SES Chicago 2010 Advanced Paid Search - by Andrew Goodman


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SES Chicago 2010: Andrew Goodman's slide deck from the ADVANCED PAID SEARCH TACTICS session. This session covered campaign expansion techniques, advanced ad testing, advanced auction theory, the proper use of relevant analytics reports, ideas for bid rules and campaign automation including automating the detection of PPC scam campaigns that can divert traffic away from the legitimate brand site and increase campaign costs.

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SES Chicago 2010 Advanced Paid Search - by Andrew Goodman

  1. 1. “You’re underthinking, dude”: Getting beyond the basics in PPC SES Chicago OCTOBER 2010 ANDREW GOODMAN
  2. 2. Outline: 1. Brain stuff 2. Advanced ad testing 3. New features 4. New formats
  3. 3. Smart vs. rational
  4. 4. Why Smart People Can Have Stupid AdWords Accounts “In effect, all animals are under stringent selection pressure to be as stupid as they can get away with.” Richerson & Boyd, Not by Genes Alone, 2005 Dysrationalia – term coined by Keith Stanovich, What Intelligence Tests Miss
  5. 5. The “wisdom of crowds” is just a popular way of expressing a pretty old idea in organization science: RATIONAL OUTCOMES don’t immediately flow from the aptitudes of one or two seemingly bright folks
  6. 6. Rules, or random? Transform your routines.
  7. 7. Define “actionable”? I have a dream
  8. 8. Your rules, your way: note 6 separate custom settings
  9. 9. Google AdWords Conversion Optimizer
  10. 10. The tight leash problem What if you could program your Analytics software to look for high CPA’s on every conceivable segment, & scale back bids? The bias would be against volume You’d punish randomly bad behavior Wouldn’t be patient enough to benefit from random goodness
  11. 11. Quality Score: Bare bones
  12. 12. Quality Score Promotes Relevance Ad Position determined by AdRank AdRank = QS X Max Bid, by keyword Quality Scores recomputed each query, each auction Makes money for Google Makes search users happy New accounts need to establish history
  13. 13. Dead Simple Takeaways (QS) Many thorny problems with low Quality Score result from adding keywords that are “just off” the searcher’s true intent Keyword tools can be misused like any other tool A real pro shapes and moulds keyword selection and account structure to maximize QS Once the account is mature and generating healthy ROI, feel free to broaden out, seeking volume & trading off (some) relevancy At this point Google’s “confidence level” in account is high
  14. 14. Ad testing for a prosperous future © 2010, The Goodman Institute
  15. 15. What makes ads “work”? Multiple drivers of clickthrough and the art of “why”
  16. 16. Beautiful, wonderful ad (and how we got there)
  17. 17. Managing ads to ROI: CTR or CPO?
  19. 19. Ad testing: finding the “double winner” What is the “double winner”? The rare ad that pulls higher CTR’s without hurting ROI In landing page testing, one of the only ways to hit on the “killer permutation” is to test many variations using multivariate testing The same goes for ad copy testing Make the big wins first Move to MV testing Highest possible CTR’s on ads are paramount; affects all keyword CTR’s; and thus affects account-wide QS
  20. 20. Key steps towards better ads Better campaign organization = tighter targeting (info scent) A better ad is a higher-ROI ad? Or not!? Tests must be statistically significant Find initial triggers through A/B/C tests Record hypotheses & results Second stage: refinement (multivariate testing) Keep focused on “double win” genetic freaks Master the art of “why”
  21. 21. Multivariate Ad Testing Setup For high volume accounts (manual version)
  22. 22. Quality Score Booster Create a micro promotion that boosts QS Ordinary words like “plumber reviews” get pretty good QS Super targeted event promos like “Toronto home show” discounted tickets get very high CTR’s Even if only a break-even proposition, do more of these to inexpensively “greenlight” entire account (no downside!) --
  23. 23. Account refinement musts
  24. 24. Networks – placements & exclusions
  25. 25. Search query report: exclusions & ideas
  26. 26. New features -Bid Simulator -Campaign Experiments -Remarketing
  27. 27. Understanding the Impact of Ad Position: Bid Simulator
  28. 28. AdWords Campaign Experiments Yowza!
  29. 29. AdWords Campaign Experiments cont’d
  30. 30. Scenario: Pretty interested… but wandered off…
  31. 31. Remarketing drove the highest conversion rate and the lowest CPA for Nexus One Display Campaign • Conversion rate for remarketing was 2.3x higher than the account average and CPA was 2.4x lower • Display ads performed the best. Remarketing display had 3.2x higher conversion rate than the account average for display. • Due to high performance, the team roughly tripled the remarketing budget in 3 months Remarketing Case Study
  32. 32. Keepin’ em honest: PZ’s own study Client in retail food products Initial test: cautious; brand queries; 5 month test Result: Conversion rate about half the conversion rate in that search ad group, which is *very high* Conversion rate much higher than avg. for display Second test on more granular ad groups Conversion rate: 9%. Much higher than typical for display! CPA 80% lower than allowables for those groups! Conclusion: “nagging effect” works for cart abandoners who still have medium-high intent – remarketing rocks!!
  33. 33. Thanks! @andrew_goodman