Unlocking ROI 2020 utah dmc

| #UtahDMC @navahf @HennesseyDgtl
Unlocking ROI In Any Budget
By: Navah Hopkins

I am a bounty hunter of happiness and profit
(& a Star Wars nerd)

• Am focused on the business
metrics of my stakeholders
(clients).
• Know when to invest and when to
hold back.
• Live for the thrill of winning for my
stakeholders.
This means I:

Talking Money is Hard – Talking Profit is Easy

By the end of this session, each of you will have
the tools to be a fellow bounty hunter of
happiness and profit

What We’ll Be Covering
➔ Baseline/Questions to Ask
➔ Poor Performance Caused
by Lack of Budget
➔ Can’t Spend the Budget
➔ Account is Winning
➔ Casestudy
Navah Hopkins
Director of Paid Media

Baseline/Questions to Ask

Before We Can Begin Hunting, We Need to Do
Some Reconnaissance

Are All Parts of the Business Equal, or Are Some
Worth More?

Are There Hubs of High-Value Customers, or Are
They Truly Spread Out?

Are Phone and Website Leads Equal? Do
Conversion Rates and Auction Prices Align?

• Impression Share
• Auction Price
• Conversion Rate/Value
Three Trails Good
Hunters Follow:

Most Advertisers Struggle to Achieve 50%+ of
Available Impressions
Based on
2973
accounts
with at least
$.01 in
search
spend
Average
impression
share is 47%

Search Auction Prices
Vary by Industry – don’t
bring a blaster to a
lightsaber duel

If You Know You Have An Easier Time Winning on
Mobile/Desktop, Don’t Be Afraid to Focus There
Mobile:
4.39% CTR
$34.79 CPA

✓Location Targets
✓Duplicate Keywords
✓Structure of the Campaign
✓Match-types of keywords
✓Bidding strategies
Raising Budget is a
Last Resort – Check the
Following First:

Poor Performance Caused by Lack of
Budget

Wasted Spend is the Enemy

If there’s a hint of wasted spend, it
can be hard to convince clients to
open up budget.

Here’s the problem: a budget that isn’t aligned
with the structure it’s asked to support will always
be wasted spend

Can your budget support 10 “top of page clicks”?

Here’s what,
“Top of
Page” looks
like:

If Not, Assess if You Can Get The Traffic With
Different Search Ideas

Check The Search Terms For The Real Heroes!
3% cheaper
& perfect
conversion
rate!

Broad Keywords Can Drag Your Budget into
Unintended Auctions
162%
More
Than
Average

If they’re all too high, find out if clients can live
without that Traffic

• Use extensions to communicate
valuable ideas without paying a
premium.
• Bid adjustments can focus the
budget.
• Lumping strategic initiatives
together can cause all to fail.
Not all profit centers
are equal:

Daily Budgets Needed For AT LEAST One Lead
Based on 2019 Average CPC
Monthly
budget will be
30.4 X daily
budget

Bing’s Auction
Prices Can Be More
Forgiving

Starting Bing Is As Easy As Setting Up An Auto-
Import

• Be transparent about industry
costs and whether budget
expectations are realistic.
• Offer options that work within the
requested budget.
• Give realistic timelines for growth
When crafting marketing
budgets/assessing clients:

Can’t Spend the Budget

It can be intimidating to ask for more budget,
when you’re struggling to spend existing budget.

Your Campaign is Likely Losing Impression Share
to Rank

• Too many targets
• Bids and auction prices not
aligned
• Search volume isn’t there for
“important” keywords
Here are the most
common culprits:

There’s only
so many
signals a
budget can
accommodate

Targeting 5+ locations without bid adjustments
can cause budget allocation issues

Different Locations Have Different Auction
Prices, Search Patterns, & Time Zones

Number of ad groups can also choke a budget: 5-7
is the golden ratio!
60% of
impressions
Budget
will only
go to
“winners”
instead of
everything

Bid to budget ratio is only
part of the equation: if the
bids are too low, you won’t
even enter the auction

While it is true Google can up to double your
budget, you can’t bank on it delivering premium
volume if you’re consistently under bidding

Search volume is an important mechanic in
account health

Google’s not going to
waste its time or your
money on pages that
lack transactional value

But those pages may be important to clients

• Turn important low volume
keywords into site links/callouts
• Make a low budget “experiment”
campaign to house these ideas
• Ask the client if they’d be open to
content marketing being
responsible for those ideas.
Here are three easy
solutions:

Account is Winning

Congratulations! You’ve vanquished your enemies
and achieved profit!

But we’re bounty hunters of profit and
happiness…there’s always more to be had

• Can your client handle more leads
or are they at capacity?
• Is this seasonal – should we invest
now, or hold for next season?
• Should the budget go to existing
initiatives, or would you rather
expand to new platforms/parts of
the business?
Before we continue:

Here is what I look for in a winning campaign
Consistently
above 75%
impression
share!
Campaign live for at least three months

Important: Never dump large amounts of money
into a winning campaign all at once!

Gradually increase budget by 10-15% each week
over a month

A great way to expand is to layer in display!
In-market display
ad with affinity
content!

Display Average CPC’s Are Cheaper – Build Your
Perfect Audience to Be Picked Up By Search
Remarketing
10%
conversion
rate vs 4%
conversion
rate

Display Can Bring Users Your Branded and
Remarketing Search Campaigns are Poised to
Pick-up
$500
Monthly
Budget
168550
Monthly
Impressions
701
Monthly
Clicks
*Average monthly budget, impressions and clicks across
4000 accounts (no budget over $50 and no budget under
$1)

Don’t Forget About Facebook!
26% Of Clicks Result In A
Conversion (Spark Central)

• Average CPC is $1.72, but this is
determined by how many folks
click on your ad!
• Now that budgets are campaign
level choices, be sure you’re
choosing the right objective for
how you judge ROI!
• 19% of time spent on mobile is
on Facebook.
Facebook Budgets

By running campaigns on other networks, you can
expand your Google market:

New Campaigns Are Expensive – the
first 1-2 months of a campaign will be
about data acquisition

Client Story: Koru K9

Budget conversations are a game of transforming
“cost” into “investment”

• CTR
• Quality Score
• Impression Share
• Extensions
• Match-types
Clients won’t care
about:

• Quality of leads
• Return on ad spend
• Volume of leads (as long as quality
isn’t impacted)
• Year over year growth
• Growing the value of a customer
Clients will care about:

If we want to grow the budget, we need to speak
their language

Meet Koru K9:

• $2,700 monthly costs
• Conversions weren’t tracking
properly
• Struggling to get enough business
to justify keeping staff
Before We Found Each
Other, Marketing Their
Business Was Stressful

Koru K9 Had A Pretty Stellar Evolution
Benchmark (November 2015)
➔ Spend: $1,295.75(AdWords)
➔ Impressions: 30,570
➔ Clicks: 368
➔ Average CPC: $3.85
➔ Conversions: 23
➔ Conversion Rate: 6.25%
➔ CPA: $56.34
Post Optimizations (March 2019)
➔ Spend: $6,100
(Google Ads/Bing/Facebook)
➔ Impressions: 59,000
➔ Clicks: 2,000
➔ Average CPC: $2.69
➔ Conversions: 225
➔ Conversion Rate: 9.6%
➔ CPA: $27.07

• Built trust by identifying and
eliminating wasted spend brought
in by broad terms and tangential
searches.
• Focused budgets by geos served
and replicated winning structure
across those areas.
• Layered in display to educate
markets on why their approach to
training works.
How did we achieve
victory?

Naturally They
Wanted To Scale

We Expanded
Markets!

Some Markets Really Struggled – Driving Up Costs

We Had To Make Some Budget Allocation Choices

Not All Markets Deserved “Focus” On High Value
Board & Train

The Landing
Pages Had
Multiple Numbers
– Lost Local Focus

Too Many Data Acquisition Sources

“Dog Training” Just As Broad – Worse Quality

• Paused dubious “dog trainer” in
favor of long-tail broad.
• Removed extra numbers
• Used “borrowed” budget to
invest in educational display
So We:

We Were Able To Unlock Profit In One Month!

For Profit!

Build trust
through
transparency
about budgets
and timelines.

Use extensions
to promote
expensive
ideas when
your budget
cannot.

Honor thy bid
to budget ratio
and conversion
rates

Check for
alternative
ways to
achieve
expensive
traffic, but if
the ROI is
there, invest!

Acquisition
costs go down
with increased
exposure to
brands –
Display brings
the audience!

Thanks! Questions?
Navah@Hennessey.com
@navahf

Unlocking ROI 2020 utah dmc

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