This document discusses how to optimize Google AdWords campaigns through proper account structure and management of keywords and queries. It recommends using an "Alpha-Beta" process where a "Beta" campaign uses broad match modified keywords to identify profitable queries, which are then isolated on exact match in "Alpha" campaigns to control bidding and ads. Through this process of identifying winners and losers and refining match types and negatives, advertisers can improve their Lin-Rodnitzky ratio, which measures the ratio of total queries to converting queries as an indicator of campaign efficiency. Proper account hierarchy and management of match types, negatives and queries is key to maximizing profits from AdWords campaigns.

1. David Rodnitzky
Iron-Clad GoogleIron-Clad Google
AdWords CampaignsAdWords Campaigns

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 Improper keyword selection and match type
costs advertisers millions annually
 Account structure mistakes also results in
unnecessary cost
 The Alpha-Beta process and structure will help
you identify and optimize winners and exclude
losers = more profit!
Executive Summary

3. Keywords vs. Queries

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 A keyword is a word or a phrase that a
marketer buys on Google
 A query is a word or phrase that a user types
into Google
 Google matches keywords to relevant queries
Keywords vs. Queries – A Crucial Distinction

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Keywords vs. Queries - A Crucial Distinction
Queries
Keyword

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A Quick Way to Measure Query Quality
 The Lin-Rodnitzky Ratio (L-R Ratio) is the ratio of total
query CPA divided by converting query CPA
 Use the “Filter” functionality to find all queries with at
least one conversion
 Divide the total CPA by the filtered CPA to get your
score
 A good score is generally between 1.5 to 2.0

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Important Point #1
Google will match your
keywords to a lot of
irrelevant queries if you
give them the latitude
to do so.
This results in profit to
Google and cost to
you!

8. Match Type

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Match Type – Broad Match
Match type allows marketers to control how
aggressively Google matches keywords to queries
Broad Match: Dragon Tattoo Poster
 Dragon Picture
 Tattoo You
 Fantasy Island
Broad match gives Google almost total discretion

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Match Type – Broad Match Modified
Match type allows marketers to control how
aggressively Google matches keywords to queries
Broad Match Modified: +Dragon +Tattoo
+Poster
 Used Poster of Dragon and Tattoo
 Sell Dragon Tattoo Poster
Broad match modified prevents synonyms

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Match Type – Phrase Match
Match type allows marketers to control how
aggressively Google matches keywords to queries
Phrase Match: “Dragon Tattoo Poster”
 Buy Dragon Tattoo Poster
 Dragon Tattoo Poster in Spanish
Phrase match requires a complete phrase

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Match Type – Exact Match
Match type allows marketers to control how
aggressively Google matches keywords to queries
Exact Match: [Dragon Tattoo Poster]
 Dragon Tattoo Poster
Exact match will only show the exact phrase

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Match Type – Negative Match
Match type allows marketers to control how
aggressively Google matches keywords to queries
Negative Match: -Picture
 Dragon Tattoo Poster is Ugly
 Fantasy Island Tattoo Guy
Negative Match excludes any word or phrase

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Important Point #2
We recommend using:
 Broad match modified to discover new and profitable
queries
 Exact match to isolate your top performing queries
and bid accordingly
 Negative match to exclude unprofitable queries
 Broad match and phrase match rarely, if at all
BUT WAIT – YOU NEED TO UNDERSTAND ACCOUNT
HIERARCHY FIRST!!!!

15. Account Hierarchy

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Basic Account Hierarchy
Account = Billing, Time Zone, Login
Info
Campaign = Networks, Devices,
Geography, Day-Parting
Keywords, Ad Text

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When Account hierarchy & Queries Collide
When two or more
keywords in an
account match the
same query, Google
must choose which
keyword to enter the
auction
 Keyword #1: +Dragon
+Poster
 Keyword #2: +Dragon
+Tattoo
 Query: Dragon Tattoo
Poster
Which keyword will
Google choose?

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Google’s Official Policy
Source: http://adwords.google.com/support/aw/bin/answer.py?
hl=en&answer=66292

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Google’s Actual Policy
We have observed
numerous occasions
where Google does not
follow its own policy for
matching keywords to
queries
Translation: to truly
control keyword to
query matching, you
need to create iron-clad
account structure

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Example of where it costs you money to have
Bad structure
 Exact match keyword with targeted ad copy and
landing page is bumped by broad match with
generic copy and LP
 Negative keyword you added to one campaign is
not included in another campaign – keyword gets
served
 Same keyword with same match type in different
campaigns but with different bids – most
expensive keyword shown
Account structure mistakes are sometimes caused by user error and
sometimes caused by Google algorithmic errors/decisions

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Important Point #3
Failure to carefully plan out
your account structure
will cost you profit – I
guarantee it

22. Alpha Beta Structure

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 A Beta campaign is designed to quickly identify
profitable search queries and eliminate
unprofitable ones
 An Alpha campaign is designed to isolate
profitable queries into ad groups with targeted
ad text and landing pages
 The overall objective is to take 100% control of
your keywords and queries!
The 30,000 Foot View of Alpha Beta

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Step One: Create the Beta
campaign “The Bait”
 All keywords should be on
broad match modified
(+broad +match +modified)
Step Two: Run raw search
query analysis on Beta
campaign
Step Three: Identify winning
queries and losing queries
Creating & Analyzing The Beta Campaign

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Step Four: Create an Alpha
campaign. Move winning queries
into SKAGs in the Alpha
 SKAGs = Single Keyword Ad
Groups
 Put all Alpha queries on Exact
Match
 Create targeted ad text and
landing pages for each SKAG
Step Five: Add all losing queries to
the Beta campaign as Negative
Exact Match
 -[free dragon tattoo poster]
Creating the Alpha Campaign, Refining the Beta

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Step Six: Add all Alpha queries to
your Beta campaign as Exact
Match Negatives!
 This prevents Google from
matching a bait keywords to
your profitable Alpha query
 You control bid, ad text, and
landing page for winners!
Step Seven: Continue to identify
winners and losers in the Beta
campaign. Move winners into
the Alpha
The Air-Tight Account Secret

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L-R Score – Before & After Alpha-Beta Structure
Before: 1.4 (June 2011)
After: 1.84 (August 2011)
Before: 2.93 (November 2010)
After: 2.11 (March 2011)

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A Virtuous Cycle

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 Queries are the lifeblood of AdWords
campaigns, not keywords
 Match type is a limiter on Google’s discretion to
expand your spend
 Beta campaigns use broad match modified to
test Google’s algo; Alpha campaigns use exact
match to lock-in profit
 Use the Lin-Rodnitzky Ratio to measure account
health
Summary