Distinction Drink Digital: AdWords - Turning Ad Spend to Profit
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AdWords Strategy - How To Plan & Implement A Successful Campaign. AdWords Training For Marketers - Beginners to Pros! We'll look at how to strategically plan and prepare for your AdWords campaigns
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Distinction Drink Digital: AdWords - Turning Ad Spend to Profit
- 1. AdWords & Your Business: Turning Ad Spend to Profit The following material is proprietary and confidential 08 February 2018
- 2. About Me • Formerly part of Google AdWords UK/I ETO Team • Campaign Specialist for Direct Clients • Account Strategist for Agency • Now working for Distinction Proprietary & Confidential ADWORDS PRO TIPS
- 3. Agenda 1. Set Your Goals 2. Know Your Figures 3. Structure & Segment 4. Track & Remarket 5. Add Exclusions 6. Optimise ADWORDS PRO TIPS Proprietary & Confidential
- 4. Step 1: Setting Your Goals 1. Create a DMMM (Digital Marketing Measurement Model) 2. Incorporate SMART/DUMB goals principle 3. Review & Critique ADWORDS PRO TIPS DMMM: Objectives Goals KPIs Targets Segments Proprietary & Confidential
- 5. Real World Example 1. Objective: Grow business 10% YoY • What is extra revenue required? • What does AdWords need to generate? 2. Goal: Additional £(x) from AdWords • How many extra sales are needed for this? 3. KPI: Campaign Metrics • Sales • Traffic (clicks) ADWORDS PRO TIPS 4. Targets: Required Figures • (x) additional sales • (x) additional clicks • Can track these in AdWords 5. Segments: Additional Parameters • Low funnel? • Qualified leads? • User behaviour? • Of traffic generated, what are you focusing on? Proprietary & Confidential
- 6. Step 2: Know Your Figures 1. Customer LTV (Lifetime Value) • Use your data: repeat visitors, average order value, etc • Use free tools: Analytics, surveys 2.Target CPA (cost per acquisition) • Use CLTV to calculate 3. Work out your AdWords cost • Use keyword planner • Calculate using your CR (conversion rate) 4.Set an appropriate budget ADWORDS PRO TIPS Proprietary & Confidential
- 7. Real World Example 1. Conversion Rate: 2-5% • 20-50 clicks per conversion 2.Average CPC: £1 • £20-50 estimated CPA 3. Budget: Minimum 20* CPC • Minimum of £20 ADWORDS PRO TIPS Proprietary & Confidential
- 8. Step 3: Structure & Segment 1. What is your focus? 2. What can you afford to target? 3. Do you want to target brand keywords and/or competitor keywords? 4. Do you have multiple locations? 5. Do keywords vary significantly in cost? ADWORDS PRO TIPS Proprietary & Confidential
- 9. Good Ways To Segment • By site structure • By keyword cost • By location • By brand • By competitor • By Keyword Match Type ADWORDS PRO TIPS Campaign Ad Groups Men’s Clothes Shirts, Jeans, Shoes High Cost Divorce Lawyers, Divorce Solicitors Manchester Leeds Van Hire, Van Rental Van Hire, Van Rental Your Brand Exact, .com Competitors Competitor 1, Competitor 2, Competitor 3 Priority Keyword Phrase, Exact, Broad Proprietary & Confidential
- 10. Step 4: Track & Remarket ADWORDS PRO TIPS 1. Track anything of value – purchases, demo signups, newsletter downloads, calls, etc 2. Remarket! If 2-5% CR, then 95-98% of users are leaving without ordering Proprietary & Confidential
- 11. Step 5: Add Exclusions ADWORDS PRO TIPS • Negative keywords • Locations • Age • Gender • Content Proprietary & Confidential
- 12. Step 6: Optimise ADWORDS PRO TIPS 1. Analyse • Search Terms Report • Dimensions • Audience Report, etc 2. React • Bids • Exclude • Target 3. Wait, Observe, Repeat Proprietary & Confidential
- 13. Summary • Plan! • Know your figures • Think about your structure • Track everything • Implement remarketing • Observe, analyse, optimise • Be flexible! ADWORDS PRO TIPS Proprietary & Confidential
- 14. Resources • AdWords Help Centre • Google Academy for Ads • Search Engine Land • PPC Hero • AdWords Elevenses • Google! ADWORDS PRO TIPS Proprietary & Confidential
- 15. Thank you To discuss this further please contact: James Smith Digital Marketer James.smith@distinction.co.uk +44 (0) 1157 043 011 distinction.co.uk CONTACT Nottingham 4 - 6 Broadway The Lace Market Nottingham NG1 1PS London The Stanley Building 7 Pancras Square London N1C 4AG FOLLOW US:
Editor's Notes
- Ians asked me to give talk - Know there’s a range of different adwords experience in the room Show of hands – who’s used AdWords? Anyone expert? Good, taking notes What I’ve tried to do is focus on some key strategic considerations I believe are important for any business using AdWords. Will hopefully be useful for you all
- Bit of background on me Used to be part of Google AdWords team, based in Leeds Campaign specialist, direct clients, multiple verticals, built and ran campaigns Agency, more consultative role Now work for Distinction Nottingham No longer officially represent Google. Quip about life savings, mortgage, pension, children’s inheritance That said, have seen AW transform businesses It can also waste a lot of money. Why I’m here – to try and help avoid that
- What this talk is not – not about a how-to campaign set up, and it’s not about specific AW features. I think that would be quite dull, not very helpful, and there’s already loads of good stuff online for you to look at in your own time What it IS about is how to look at AW as part of your business goals, plan a strategy, and implement that strategy correctly So, steps are (read)
- Seems fairly straightforward, right? Make money Well, yes, true, but if that’s the only plan you have with AW you’re setting yourself up to fail Good planning essential for AW success At Distinciton, we get our clients to fill in a DMMM (Digital Marketing Measurement Model) – catchy eh Could give an entire talk on this one thing alone but only have time for a quick breakdown Essentially you set an overall objective and then break that down into more specific, manageable chunks Read Any of you heard of SMART or DUMB goals? Specific, measurable, achievable, relevant, timely? Same thing We did a more in depth article on this – if you Google DMMM it’s the second one down - Let’s look at an example though
- Lets say objective is to grow your business an extra 10% What’s the extra revenue that will need to be generated this year to achieve that? How much of this do you expect AdWords to generate? Therefore how much revenue do you need AW to generate? That gives your goal That revenue will be made up of sales, so that gives you one KPI. Another KPI – AdWords effectively drives traffic to your site (an important side note – its down to your site to convert that traffic), so how much extra traffic do you need it to ghenerate? There’s another KPI. Based on those KPIs, what are the targets for the campaign? Segment – of those visits, what would you consider to be low funnel? Qualified leads? Who converted? Already we have a focus for the campaign Leads us on nicely to step 2….
- Know your maths. Good test for you You need to know your lifetime value. It’s not just what one individual conversion is worth. Do you have repeat customers? Do you sell a monthly subscription? Do you upsell? If your customers tend to be one time only then your LTV is likely to be low, but if not, it could be a lot higher E.g. Starbucks – any guesses? - http://uk.businessinsider.com/lifetime-value-of-a-starbucks-customer-2016-1?r=US&IR=T That gives them a CPA of $12000 and still make a profit (theoretically). Ever wondered how big companies afford huge brand campaigns? Now you know Don’t know these figures? Find out! Use data. Use GA. Use surveys. Email addresses. Do your maths. Based onthat, work out your CPA Then, work out AW cost. Use keyword planner to estimate bids – what will a click cost you, roughly? Then work out your CR – of the traffic on your site, what percentage converts? If we apply that to AW, how many clicks is it going to take? Based on my CPC, what will that cost me? Does that match my CPA and CLTV?
- Let’s look at a real world example Very simplified Good CR is 2-5% - doesn’rt sound like much but retail average is 0.5% CPC is £1, which means 20-50 clicks, or £20-50 per conversion Set realistic budget £20 per day may seem like a lot but when you break it down it really isn’t If CPC is £2 and budget is £10, could take you 10 days to get one conversion! Bear in mind CPC is auction based so could vary. Could be more expensive but if value of conv and CLTV is higher, then it’s worth it
- No one correct way but plenty of wrong ones This is where your previous planning comes in By now you should know what you want to focus on and what things will cost If you have limited budget, focus only on what you can afford – don’t try and pick up all possible keyword traffic for site If you’re very CPA and conversion focused, don’t go for generic keywords Other considerations - read
- So, some good ways to segment Read Whatever you choose, the one thing you should definitely NOT do is lump everything together Makes it impossible to analyse and you can’t assign budget You wouldn’t do this with your monthly business budget – you’d break it down so you know what you have to spend on tax, wages, expenses, bills etc. Same with AdWords data One of best things about AW is the data it gives you but if you haven’t segmented it properly with good campaign structure, you’re going to have a hard time doing anything with it
- Not going to dwell too much on this Trac everything. This will allow us to optimise the campaign. Without it we rely on AW metrics like CTR, which whilst okay if you’re fine tuning specific campaign elements, is pretty useless from a business objective perspective Finally, remarket. 95-98% users leaving. Yes you pay twice but get them back on, bring your conversion volume up and lower your CPA. Use the GDN – multi platform You’ve seen Amazon do this loads – there’s a reason
- Very important You’re paying for traffic so you want to make sure it’s as high qual as poss Good keyword selection/audience targeting/placement targeting will help eliminate a lot of irrelevant traffic but exclusions are still essential Negative keywords is the obvious one – if you’re selling cruises, it’s worth excluding words like Tom, Penelope (for your audienc emembers who can’t spell), missile, etc. But also locations – if you install conservatories in London, you don’t want to target housing estates where everyone lives in flats. Demographics – don’t try and sell tampons to men or rollerskates to the over 60s – you do have to generalise a bit Plan ahead and try and anticipate any areas you might accidentally waste money – it’s much better to do that before you find yourself staring in horror at a search terms report full of completely irrelevant searches.
- Which leads on to final step – optimiseation One of the best things about AW is you can make changes at anytime during campaign (iunlike say a radio campaign), based on data – toptimise on fly In fact it’s pretty much a pre-requisitie for successful campaign Don’t assume you can just ‘fire and forget’ – the campaign will run, but nowhere near as well as it will if you’re on top of it managing it, tweaking, making changes, reviewing your strategy Loads of tools for this. Search Terms Report. Audience report. Predefined reports (dimensions, as formally known). Locations, scheduling. AW even offers an ‘Opportunities’ tab providing suggestions Minor adjustments can make big changes E.g. insurance campaign selling travel insurance. 18-24s and ^%+ performing badly across whole account – but when we drilled down to campaigns we saw that for backpacking insurance and cruise insurance respectively, doing much better So we set positive and negative bid adjustments to suit. Result? Better performance So, bottom line – you need to manage it and you’ll need to allocate time for this
- So, what have we learned? What are our ‘golden rules’? Plan. Plan plan plan plan plan. Don’t jump in feet first with your eyes shut. That kind of goes for everything else really As part of that, know your figures, know your targets. Then you’ll be able to accurately assess ROI Plan your structure, build carefully Track everything so you can see success Remarket to your nin converters Put the legwork in once the campaign is running. Actively manage your account Finally, be flexible. Be prepared to change your approach. Adapt according to the data, not your prejudices AdWords is cleverly designed so it’s very easy to setup and spend, but it takes thought and commitment to ensure it starts well and gets better 50% of money wasted If you’re not confident you can do it, go to an expert! Get an agency – it’s what we’re for, it’s what we specialise in. Look for a Google Partnered agency. Look for one that doesn’t see AdWords as a bolt on but an integral part of their offering
- A few resources to get you going. I’ll see if Ian can provide an email of these If people would find it useful I can provide this deck to people, in PDF format
- - And that’s it from me! I hope you’ve found the talk useful, and got something from it. I’m not 100% sure of the format of the evening but if I look free, grab me if you want to discuss something in more detail. Otherwise thanks for listening, and good luck with the campaigns!