The document discusses ways for advertisers to improve ROI during an economic recession by tracking consumer trends, optimizing keywords, and using Google AdWords tools. It notes that consumers will rely more on online research and promotions in 2009. It recommends using Google Insights for Search to track trends and examine seasonality. It also describes how Conversion Optimizer and the Content Network can help advertisers maximize profits by optimizing bids and increasing high-performing traffic. A case study shows how one company increased conversions and decreased costs using these tools.

1. Google AdWords Update Frederick Vallaeys, AdWords Evangelist [email_address] Pubcon South 2009

2. Agenda Search Users and the Recession Keyword Opportunities Improving ROI

3. What Will Consumers Do In 2009? How Will They Shop? Where Will They Shop? What Will They Buy? 67% of shoppers will take more of a “wait and see” approach when purchasing products 59% of shoppers are more likely to rely on the Internet to research and shop around 55% will set a shopping budget for the year 60% are more likely to look for online offers and promotions 63% of shoppers plan to shop at discount retailers more 41% are more likely to rely on the Internet to make their purchases 49% of shoppers plan to purchase more generic or store brand products 39% plan to shop in bulk to save money 37% plan to shop for more lower-end products (P30). Using the scale below, please indicate how much you agree or disagree with each of the following statements given the state of the economy in 2009. n=5,020. January 2009 OTX/Google Post-Holiday Shopping & 2009 Economy Survey.

4. A crisis is a terrible thing to waste…

5. Consumer behavior reflects economic trends U.S. searches for “coupons” on Google.com Source: Google Insights for Search. Query numbers are normalized and presented on a scale of 0-100 relative to Google queries over time. Sep 2008

6. Track Trends With Google Insights for Search www.google.com/ insights/search

7. How can Insights for Search help? Choosing advertising messages Examining seasonality Brand associations Entering new markets Some ways you can benefit from new insights:

8. Choosing Advertising Messages What is the top feature for selling a car? efficiency performance safety Google Insights for Search can help you determine what message resonates best.

9. Choosing Advertising Messages The most searched for term is fuel efficiency - you should include this as a key message in your advertising. You can also further breakdown by regional interest to see what message resonates best amongst a specific country or subregion.

10. Keyword Opportunities Keyword Matching Options Search Based Keyword Tool

11. The Value of Expansions in Broad Match Source: Google data for all advertisers worldwide from May 2008 to October 2008 Broad Match Classic – Misspellings, plurals, phrases containing keywords Expanded Broad Match – Synonyms, relevant keyword variations Share of Conversions Share of Clicks Cumulative Share Exact Phrase Expanded Broad (new broad) (classic broad) Exact Phrase Expanded Broad (new broad) (classic broad)

12. Use negative keywords together with broad match keywords to take advantage of tail traffic while maintaining top notch relevance

13. Search Based Keyword Tool Queries Query traffic Landing pages for all queries Suggested bids Competition for each query Impression share Missed Opportunities www.google.com/ sktool

14. Maximize results Conversion Optimizer Content Network and Enhanced Online Campaigns

15. Increases your profits Conversion Optimizer Easy to use No additional charge for AdWords advertisers Multi-dimensional Bid Management for AdWords better matches ads with customers Improves AdWords’ ease of use with less time spent managing bids No extra fees or new interfaces to learn

16. How Conversion Optimizer works You provide a Max CPA bid for each ad group Then finds the optimal equivalent CPC bid for your ad each time it's eligible to appear … in order to calculate a predicted conversion rate for each auction (based on historical data). . . . user location query performance partner sites more . . . Conversion Optimizer considers many factors… Max CPA is combined with the Predicted Conversion Rate and Quality Score to produce Ad Rank 1 2 3 4

17. Getting Results on the Content Network On-demand site-by-site performance metrics Adjust site bids up or down Exclude sites altogether Placement Level Performance Act on This Data Enhanced online campaigns allow you to set placement-level bids while still contextually targeting. 1 2

18. How It Works Site 1 Site 2 Site 3 Site 4 Site 5 Content Bid: $2 CPA: $6 Clicks CPA: $15 High-performing traffic is limited by overall content bid CPA: $15 CPA: $15 CPA: $15 Previously, only one bid applied for all contextually targeted ad groups. Site-level bids could not be adjusted based on results. 10 20 30 40

19. How It Works Site 1 Site 2 Site 3 Site 4 Site 5 Content Bid: $2 CPA: $9 Clicks CPA: $15 Increased bid leads to more traffic at a low CPA CPA: $15 CPA: $15 CPA: $15 Placement-specific bids increase traffic from high-performing sites and decrease costs of low-performing sites to improve ROI. The AdWords API makes this scalable. Site 2: $3

20. Conversion Optimizer Case Study “ The results surprised everyone, including myself and our CEO.” Amber Jain Senior DSMM Architect, WebMetro +158% +128%

21. Case Study Continued… “ The content API is now a key tool here… We spend a lot of time manually managing content campaigns, so this will be a real time-saver.” Amber Jain Senior DSMM Architect, WebMetro -60%

22. google.com/domorewithless

23. Thanks! [email_address]