The document provides an overview of pay-per-click (PPC) marketing principles and terminology. It discusses the history and effectiveness of PPC, the major search networks, key PPC concepts like keyword matching and quality score, how to structure a successful PPC account with campaigns and ad groups, and tips for writing compelling ads and optimizing performance.

1. Pay-per-click Marketing Principles : Part 1 A Quick & Easy Guide to Understanding Pay-per-click Terminology, Strategic Structure & Set-up

2. Neil Lemons Built & managed search engine marketing & search engine optimization programs & strategies since 2005 Managed, built & evaluated dozens of accounts, 100s of campaigns annually spending millions of dollars in clicks through Google AdWords, Yahoo! Search Marketing & Microsoft adCenter Experience in dozens of industries & verticals , many with very high returns Tested & earned official Google AdWords Professional Certification in 2007 & also trained three others leading to a Google Certified Company recognition Implemented SEM & SEO strategies for names such as: AT&T WiFi, Feed The Children, National Breast Cancer Foundation, CURE International, Lucky Brand Jeans, Roots International , Children’s Medical Center, Comedy Defensive Driving School ®, Texas Teachers Created “Most Read Thread” on Google AdWords in world-renowned SEO/SEM learning site SEOChat : 32 Useful AdWords Tips for Intermediate to Experienced Users Wrote landmark whitepaper guide on AdWords: 21 AdWords Mistakes Business Owners Make & How to Avoid Them Education Background – BS in Journalism: Major Advertising , Minors: Marketing, Psychology

3. Notable Past Internet Marketing Clients

4. Other Internet Marketing Clients John Teakell – Defense Attorney Power Jack - Foundation Repair Alexa Rose - Jeweler Evanesque - Medical Spa Daired’s – Salon & Medical Spa MadeLoud.com – Indie Music Community Erickson Partners, LLC – Business Valuations N-Bone – Organic Dog, Cat & Ferret treats Matt Arnold - Defense Attorney

5. The Four Pillars of Online Marketing Search Engine Marketing(SEM) **Pay-per-click (PPC) Banners & Display Networks Local Business Listings & Reviews Product Search Shopping Comparison Engines Conversion Optimization Search Engine Optimization(SEO) Organic Traffic Keyword Research Optimized Content Strategies Incoming & Internal Linking Online Public Relations Site Architecture Social Media Marketing (SMM) Social Networking Sites Blogging On & Off Site Video On & Off Site Content Creation Engagement & Conversations Email Marketing Building Targeted Lists Opt-in Drivers Message Strategy Open Rates Direct Response Offers **This Presentation Only Covers Pay-per-click, the Biggest Area of SEM.

6. Pay-per-click Marketing Principles : Table of Contents Quick History of Pay-per-click Pay-per-click Effectiveness Search Share: The Big Three Pay-per-click Terminology Defined Account Architecture Knowing Your Networks Setting-up Your Account for Success Structuring Your Account for Success Confronting Common Pay-per-click Mistakes PPC Tools to Optimize Your Efforts

7. Quick History of Pay-per-Click In February 1998, Goto.com (Bill Gross ) presented a pay-per-click search engine proof-of-concept to the TED conference in CA. In November 2001, Yahoo! partnered with Overture (name change) & started syndicating listings. In July 2003, Yahoo! bought Overture for $1.63 billion. In December 1999, Google started search engine advertising CPM style. In October 2000, the self-managed AdWords system was introduced, still CPM. PPC in current form was introduced in 2002. In 2009, Google made 23 billion, 97% of their income from AdWords. *According to Wikipedia & Google Investor relations FAQs

8. marketing sherpa: Effectiveness of PPC Objectives Bottom Line: Paid search is better for direct response leads, traffic, and on-site sales, not branding.

9. comScore Releases July 2010 U.S. Search Engine Rankings July results released August 17, 2010, by comScore, Inc. (NASDAQ: SCOR), a leader in measuring the digital world.

10. Speculative Client: Dallas Medical Spa Located in Uptown Dallas Offers laser hair removal, Botox, microdermabrasion spray tanning, other services. Conversion goal: Set-up appointment through contact form or call them to set an appointment.

11. Pay-per-Click Terminology Keyword Match Types – broad, phrase, exact, negative Impression – Ad displayed, not clicked. Cost-per-thousand Impressions (CPM) Click-through Rate (CTR) – Clicks/Impressions Conversion – rate, cost-per, amount. Return on Ad Spend (ROAS) Maximum cost-per-click – 1 st page bid est. Cost-per-click (actual) Quality Score (QS) – All around, based on relevancy & max CPC.

12. Keyword Match Type: Broad spray tan Ad may show for: spray tanning spray on tan sunless tan sunless tanning airbrush tanning home spray tanning products spray tanning equipment for sale

13. Keyword Match Type: “Phrase” “ spray tan” Ad may show for: spray tan spa spray tan salon spray tan solution Ad won’t show for: spray tanning airbrush tan sunless tanning

14. Keyword Match Type: [Exact] [spray tan] Ad may show for: spray tan Ad won’t show for: spray tan spa spray tan salon spray tan solution

15. Keyword Match Type: -Negative -spray tan Negative Keywords: -products -equipment -home -for sale Ad won’t show for: spray tan products spray tan equipment for sale home spay tan

16. What is a Conversion? An arbitrary action taken on a website by a user deemed valuable. This could be an onsite purchase (direct value) or action bringing a visitor closer to a purchase (projected value). Product purchase Contact form submitted Report download (exchanged for email) Free Software Trial Download Online application filled out Appointment request Newsletter subscription Seminar registration Phone call

17. Conversion – All of these different types of conversions are measured the same way: unique pageview. Seeing Map & Directions Thank you for your purchase Thank you submitting your question Thank you for subscribing to our newsletter Thank you for downloading our report Bottom line: Only way to measure conversion tied back to specific keywords, ads, is a unique pageview.

18. How to Create an Ad w/ Killer Click-Through Matches user’s query exactly (bolding) Differentiates itself from other advertisers (USP) Stands out in appearance & message Call-to-action (CTA)

19. AdWords Account Architecture

20. 10 Crucial Steps to Starting a PPC Account Campaign Organization & Naming Adgroup Organization & Naming Geo-Targeting (IP & Keyword) Ad Serving Rotation & Rate Distribution Networks Ad Scheduling Tagging Destination URLs

21. AdWords Account Architecture: Campaigns

22. AdWords Account Architecture: Adgroups

23. AdWords Account Architecture: Keywords

24. Knowing Your Networks G o o g l e S e a r c h Search Partners Display Network Mobile Network By default, your ads are displayed to all four.

25. Google’s Search Partners

28. The Nine Components of a Profitable Pay-per-click Account Profitable Cost-Per-Conversion: The cost of a sale is less than the price of the product or average customer at the adgroup level (consider margins). Extremely High Click-Through-Rate (10% +): Brand-based keywords at the adgroup level. Above Average (2%+) Click-Through-Rate : Generic category based keywords at the adgroup level. Relatively Low Impression # Per Click: Least amount of irrelevant impressions by filtering out common unrelated keywords triggering ads (use 100s of negative keywords). This goes for brand-based campaigns as well. Consistency: Most relevant keyword-to-ad-to-landing page match possible. Attractive & Compelling Ads : For a high click-through rate, use every eye-catching advantage possible (bolding, local extention, saturation). Consistent & Constant Testing: Use a/b split testing of new ad copy on large volume keywords to increase click-through-rate & conversions over time. Channel Separation : Separate channels into campaigns for different audiences (Display Network, Mobile). High Quality Score (s): This is a 1-10 rating assessed at the keyword level, but is also averaged account-wide and at the adgroup level (conversion does not apply).