Paid Search Bidding

1. Properly Valuing & Optimizing
Your Paid Search Traffic
Day 02 - August 15

2. @emilykirk1986
#PPCWeek
Emily Kirk | Paid Digital Marketing Manager

3. #PPCWeek

4. #PPCWeek
Setting the Right Bids

5. #PPCWeek
Significance Level
Match Type
Margin
Life Time Value
Time of Day
Geographic
Audience
Assist Conversions
Conversion Type
New vs. Returning Customer
Historical Performance
Promotional Schedule
Device
Day of Week
Age
GenderParental Status
Household Income
Average Position
Impression Share
Click-to-Order CurveGoogle Bid Sim Data
Seasonality
Competitive Landscape

6. #PPCWeek
Where do I start?

7. Agenda
#PPCWeek
• Segmenting Traffic by KPI
• How to Set a Base Bid
• Incorporating Bid Modifiers
• Competitive Landscape
• Key Things to Remember

8. #PPCWeek
Segmenting Your Traffic by KPI
By Incorporating the Conversion Funnel

9. #PPCWeek
Incorporating the
Conversion Funnel

10. #PPCWeek
Brand
Non-brand

11. #PPCWeek
Long Tail Keyword
Head Keyword

12. #PPCWeek
Product Page Visitor
Home Page Visitor

13. #PPCWeek
5 Mins on Site
1 Min on Site

14. #PPCWeek
New Customer
Vs.
Returning Customer

15. #PPCWeek
Lifetime Value

16. #PPCWeek
Margin

17. Valuing Different Match Types Properly
#PPCWeek
15% of searches are new Leverage for discovery
Broad Match

18. #PPCWeek
Setting the Right Base Bid

19. • Look for click or conversion significance
Setting the Right Base Bid
#PPCWeek
• Look back 10-12 weeks of data
Basic Parameters
• Set your bid at the most granular significant level

20. Setting the Right Base Bid
#PPCWeek
• Look predictively at historical performance and seasonality
Incorporate Factors Not in Historical Data
• Evaluate up-coming promotional schedule
• Is recent performance drastically different than your bid window?

21. Setting the Right Base Bid
#PPCWeek
Leverage Additional Cousin Keyword Data:
• Token Phrases
• Categories and sub-categories
• Price
• Color and size
• Sale item
• Brand or manufacturer
Incorporate Additional Predictive Factors

22. Calculating Base Bids
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23. #PPCWeek

24. #PPCWeek

25. #PPCWeek

26. #PPCWeek

27. QA Your Calculations
#PPCWeek
• Look at percentage increase
• Look at raw dollar increase
• What’s your impression share?
• Are you pushing a bid that is already in position 1?
• Sort new bids high to low
• Is this logical?

28. #PPCWeek
Building on Your Base Bid
Incorporating Bid Modifiers

29. Calculating Modifiers
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30. #PPCWeek
Calculating Modifiers

31. #PPCWeek

32. Evaluating Conversions Driven by Device
#PPCWeek
Percentage of Total Conversions
Desktop Mobile Tablet

33. Using Device Performance to Set Modifiers
#PPCWeek
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
Desktop Mobile Tablet
Conversion Rate by Device
-24%
12%
-50%
-60%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
Desktop Mobile Tablet
Conversion Rate Compared to Average
Mobile

34. Being Present When Users are Clicking
#PPCWeek
Time of Day and Day of Week Modifiers

35. Segmenting by Location
#PPCWeek
Geographic Modifiers
4.0%

36. Smartly Segmenting Your Audience
to Drive Towards Your KPIs
#PPCWeek
Audience Modifiers

37. Layering on Additional Predictive Modifiers
#PPCWeek
• Age
• Gender
• Parental Status
• Household Income
0.4%
14.9%
-19.9%-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
Male Female Unknown
Gender Conversion Rate
Percentage from Average
Demographic Modifiers

38. Converting Customers via Phone Calls
#PPCWeek
Call Extension Modifiers

39. Understanding Bid Calculations
#PPCWeek

40. Understanding Bid Calculations
#PPCWeek
$1.20 +20% +15% +35%
-10%-25%
$1.44 $1.66 $2.24
$2.01$1.51

41. #PPCWeek
Evaluating the SERP
Competitive Landscape

42. Incorporating Competitive Insights
#PPCWeek
• Auction Insights
• AdWords Bid Simulator
• Incognito Search
• Additional Third Party Tools (semRush and Similar Web)

43. Using the Data Available to Drive Decisions
#PPCWeek
Google Bid Simulator Data

44. Logic Checking Data Sources
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Google Bid Simulator Data

45. Viewing Data In Bulk
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Google Bid Simulator Data

46. Using Data Points for Incrementality
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Google Bid Suggestions

47. Knowing Your Competitors
#PPCWeek
Site 1
Site 2
Site 3
Site 4
Site 5
Site 6
Site 7
Site 8
Google Auction Insights

48. Evaluating Competition Over Time
#PPCWeek
0%
20%
40%
60%
80%
100%
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7
Impression Share by Month
You Site 1 Site 2 Site 3 Site 4 Site 5
Google Auction Insights

49. Understanding Your Competitors
#PPCWeek

50. #PPCWeek
A Quick Word on Attribution

51. Assisted Conversions & Attribution
#PPCWeek
22.2%
0.4%
3.5%
0%
5%
10%
15%
20%
25%
Mobile Tablet Desktop
Percent Assisted Conversions

52. #PPCWeek
Things to Remember

53. Max CPC versus Actual CPC
#PPCWeek

54. Keywords Don’t
Live in Isolation
#PPCWeek

55. Keywords Don’t
Live in Isolation
#PPCWeek

56. The Law of Diminishing Returns
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57. The Law of Diminishing Returns
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58. The Law of Diminishing Returns
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59. Careful!
#PPCWeek
• Be aware that small amounts of spend spread across a lot of
keywords, will add up to a large amount of spend
• QA everything

60. What’s Next?
#PPCWeek
• Apply these learnings to other channels and platforms

61. #PPCWeek
Key Takeaways

62. Key Take-aways
#PPCWeek
• Segment Your Traffic by KPI
• Make data-driven decisions
• Evaluate changes in competition
• Make smart attribution decisions
• Logic check everything

63. It’s all about the data
#PPCWeek
It’s all about testing

64. Questions?
#PPCWeek
@emilykirk1986 @WorkshopMktg

65. Thanks for Joining Us!
#PPCWeek