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The Mad Scientists: Quality Score Under the Microscope By Brad Geddes

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From the SMX Advanced Conference in Seattle, Washington, June 22-23, 2016. SESSION: The Mad Scientists of Paid Search. PRESENTATION: The Mad Scientists: Quality Score Under the Microscope - Given by Brad Geddes, @bgtheory - Certified Knowledge, Founder. #SMX #11B

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The Mad Scientists: Quality Score Under the Microscope By Brad Geddes

  1. 1. #SMX #11B @bgTheory Brad Geddes, Founder, AdAlysis The Mad Scientists: Quality Score Under the Microscope
  2. 2. #SMX #11B @bgTheory What Is Quality Score
  3. 3. #SMX #11B @bgTheory Ad Rank Bid Estimate: 50% Quality Score Estimate: >40% Ad Extensions Estimate: <10%
  4. 4. #SMX #11B @bgTheory The Breakdowns for Visible QS Landing Pages 39% Expected CTR 39% Ad Relevance 22%
  5. 5. #SMX #11B @bgTheory Visible Quality Score Formula Landing Page Experience Ad Relevance CTR Above average 3.5 2 3.5 Average 1.75 1 1.75 Below average 0 0 0 Quality Score = 1 + Landing Page Experience weight + Ad Relevance weight + CTR weight
  6. 6. #SMX #11B @bgTheory Expected CTR
  7. 7. #SMX #11B @bgTheory Brand Term: •  6% below average •  15% average •  46% Above average Why You Can’t Project What is a ‘Good CTR’
  8. 8. #SMX #11B @bgTheory Non-brand term •  3.5% below average •  8.5% average •  14.5% above average Why You Can’t Project What is a ‘Good CTR’
  9. 9. #SMX #11B @bgTheory Ad Relevance: Inverse Document Frequency
  10. 10. #SMX #11B @bgTheory Lodging Heatmap Ad Description %Off Airfare Airlines Airport Callto Action Cheap/ Affordabl e Deals/ Discounts Destinatio n Lodging Official Site Online Plan Price/ Pricing Services Superlativ e [Adjectiv e/ Adverbs] AdTitle % Off Agency Airfare Airlines Airport Brands Call to Action Cheap / Affordable Deals / Discounts Destination DKI [Dynamic Keyword Insertion Lodging Official Site Online Param Insertion Plan Price / Pricing Sale Services Superlative [Adjective / Adverbs] Source: Microsoft Internal Data. Total Impressions Generated = 298 Million, Total Ads Analyzed = 149k, Analysis Period = 12/1/2014 – 11/30/2015. Note: The categories represent groups of similar keywords. Great Good Insufficient data Poor
  11. 11. #SMX #11B @bgTheory Reading a Heatmap Ad Description %Off Airfare Airlines Airport Callto Action Cheap/ Afforda ble Deals/ Discount s Destinati on AdTitle % Off Airfare Airlines Airport Call to Action Cheap / Affordable Deals / Discounts Lodging Official Site Online Search for Any Flight Online Cheap Flights to SJC Search for Your Favorite Hotel 10% off Popular Destinations Some offers are so common, no one cares
  12. 12. #SMX #11B @bgTheory Below Average Ad Relevance Usually an indication that you need: •  Better organization •  Different Ads
  13. 13. #SMX #11B @bgTheory Sometimes You Don’t Want to Be Completely Relevant 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 3 4 5 6 7 8 9 Quality Score Conversion Rates by Quality Score
  14. 14. #SMX #11B @bgTheory Mixing B2B & B2C Ads
  15. 15. #SMX #11B @bgTheory Non-Linear CTRs are Almost Always Landing Page Issues
  16. 16. #SMX #11B @bgTheory Landing Pages Appear to Have Little CPC Weight -10 -5 0 5 10 15 Average CPC Differential Between Below Average & Above Average Landing Pages CPC Differential Linear (CPC Differential)
  17. 17. #SMX #11B @bgTheory To determine this info, you would need An auction with: •  The same query •  The same user •  The same user’s page history •  The same competitors •  The same bids •  The same user location •  The same device type •  The same landing page •  The same ad •  The exact same ad extensions (for everyone) •  The same ad position •  Yet more non-variances •  Rely on Google treating the auction exactly the same every time •  With the only variation being the quality score of the word in your account while everyone else’s remained exactly the same QS Has Little CPC Weight For Ads Outside of Position 1
  18. 18. #SMX #11B @bgTheory The Reality: As QS Goes Up; so does position. This means you have to beat a new competitor CPC fluctuates; but rarely just goes down CompeBtor 1 Your Info CompeBtor 2 CompeBtor 3 CompeBtor 4 $1 $1 $1.25 $1.25 $0.50 7 X 6 X 4 X 10 X 7 X X X X X X 0 6 4 0 5 WeighBng Bid 0.5 QS 0.4 Ad Ext 0.1 = 5.6 = 6 = 5 = 10 = 3.3 Ad Rank
  19. 19. #SMX #11B @bgTheory Landing Pages seem to affect your ability to enter the auction more than your CPCs. For this data: Only used Conversion Optimizer Campaigns so manual bids wouldn't be a variable. Visible vs Auction QS Visible QS: What you see in AdWords as a guide Auction QS: What is submitted real time into the auction
  20. 20. #SMX #11B @bgTheory Does Quality Score Affect Impression Share? 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1 2 3 4 5 6 7 8 9 10 Impression Share Quality Score Impression Share by QS
  21. 21. #SMX #11B @bgTheory Do Below Average Landing Pages Affect IS? 0% 10% 20% 30% 40% 50% 60% 70% 80% 1 2 3 4 5 6 Impression Share by Landing Page Quality Below Average LP Average/Above LP
  22. 22. #SMX #11B @bgTheory Analysis for you: CPC by QS (What’s Your Discount?) Some companies (especially at position 1) do have discounts
  23. 23. #SMX #11B @bgTheory Analysis for you: CPA vs QS (What’s the Financial Impact of Increasing?)
  24. 24. #SMX #11B @bgTheory Finding Ad Groups That Need Assistance https://youtu.be/Df7Lo7CMQiI
  25. 25. #SMX #11B @bgTheory How To Improve
  26. 26. #SMX #11B @bgTheory •  Ad rank is: Max Bid, Quality Score, & Ad Extensions •  Quality Score is made up of 3 factors •  Expected CTR has a strong correlation between average CPCs and financial impact in the same position. •  Ad Relevance has a partial correlation between its factors & CPCs •  It’s a good indication you need better organization or different ads •  Landing Pages have a weak correlation between their factors & CPCs •  They have a correlation between their factors and impression share •  As quality score goes up, so does position, causing you to compete with different advertisers and thus rarely see a direct influence on CPCs. •  As Quality Score increases, so does impression share hence direct correlations between all factors and CPCs are impossible since the competition differs. •  Increasing QS is about organization and then ad testing Wrap-Up
  27. 27. #SMX #11B @bgTheory LEARN MORE: UPCOMING @SMX EVENTS THANK YOU! SEE YOU AT THE NEXT #SMX Let’s Connect @bgTheory in/ewhisper Powerful Ad Testing Made Simple Ad Testing Software

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