Soso--SEM
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This document provides an overview of search engine marketing (SEM) for startups. It discusses key SEM concepts like cost per acquisition, lifetime value, scaling challenges for startups, and the importance of optimizing keywords, bids, ads, and landing pages. The document recommends focusing optimization efforts on these four main areas and establishing proper tracking to measure metrics like customer lifetime value and cost per acquisition that are important for evaluating SEM performance. It also stresses the importance of developing a plan that includes setting a budget, goals, and structuring the SEM account before launching campaigns.
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Soso--SEM
- 1. SEM For Startups Soso Sazesh ^
- 2. Who Am I? • Founder of Growth Pilots • Helped 50+ companies with paid acquisition
- 3. What is SEM? Paying for search engine traffic in hopes that you make more in revenue than you spend… • Can be very profitable and scalable • Can also be very unprofitable and not at all scalable
- 4. Captain Obvious Matrix Profitable Not Profitable Scalable Not Scalable Be Here Hope Hope Don’t Be Here
- 5. SEM 101 • Customer intent shown by keyword search – “best online payroll software” • You choose how much you are willing to pay to get traffic from each keyword • Finite amount of search volume for a given keyword • The goal is finding as many keywords as possible that are profitable
- 6. SEM Variables That Matter Three variables: • Cost to acquire a customer (CPA or CAC) • Lifetime revenue generated by a customer (LTV) • Market size (Volume) • LTV > CPA with Volume is what matters
- 7. The Scaling Dilemma CPA Conversion Volume Keyword A LTV Breakeven Volume
- 8. LTV > CPA at Scale is Hard LTV v Conversion Volume CPA
- 9. Challenges for Startups • Unproven LTVs • Niche/emerging markets with low search volume • Lack the time and expertise to do it right • Competing against irrational advertisers
- 10. The Ingredients of SEM • Things you can’t control – Your market size – Your competition – Your LTV • Things you can control and optimize – Keyword selection – CPA (bids) – Ad copy – Landing pages
- 11. Keyword Selection • Two approaches depending on your goals – Start broad and narrow down – Start narrow and expand gradually • Use a combination of intuition and Google Keyword Planner to generate relevant keywords
- 12. Keyword Match Types • Broad: payroll services • Broad modified: +payroll +services • Phrase: “payroll services” • Exact: [payroll services]
- 13. Negative Keywords • Negatives prevent unwanted clicks • Very underutilized but very important • If you sell children’s toys you probably don’t want to appear next to people looking for sex toys
- 14. Search Term Report • Tells you what people are actually searching for • Usually lots of surprises in here • Critical resource for keyword expansion and exclusion
- 15. Quality Score • Each keyword is given a 1-10 score based on – The relevancy of the ad triggered by the keyword – The expected clickthrough rate of the ad triggered by the keyword – The landing page experience of the ad triggered by the keyword • Quality Score affects ad position and amount you pay per click
- 16. Bidding • You choose the maximum amount you are willing to pay per click for each keyword • The actual amount you pay for a click will be less than your bid • Bidding should be based on conversion rate Bid = Target CPA X Keyword Conversion Rate
- 17. The AdWords Auction • Ad position – Position is determined by your bid and your quality score • Cost Per Click – Cost per click is determined by the bid and quality score of your next best competitor
- 18. Ad Optimization • One of the most under-rated aspects of SEM • Ad copy should match the keyword it’s paired with • Know the limits of testing (diminishing returns)
- 19. Landing Page Optimization • Landing page optimization can have a dramatic effect on conversion rate and quality score • Diminishing returns apply here as well
- 20. Takeaways • 4 main things to focus on – Keyword Optimization – Bid Optimization – Ad Optimization – Landing Page Optimization
- 21. Tracking • If you don’t have the proper tracking in place, you will not be able to measure LTV or CPA • Recommended Tools – AdWords conversion tracking for keyword-level tracking – KISSmetrics or Mixpanel for customer-level tracking
- 22. Put A Plan Together • Get tracking in place • Determine budget and CPA goals • Keyword research • Map out account structure • Build campaigns and write initial ads • Optimize the big 4 frequently and intelligently
Editor's Notes
- -use examples