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Recharge your PPC Profitability


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eTail East 2013 Presentation: Top Five ways to Diagnose and Treat a Paid Search Slump. Actionable tips to maximize your Google AdWords profitability.

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Recharge your PPC Profitability

  1. 1. Purna Virji Senior Marketing Manager at Stroll • 7+ years in Search Marketing • Columnist at Search Engine Watch • Speaker at SMX, Affiliate Summit, Moz & More. • Ex-agency, now in-house
  2. 2. 3 Every once in a while…
  3. 3. 4
  4. 4. 5 Key Takeaways: • How to Accurately Diagnose Issues • Recommended Treatments • How to Remain at Peak Performance
  5. 5. TIP 1: Go Macro Review macro trends separately for search and display networks. 6
  6. 6. 8 • Look at the totals for each network, month over month, for the past 12 months. • Provides the best insights into how core KPIs have been trending. • Immediately spot issues such as a slow, but clear, decline in any KPI.
  7. 7. Clearly issues are with the creative: landing page + ad
  8. 8. 10 NEXT… Drill a little further down by looking at each of your campaigns in each network individually.
  9. 9. Image Source: Not enough to look at past few weeks only for each campaign. Might mean concentrating on too many diff. strategies. Streamline efforts for maximum profit impact.
  10. 10. It will look like this: screenshot
  11. 11. • Pull Data from AdWords 13
  12. 12. - Profits - # of Days in the month - Impressions per day - Clicks per day - Orders per day - Profits per day • Pretty it Up & Normalize Trends by adding: 14
  13. 13. Diagnosis: Complete
  14. 14. 16 TIP 2: Analyze Quality Score If you find CPCs (& thus CPAs) creeping up, chances are a large %age of your impression volume is going to lower quality score keywords.
  15. 15. The Evolution
  16. 16. • Systems designed to track if ads were relevant enough to warrant an impression. • CTR carefully tracked. • KWs w/ CTR below 0.5% permanently disabled. • Unhappy advertisers, so evolved. • Introduced minimum bid • Bidding on less relevant terms = more expensive • Hoped that would weed these out. • Competing with the big guys- Overture • Moved from CPM to CPC pricing. • Solution to maximize revenue: Ad Rank= Max. CPC * CTR • Driver of AdWords’ Success
  17. 17. • Goal = Great user experience • Biggest driver remains CTR • Other relevancy factors also counted
  18. 18. 20 Why is Quality Score Important? Optimize Spend and Reach….BUT • Can provide incredible costs savings • Best to tie into response rate improvement efforts.
  19. 19. 21 Impact on Costs CPCs:
  20. 20. 22 Impact on Costs CPAs:
  21. 21. 23 Quick Facts: • Differs Across Networks • Differs Across Devices • Changes on the Fly • Changes quickly with large CTR changes
  22. 22. 24 Easy Option 1: Use a Tool Like Tenscores
  23. 23. 25 Scores Campaigns + Shows Consequence
  24. 24. - Use pivot tables in excel to manually pull the data (quite simple) Alternatively: - Use Brad Geddes’ Quality Score Analyzer tool at 26
  25. 25. Extreme Makeover: Quality Score 27
  26. 26. 28 • Separate Low QS keywords into their own ad group. • Re-group ad groups into tighter themes. • Test new ads to improve QS and C-rates. • Landing Page- Bounce Rates + Time on Site Extreme Makeover: Quality Score
  27. 27. 29 TIP 3: Going Back to Basics Take a look at the basics, since often in trying to work on more advanced tactics, the simpler items get missed. In reality they could have a big impact.
  28. 28. Common Issues: • Too few or too many negatives Negative Keywords 31 Image Source: • Campaign level affecting ad groups • Inappropriate use of match types
  29. 29. Common Issues: • Managed placements deterioration Placements 32 Image Source: • Too many underperforming placements • Strong placements at low bids • Prune once a month at least
  30. 30. Common Issues: • Too few ad groups Ad Group Set-up 33 Image Source: • Too many different “themes” in same group • Ad serving issues • Ad copy not relevant
  31. 31. 34 Common Issues: • Daily budget cap too low. Campaign Settings • C-rate variation across devices • Dayparting and Geo-targeting incorrectly set-up • Targeting both search and display network
  32. 32. 35 Caution with Enhanced Campaigns: • Review mobile bids carefully Campaign Settings • C-rates very different • Can exclude mobile but not tablets • Make landing pages responsive
  33. 33. 36 Common Issues: • Landing page errors Technical Issues Image Source: • Conversion pixel not firing • Mobile redirect errors
  34. 34. TIP 4: Analyze Your Bids The Pareto Principle: Adjusting bids would fall well into the top 20 percent of things you could do to make an 80 percent impact. 37
  35. 35. Bidding Options:
  36. 36. Flexible Bids: • Located in the Shared Library • Enhanced CPC and Target CPA options exactly the same thing • Target Search Page Location= Similarities to old Position Preference bidding • Maximize Clicks is Automatic Bidding for clicks • Flexible = Can set Strategy & Re-use across other campaigns/ad groups
  37. 37. 40 Which Bidding Option to Choose? Image Source:
  38. 38. 41 - Test automatic bidding to maximize clicks, while letting Google know to stay within a CPC bid limit. FOCUS: Maximizing Clicks - Or, to focus on clicks with conversion goals in mind, enable enhanced CPC bidding, which will adjust Max CPC bid based on chances of the ad converting.
  39. 39. 42 - Consider either target or max. CPA bidding. FOCUS: CPA Goals - Uses historical data on a rolling past–30–day basis (greater emphasis on most recent), to enter you into auctions where & when most likely to convert. - Adjusts for factors such as your bids, times of day, as well as keywords & placements.
  40. 40. - Consider testing Display Campaign Optimizer (DCO). 43 FOCUS: Display Network - Select CPA bidding (Target is recommended) and set up ads in the campaign. - Google will then do heavy-lifting to optimize placements & continuously seek new placements to test. - Great way to expand your reach and conversion goals.
  41. 41. PROCEED WITH CAUTION! 44 Don’t change bids too frequently.{ } Keep an eye on response rates.{ }
  42. 42. 45 TIP 5: Analyze External Factors If the account is looking good but you’re still losing impression share or seeing costs rise, then external factors could be having an effect.
  43. 43. 46 Competition - Has there been a new competitor? - Are current competitors optimizing heavily? Recommended Tools: .- to keep an eye on their display ads - to track KWs & text ads. Check competitor landing pages frequently, to track any tests. Keep a careful eye on AdWords competitors & look for changes to their ads or positions.
  44. 44. 47 Creative Burnout The bests ads & LPs can lose effectiveness over time. Always be testing new creative that you can roll out to keep performance strong. Image Source:
  45. 45. 48 Company-wide Issue - Talk to other marketing leads. - Potential Reputation issue? - Offer uncompetitive? - Jointly seek solution.
  46. 46. 49 In Summary: • Use Macro-Reports regularly. • Pay attention to (but don’t obsess over) Quality Score. • Audit the Basics consistently. • Test Different Bidding Options. • Track the Competitive Landscape.
  47. 47. FINAL THOUGHT 50 v v
  48. 48. 52 Doing a thorough check and audit of the account is recommended on at least a quarterly basis to keep things running smoothly.
  49. 49. 53 Say Hello or Ask Questions Anytime: Read More At: