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5 Insights from Analyzing Half A Billion Dollars in Ad Spend
The document provides insights from a presentation on PPC and SEO strategies, highlighting the importance of quality scores and click-through rates (CTRs) in digital advertising. Key tips include utilizing expanded text ads for improved CTRs, the necessity of negative keyword optimization, and focusing on conversion tracking to enhance campaign performance. Additionally, it emphasizes the need for compelling, emotional ad copy and suggests tracking and adjusting underperforming keywords and offers for better results.
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5 Insights from Analyzing Half A Billion Dollars in Ad Spend
- 3. • Recorded versionwill be distributed later this afternoon, be sure to keep an eye out for an email • Join the conversation on twitter • @WordStream • @LarryKim • Time for Q&A – don’t be shy!
- 4. • Founder &CTO, WordStream • Been doing PPC & SEO for over 10 years • Has been cited in over 10k publications & regularly speaks at industry events • Frequent author for the WordStream blog
- 5. TIP #1: Quality ScoreIs More Important Than Ever
- 6. Quality Scores overall areUP! Average QS=6.5
- 7. Last Year: +/-1 QS Point = +/- 9% Ad Impression Share
- 8. 1. Fewer AdSpots on Both Mobile & Desktop, So Google Needs to be More “Picky”!
- 9. 2. Deletion ofAds Spots 8-11 on Desktop
- 10. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 3. Share ofPPC Traffic, by Device: Desktop -10% in Last 12 Months! Desktop Tablet Mobile
- 11. Today: Share ImpressionShare 2x More Competitive! On Mobile: +/- 1 QS Point = +/- 18% Ad Impression Share!!
- 12. Quality Score affectsyour CPC 10 Discounted by 50.0% 9 Discounted by 44.2% 8 Discounted by 37.5% 7 Discounted by 28.6% 6 Discounted by 16.7% 5 Google benchmark 4 Increased by 25.0% 3 Increased by 67.3% 2 Increased by 150.0% 1 Increased by 400.0% You Save You Pay
- 15. What do high QualityScores mean for me? • Low-QS keywords are now less likely to ever get impressed to a user. • CTR (the biggest component of Quality Score) matters more than ever, and continues to trend up
- 16. TIP #2: About ThoseCTRs – What’s a Good Click- Through Rate in 2016?
- 17. CTRs this yearare trending higher than ever!
- 18. 2 1 What’s behind the increase…. AdWordsis less likely to run crappy ads (with low CTR and low QS) in the first place, raising average account CTRs. Bigger, more prominent ads (AKA Expanded Text Ads) are more likely to be clicked on. Our internal tests have shown that moving to ETA’s can increase CTR by up to 400%!
- 19. Take Action! What areWe Going to Do About Rising QS & CTR?
- 20. New Expanded Text Ads LastYear’s Generic Text Ads Larry’s #10 Hack: Go Nuts With Expanded Text Ads (ETAs)
- 22. This is aTerrible Expanded Text Ads Strategy
- 23. Instead, Completely Re-ImagineYour Ads!
- 25. Larry’s Crazy Idea:Kill Obvious CTAs From Headline and Move Into Sitelinks
- 26.
- 27. Move CTAs toSitelinks To Free Up Even More Room
- 28. Larry’s Other Crazy PPCHack: Blow Up Dynamic Keyword Insertion (DKI)
- 29. Unicorns Ads Are6x Better Than Donkey Ads!! Avg. CTR Donkey CTRs (Bottom 10%) = 3x Worse Than Avg. Unicorn CTRs (Top 10%) = +2x Better Avg. AdClickThroughRate Ad Position
- 30. These Dynamic Keyword InsertionAds are All Donkeys!
- 31.
- 32. Keyword Headlines UsingDynamic Keyword Insertion Do OK, Not GreatRelativeFrequency Avg. CTR Top 15% Top 5% Top 1% Ads without DKI Ads with DKI
- 33. DKI Headlines LessLikely To Be Unicorns RelativeFrequency Top 5% Ads without DKI Ads with DKI Top 1% Relative CTR
- 34. Get DKI Outof Headline (Free Up Even More Room), Move DKI Into URL Paths
- 35.
- 36. Larry’s #7 PPCHack: Leverage Emotional Triggers!
- 37. These 9 EmotionsMake People Click Like Crazy: • Laughter • Amusement • Curiosity • Awe • Anger • Fear • Joy • Empathy • Sadness
- 38. Write Ad HeadlineCopy From Perspective of One of These Personas The Bearer of Bad News The Hero/Villain The Comedian The Feel Good Friend
- 39. Combining #7 (EmotionalHooks) and #6 (Personas): Examples: Turning Donkeys into Unicorns!
- 40. Example 1: “DivorceLawyer” This Ad Gets 6x The Average CTR The Villain: Husband/Mistress The Hero: Divorce Attorney Emotion: Anger. Revenge.
- 41. Note: Everyone Else= Donkeys!
- 42. Example 2: “BreastCancer Screening” (It’s OK, but Unremarkable)
- 43. The New Ad: Emotion:Fear. Persona: Bearer of Bad News
- 44. 125% Increase inAppointments Booked! 4 9 0 2 4 6 8 10 Positive Twist Negative Twist
- 45. 170% Increase inCall Volumes! Higher CTRs = Higher Conversion Rates!
- 46. Bonus Tip: UseThis Plug & Play Title Template Commonly Employed By ‘Viral’ Articles Format List post, quiz, Infographic Emotional Hook Emotional word or superlative Content Type Images, quotes, pictures, facts Topic Love, cats, dogs, fitness, health, Donald Trump 4 AWESOME AD COPY STRATEGIES TO 6X CTR
- 47. Bonus Tip 2: StuffThat Does Great on Social Media Also Does Great as Ads
- 48.
- 49. Unicorn Headlines =Top 10% Odds of Finding Unicorn = 1:10 So Test 10 Different Headlines
- 50. Quiz: How ManyAd Headlines Do You See Here?
- 51. It’s The SameAd (With Different Capitalization & Punctuation!!)
- 52. You Need 10*Different* Headlines! How to Spot the Unicorn?
- 53. 80% of SalesCome from 10% of Offers! Most Businesses Just Need One Unicorn Ad and Corresponding Offer!
- 54. Larry’s #4 PPCHack: Weird Trick To Increase Quality Score
- 55. TIP #3: Negative KeywordsAre Still a Missed Optimization Opportunity
- 56. Half of accountsdidn’t add a single negative keyword in the last month.
- 57. THAT’S A LOTOF WASTED MONEY.
- 58. Negative keywords are criticalfor high ROI: Eliminating wasteful spend (clicks from people who aren’t going to buy anything) Re-routing that money to more useful campaigns Periodically review your search query reports and set low- or non-converting keywords as negatives. ALL GOOD THINGS.
- 59. TIP #4: Keep theEnd Goal in Mind: Conversions
- 60. Who cares aboutCTRs and QS?
- 61. The whole pointof optimizing metrics = increase conversions
- 62. Unfortunately, less thanhalf of small business advertisers have conversion tracking turned on.
- 63. THIS MAKES MESAD.
- 64. SOME FORM OF CONVERSIONTRACKING IS BETTER THAN NOTHING. Smart Goals aren’t that dumb.
- 65. TIP #5: What’s aGood Conversion Rate in 2016?
- 66. Of the approximately15k accounts that did have conversion tracking on, we found little change in average conversion rates and conversion rate distribution
- 67. TWO THEORIES 2 1 Mobiletraffic is converting indirectly. The pathways are increasingly indirect – for example, cross-device conversions and calls introduce conversion attribution leakage. This is why call tracking is so important. CRO is basically a ton of BS.
- 68. Top 10% ofadvertisers (unicorns) continue to crush everyone else with conversion rates 3X higher than the donkeys – they see conversion rates of 8% or more.
- 69. Larry’s Last PPCAd Hack For Today: Change Your Offer For Insanely Awesome CRO
- 70. 3. Conversion RatesAre Low & Going Nowhere Search Conversion Rate Distribution Median: 2.35% Top 25%: 5.31% and Above Top 10%: 11.45% and Above SHAREOFALLACCOUNTS SEARCH CONVERSION RATE. (WordStream Customer Data – Not Official Google Data)
- 71. Distribution Point ConversionRate Vs. Average Comments AVERAGE 2.35% - DONKEYS TOP 25% 5.31% 2X AWESOME TOP 10% 11.45% 5X UNICORNS Donkeys vs. Unicorns Unicorns Convert 5x Better Than Donkeys
- 72. How To ConvertDonkey Offers Into Unicorns?
- 73. The Great A/BTesting Fairy Tale We Changed The.. • Font Type • Spacing • Button Color • Image • Etc. “We Got a 5% Increase in Conversions”
- 74. Typical A/B Test EarlyLead Disappears. Gains Don’t Persist.
- 75. Higher CTRs =Higher Conversion Rates
- 76. Picnic Pants vs.Drones
- 77. Your Current Offer ACompletely Different, Better Offer Big vs. Little Changes Unicorn Hill Donkey Hill
- 78. Change Your OfferTo Dramatically Increase Conversion Rates
- 80.
- 81. Google is onlyshowing strong performers these days. Low-quality, under-optimized ads won’t even get impressions (especially on mobile). Take advantage of every extra feature you can. Be an early adopter. Write compelling, emotional ads.
- 82.
- 83. Start tracking conversions! Cutnon-converting keywords out of your account. AdWords works incredibly well for businesses that take the time to measure the effects of what they’re doing, so they can funnel more money into the ads that drive the most business value.
- 84.
- 85. Pretty soon, the old textads will be turned off completely.
- 86. You NEED tostart writing new ads in the new format, and the earlier the better because early adopters reap the most benefits.
- 88. Special Offers 1. FREElive demo of the WordStream Advisor to learn how to manage your PPC in 20 minutes a week 2. 1-1 AdWords Assessment with AdWords Certified Consultant 3. I’m all set - I don’t need help with my PPC
- 89.
- 90.
Editor's Notes
- #13 Brian: Could you make this plain text rather than an flattened image. Use a donkey and unicorn image rather than happy face sad face. Clare: could you find a donkey and unicorn image to use.
- #31 “SEO” headlines (title tags) and meta descriptions do OK. But keyword-optimized titles are the equivalent of “Dynamic Keyword Insertion” for PPC ads. Take a look at the WordStream client data* below for ads with DKI. They generate above-average returns:
- #33 Brian: Can you make the Legends and Graph Axes more readable: “SEO” headlines (title tags) and meta descriptions do OK. But keyword-optimized titles are the equivalent of “Dynamic Keyword Insertion” for PPC ads. Take a look at the WordStream client data* below for ads with DKI. They generate above-average returns: Fix the key. Recreate the graph
- #34 Brian: Can you make the Legends and Graph Axes more readable: “SEO” headlines (title tags) and meta descriptions do OK. But keyword-optimized titles are the equivalent of “Dynamic Keyword Insertion” for PPC ads. Take a look at the WordStream client data* below for ads with DKI. They generate above-average returns: Fix the key. Recreate the graph
- #37 Clean up
- #38 Brian: clean up formatting of right side. Clean up
- #40 Brian can you clean up. Maybe move the text or break it up.
- #47 Clean Up
- #49 1. Larry’s Rankbrain Donkey Dector. – First thing we need to do is devise a way to identify which pages are unlikely to survive SEO judgement day. these are the pages with such crappy CTRs and bounce like rubber balls – I call these donkeys. the pages when auditioned by rankbrain or other machine learning enabled algos, will always fail, because they are so crappy. We need to identify and turn them into unicorns. Another reason to focus on fixing the donkeys has to do with risk mitigation and reward maximization. If a page already has a very high click through rate, then there’s not a ton of upside potential. It’s also more risky to mess around with your best performing content because there’s a greater possibility of turning your unicorns into donkeys. Fix horn on detector
- #51 Brian: make these look like search engine results? Blur Out The URL and Description. Only Show the Headlines. OK to do 4 or 5 Listings.
- #52 Clean-Up
- #70 Brian: clean-up. You’re just harvesting existing demand for product/service. Not *creating* new demand among people who didn’t know about your stuff. it’s different.
- #71 Brian: Need a red thumbs down for the donkey.
- #74 One day they came across a charming conversion Rate optimization expert (CRO) who boldly proclaimed: if we change the fonts size, spacing, button colors and include a call to action, (etc.) we will surely raise her conversion rates! (make the CRO guy look like some shady snake oil sales person / donkey from Shrek). Label him as a CRO.