SearchLeeds 2017 - Pete Whitmarsh, Head of Paid Media, Search Laboratory - PPC: Increasing your odds of winning – How to get an extra 10% from advanced bidding techniques
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Pete introduces some advanced bidding concepts and demonstrates, with case studies, how bidding alone can deliver significant uplifts in ROI.
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SearchLeeds 2017 - Pete Whitmarsh, Head of Paid Media, Search Laboratory - PPC: Increasing your odds of winning – How to get an extra 10% from advanced bidding techniques
- 1. © SEARCH LABORATORY LTD | ALL RIGHTS RESERVED LEEDS HQ: +44 113 212 1211 LONDON: +44 207 147 9980 NEW YORK: +1 646 473 1826 PPC BIDDING: HOW TO GET AN EXTRA 10% FROM YOUR ACCOUNT PETE WHITMARSH
- 2. PRIVATE AND CONFIDENTIAL © SEARCH LABORATORY LTD WHO AM I? Head of Paid Media Search Laboratory 7 years’ experience Maths degree Pete Whitmarsh
- 3. PRIVATE AND CONFIDENTIAL © SEARCH LABORATORY LTD WHY FOCUS ON BIDDING? Often overlooked Hugely important
- 4. ANATOMY OF A BID PRICE
- 5. PRIVATE AND CONFIDENTIAL © SEARCH LABORATORY LTD BID PRICE - 1.0 2.0 3.0 4.0 5.0 6.0 £- £0.20 £0.40 £0.60 £0.80 £1.00 £1.20 £1.40 £1.60 Position BID PRICE VS POSITION As you bid more, position increases Position
- 6. PRIVATE AND CONFIDENTIAL © SEARCH LABORATORY LTD POSITION VS CLICKS As position increases, clicks increase Position Clicks -1.02.03.04.05.06.0
- 7. PRIVATE AND CONFIDENTIAL © SEARCH LABORATORY LTD Position POSITION VS CONVERSION RATE As position and clicks increase, conversion rate stays the same 1 2 3 4 5 6 ConvRate
- 8. PRIVATE AND CONFIDENTIAL © SEARCH LABORATORY LTD BID VS PROFIT Profit As bid increases, profit increases then decreases Highest ROAS Lowest CPA Highest Volume Highest Revenue Highest Profit Bid
- 9. PRIVATE AND CONFIDENTIAL © SEARCH LABORATORY LTD BID VS PROFIT …but the curve can be many different shapes Profit Bid
- 10. PRIVATE AND CONFIDENTIAL © SEARCH LABORATORY LTD BID VS PROFIT …but the curve can be many different shapes Profit CPA
- 11. PRIVATE AND CONFIDENTIAL © SEARCH LABORATORY LTD BID VS PROFIT …but the curve can be many different shapes Profit Budget
- 13. PRIVATE AND CONFIDENTIAL © SEARCH LABORATORY LTD RULE 1 Targets should be based on BUSINESS LOGIC Targets derived from Average Order Value Profit Margins Cancel / Return Rate Offline Sales Lifetime Value
- 14. PRIVATE AND CONFIDENTIAL © SEARCH LABORATORY LTD RULE 2 Targets should aim for the top of the graph Regularly change Understand the curve Profit Highest Profit CPA
- 15. PRIVATE AND CONFIDENTIAL © SEARCH LABORATORY LTD RULE 3 Targets should not be hampered by budget
- 16. CALCULATING A BID PRICE
- 17. PRIVATE AND CONFIDENTIAL © SEARCH LABORATORY LTD CALCULATING A BID PRICE CPA Target ×Conversion Rate = Click Price Or… Average Order Value ROAS Target ×Conversion Rate = Click Price
- 18. PRIVATE AND CONFIDENTIAL © SEARCH LABORATORY LTD Keyword Clicks Conversions Conversion rate Bid price Pies 5000 125 2.5% £0.25 Steak and ale pies 210 7 3.3% £0.33 BIDDING EXAMPLE £10 CPA target CPA Target ×Conversion Rate = Click Price
- 19. PRIVATE AND CONFIDENTIAL © SEARCH LABORATORY LTD BIDDING EXAMPLE Clopper-Pearson method Keyword Clicks Conversions Conversion rate Bid price Pies 5000 125 2.5% £0.25 Steak and ale pies 210 7 3.3% £0.33 95% confident that the conversion rate is between 1.35% and 6.75% 95% confident that the conversion rate is between 2.14% and 2.86% https://goo.gl/23znKR
- 20. PRIVATE AND CONFIDENTIAL © SEARCH LABORATORY LTD BIDDING EXAMPLE £10 CPA target Keyword Clicks Conversions Conversion rate Bid price Pies 5000 125 2.5% £0.25 Steak and ale pies 210 7 3.3% £ Minced beef and onion pies 175 7 4.0% £ Chicken and mushroom pies 120 6 5.0% £ Meat and potato pies 125 9 7.2% £
- 21. PRIVATE AND CONFIDENTIAL © SEARCH LABORATORY LTD GROUPING DATA Group specifics together Keyword Clicks Conversions Conversion rate Bid price Pies 5000 125 2.5% £0.25 Specific pie types 630 29 4.6% £0.46 Steak and ale pies 210 7 3.3% £ Minced beef and onion pies 175 7 4.0% £ Chicken and mushroom pies 120 6 5.0% £ Meat and potato pies 125 9 7.2% £
- 22. PRIVATE AND CONFIDENTIAL © SEARCH LABORATORY LTD GROUPING DATA Group specifics together Keyword Clicks Conversions Conversion rate Bid price Pies 5000 125 2.5% £0.25 Specific pie types 630 29 4.6% £0.46 Steak and ale pies 210 7 3.3% £0.46 Minced beef and onion pies 175 7 4.0% £0.46 Chicken and mushroom pies 120 6 5.0% £0.46 Meat and potato pies 125 9 7.2% £0.46
- 24. PRIVATE AND CONFIDENTIAL © SEARCH LABORATORY LTD ADWORDS ATTRIBUTION 97% of marketers use last click attribution. Only 14% of them are satisfied with it. (Source: Google Internal Data)
- 25. PRIVATE AND CONFIDENTIAL © SEARCH LABORATORY LTD ADWORDS ATTRIBUTION – WHY BOTHER? Better bid optimisation Huge impact on performance Easy
- 26. PRIVATE AND CONFIDENTIAL © SEARCH LABORATORY LTD HOW DO YOU TRAVEL? Taxi to station Train to airport Flight Bus to city Walk to hotel
- 27. PRIVATE AND CONFIDENTIAL © SEARCH LABORATORY LTD HOW DO YOU TRAVEL? Taxi to station Train to airport Flight Bus to city Walk to hotel 100% of credit!
- 28. PRIVATE AND CONFIDENTIAL © SEARCH LABORATORY LTD WHICH MODEL TO USE? Last Click First Click Time Decay Linear Position Based Data Driven
- 29. PRIVATE AND CONFIDENTIAL © SEARCH LABORATORY LTD WHICH MODEL TO USE? Time Decay Linear Position Based Safest first step away from last click Fair and even / moderately aggressive Aggressive / adds value to early funnel
- 30. PRIVATE AND CONFIDENTIAL © SEARCH LABORATORY LTD ATTRIBUTION Search 1 Search 2 Search 3 Conversion “Pies” “Wholesale Pies” “Pukka Pies”
- 31. SUMMARY
- 32. PRIVATE AND CONFIDENTIAL © SEARCH LABORATORY LTD SUMMARY Set sensible targets Understand statistical significance Group keywords together when needed Change from last click attribution
- 33. SEARCH LABORATORY LTD. GLOBAL DIGITAL MARKETING EXPERTS facebook.com/searchlaboratory/ @searchlabs linkedin.com/company/search-laboratory/ Email: info@searchlaboratory.com SEARCH LABORATORY LTD. GLOBAL DIGITAL MARKETING EXPERTS Leeds HQ: +44 113 212 1211 London: +44 207 147 9980 New York: +1 (646) 473-1826 Web: www.searchlaboratory.com CONTACT DETAILS