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The Science of Ad Testing By Brad Geddes

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From the Search Marketing Expo - SMX East Conference in New York City, NY, September 29 - October 1, 2015. SESSION: Getting Creative With Ad Copy & Testing - Given by Brad Geddes, @bgtheory, Founder - Certified Knowledge. #SMX #11B

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The Science of Ad Testing By Brad Geddes

  1. 1. #SMX #11b @bgTheory Brad Geddes, Co-Founder AdAlysis The Science of Ad Testing
  2. 2. #SMX #11b @bgTheory Ad Testing is about Improvement and/or insights
  3. 3. #SMX #11b @bgTheory Single Ad Group Testing
  4. 4. #SMX #11b @bgTheory Multi Ad Group Testing Idea 1 Idea 2 Idea 3 Idea 4 Idea 5
  5. 5. #SMX #11b @bgTheory  List Your Themes  Create a label per theme  Examine how each theme performs  Pick your winning theme and continue Image Ad Testing Can be Single or Multi-Ad Group
  6. 6. #SMX #11b @bgTheory Use Cases Single Ad Group Testing Insights within an ad group -Best for high traffic ad groups -Best for Brand ad groups -Good for other ad groups after you’ve done some multi-ad group testing for global insights Multi-Ad Group Testing Insights across a segment -Best for template created ads -Best for small data accounts -Best for market research
  7. 7. #SMX #11b @bgTheory Some Quick Examples
  8. 8. #SMX #11b @bgTheory 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…
  9. 9. #SMX #11b @bgTheory Should You Use Customizers? Testing Problem: • 804 ads in test 1 • 75 ads in test 2 Solution: Use same ad groups for your test
  10. 10. #SMX #11b @bgTheory Static Ad is Higher Conversion Rate, Lower in CPA Customizer is Higher in CTR & CPI What metrics are important to you? Exact Same Ad Groups in Test
  11. 11. #SMX #11b @bgTheory Lead Gen Company 1: GEOs are Clear Winners Next Step: Change a few campaigns to only target singe region with non-geo keywords and rerun test to see if there’s a difference. Then decide account organization. Should You Localize Your Ads?
  12. 12. #SMX #11b @bgTheory Ideas from presenters are Ideas to Test: Not absolute facts for you to implement! Desktop Mobile Company 2: Is the data consistent across devices?
  13. 13. #SMX #11b @bgTheory Think Through Your Results In this case, ads were localized – landing pages were not. GEO increased CTR, but nothing else. Is that the market or the website? Solution: Redo test with localized pages
  14. 14. #SMX #11b @bgTheory First Test, it appears that the brand is so strong that you should use the brand name in non-branded ad groups. It’s a good idea to test your results to ensure they are consistent. Should You Use Your Brand in Non-Brand Ad Groups?
  15. 15. #SMX #11b @bgTheory Results aren’t 100% in yet… However, non-brand ad 1 is an ‘incentive’ ad. • This is for a travel company. Problem with many bookings is people are afraid that the price will drop and they will overpay. • Ad 1 talks to that issue with a coupon if the price drops Don’t Just Do One Test Same test: different results
  16. 16. #SMX #11b @bgTheory How to Start Testing
  17. 17. #SMX #11b @bgTheory Determine Your Segments Basic Segments: • Your brand • 3rd party brands • Products • Informational • Long tail • By buying cycle entrance • Etc… Ad Type: • Text ads • DSAs • Image ads • Call only ads • HSAs • etc… Devices: • Mobile • Desktops • All
  18. 18. #SMX #11b @bgTheory Targeting Method is a Segment with Rich Media Ads Basic Segments: • Your brand • 3rd party brands • Products • Informational • Long tail • By buying cycle entrance • Etc… Targeting Type: • Remarketing • Topic • Placement • Interest • Affinity • etc Devices: • Mobile • Desktops • All
  19. 19. #SMX #11b @bgTheory Define Your Testing Metrics Metric Best Usage CTR: Click Through Rate Max Traffic (note: CPI is usually still better) Conversion rate Most conversions from landing page CPI: Conversion per Impression Most conversions possible CPA: Cost per Conversion Lowering cost per conversion ROAS: Return on Ad Spend Hitting ROAS goals RPI: Revenue per Impression Maximizing revenue
  20. 20. #SMX #11b @bgTheory What Minimum Data To Define Metric Impressions Clicks Conversions Timeframe CTR Yes Optional Yes CPA Yes Yes Conversion rate Optional Yes Yes CPI Yes Optional Yes ROAS Yes Yes RPI Yes Optional Yes
  21. 21. #SMX #11b @bgTheory Minimum Data Guidelines Impressions Clicks Conversions Low Traffic 350 300 7 Mid Traffic 750 500 13 High Traffic 1000 1000 20 Well known brand terms 100,000 10,000 100 - 1000 The MINIMUM Data – It’s OK to have HIGHER Minimums|
  22. 22. #SMX #11b @bgTheory Define Minimum Confidence Levels Term Type Minimum Confidence Long Tail Keywords 90% Mid data terms 90% – 95% 3rd Party Brands you Sell 90% (small brands) to 95% (large brands) Top Keywords (the ones you watch daily) 95% - 99% Your Brand Terms 99%
  23. 23. #SMX #11b @bgTheory  Option 1:  3 months  Option 2:  Define maximums for each metric  Define timeframes Define Maximum Data
  24. 24. #SMX #11b @bgTheory Test by Device (if appropriate) Count of Ad Row Labels Mobile All Effective Device Ad Group 1 2 All Ad Group 2 None Ad Group 3 1 2 Mobile/Desktop Ad Group 4 3 1 Mobile/Desktop Ad Group 5 10 All Ad Group 6 2 6 Mobile/Desktop Ad Group 7 1 7 Mobile/Desktop Ad Group 8 1 6 Mobile/Desktop Ad Group 9 7 All
  25. 25. #SMX #11b @bgTheory  If below minimum data, wait.  If above minimum, calculate confidence factors  If below minimum confidence – wait  If above minimum confidence – take action  If above maximum data and a test has no results, take action  Action = Pausing loser OR pausing loser & creating new challenger  In the case of multi-ad group testing: Replace entire string with a new pattern to test  (optional): Use insight in other areas, such as email, landing pages, etc Actions
  26. 26. #SMX #11b @bgTheory For Remarketing: Use at Least 3 Offers ad clicks impressions CTR conversions conversion rate 1 4075 613621 0.66% 132 3.24% 2 6725 835389 0.81% 321 4.77% 3 4399 565363 0.78% 197 4.48% 4 1610 672062 0.24% 27 1.68% 5 8547 939540 0.91% 41 0.48% Total 25,356 3,625,975 0.70% 718 2.83% ad clicks impressions CTR conversions conversion rate 2 19,294 3,720,132 0.52% 443 2.30%
  27. 27. #SMX #11b @bgTheory  Determine what you want to test:  Single ad group  Multi-ad group  Define:  Testing metrics  Minimum data  Maximum data  Segments  Confidence levels per segment  Run Your test  When you reach minimum data:  Run confidence calculations  If winners & losers – take action  If no winners – wait  When you reach max data  Pause test and reset  When you have winners in Multi- Ad Group testing:  Apply that data to other channels Recap
  28. 28. #SMX #11b @bgTheory THANK YOU! SEE YOU @SMX WEST SAN JOSE, CA MARCH 1-3, 2016

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