Learn the fundamentals of advertising on Google AdWords - how to create and manage your keywords, bids, and targeting settings to become profitable!

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Copyright 2016 WordStream, Inc. All rights reserved.
Mark’s
Paid Search
Crash Course

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Senior Data Scientist at
Wordstream
Voted the 14th Most
Influential PPC Expert of
2016
Manages training program
for all Wordstream staff.
www.wordstream.com mirvine@wordstream.com @MarkIrvine89

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PPC Software and Services for
18,000 Small and Medium
Businesses.
Free PPC research, optimization,
and education tools
Solutions starting at $229/month
www.wordstream.com support@wordstream.com @Wordstream

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Let’s start at the very
beginning…

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Intro to Paid Search
Bruins Tickets
The text a user enters into the search bar is called a “search term” or
“search query.”

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Intro to Paid Search
• Google loads the results on a
page called the “Search
Engine Results Page,” AKA
the “SERP.”
• The SERP is divided into two
main parts:
• Paid Search Ads
• Organic Results

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Intro to Paid Search
• Paid search ads
most often are at the top
and the bottom of the
SERP.
• Organic Results
are found between the
paid search ads on the
SERP.

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Intro to Paid Search
• Paid search ads
Advertisers pay Google
to be here.
• Organic Results
Have no direct cost to
show.

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SEO is Hard Work
Even though we exclusively sell Paid Search
services and solutions, we take SEO very
seriously!
Full time employees dedicated to managing our
SEO: 4
Full time employees dedicated to managing our
PPC: ½

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SEO Takes Time
OrganicTraffic Growth over 6 years:

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SEO is Hard Work
Best Performing Content:
~2,000 Words
Minimum to Rank Page 1:
~1,750 Words

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Social is Hard Work
Best Performing Content:
3,000 +Words

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Best Content By Medium
Best Performing SEO Content:
Best Performing Social Content:
Best Performing PPC Ad:
• ~ 2,000 Words
• 3,000+ Words
• 140 Characters, at most.

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Paid Search often yields more traffic
Paid Search
Results
Organic Search
Results
64.6%
of all clicks
35.4%
of all clicks

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Benefits of Paid Search
Paid search ads:
• Can put you on Google
faster than organic
results.
• Take less time and
effort to manage than
organic.
• Can often yield more
traffic than organic

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The Downside of Paid Search?
It costs money.
97% of all of Google’s Revenue
comes from advertising.

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The Google Auction
Each advertiser sets
bid they’re willing to
pay for each click

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But Google Cares About More Than Just Money

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Quality Score

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The Google Auction
This
advertiser
did the best!

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The Google Auction
If I click on
this ad, he
pays!
You don’t
pay if no one
clicks on
your ad

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Conversions
If someone clicks, you pay and they go to your site.
If someone completes an action like a sale or a lead
submission on your site, you can count them as a
conversion! 

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Not all traffic is created equal
But regardless of whether or not they convert on your site,
You paid for them to click on your ad!
The most important
lesson of PPC is
that not all traffic is
worth paying for.
Winning at PPC is about finding the right
traffic at the right price

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Not all traffic is created equal
There’s a lot of control in paid search campaigns, but
effectively you can control:
1. What search terms you’re paying for by
creating keywords
2. How much you’re paying for traffic by
adjusting your bids
3. Who is sees your ads by setting your
audiences
4. Where and When your ads show by
controlling your campaign settings.

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Creating Keywords

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Keyword Match Types
• Advertisers decide which types of search terms
they want their ads to show for by creating
Keywords.
Search Term:
Bruins Tickets
Bruins Tickets
Is Served An Ad For
Keyword:
[Bruins Tickets]
User Advertiser
In this case, the keyword matches the search term exactly.
Uncreatively, this is called an exact match.

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Keyword Match Types
• Exact match keywords do not match search terms that
contain or are similar to the keyword:
Search Term:
“Boston Bruins Tickets”
“Bruins Season Tickets”
“Boston Hockey Tickets”
“Bruins vs Habs Tickets”
Keyword:
[Bruins Tickets]
Does not match

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Google handles 3.5 Billion searches every day.
40% of those searches have never been
searched for before.

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Different keyword match types attract different
types of traffic:
Keyword Match Types

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Negative Keywords
• A major lesson of PPC is that not all traffic is
worth paying for.
Keyword:
“Bruins Tickets”
Phrase Match
Can Serve an Ad to
Search Term:
Providence Bruins Tickets
If anyone clicks on your ads for these search terms –
you’re still charged!

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Negative Keywords
• Negative Keywords can be used to deter some
of this irrelevant traffic.
Keyword:
“Bruins Tickets”
Keyword:
“Bruins Tickets”
Negative Keyword:
“Providence”
Search Term:
Providence Bruins Tickets
Search Term:
Providence Bruins Tickets
Can Serve an Ad to
Does not serve ad

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As your campaigns run, be sure to review the
search terms that your ads show for and add
new negatives:
Negative Keywords

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Managing Your Bids

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Setting & Hitting Your Goals
High Bids
Better Ad Position More Traffic
More
Conversions
Higher CPC More Spend
Higher Cost Per
Acquisition
(CPA)

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Setting & Hitting Your Goals
 We treat bid on keywords differently because we believe that traffic is
different due to expected performance.
 Examples:
Keyword Bid
“Bruins
Schedule”
$0.25
“Bruins Home
Schedule”
$0.75
“Bruins Tickets” $2.00
“Bruins Tickets
April 11”
$4.00
Because we believe
some traffic is more
likely to convert.
Keyword Bid
“Bruins Tickets” $2.00
“Stanley Cup
Tickets”
$8.00
Because we believe
some traffic is more
valuable.

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Creating an Effective Keyword Bidding
Strategy
 Revisit and revise your bids to reflect how well that traffic converts on your
site.
 Example: Target CPA = $25
Keyword Bid Avg
Pos.
Clicks Spend Conversions Conv.
Rate
CPA
Keyword A $0.25 6 250 $50 5 2.00% $10.00
Keyword B $0.35 4 1,000 $244 10 1.00% $24.40
Keyword C $0.40 3 1,600 $478 20 1.25% $23.90
Keyword D $0.45 2 2,700 $980 40 1.50% $24.50
Keyword E $0.50 1 9,000 $3,600 45 0.50% $80.00
Total 14,550 $5,352 120 0.82% $44.60

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Creating an Effective Keyword Bidding
Strategy
 Revisit and revise your bids to reflect how well that traffic converts on your
site.
 Example: Target CPA = $25
Keyword Bid Avg
Pos.
Clicks Spend Conversions Conv.
Rate
CPA
Keyword A $0.60 6 250 $50 5 2.00% $10.00
Keyword B $0.35 4 1,000 $244 10 1.00% $24.40
Keyword C $0.40 3 1,600 $478 20 1.25% $23.90
Keyword D $0.45 2 2,700 $980 40 1.50% $24.50
Keyword E $0.50 1 9,000 $3,600 45 0.50% $80.00
Total 14,550 $5,352 120 0.82% $44.60

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Creating an Effective Keyword Bidding
Strategy
 Revisit and revise your bids to reflect how well that traffic converts on your
site.
 Example: Target CPA = $25
Keyword Bid Avg
Pos.
Clicks Spend Conversions Conv.
Rate
CPA
Keyword A $0.60 1 250 $50 5 2.00% $10.00
Keyword B $0.35 4 1,000 $244 10 1.00% $24.40
Keyword C $0.40 3 1,600 $478 20 1.25% $23.90
Keyword D $0.45 2 2,700 $980 40 1.50% $24.50
Keyword E $0.50 1 9,000 $3,600 45 0.50% $80.00
Total 14,550 $5,352 120 0.82% $44.60

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Creating an Effective Keyword Bidding
Strategy
 Revisit and revise your bids to reflect how well that traffic converts on your
site.
 Example: Target CPA = $25
Keyword Bid Avg
Pos.
Clicks Spend Conversions Conv.
Rate
CPA
Keyword A $0.50 1 9,000 $3,600 180 2.00% $20.00
Keyword B $0.35 4 1,000 $244 10 1.00% $24.40
Keyword C $0.40 3 1,600 $478 20 1.25% $23.90
Keyword D $0.45 2 2,700 $980 40 1.50% $24.50
Keyword E $0.50 1 9,000 $3,600 45 0.50% $80.00
Total 23,300 $8,902 295 1.27% $30.18

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Creating an Effective Keyword Bidding
Strategy
 Revisit and revise your bids to reflect how well that traffic converts on your
site.
 Example: Target CPA = $25
Keyword Bid Avg
Pos.
Clicks Spend Conversions Conv.
Rate
CPA
Keyword A $0.50 1 9,000 $3,600 180 2.00% $20.00
Keyword B $0.35 4 1,000 $244 10 1.00% $24.40
Keyword C $0.40 3 1,600 $478 20 1.25% $23.90
Keyword D $0.45 2 2,700 $980 40 1.50% $24.50
Keyword E $0.50 1 9,000 $3,600 45 0.50% $80.00
Total 23,300 $8,902 295 1.27% $30.18

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Creating an Effective Keyword Bidding
Strategy
 Revisit and revise your bids to reflect how well that traffic converts on your
site.
 Example: Target CPA = $25
Keyword Bid Avg
Pos.
Clicks Spend Conversions Conv.
Rate
CPA
Keyword A $0.50 1 9,000 $3,600 180 2.00% $20.00
Keyword B $0.35 4 1,000 $244 10 1.00% $24.40
Keyword C $0.40 3 1,600 $478 20 1.25% $23.90
Keyword D $0.45 2 2,700 $980 40 1.50% $24.50
Keyword E $0.15 1 9,000 $3,600 45 0.50% $80.00
Total 23,300 $8,902 295 1.27% $30.18

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Creating an Effective Keyword Bidding
Strategy
 Revisit and revise your bids to reflect how well that traffic converts on your
site.
 Example: Target CPA = $25
Keyword Bid Avg
Pos.
Clicks Spend Conversions Conv.
Rate
CPA
Keyword A $0.50 1 9,000 $3,600 180 2.00% $20.00
Keyword B $0.35 4 1,000 $244 10 1.00% $24.40
Keyword C $0.40 3 1,600 $478 20 1.25% $23.90
Keyword D $0.45 2 2,700 $980 40 1.50% $24.50
Keyword E $0.15 7 9,000 $3,600 45 0.50% $80.00
Total 23,300 $8,902 295 1.27% $30.18

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Creating an Effective Keyword Bidding
Strategy
 Revisit and revise your bids to reflect how well that traffic converts on your
site.
 Example: Target CPA = $25
Keyword Bid Avg
Pos.
Clicks Spend Conversions Conv.
Rate
CPA
Keyword A $0.50 1 9,000 $3,600 180 2.00% $20.00
Keyword B $0.35 4 1,000 $244 10 1.00% $24.40
Keyword C $0.40 3 1,600 $478 20 1.25% $23.90
Keyword D $0.45 2 2,700 $980 40 1.50% $24.50
Keyword E $0.15 7 200 $24 1 0.50% $24.00
Total 14,500 $5,326 251 1.73% $21.22

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Finding the perfect bid
 You can use simple algebra to find out how much you should pay for each
click to make sure you hit your target CPA!
 So, if your keyword has a 2% conversion rate and you are aiming for a $25
CPA, you need a $0.50 CPC:
𝑪𝑷𝑨 =
𝐶𝑜𝑠𝑡
𝐶𝑜𝑛𝑣𝑒𝑟𝑠𝑖𝑜𝑛𝑠
=
𝐶𝑙𝑖𝑐𝑘𝑠 𝑥 𝐶𝑃𝐶
𝐶𝑙𝑖𝑐𝑘𝑠 𝑥 𝐶𝑜𝑛𝑣 𝑅𝑎𝑡𝑒
=
𝐶𝑃𝐶
𝐶𝑜𝑛𝑣 𝑅𝑎𝑡𝑒
𝑪𝑷𝑨 =
𝑪𝑷𝑪
𝑪𝒐𝒏𝒗 𝑹𝒂𝒕𝒆
𝑪𝑷𝑪 = 𝐶𝑃𝐴 𝑥 𝐶𝑜𝑛𝑣 𝑅𝑎𝑡𝑒;
𝐶𝑃𝐶 = 𝐶𝑃𝐴 𝑥 𝐶𝑜𝑛𝑣 𝑅𝑎𝑡𝑒 = $25.00 𝑥 .02 = $0.50

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Managing Your Audience

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Audiences
Unless otherwise specified, all ads automatically target everyone
who’s searching for these keywords.
However, if you choose to, you can control who sees your ads.

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You can cater your reach by:
1. Remarketing audiences of users who
have been to your site in the past.
2. Gender of user searching.
3. Age of the user searching.
Audiences

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You can use these audiences to:
1. Exclusively target an audience.
2. Exclude an audience from seeing your
ad.
3. Adjust your bid for that audience.
Audiences

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Plastic
Surgeon
Advertiser
Keyword:
“Breast Enlargement”
Solution: Exclude Men

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Florist
Advertiser
Keyword:
“Same day Flower
Delivery”
Solution: Bid more for Men

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Financial
Planning
Keyword:
“Retirement Planning”
Solution: Target
exclusively ages 45+

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Remarketing Audiences

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Managing Your Campaign Settings

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Location Targeting
Not all “Bruins Tickets” searches will be worth the same:
Most likely to
purchase
Least likely to
purchase
• We can adjust our
ad targeting to
reach or exclude
these regions as
we see fit.
• We can also adjust
our bid for different
regions.

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Ad Schedule
Control when your ads
run by creating
dayparts around when
your business is open
or when your customers
are searching!

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Ad Schedule
Control on which devices your ads show by creating
bid adjustments!
Desktop, tablet, and mobile bid adjustments range
from -100% to +900%. The only way to stop your
ads from showing for a device is to set your bid
adjustment to -100%.

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Use Search to Provide Solutions

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Ad Extensions
Text ad can be decked out with Ad Extensions to make
them larger and better!
Best of all, these are 100% FREE to show and can
improve the performance of your ad overall!

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Ad Extensions
Call outs:
Provides an extra line of
text for info about your
business
Structured Snippets:
Provides an extra line of
text for info about your
product or service
Sitelinks:
Provides links to other
pages of your sections of
your site.

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Ad Extensions
Location Extension:
Shows your address to
local searchers. Clicking it
opens up driving directions
in Google Maps

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Ad Extensions
Message Extension:
Allows users to text your
business directly from the
SERP
Call Extension:
Allows users to call your
business directly from the
SERP

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Ad Extensions
App Extension:
Allows users to download
your app directly from the
SERP
If they’ve already
downloaded the app, this
can open the app to a more
relevant page.

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Breaking into Bing

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Why Bing?
Bing Ads currently makes up a combined 35% of the US Search
Market.
Google, 63.6%
Ask.com
(Google
Partner), 1.4%
AOL (Bing
Partner), 1.0%
Bing, 22.3%
Yahoo!, 11.7%
US Desktop Search Market Share
Source: ComScore, October 2016
Google advertisers can scale
their reach by up to 50% on
Bing and Yahoo!

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Why Bing?
The Bing audience typically skews:
• Older (Median age of Bing users is 45. US Median age is 37.)
• More affluent (Median HHI of Bing users is $75k. US Median HHI is $52k.)
• Less Tech savvy (More likely to use Internet Explorer & other Windows
products).
• Highly concentrated on the US West Coast.
More information on the Bing audience demographics can be found
http://advertise.bingads.microsoft.com/en-us/audience
Bing is also the default
search engine of
Internet Explorer,
Windows devices, and
many voice search,
including Apple’s Siri
and Amazon’s Echo.

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Why Bing?
Because there are fewer advertisers on Bing Ads, there is often less
competition on the SERP, allowing for Bing Ads advertisers to get
better position and lower CPCs than on Google.
Google AdWords
Keyword: [Payroll Services]
Average Position: 8.5
Cost per click: $12.44
Bing Ads
Keyword: [Payroll Services]
Average Position: 3.5
Cost per click: $4.55

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Give us a call:
(617) 963-0555 ext 2
or email:
support@wordstream.com
Questions?

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Additional Resources

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How to Learn More PPC
• Official Google AdWords
– Blog - Learning Portal -Twitter
• Official Bing Ads
– Blog - Learning Portal -Twitter
• Wordstream
– Blog - PPC University -Twitter
• Search Engine Land
• Search Engine Journal
• PPC Hero