5% of Ads Larry Kim (@larrykim)
  38. 38. Epiphany #9 How to Scale Your PPC?
  39. 39. Quick Recap 1. Above Average CTR Keyword/Ads = Great Success. 2. Below Average CTR Keyword/Ads = Train Wreck 3. So … Delete the bottom third of your account and re-deploy that spend to remarketing Larry Kim (@larrykim)
  40. 40. Average CPC’s by Industry and Network Larry Kim (@larrykim)
  41. 41. Average Conversion Rates by Industry Larry Kim (@larrykim)
  42. 42. Average CPA’s for Search & Display, by Industry Larry Kim (@larrykim)
  43. 43. Your Questions Thank You SMX! Benchmark your AdWords account today! http://www.wordstream.com/google-adwords Larry Kim lkim@wordstream.com http://twitter.com/larrykim Larry Kim (@larrykim)

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