AdWords - why bother? How to prove, and improve ROI using Google AdWords

1. AdWords
WHY BOTHER?
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2. Assumed
 Defined objectives
 Structured your account
 Made each ad group relevant
 Always testing
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3. ROI = (Revenue - Cost) /
Cost
 ($100 - $75) / $75 = +33%
 ($100 - $125) / $125 = -20%
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4. 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 goal values
 Enquiry
 $100
 Download
 $20
 Share
 $2
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5. Assign target CPA & ROI
values
 CPA
 $200 = break-even
 $100 = 50% margin
 $240 = Loss leader
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6. 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
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7. Ad position
 Conversion rate doesn't vary (much) 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
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8. Quality Score
 CTR
 Keyword, search query
 Historical and expected performance
 Relevance
 Search query
 Keyword
 Ad
 Landing page
 Landing Page
 Transparency
 Quality of content
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9. Improving Quality Score
 Improving QS
 Keyword diagnosis
 Isolate problem keyword(s)
 Refine ad
 Consider refining match type
 Add negative keywords
Improves CTR
Improve ad relevance
 Improve the landing page
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10. 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, ad extensions)
= Ad Rank
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11. Calculating 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
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12. ROI Levers
 Match types
 Broad
 Modified broad
 Phrase
 Exact
 Negative
 Broad
 Phrase
 Exact
 DKI: {KeyWord:Selected Keyword}
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13. ROI Levers
 Location
 Target:
 People in, searching for or viewing pages about my targeted
location (recommended)
 People in my targeted location
 People searching for or viewing pages about my targeted location
 Exclude:
 People in, searching for or viewing pages about my excluded
location (recommended)
 People in my excluded location
 Location within location
 Australia 100%
 Sydney 110%
 Coogee 120%
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14. ROI Levers
 Ad schedule
 Language
 Ad Extensions
 Sitelinks
 Locations
 Calls
 Apps
 Reviews
 Call-outs
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15. ROI Levers
 Device targeting
 Mobile bid adjustment
 Device breakdown (Australia)
 Desktop 64%
 Tablet 12%
 Mobile 24%
 Customisations
 Countdowns
 Ad customisers
 Extracted keyword
 Price from
 Uploaded as spreadsheet
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16. Bid Adjustments
 How are they calculated?
 6pm to 9pm +15%
 Mobile +50%
 Melbourne +20%
 Melbourne CBD +35%
 Sydney -50%
 Click in Sydney, 8pm
 $1.00 * 1.15 * 0.5 = $0.57
 Click in Melbourne CBD 7pm
 $1.00 * 1.15 * 1.35 = $1.55
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17. Ad Split testing
 Ideas for ad tests
 Capitalisation
 www
 Questions
 Features vs benefits
 Price
 Sale/promotion
 Rotate evenly
 Automatic optimisation
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18. Thank you
 Questions?
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