Google adwords is an effective strategy in bringing customers to your business. This excellent presentation by Rick Thompson from SEM:SME at the Northern Beaches Business Network event on 28 March 2017, shows how you can bring Google Adwords into your marketing mix, use it effectively to drive traffic to your business site and avoid common pitfalls so you do not burn your hard earned dollars.

1. SEM::SMESEM::SME
AdWords
EVERYTHING YOU WANTED TO KNOW
ABOUT GOOGLE ADWORDS
BUT WERE AFRAID TO ASK

2. SEM::SMESEM::SME
SEM::SME
 Search Engine Marketing for SMEs
 Boutique Agency
 Google Partner since 2011 (Engage)
 Google Partner requirements
 Expertise
 Best Practice
 Manage Customer Spend
 Google Account team
 Agency Development
 Account Strategist

3. SEM::SMESEM::SME
Google Search Network

4. SEM::SMESEM::SME
Google Display Network

5. SEM::SMESEM::SME
Remarketing

6. SEM::SMESEM::SME
Gmail Ads

7. SEM::SMESEM::SME
YouTube ads

8. SEM::SMESEM::SME
Mobile ads

9. SEM::SMESEM::SME
Google Product Suite

10. SEM::SMESEM::SME
Gartner Digital Marketing Transit Map

11. SEM::SMESEM::SME
SEO
 Pros
 Building long term asset (if done correctly)
 “Free” traffic
 Good (but hard to measure) ROI
 Cons
 Typically long game (6-18 months)
 Increasingly difficult
 Algo changes etc.
 Dependant on good/very good content

12. SEM::SMESEM::SME
AdWords
 Pros
 Moment they’re looking for
what you’re selling
 Highly targeted
 Fast setup
 Quick validation
 Measurable
 Complementary to SEO
 Cons
 Can be expensive
 No ad – no presence
 Requires active optimization

13. SEM::SMESEM::SME
Most expensive keywords
 USA
 “best mesothelioma lawyer”
 US$935.71 (AUD1,227)
 UK
 “play live blackjack”
 £148.51 (AUD244)
 Australia
 “best mobile trading app”
 $276.04

14. SEM::SMESEM::SME
Digital Ad Spending – Australia
 2016
 AUD7.40 billion
 Paid media ad spend
 2016 – 48.7%
 2017 – 51.4% (est.)
 Mobile (all ad spend)
 2016 – 25.3%
 2017 – 31.8% (est.)
 Source
 IAB
 PwC
 eMarketer

15. SEM::SMESEM::SME

16. SEM::SMESEM::SME
Set up
 Campaigns
 Budget
 Location
 Bid adjustments
 Ad Groups
 Keywords
 CPC bids
 Tightly targeted
 Ads
 Landing Page (LP)
 Extensions (Call, Call out, Location, Sitelink, Structured
snippets etc.)
 Split tests

17. SEM::SMESEM::SME
Attribute values to conversions
 Actual sales value
 Custom value e.g. LCV
 Calculating lead value
 Leads from site = 20
 Sales value from those leads = $4,000
 Value / Leads = Goal value
 $4,000 / 20 = $200 Goal value
 Assign micro-conversion goal values e.g.
 Enquiry - $100
 Download - $20
 Share - $2

18. SEM::SMESEM::SME
Assign target CPA & ROI values
 Cost Per Acquisition (CPA)
 $200 = break-even
 $100 = 50% margin
 $240 = Loss leader

19. SEM::SMESEM::SME
Traffic vs ROI
 Increase traffic
 Increase keyword depth
 Increase keyword breadth
 Broaden your match types
 Increase budgets & bids
 Increase network reach
 Quality score?
 Improve ROI
 Use more specific match types
 Refine bids & bid adjustments
 Add more negative keywords
 Landing page optimisation
 Improve the ads
 Improve quality score

20. SEM::SMESEM::SME
Quality Score
 CTR
 Keyword, search query
 Historical and expected performance
 Relevance
 Search query
 Keyword
 Ad
 Landing page
 Landing Page
 Transparency
 Quality of content

21. SEM::SMESEM::SME
Ad Rank
 Was
 Bid received * QS = Ad Rank
 $5.00 * 7 = 35
 $3.50 * 9 = 31.5
 $6.00 * 5 = 30
 Now
 (Bid received, quality score, stuff)
= Ad Rank

22. SEM::SMESEM::SME
Impact of Ad Rank
 Advertiser A
 Bid $4.50 * QS 7 = Ad Rank 31.5 = $4.10 CPC
 What's the smallest Ad Rank needed
 My Bid
 Bid $3.80 * QS 9 = Ad Rank 34.2
 So 31.6 Ad Rank needed to win
 Necessary Ad Rank / QS = Actual CPC
 31.6 / 9 = $3.51

23. SEM::SMESEM::SME
Ads

24. SEM::SMESEM::SME
Bid Adjustments
 How are they calculated?
 Bid - $1.00
 Mobile +50%
 Sydney +20%
 Sydney CBD +35%
 Melbourne -50%
 6pm to 9pm +15%
 Click in Melbourne, 8pm
 $1.00 * 1.15 * 0.5 = $0.57
 Click in Sydney CBD 7pm
 $1.00 * 1.15 * 1.35 = $1.55

25. SEM::SMESEM::SME
Ad position
 Conversion rate doesn't vary (much) by position
 Click-through (CTR) rate does vary (a lot) by position
 Balance Positioning:Profit:CPA
 High position
 Higher bids
 More clicks
 More conversions
 Higher CPA
 Low position
 Lower bids
 Fewer clicks
 Fewer conversions
 Lower CPA

26. SEM::SMESEM::SME
Compensation Lawyer

27. SEM::SMESEM::SME
Virtual Office

28. SEM::SMESEM::SME
AdWords – Why Bother?
 Quick
 Targeted
 Measurable
 Advertising to people who are searching for what
you’re selling, when they’re looking

29. SEM::SMESEM::SME
Thank you
 Questions?
 Feedback form
 Discovery Session
 +61 415 155 155
 rick@semsme.com
 www.semsme.com