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The State of PPC in 2015 and Beyond

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From the SMX West Conference in San Jose, California, March 3-5, 2015. SESSION: The State Of PPC In 2015 & Beyond. PRESENTATION: The State of PPC in 2015 and Beyond - Given by Larry Kim, @LarryKim - WordStream, Founder, CTO. #SMX #13B

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The State of PPC in 2015 and Beyond

  1. 1. March 3rd, 2015 The State Of PPC In 2015 & Beyond Larry Kim Founder & CTO, WordStream @LarryKim
  2. 2. searchmarketingexpo.com @LarryKim #SMX #13B About Larry • Founded WordStream in 2007 • Obsessed about Quality Score • Have a 9-Month Year Old Kid (#ppckid)
  3. 3. searchmarketingexpo.com @LarryKim #SMX #13B Actual Photos From My Commute From Boston to SMX West …
  4. 4. searchmarketingexpo.com @LarryKim #SMX #13B Win This $25 Amazon Gift Card • Award Given to BEST TIP or FUNNIEST TWEET! • Include @larrykim and #SMX in Tweet
  5. 5. searchmarketingexpo.com @LarryKim #SMX #13B PPC TREND #1 Price and Inventory Headwinds in Paid Search
  6. 6. searchmarketingexpo.com @LarryKim #SMX #13B GOOGLE: SEARCH CPCs KEEP FALLING (overall)
  7. 7. searchmarketingexpo.com @LarryKim #SMX #13B HOWEVER, PAID SEARCH CPCs AT ALL TIME HIGH IN ESTABLISHED MARKETS! Source: Approx. 2000 WordStream Customers
  8. 8. searchmarketingexpo.com @LarryKim #SMX #13B
  9. 9. searchmarketingexpo.com @LarryKim #SMX #13B What About Ad Inventory Volumes in Established Markets?
  10. 10. searchmarketingexpo.com @LarryKim #SMX #13B APPS ARE STEALING FROM DESKTOP SEARCHES!
  11. 11. searchmarketingexpo.com @LarryKim #SMX #13B FEWER AD SPOTS ON MOBILE (which is 50% of searches in 2015) VS.
  12. 12. searchmarketingexpo.com @LarryKim #SMX #13B High CPCs & Low Growth in Search Volume in Established Markets (YIKES!)
  13. 13. searchmarketingexpo.com @LarryKim #SMX #13B WINNING AT PAID SEARCH IN 2015 MEANS BEING MORE PICKY THAN BEFORE Quantity of Searches PriceofPaidSearchClicks Fewer, Higher Quality, more expensive clicks
  14. 14. searchmarketingexpo.com @LarryKim #SMX #13B
  15. 15. searchmarketingexpo.com @LarryKim #SMX #13B NEW DEMOGRAPHIC BIDDING OPTIONS (Bing Ads)
  16. 16. searchmarketingexpo.com @LarryKim #SMX #13B • Customize search ads specifically to people who recently visited your site! • On average: • Doubles CTR, raises Quality Score • Cuts CPC in HALF! REMARKETING LISTS FOR SEARCH ADS
  17. 17. searchmarketingexpo.com @LarryKim #SMX #13B So Where Will Growth in PPC Come From?
  18. 18. searchmarketingexpo.com @LarryKim #SMX #13B Your audience spends 95% of its time on the web reading and engaging with news sites, blogs, general interest sites, social networks, email, etc. 95% OF TIME ONLINE IS SPENT ON CONTENT WHERE DISPLAY ADS CAN REACH USERS Customers consider, evaluate, and advocate online. Source: Internet Activity Index (IAI) by the Online Publishers Association (OPA); http://www.online-publishers.org/page.php/prmID/421 Everything else 95% Search 5%
  19. 19. searchmarketingexpo.com @LarryKim #SMX #13B
  20. 20. searchmarketingexpo.com @LarryKim #SMX #13B DISPLAY CLICKS ARE CHEAPER Industry Google Search Display Network Finance $3.09 $1.03 Travel $0.29 $0.28 Shopping $0.25 $0.27 Jobs & Education $1.80 $0.34 Internet & Telecom $1.11 $0.40 Computers & Electronics $1.29 $0.44 Business & Industrial $1.67 $0.97 Home & Garden $0.76 $0.83 Autos & Vehicles $0.97 $1.03 Beauty & Fitness $1.11 $1.01 AVERAGE $1.23 $0.66
  21. 21. searchmarketingexpo.com @LarryKim #SMX #13B DISPLAY CLICKS CONVERT OK Industry Google Search Display Network Finance 6.12% 5.12% Travel 1.45% 2.99% Shopping 3.58% 2.19% Jobs & Education 6.09% 2.09% Internet & Telecom 6.27% 8.59% Computers & Electronics 4.79% 2.96% Business & Industrial 4.23% 4.10% Home & Garden 2.21% 3.43% Autos & Vehicles 4.29% 6.15% Beauty & Fitness 4.56% 2.27% Average 4.36% 3.99%
  22. 22. searchmarketingexpo.com @LarryKim #SMX #13B DISPLAY CPAs ARE USUALLY LOWER Industry Google Search Display Network Finance $50.49 $20.12 Travel $20.00 $9.36 Shopping $6.98 $12.33 Jobs & Education $29.56 $16.27 Internet & Telecom $17.70 $4.66 Computers & Electronics $29.02 $14.86 Business & Industrial $39.48 $23.66 Home & Garden $34.39 $24.20 Autos & Vehicles $22.61 $16.75 Beauty & Fitness $24.34 $44.49 Average $27.46 $18.67
  23. 23. searchmarketingexpo.com @LarryKim #SMX #13B WEIRD THING ABOUT DISPLAY REMARKETING Conversion Rates Increase With More Ad Impressions
  24. 24. searchmarketingexpo.com @LarryKim #SMX #13B • CPCs from search are going up, inventory down (in established marketing) – so be pickier! • Display ads have a much higher inventory, lower CPCs, Convert OK = Decent ROI and Scale QUICK RECAP
  25. 25. searchmarketingexpo.com @LarryKim #SMX #13B PPC TREND #2 The Rise of Identity-Based PPC Marketing
  26. 26. searchmarketingexpo.com @LarryKim #SMX #13B EVOLUTION OF DISPLAY AD TARGETING OPTIONS 5. Website Targeting (e.g.: Inc. Magazine or Home & Garden Weekly) 4. Keyword Targeting (e.g. Articles containing “Health Insurance”) 3. Interests & Market Segments (e.g. Business Services, Photography) 2. Remarketing (e.g. People who visited the “buy” page of your website) 1. Identity (e.g. Specific Emails or Phone Numbers)
  27. 27. searchmarketingexpo.com @LarryKim #SMX #13B
  28. 28. searchmarketingexpo.com @LarryKim #SMX #13B Email Marketing • Limit # of blasts to reduce unsubscribes • 0.5-2% unsubscribes each blast • People need to opt into your list • Tons if unqualified emails on the list People-Based Marketing • FIXED • FIXED • FIXED • FIXED PEOPLE-BASED PPC IS LIKE EMAIL MARKETING BUT WAY BETTER!
  29. 29. searchmarketingexpo.com @LarryKim #SMX #13B Identity Based Marketing Opens Up a TON of New and Exciting Advertising Use Cases!!
  30. 30. searchmarketingexpo.com @LarryKim #SMX #13B How does stuff go “Viral”?
  31. 31. searchmarketingexpo.com @LarryKim #SMX #13B ARTICLE PUBLISHED ON FRIDAY AT 5PM ET
  32. 32. searchmarketingexpo.com @LarryKim #SMX #13B SHARED CONTENT ON MY SOCIAL MEDIA
  33. 33. searchmarketingexpo.com @LarryKim #SMX #13B CREATE A CUSTOM LIST OF “INDUSTRY INFLUENCERS”
  34. 34. searchmarketingexpo.com @LarryKim #SMX #13B STORY PICKED UP IN MARKETING LAND TWO HOURS LATER…
  35. 35. searchmarketingexpo.com @LarryKim #SMX #13B Exponential Growth
  36. 36. searchmarketingexpo.com @LarryKim #SMX #13B Key Takeaway: You need interesting content + influential people finding your stuff
  37. 37. searchmarketingexpo.com @LarryKim #SMX #13B PEOPLE WHO AREN’T JOURNALISTS CAN MAKE STUFF GO “VIRAL” TOO
  38. 38. searchmarketingexpo.com @LarryKim #SMX #13B IDENTITY MARKETING TO SPECIFIC INFLUENCES INCREASES THE CHANCE OF GETTING “NOTICED” WordStream Articles #ofSocialShares
  39. 39. searchmarketingexpo.com @LarryKim #SMX #13B WordStream Articles #ofSocialShares IDENTITY MARKETING TO SPECIFIC INFLUENCES INCREASES THE CHANCE OF GETTING “NOTICED”
  40. 40. searchmarketingexpo.com @LarryKim #SMX #13B IDENTITY + USER DEMOGRAPHICS (CUSTOMER PERSONA) = $$$
  41. 41. searchmarketingexpo.com @LarryKim #SMX #13B THE FUTURE OF DISPLAY ADS IS NATIVE MOBILE
  42. 42. searchmarketingexpo.com @LarryKim #SMX #13B • Display ad targeting is better than ever • Identity-based ad targeting opens up all sorts of new PPC marketing use cases! • Identity + Behavioral/Demographic Filters = $$$ • Future of Display Ads = Native Mobile QUICK RECAP
  43. 43. searchmarketingexpo.com @LarryKim #SMX #13B PPC TREND #3 Google Taking Away All Our Toys!
  44. 44. searchmarketingexpo.com @LarryKim #SMX #13B RIP KEYWORD MATCH TYPES These are Pretty Much all the Same Now!
  45. 45. searchmarketingexpo.com @LarryKim #SMX #13B RIP DEVICE TARGETING
  46. 46. searchmarketingexpo.com @LarryKim #SMX #13B Recently Added/Changed or In Danger: • Keywords (seriously!) • Dynamic Sitelinks • Etc. MINDLESS REPETITIVE TASKS ARE GOING EXTINCT
  47. 47. searchmarketingexpo.com @LarryKim #SMX #13B So, What Do We Focus Our Efforts On?
  48. 48. searchmarketingexpo.com @LarryKim #SMX #13B Be a unicorn not a donkey! DONKEYS VS. UNICORNS
  49. 49. searchmarketingexpo.com @LarryKim #SMX #13B TOP 1% OF ADVERTISERS GET 6x AVG. CTR
  50. 50. searchmarketingexpo.com @LarryKim #SMX #13B TOP 10% OF ADVERTISERS GET 3-5X AVG. CONVERSION RATES
  51. 51. searchmarketingexpo.com @LarryKim #SMX #13B FIRST MOVER ADVANTAGE
  52. 52. searchmarketingexpo.com @LarryKim #SMX #13B NEW AD FORMATS: YOUTUBE & GMAIL
  53. 53. searchmarketingexpo.com @LarryKim #SMX #13B • Mindless repetitive optimizations = smaller gains • Strategic marketing focus = HUGE gains • Don’t fret loss of old features, be the FIRST to use new features • Be a unicorn among a sea of donkeys QUICK RECAP
  54. 54. searchmarketingexpo.com @LarryKim #SMX #13B PPC TREND #4 Convergence of Paid/Organic Teams, Rise of “Content Remarketing”
  55. 55. searchmarketingexpo.com @LarryKim #SMX #13B HELL HAS FROZEN OVER: ME DOING THE ONLY PPC MARKETING SESSION AT HUBSPOT INBOUND 2014
  56. 56. searchmarketingexpo.com @LarryKim #SMX #13B
  57. 57. searchmarketingexpo.com @LarryKim #SMX #13B SOCIAL PLATFORMS ARE KILLING OFF ORGANIC REACH
  58. 58. searchmarketingexpo.com @LarryKim #SMX #13B Content Marketing + Remarketing = Content Remarketing
  59. 59. searchmarketingexpo.com @LarryKim #SMX #13B • Amplify/promote your content to the right people • Dramatically accelerate & increase brand recall • Generate sales and qualified leads INTRODUCING CONTENT REMARKETING
  60. 60. searchmarketingexpo.com @LarryKim #SMX #13B How Content Remarketing Works CREATE Produce content & share on social AMPLIFY Selectively promote top content on social media TAG Build remarketing audience by tagging site visitors with a cookie
  61. 61. ADVERTISE Target your audience with display & social ads promoting offers FILTER Apply behavioral and demographic filters on audience CONVERT Capture qualified leads or sale
  62. 62. searchmarketingexpo.com @LarryKim #SMX #13B WHERE CONTENT REMARKETING FITS IN THE INBOUND MARKETING FUNNEL Content Remarketing… Relies on having great content Dramatically amplifies social visibility Makes this happen faster and more often Lead Capture / Nurturing Social Media Promotion Blogging /Content Creation
  63. 63. searchmarketingexpo.com @LarryKim #SMX #13B Content Remarketing! WHERE CONTENT REMARKETING FITS IN SEO & Content Marketing PPC Marketing Social Media Marketing Content Remarketing is on the intersection of social, content, and PPC marketing.
  64. 64. searchmarketingexpo.com @LarryKim #SMX #13B Lets Review Some Key Steps in Detail.
  65. 65. searchmarketingexpo.com @LarryKim #SMX #13B PROBABLY WON’T END UP IN THE WALL ST. JOURNAL
  66. 66. searchmarketingexpo.com @LarryKim #SMX #13B PAID SOCIAL PROMOTION TO REGULAR FANS MAKES ALL OF YOUR CONTENT DO BETTER WordStream Articles #ofSocialShares
  67. 67. searchmarketingexpo.com @LarryKim #SMX #13B How to (Cheaply) Target Fans (Regular People) on Social Media
  68. 68. searchmarketingexpo.com @LarryKim #SMX #13B PAID PROMOTION YIELDS ORGANIC EXPOSURE
  69. 69. searchmarketingexpo.com @LarryKim #SMX #13B TARGET USING REMARKETING
  70. 70. searchmarketingexpo.com @LarryKim #SMX #13B TARGET FANS WITH POST ENGAGEMENT ADS
  71. 71. searchmarketingexpo.com @LarryKim #SMX #13B TARGET FANS ON TWITTER
  72. 72. searchmarketingexpo.com @LarryKim #SMX #13B TARGET FANS ON GOOGLE+ USING +POST ADS AND RETARGETING
  73. 73. searchmarketingexpo.com @LarryKim #SMX #13B THE FLYWHEEL EFFECT OF SOCIAL PROMOTION AfterBefore
  74. 74. searchmarketingexpo.com @LarryKim #SMX #13B Promoting Content on the Google Display Network Using Remarketing
  75. 75. searchmarketingexpo.com @LarryKim #SMX #13B CPC VS. CTR ON GOOGLE DISPLAY NETWORK Higher Ad CTR = Lower CPC!! Every +0.1% CTR Yields - 20% CPC.
  76. 76. searchmarketingexpo.com @LarryKim #SMX #13B NOT ALL CONTENT IS EQUAL: ONLY PROMOTE YOUR BEST STUFF Identify and Promote These Like Crazy
  77. 77. searchmarketingexpo.com @LarryKim #SMX #13B PUSH DISPLAY ADS BACK TO YOUR CONTENT
  78. 78. searchmarketingexpo.com @LarryKim #SMX #13B THESE EMOTIONS MAKE PEOPLE CLICK ON THINGS
  79. 79. searchmarketingexpo.com @LarryKim #SMX #13B GREAT DISPLAY ADS LOOK MORE LIKE CONTENT
  80. 80. searchmarketingexpo.com @LarryKim #SMX #13B • Content remarketing, social media, and PPC marketing are rapidly converging. Success will require integrated paid/organic teams. • Content remarketing greatly amplifies content marketing and social media marketing QUICK SUMMARY
  81. 81. searchmarketingexpo.com @LarryKim #SMX #13B

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