Basics of Online Advertising


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I delve into the Basics of Search Theory, the evolution of the Search Industry. How the Google Adwords Program evolved. I explain about the Google Adwords Account Structure. How Keywords are to be chosen. The Different Types of Keywords. How to use a combination of Positive and Negative Keywords. I have used "Advanced Google Keywords" by Brad Geddes as the basic source.

Basics of Online Advertising

  1. 1. Online AdvertisingVarious forms: Contextual Advertisements on SE results pages Banner Ads Rich Media Ads Social Network Advertising Interstitial Advertising Online Classified Advertising Advertising Networks E-Mail Marketing
  2. 2. Google Adsense• Ad serving application• Website owners enrol to enable ads• Adminstered by Google• PPC or PPI• Expected revenue> $ 9 Bill
  3. 3. Adsense-How it Works• Ads served on basis of:• Website Content• User’s Geographical location
  4. 4. Why Adsense is preferred?• Less intrusive• Content more relevant• Ad revenue for small websites
  5. 5. Google Adsense…the commercials• Advertiser submits sealed bid• Additionally, for every click received , advertiser pays one-bid increment over second-highest bidder
  6. 6. Google Adwords Program• Google’s flagship advertising product• Main source of Revenue• Ad Rev: $ 23 Bill
  7. 7. Understanding Search Theory1996 : IdeaLabs changes Internet Marketing forever
  8. 8. First Concept-Relevance• Helps searchers• Synergy between searchers and advertisers• Win Win
  9. 9. Second Concept-Pricing Model• From Impressions to Clicks• From PPI to PPC
  10. 10. Third Concept….The Signup Process• No salesperson between advertiser and inventory• Self-Serve Ad Model• Straightforward approach
  11. 11. Fourth Concept-The Auction Process• No set prices• Bidding• Higher Bid, Higher in Results
  12. 12. Actions in the Search Industry• 2001: awarded patent• Oct 2001: Renamed Overture• April 2002: Overture sues Google for infringement• 2003: Overture acquired by Google• Google settles with Yahoo
  13. 13. Google Enters the Arena• First Offering: A CPM Program• Failure
  14. 14. Google Adwords Launched• First Self-Serving program• October 2000• 350 Customers• Still CPM
  15. 15. Google Adwords Select Revolutionises PPC• Feb 2002: Google changes advertising forever• Incorporates all 4 GoTo principles• Own Twist
  16. 16. GoTo vs Google Adwords• GoTo: Only Highest Bid• GA: Relevance for Searcher• + Maximise Revenue for each SERP
  17. 17. How does Google Decide Ad position?• Maximum CPC X CTR
  18. 18. The Impact• Level Playing Field• Price no longer trumped relevancy• More relevant ads• The Art of Keyword Research
  19. 19. The Psychology of Search• SEs not meant to browse the Web• iGoogle• StumpleUpon• Digg
  20. 20. Who uses a SE• Specific Piece of Information• Answer to a Question
  21. 21. The Mind of the Customer• We think differently• We ask questions differently• Delve into various ways people think and ask questions• Choosing Keywords carfully
  22. 22. How people ask questions? Is my website the answer to his questions? Web Content Strategy
  23. 23. How Search Works….MattCutts
  24. 24. From Concept to Words•The Actual Question…..Abridged Version •The answer to the question •A description of the Problem •A symptom of the problem •A description of the cause •Product Parts or Brand Names
  25. 25. Searches are thought Processes• Essential to consider all ways someone can search for your products• Understanding Query
  26. 26. Understanding Search Results• Expectation Setting• Role of Ad in Search Process• Relevance• Need for only “engaged” visitors
  27. 27. The Purpose of Ad Copy• Quick Scan…are results upto expectations?• Need to stand out• Compelling enough to click
  28. 28. Guidelines for Ad Copy• Only 95 characters• Headlines that draws attention• Why you have answers to their question• Faithful to your products and services
  29. 29. 5 Tips for Web Headlines• Include your paid keyword• Don’t sound like an Ad• Highlight benefits rather than features• Make headlines look easy to read• Use Google Website Optimizer
  30. 30. Purpose of Ad Copy• You hold the key to their question• Website will contain the answer
  31. 31. The Importance of Expectations• Preconceived Notions before search• Ad Copy sets expectations• Landing Page must meet expectations
  32. 32. Landing Pages Leads to New Customers• Rarely the Home Page• Page most logically related to search query• Most searchers don’t know your website• Must be an extension of Ad Copy
  33. 33. Ad Copy and Landing Page• Ad Copy: Informs searcher what they would find• LP: should continue the conversation …assist in finding answer
  34. 34. What should the landing page contain? •Answer to their question•Instructions to get the answer to their question
  35. 35. The Criticality of the Landing Page• Bad LP: Wasted Advertising Expenditure• Good LP: Converts shoppers into buyers
  36. 36. How is a Web Buyer Different?• Search Process is driven by giving someone the correct information at the correct time• Affects every step
  37. 37. Ads Should Lead Searchers to Answers• Searcher queries…• “Plasma TV Features”
  38. 38. Two Ads• Ad 1• “Plasma TV.Massive New TV offerings. Visit us to buy your new TV”• Ad 2• Compare Plasma TV features. Find a new plasma TV that fits your lifestyle and budget.
  39. 39. Guideline for Ad Copy• Need to reflect query• Recognize where a searcher is in the buying cycle
  40. 40. Advertising is welcome• Part of the Information Gathering Phase• Need to align with the search process• Helps customers find answers• Helps business make sales
  41. 41. Goal Alignment: Google vs Advertiser vs The Searcher• Three Different Entities• Each trying to achieve their Goals
  42. 42. Google’s Goals• Searcher should come back again and again• More chances to make money• Wants searchers to get answers quickly, easily and on a Google Property
  43. 43. Advertiser’s Goals• Show ad related to their product• Show an ad related to the searcher’s query• Wants to control
  44. 44. The Searcher’s Goals• Need to align• G: Relevancy
  45. 45. Google Adwords….Essentials• Automated Auction• Advertiser writes ads, chooses relevant keywords• Prospective customer searches• All ads with keywords matching in auction
  46. 46. Keyword Research• Google Adwords Keywords Tool• dToolExternal
  47. 47. Who wins?• Only top ads appear Sponsored Links Above Main Search Results
  48. 48. Also on other websites• Other relevant websites• Content Network• Either Advertiser chooses sites• Google Matches ads with websites
  49. 49. Google …How does it Match?Step 1Analysis of ContentStep 2Main Concept behind Advertising MessageStep 3Automatically places Ads
  50. 50. Google rewards relevancyHigher positionLess costs
  51. 51. Google Adwords Basics….The Account StructureThree LevelsAccountCampaignAd Groups
  52. 52. Take a look at Account StructureCampaignShould focus on specific product range/areaof businessAd GroupFocus on subcategory
  53. 53. Structuring your Google Adwords Accounts What campaigns? What ad groups?Structure of Website should bereflected
  54. 54. Account for www.flipkart.comBooks Movies,Music and Mobiles and Games AccessoriesCampaign 1: Books Ad Group 1: Business Ad Group 2 : Literature Ad Group 3: Cooking, Food and Wines
  55. 55. Choosing the right keywords Reach the right customersEach Ad Group: Tightly themed keywordsKeywords for Ad Group with theme of books onCooking, Food and Wines…..BakingHerbsIngredientsMealsSnacksDesserts….
  56. 56. Keyword MatchingBroad MatchNegative Match
  57. 57. 3 Step Approach to selecting Keywords Step 1List all relevant keywords for a ad campaignCampaign: BooksEach Ad Group: A type of books Books, textbooks, fiction, authors, meal, cheap books, school, money, University, stockmarket, cooking , Charles Dickens, best books, leadership, management, ingredients,Tolstoy, humour, Shakespeare, John Grisham, best books
  58. 58. Step 2 Split keywords into themed ad groups with relevant ad textsAd Group 1: Business Ad Group 2: Literature Ad Group 3: Cooking,Food and WinesBusiness Books Literature Cooking Food N WinesSale Now On. Wide variety of Sale Now on. The Authors you Sale Now on. The Best CooKingAuthors and Bestsellers.Buy Now. always wanted to read.Buy Now. Guides.Buy Keywords:Shakespeare,John Keywords: Meal,cooking,ingredientsmoney,stockmarket,leadership, Grisham, Charles DickensManagement Tolstoy -Delivered Free- Delivered Free -Delivered Free
  59. 59. Step 3: Review and Refine“Books,Authors”: Too GenericDon’t use same keyword in multiple ad groups in same campaignNegative keywords: Delivered Free“Cheap Books,best books”: Not specific enough
  60. 60. Tips for choosing the right KeywordsThink like a customerMatch your keywords to your ad textUse Google Adwords Keyword ToolReview Keywords regularlyUse negative keywords
  61. 61. Write Ads to get the customers start clickingTest your messagingWrite 3/4 variations of the same ad text ineach ad groupSame keywordsAdwords rotates the ads at no extra costs
  62. 62. Three Variations…same ad group…same keywords Business Books Best Business Books Cheapest Business Books Drucker,Prahlad…All here… All the New York Times Bestselling Books Widest Choice,Call nowDeliveries in 2 Days anywhere in India Pay Cash on Delivery Same Keywords: Money, Stockmarket,Leadership,Management
  63. 63. Test your Ad MessageAllow these variations to run for a whileCheck clicksAds with highest CTRs: most relevant
  64. 64. Tips for writing targeted adsUse your keywords in your adInclude special offers,USPs,pricesUse strong call-to-actionDirect users to that page on thewebsite that is most relevant to youad
  65. 65. The Buying Funnel•Awareness•Interest•Learning•Shopping•Buying
  66. 66. The Buying Funnel Awareness Interest Learn Shop Buy
  67. 67. Broader Buying CycleTwo Additional Steps:RetentionAdvocacy
  68. 68. Ads KeywordIndicates where in Buying Phase Landing Page
  69. 69. AwarenessVery General KeywordsConsumers do know enough about features,benefits or parts typesHigh Volume, Low converting keywords…e.glaptop, apartment
  70. 70. Interest•How to Generate•How it will make life better•Focus on Benefits
  71. 71. Learn•Information gathering phase••Specifications/Features••Features and differences
  72. 72. Shopping•Compare similar products•Specific Keywords: Displays knowledge
  73. 73. Buy•Customer already made up mind•Often Part numbers/ company names
  74. 74. Keywords for a Smartphone BuyerAwareness PhaseKeyword: Smartphone Keyword India Monthly Approx CPC (Rs.) Searches Smartphone 201,000 10.01
  75. 75. Google Insights for SearchCompare by: •Search Terms • • Locations •Time Ranges •Filter (Web/Image/News/Product Search) •Location (Countrywise) •Time (last 7/30/90/365 days, Yearwise, Date Range) •Category
  76. 76. Google Insights for Search• Interest over Time (weekwise)• Regionwise/Subregionwise interest• Top Searches•• Rising Searches
  77. 77. Keyword Ideas….Awareness PhaseKeyword India Monthly Approx Searches CPC(Rs.)What is 2,46,000 9.82smartphone?Smartphones 2,01,000 9.07Best 33,100 6.14smartphoneSmart phones 1,35,000 9.68
  78. 78. Keywords for a Smartphone BuyerInterest PhaseBenefits • Stay in Touch • • Multimedia Functions • Applications • Remote Office
  79. 79. Keyword Ideas….Awareness PhaseKeyword India Approx CPC Monthly SearchesWatch 3,600 10.41Mobile TVAngry Birds 90,500 5.22Email on 60,500 12.35PhoneSpotify 9,900 36.29
  80. 80. Keyword Ideas…Learning PhaseKeyword India CPC Monthly SearchesFront Facing 320 23.06CameraMicroSD 60,500 9.21WiFi Sync 2,900 21.06Speech to 60,500 25.60Text
  81. 81. Keyword Ideas..Shopping PhaseKeyword India Approx CPC Monthly ChargesApple 3,68,000 13.86iPhoneiPhon 90,500 7.23iPhone 4,50,000 12.93PricesSamsung 22,40,000 6.41Galaxy
  82. 82. Keyword Ideas…Buy PhaseKeyword India Approx CPC Monthly SearchesiPhone 4 GS 8,100 14.36Samsung 110,000 7.09Galaxy FitBlackberry 165,000 15.70Storm
  83. 83. How do Consumers Flow through Buying Funnel•Different for every business•No Time Limit•Skipping Phases
  84. 84. Buying Phase and Keywords•Each Keyword : At least one Phase•Ambigous? : Test Different Landing Pages•Examine Keywords•Need to engage•Need Both click and conversion
  85. 85. Understanding Keywords•Thoughts put into words•Searcher is looking for answer to a question•Choose a Keyword: Promise of an answer
  86. 86. Keywords…Four Types• Explicit• Problems• Symptoms• Product Names or Part
  87. 87. Explicit Keywords• Directly describes the product or service• Highest Search Volume• Very little creativity required for research
  88. 88. Examples of Explicit Keywords• Dentist• Dentist in Chandigarh• Emergency Dentist• Dentist Phone Number
  89. 89. Problem-based keyword•Conditions/problems your productsolves•Also called Curing Searches
  90. 90. Problem-based keywords• Toothache• Remedy for Toothache• Tooth Pain• Gum Infection•
  91. 91. Symptom-based Keyword• Internet is too slow• Oily Skin• Feeling tired• Bleeding Gums
  92. 92. Keywords based on Product Names/Part Numbers••Apple iPhone 4 GS•Nikon D-3000 SLR•Inspiron 15 R Laptop
  93. 93. Keyword based on Informational Query • • What career do I pursue after Graduation? • Where to visit for my winter holidays? • How to click photographs on a mobile phone?
  94. 94. Finding Keyword Ideas Consider Themes For Each theme, Fill up Keywords
  95. 95. Two Points to Remember••Always Keep the searcher in mind• Always keep your product in mind
  96. 96. How many keywords?Keyword Lists •Relevancy •Specific Enough to determine User Intent •Google Account Limits
  97. 97. Creating Keyword ListsCategory Product Types Product Product ExampleAdjectives Attribute 1 Attribute 2 KeywordsTeenage Girls Shirt Long Sleeve Cotton Teenage Girl Shirt T Shirt Short Sleeve Rayon Teenage Girl Long Sleeve Shirt Tops Sleeveless Silk Teenage Girl Long Sleeve Cotton Shirt Jackets Natural Fibre Sweatshirts Wool
  98. 98. Stepwise Process Create AdGroup Fill In Keywords
  99. 99. Expand List within Group•Plurals•Misspelling•Similar Words
  100. 100. Long Tail Keywords• Three or More Words in Length• Low Search Volumes
  101. 101. Advantages of Long Tail Keywords•Less Competition…..more keyword research• Easier to match user intent
  102. 102. Wide versus deep KeywordsKeyword List that has breadthDelete AdwareDelete Browser HijackerDelete CookieDestroy TrojanFind W32Remove Worm
  103. 103. Wide versus deep KeywordsKeyword List that has DepthAnti SpywareSpyware AntVirusAnti SpywareDownload Spyware BlasterFree removal of Sypware
  104. 104. Most Common MistakeFocus on Depth Rather than Width
  105. 105. Why Mistake?•Too Narrow a Focus on the most competitivekeywords•Missing Out on the most traffic and profitableniches
  106. 106. Ideal Approach• Go Wide First….Root Keyword List• Which Niche has high traffic: Cost/ ConversionLow• Then Go Deep
  107. 107. Discerning Keyword Match Type • Broad Match • Phrase Match • Exact Match
  108. 108. Broad Match•No Formatting•Ad displayed when query is related to Keyword•Match to Misspellings, Plurals, and SimilarWords, Different order
  109. 109. Broad Matched Keyword “Furniture Shop”Matches with• Furniture Shops”….plural• “Furnitur Shop”…..Misspelling• “Shop Furniture”….Different Order• “Cane Furniture Shop”…..contains similar words
  110. 110. Broad Match-Pluses and Minuses •Little Control • Very Specific Queries • Impossible to have every relevant Keyword
  111. 111. Phrase Match• In Quotation Marks• Only if in Same Order
  112. 112. Phrase Matched Keyword “Furniture Shop” Matches with Steel Furniture Shop Furniture Shop in Chandigarh Cane Furniture Shop in Patiala
  113. 113. Matches even if words areBeforeAfterBefore and After The Keyword Phrase
  114. 114. Phrase Matched Keyword “Furniture Shop” Does Not Match •Misspellings •Plural • Different Word Order •Word between
  115. 115. Exact Match•In Brackets• Identical
  116. 116. Exact MatchDoes Not Match •Misspellings •Singular/Plural •Similar Words •Additional Words
  117. 117. Exact Match…..Big PlusExact WordsUser Intent
  118. 118. How to use Match Type in Adwords Account•All 3 Types allowed for same keyword• Budget and Reach
  119. 119. Which Match Type? Start with Exact Match keywords Which Keyword Meets Business Goals? Add Phrase Matches Add Broad Matches
  120. 120. Bidding Strategy…Multiple Match Exact Match: Highest Bid Phrase Match: Slightly Lower Bid Broad Match: Lowest Bid
  121. 121. Why this bidding strategy?•Higher Ad rank for Exact Match• Pay Higher for more accurate User Intent
  122. 122. Usual ScenarioConversion Rate (Exact Match)>>>Conversion Rate ( Phrase Match) >>>Conversion Rate(Broad Match)
  123. 123. Missing Keywords•Conversion Rate ( Broad Match)>>>>Conversion Rate ( Phrase, ExactMatch)•Search Query Report
  124. 124. Recommended Bidding RatesBid (Phrase Match) : 25% Less than Bid (Exactmatch)Bid ( Broad Match): 25% to 50% Less than Bid(Phrase Match)
  125. 125. Using Negative KeywordsConversion Rates and CostPer ConversionLow Conversion Rates: Filter
  126. 126. Effect of Using Negative Keywords•Increase of CTR•Conversion Rate should increase•Reduction of Cost Per Conversion
  127. 127. Implementing Negative Keywords •Within Ad Group •At Campaign Level
  128. 128. Negative Keywords within Ad GroupMinus SignAffects the keywords onlywithin the Ad Group
  129. 129. Negative Keywords at campaign levelAffects every Ad Group within thecampaign
  130. 130. Negative Broad Match•Ad Not Shown if word is anywhere within searchquery• Does not match to misspellings or plurals• Multiple words allowed• Order does Not Matter
  131. 131. Negative Keyword= ShopSearch Term Ad Displayed/NotDisplayedFurniture Shop NDShop in Chandigarh NDFurniture Shops DFurniture Shops in DChandigarh
  132. 132. Negative Keyword=Furniture Shop Search Term Ads Displayed/Not Displayed Cane Furniture Shop ND Furniture Shop in ND Hyderabad Furniture Shops D Furnitur Shops D Shop Furniture ND Shop Steel Furniture ND Shop for Steel Furniture ND Shop for Steel Furnitures ND
  133. 133. Negative Phrase Match•In the Exact order•Additional words allowed allowed before/after•Does Not Match Misspellings/ Plurals
  134. 134. Negative Phrase Match=Furniture ShopSearch Term Displayed/Not DispalyedCane Furniture Shop NDFurniture Shop in NDHyderabadFurniture Shops DFurnitur Shops DShop Furniture DShop Steel Furniture DShop for Steel DFurniture
  135. 135. Negative Exact MatchDoes Not Match •Misspellings • Singular/Plural • Different Order
  136. 136. Negative Exact Match =Furniture Shop Search Term Display/Not Display Furniture Shop ND Shop Furniture D Furniture Shops D Shop Furniture D Furnitur Shop D
  137. 137. Negative and Positive Keywords Together•First Determine when you want your ad to Show•Any Variations when you do not want Ad to be displayed•Positive and Negative Keyword•Match Type
  138. 138. Search Query ReportsKeyword Ad Search Search Cost/convNumber Group Query Query ersion Match Type1 Home Furniture Phrase $ 4.0 Forniture Shop2 Home Steel Broad $ 3.50 Furniture Furniture Shops3 Home Buy Broad $ 5.0 Furniture Almirah4 Home Dining Exact $4.50 Furniture Table5. Home Buy Broad $16 Furniture Computer Table
  139. 139. Expand your reachContent NetworkTightly themed campaignReview Performance: “Networks” and“Show Details”
  140. 140. Understand your success-Adwords StatisticsCTRKeyword StatusAverage PositionFirst Page BidsQuality Score
  141. 141. Performance Measurement ToolsConversion TrackingGoogle Analytics
  142. 142. Google Conversion TrackingFreeValuable user behaviour:PurchaseSignupPageviewLeadMonitoring and Evaluating Tool
  143. 143. Google AnalyticsFree Website Analysis Tool How people found your site? How they expolred it? What actions they took?
  144. 144. Google Adwords Program• PPC advertisements• Site-targeted advertising: Text/banner/rich- media ads• Local,national and international distribution
  145. 145. Google Adwords Advertisements• Text : Short• : One Headline• : Two additional textlines• Image : Several IAB standards
  146. 146. PPC Advertisements• Advertisers select:• Keywords• Maximum amount per click
  147. 147. Clickthrough Rates (CTRs)• 8% for First ad• 5% for Second Ad• 2.5% for Third Ad