How Important is Bid Management? SES Chicago 2008 Brad Geddes
It’s Important; However… <ul><li>It’s your money – how are you protecting it? </li></ul><ul><li>There are other ways to in...
Demo Account <ul><li>1000 Clicks a day </li></ul><ul><li>Average : </li></ul><ul><ul><li>CPC: $1 </li></ul></ul><ul><ul><l...
Bid Management Adding  Basic  Bid Management Increased Profit Per Day: $300 Increased Profit per Month: $9000 Expected Eff...
Quality Score Increasing from 6.5 to 8 Increased Profit Per Day: $180 Increased Profit per Month: $5400 Expected Effect:  ...
Conversion Rate Increasing from 2% to 3% Increased Profit Per Day: $1000 Increased Profit per Month: $30,000 Expected Effe...
Profit Per Sale Increasing Average Profit Per Sale from $100 to $125 Increased Profit Per Day: $500 Increased Profit per M...
Negative Keyword Research Adding Negative Keywords Increased Profit Per Day: $570 Increased Profit per Month: $17,100 Expe...
Opening New Inventory Opening New PPC Account Increased Profit Per Day: $250 Increased Profit per Month: $7500 Expected Ef...
Keyword Research Adding Keywords Increased Profit Per Day: $200 Increased Profit per Month: $4000 Expected Effect:  20% in...
All of the Above – Except Bid Management Lots of Work!!! Increased Profit Per Day: $3800 Increased Profit per Month: $114,...
How Important is Bid Management? Twitter.bgtheory.com Facebook.bgtheory.com Upcoming.bgtheory.com Eventful.bgtheory.com Bg...
Upcoming SlideShare
Loading in …5
×

Bid Management vs PPC Optimization

1,775 views

Published on

This should be accompanied by the Podcast to understand what is really being discussed. Please find the podcast at: http://www.bgtheory.com/blog/how-important-is-bid-management-to-your-ppc-success/

Published in: Technology, Business
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,775
On SlideShare
0
From Embeds
0
Number of Embeds
151
Actions
Shares
0
Downloads
0
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide
  • Anticipate traffic changes (seasonality)
  • Not usually linear due to the complexity of QS and bid landscape; used to get the overall effect of the idea.
  • Increasing conversions can also take place from re-training the sales/phone staff, or changing landing pages, or…
  • Bid Management vs PPC Optimization

    1. 1. How Important is Bid Management? SES Chicago 2008 Brad Geddes
    2. 2. It’s Important; However… <ul><li>It’s your money – how are you protecting it? </li></ul><ul><li>There are other ways to increase your companies profit </li></ul><ul><li>Where should you spend your time? </li></ul>
    3. 3. Demo Account <ul><li>1000 Clicks a day </li></ul><ul><li>Average : </li></ul><ul><ul><li>CPC: $1 </li></ul></ul><ul><ul><li>Quality score: 6.5 </li></ul></ul><ul><ul><li>Conversion rate: 2% </li></ul></ul><ul><ul><li>Profit per sale: $100 </li></ul></ul><ul><ul><li>Sales/Day: 20 </li></ul></ul><ul><ul><li>Spend per day: $1000 </li></ul></ul><ul><ul><li>Income per day: $2000 </li></ul></ul><ul><ul><li>Profit per day: $1000 </li></ul></ul>
    4. 4. Bid Management Adding Basic Bid Management Increased Profit Per Day: $300 Increased Profit per Month: $9000 Expected Effect: 10% reduction in CPCs 10% increase in Conversion Rate Increasing due to: Instituting basic bid management <ul><li>1000 Clicks a day </li></ul><ul><li>Average : </li></ul><ul><ul><li>CPC: $0.90 </li></ul></ul><ul><ul><li>Quality score: 6.5 </li></ul></ul><ul><ul><li>Conversion rate: 2.2% </li></ul></ul><ul><ul><li>Profit per sale: $100 </li></ul></ul><ul><ul><li>Sales/Day: 22 </li></ul></ul><ul><ul><li>Spend per day: $900 </li></ul></ul><ul><ul><li>Income per day: $2200 </li></ul></ul><ul><ul><li>Profit per day: $1300 </li></ul></ul>
    5. 5. Quality Score Increasing from 6.5 to 8 Increased Profit Per Day: $180 Increased Profit per Month: $5400 Expected Effect: ~18% reduction in CPCs Increasing due to: Reorganizing account Changing landing pages Rewriting Ad Copy Increasing CTR <ul><li>1000 Clicks a day </li></ul><ul><li>Average : </li></ul><ul><ul><li>CPC: $0.82 </li></ul></ul><ul><ul><li>Quality score: 8 </li></ul></ul><ul><ul><li>Conversion rate: 2% </li></ul></ul><ul><ul><li>Profit per sale: $100 </li></ul></ul><ul><ul><li>Sales/Day: 20 </li></ul></ul><ul><ul><li>Spend per day: $820 </li></ul></ul><ul><ul><li>Income per day: $2000 </li></ul></ul><ul><ul><li>Profit per day: $1180 </li></ul></ul>
    6. 6. Conversion Rate Increasing from 2% to 3% Increased Profit Per Day: $1000 Increased Profit per Month: $30,000 Expected Effect: Increase sales from 20 to 30/day Increasing due to: Retraining sales staff Changing landing pages Testing ad copy <ul><li>1000 Clicks a day </li></ul><ul><li>Average : </li></ul><ul><ul><li>CPC: $1 </li></ul></ul><ul><ul><li>Quality score: 6.5 </li></ul></ul><ul><ul><li>Conversion rate: 3% </li></ul></ul><ul><ul><li>Profit per sale: $100 </li></ul></ul><ul><ul><li>Sales/Day: 30 </li></ul></ul><ul><ul><li>Spend per day: $1000 </li></ul></ul><ul><ul><li>Income per day: $3000 </li></ul></ul><ul><ul><li>Profit per day: $2000 </li></ul></ul>
    7. 7. Profit Per Sale Increasing Average Profit Per Sale from $100 to $125 Increased Profit Per Day: $500 Increased Profit per Month: $15,000 <ul><li>Expected Effect: </li></ul><ul><li>Increase average profit </li></ul><ul><li>Increasing due to: </li></ul><ul><ul><li>Free shipping on sales over $XX </li></ul></ul><ul><ul><li>Better supply chain </li></ul></ul><ul><ul><li>Related products/services </li></ul></ul><ul><ul><li>Etc… </li></ul></ul><ul><li>1000 Clicks a day </li></ul><ul><li>Average : </li></ul><ul><ul><li>CPC: $1 </li></ul></ul><ul><ul><li>Quality score: 6.5 </li></ul></ul><ul><ul><li>Conversion rate: 2% </li></ul></ul><ul><ul><li>Profit per sale: $125 </li></ul></ul><ul><ul><li>Sales/Day: 20 </li></ul></ul><ul><ul><li>Spend per day: $1000 </li></ul></ul><ul><ul><li>Income per day: $2500 </li></ul></ul><ul><ul><li>Profit per day: $1500 </li></ul></ul>
    8. 8. Negative Keyword Research Adding Negative Keywords Increased Profit Per Day: $570 Increased Profit per Month: $17,100 Expected Effect: 0.25% increase in conversion rate 0.5 increase in Quality Score Increasing due to: Running search query reports Blocking low converting keywords <ul><li>1000 Clicks a day </li></ul><ul><li>Average : </li></ul><ul><ul><li>CPC: $0.93 </li></ul></ul><ul><ul><li>Quality score: 7 </li></ul></ul><ul><ul><li>Conversion rate: 2.25% </li></ul></ul><ul><ul><li>Profit per sale: $100 </li></ul></ul><ul><ul><li>Sales/Day: 25 </li></ul></ul><ul><ul><li>Spend per day: $930 </li></ul></ul><ul><ul><li>Income per day: $2500 </li></ul></ul><ul><ul><li>Profit per day: $1570 </li></ul></ul>
    9. 9. Opening New Inventory Opening New PPC Account Increased Profit Per Day: $250 Increased Profit per Month: $7500 Expected Effect: Increasing clicks, conversions, and spend by 25% Increasing due to: Using new PPC inventory New CPM campaign Etc… <ul><li>1250 Clicks a day </li></ul><ul><li>Average : </li></ul><ul><ul><li>CPC: $1 </li></ul></ul><ul><ul><li>Quality score: 6.5 </li></ul></ul><ul><ul><li>Conversion rate: 2% </li></ul></ul><ul><ul><li>Profit per sale: $100 </li></ul></ul><ul><ul><li>Sales/Day: 25 </li></ul></ul><ul><ul><li>Spend per day: $1250 </li></ul></ul><ul><ul><li>Income per day: $2500 </li></ul></ul><ul><ul><li>Profit per day: $1250 </li></ul></ul>
    10. 10. Keyword Research Adding Keywords Increased Profit Per Day: $200 Increased Profit per Month: $4000 Expected Effect: 20% increase in total clicks Increasing due to: Analytics research Keyword research New product descriptions <ul><li>1200 Clicks a day </li></ul><ul><li>Average : </li></ul><ul><ul><li>CPC: $1 </li></ul></ul><ul><ul><li>Quality score: 6.5 </li></ul></ul><ul><ul><li>Conversion rate: 2% </li></ul></ul><ul><ul><li>Profit per sale: $100 </li></ul></ul><ul><ul><li>Sales/Day: 24 </li></ul></ul><ul><ul><li>Spend per day: $1200 </li></ul></ul><ul><ul><li>Income per day: $2400 </li></ul></ul><ul><ul><li>Profit per day: $1200 </li></ul></ul>
    11. 11. All of the Above – Except Bid Management Lots of Work!!! Increased Profit Per Day: $3800 Increased Profit per Month: $114,000 <ul><li>1500 Clicks a day </li></ul><ul><li>Average : </li></ul><ul><ul><li>CPC: $.77 </li></ul></ul><ul><ul><li>Quality score: 8.5 </li></ul></ul><ul><ul><li>Conversion rate: 3.25% </li></ul></ul><ul><ul><li>Profit per sale: $125 </li></ul></ul><ul><ul><li>Sales/Day: 48 </li></ul></ul><ul><ul><li>Spend per day: $1155 </li></ul></ul><ul><ul><li>Income per day: $6000 </li></ul></ul><ul><ul><li>Profit per day: $4800 </li></ul></ul><ul><li>1000 Clicks a day </li></ul><ul><li>Average : </li></ul><ul><ul><li>CPC: $1 </li></ul></ul><ul><ul><li>Quality score: 6.5 </li></ul></ul><ul><ul><li>Conversion rate: 2% </li></ul></ul><ul><ul><li>Profit per sale: $100 </li></ul></ul><ul><ul><li>Sales/Day: 20 </li></ul></ul><ul><ul><li>Spend per day: $1000 </li></ul></ul><ul><ul><li>Income per day: $2000 </li></ul></ul><ul><ul><li>Profit per day: $1000 </li></ul></ul>
    12. 12. How Important is Bid Management? Twitter.bgtheory.com Facebook.bgtheory.com Upcoming.bgtheory.com Eventful.bgtheory.com Bgtheory.com/blog Bgtheory.com

    ×