Do AdWords New Features Pass the Test?Sarah Dahlin, Director of Client Services Jaime Allyne, Client Manager February 23, 2011
About Point It Presentation Agenda• Launched in April 2002• Seattle’s largest independent search marketing firm• PPC & SEO• $50 MM in managed media• 17 team members, 40+ yrs of SEM experience• Servicing clients across all verticals and revenue models facebook.com/pointit twitter.com/point_it
Agenda Presentation Agenda• AdWords New Ad Formats • See the results of our head-to-head tests• Automated Rules • What we learned and what we would change• Display Campaign Optimizer • How to set it up and how to make it work for you• Q&A
AdWords New Ad Formats Presentation Agenda• New display URL format • What is it? • What did we test? • What did we expect? • Were we correct?• New extended headline format • What is it? • What did we test? • What did we expect? • Were we correct?
Presentation Changes Display URL AgendaGoogle’s Intent: to standardize the appearance of ads Previous Format AdWords.Google.com/Support New Format adwords.google.com/Support
Display URL Test Presentation Agenda• Organic listings entirely in lowercase display URL• Does capitalization in paid search ads improve CTR?Display URL with capitalization Entirely lowercase in the subdirectory VS display URL
Anticipated Results Presentation Agenda• In previous tests, capitalization has had a positive impact on CTR• Our guess: • Display URL using capitalization Our pick:
Actual ResultsPresentation AgendaOur pick won…. But we also saw a fewthings that surprised us!
PresentationMetrics Impact on Agenda• CTR results: • 3.61% with capitalization • 3.15% without capitalization• Unexpected results: • Conversion Rate, CPA • Calls for more testing!
New Headline Format Presentation Agenda• Headline and description line 1 appearance • Since February 3rd, Google has been testing a new headline format • Ads must be in top positions • Description line 1 must end in punctuation • If your ad falls within these parameters, it will now look like this:
Headline Test Presentation Agenda• This new ad format is expected to have a higher CTR • The longer headline allows for more information about the product or service • Since Google anticipates that CTR will improve, we decided we would give it a try!
Anticipated Results Presentation Agenda• We expected the extended headline to out-perform the short headline Our pick:
Actual Results Presentation Agenda• Based on CTR alone… our pick did not win• However, we did see some interesting trends that we will definitely continue to watch…
PresentationMetrics Impact on Agenda• We saw slight improvement on our extended headline ad, 11.22% versus 10.51%• The extended headline version had a much lower conversion rate, 3.37% versus 5.48%
AdWords Automated Rules Presentation Agenda• What are automated rules? • What can they be used for?• How to set up automated rules• What we tested • Ad group rules • Ad copy rules • Keyword rules• What to watch out for• What we would change
What are Automated Rules? Presentation Agenda• For day to day management and optimization• Can be set on different levels: • Campaign • Ad group • Ad copy • Keyword• Run at a time that you specify• Email alerts
How to Set Up Automated Rules Presentation Agenda• From the Campaign, Ad Group, Ads or Keywords tab click on the drop down menu:
How to Set Up Automated Rules Presentation Agenda• Based on the type of rule you would like to set up, fill in the appropriate information
PresentationTested What We Agenda Automated Rules: • On ad group, ad copy, and keyword levels • Based on ad group names • Based on text in ad copy • Based on performance parameters
Ad Group Rules Presentation Agenda• Creating Ad Group Rules • Example of Use: Product Discontinuation • Product A, Version 2.0 3.0 • Our automated rule: • Created for campaign “Bids” • Paused all ad groups containing “ifb” • Set to run at 2PM on February 15th
Ad Copy Language Rules Presentation Agenda• Creating Ad Copy Language Rules • Example of Use: Promotional Ad Copy • Spring Clearance Sale, Free Gift with Purchase • Our automated rule: • Created on Ads tab • Paused all ads containing specified promotional language • Set to run once on February 15th
Ad Copy Performance Rules Presentation Agenda • Creating Ad Copy Performance Rules • Examples of Use: • Controlling costs for ads • Pause ad based on cost or CPA • Optimizing for fluctuating volume • Account with low volume on weekends • Set two separate rules for pausing and enabling
Ad Copy Performance Rules Presentation Agenda• Our automated rule • Our automated rule (for pausing): (for enabling): • Pause ads with less than • Enable ads with more 10 clicks than 100 clicks • Based on data from • Based on data from last previous 24 hours week • Set to run every day at • Set to run every Monday 2pm at 5am
Keyword CPC Rules Presentation Agenda• Creating Keyword CPC Rules • Example of Use: Automatic Bid Optimization • Our automated rule: • Increase CPC bids 10% for keywords with: • CPA less than $35.00 • Average position worse than 2.5 • Based on data from previous week • Set to run every Monday
Automated Rules Results Presentation Agenda• To view your results, navigate to the “Manage Rules” section• View details on all of your rules
What to Watch Out For! Presentation Agenda• When setting up rules, start out slowly • Set up a few test rules, to gauge performance• Be careful with • Time periods • CPC rules • Text-based rules• Rules will not run during system down time
What to Watch Out For! (Continued) Presentation Agenda• Don’t make too many changes• Rules expire after 1 year• Compatibility with other optimization tools• Check in frequently
What We Would ChangePresentation Agenda • Ad group or ad copy pausing/enabling is best aspect • We would allow the ability to do this… without using “rules”
AdWords Display Campaign Optimizer Presentation Agenda • What is the display campaign optimizer? • Are you eligible? • How do you set it up? • What we’ve seen • Things to look out for
What is Presentation Agenda the Display Campaign Optimizer? • The AdWords Display Campaign Optimizer (DCO) automatically optimizes bids and targeting • Uses set CPA goal and budget • You need only a CPA target and creative • Creative can be text ads or image ads
DCO Requirements Presentation Agenda• 15 display network conversions a day over the past 30 days• Daily campaign-level budget that is equal to 20x your target CPA• Let the campaign auto- optimize
DCO Setup Presentation Agenda• First identify your target CPA and budget • We selected a target CPA of $110 • This gave us a daily budget of $2,200 ($110*20) • The next step is to create a new campaign that is set to target CPA bidding
DCO Setup Presentation Agenda• Under advanced campaign settings, set targeting mode to “Automatic campaign optimization (Display Network only)”• Then, simply create one ad group with text or image ads, and push live! No keywords or placements needed
What We’ve Seen with DCO Presentation Agenda• Initial results have been favorable • In the beginning, we saw CPAs as high as $475 (versus our target of $110) • CPA has settled down to around $130 • Budget increases can cause CPA fluctuations • Conversion volume has increased with budget
Things to Look Out AgendaDCO! Presentation for with• Resist the urge to make manual optimizations!• You may need to reach out to your AdWords rep for help• Be careful when making placement optimizations across multiple campaign
So, Which Features Passed the Test? Presentation Agenda • AdWords New Ad Formats • New display URL format • We’re still stuck in the past, so we’re not entirely happy with this one. However, the ability to use capitalization in the subdirectory looks to still have a positive impact. • New extended headline format • So far, we’re not liking what we are seeing with conversion rate… but more testing is needed.
So, Which Features Passed the Test? Presentation Agenda• Automated Rules • These are pretty tricky to set up, and they might cause you some unanticipated issues if you aren’t careful • Bottom line, we’d love to see a simpler tool that would allow for pausing and enabling ads, ad groups and keywords! • Display Campaign Optimizer • So far, we think it’s great. However, you do need a sizeable budget and the self-control to sit back and let the tool do the work for you!
Q&A Sarah Dahlinsarahd@pointit.com Jaime Allynejaimea@pointit.com