How to increase conversions and lower CPA for
  Google Display Network using AdMetrica
House Keeping

• The webinar is recorded and will be made available


• The slides will also be available


• Q&A session at the end of the webinar


• Use the Chat box to submit your questions at any time
AdMetrica:
How to increase conversions and lower CPA for
           Google Display Network
ScienceOps




Algorithmic expertise in astrophysics, genetics, and online advertising
Google Display Network




The first technology devoted exclusively to optimizing GDN conversions.
AdWords API




The Algorithms of AdMetrica run within Google AdWords (via API).
Purpose



• CPA target + Conversion volume + Spend control
GDN Revenue Growth
Performance Advertising Growth
GDN Display Market Share

          2011 Display Ad Spend
(in Billions $ with and Market Share %)



     $5.8, 19%


                                    Other Display
                                    International GDN
                                    US GDN
$6.5, 21%         $18.1, 60%
CPA at volume
X Graph #1
X Graph #2
Ad Placement?
Scope of AdMetrica

Client                                                         Client




                                                   Landing   Purchase
Ad         Keyword        URL          Ad                                    Thank-
                                                             or
Creative   Lists          Placement    Selection   Page      Registration   you Page




                Bidding               Budget




                          AdMetrica
Variables Optimized




Five Conv. Variables

    1. Keyword Lists

    2. Ad Placement

    3. Bid Pricing

    4. Budget Control

    5. Ad Selection
Keywords



                    Keyword lists are constantly (algorithmically)
                    sampled, tested and rewarded according to live
 1. Keyword Lists   performance data and quality score feedback. This
                    gains access to an ever-expanding number of GDN
                    pages that convert.
Ad Placement




                   Ad-to-page placements are controlled down to the
                   URL level, increasing a given ad’s relevance (and
 2. Ad Placement   its CTR) by more closely fitting the ad to the content
                   of the page.
Bids




                  Algorithms bid in a live and dynamic process that
 3. Bid Pricing   allows for far greater control over bid pricing. This
                  enables either suppression of CPA or, if
                  desired, incremental bid increases to gain conversion
                  volume
Daily Budget




                     By monitoring of daily budgets hourly, algorithms can
 4. Budget Control   allocate budgets only to campaigns that warrant it. This
                     lowers CPA by cutting off underperforming
                     campaigns, and feeds budgets to high performance
                     campaigns.
Ads




                   Metrics-based analysis allows for comparative
 5. Ad Selection   performance evaluation between ad creatives This
                   allows for an objective measurement of ad
                   performance.
Not for Humans


          Decisions: 100,000+/day/account

To effectively gain conversions at the right price, an enormous
number of decisions are made by adMetrica’s algorithms.

The daily job of properly managing a GDN account (i.e. choosing
keyword list combinations, making budgeting adjustments, targeting
URL’s for ad placement, and fine tuning bid prices; with 50
campaigns) requires an average of over 100,000 decisions.

For this, a human would be need to make 1.2 decisions every
second – with perfect accuracy.
2 Stage Conversions
2 Stage Conversion Approach


• Stage 1
 • Customer joins site with a free membership
 • Customer information acquired
• Stage 2
 • Conversion event with revenue
 • Campaign Quality of conversions
 • Feedback drives the process
Target = $1.40
                                  Mean = 1.39, SD = 0.27

            140




            120




            100




            80
Frequency




            60




            40




            20




             0
                  0   0.2   0.4      0.6   0.8   1   1.2      1.4   1.6   1.8   2   2.2   2.4

                                                     avgCPA
Case Study #1 – MRD1

• CPA decreased
   • CPC targeting optimization on major solo site – 30% decrease
   • Mobile advertising
     • Dropped overall CPA by 30%+
     • 35% cheaper than average

• Conversions increased
   • Mobile increased volume by 180%+
   • Audiences increased volume by 15%+
   • More solo site targeting increased volume by 10%+
Online Dating campaigns

• CPA decrease
   • Decreased by 30% due to fine grain targeting
     • Focused optimization of bidding on the very best sites

• Conversion increase
   • Great solo placement (domain) targeting increased by 40%+
   • Increased Side door targeting increased by 20%+
Google Search Activity
                                                   Tsunami Effect
                  Google Search*                                                                           AdMetrica GDN Conv.s
                  (sweepstakes)                                                                            (sweepstakes)
                                                                AdMetrica captures surges of               $ CPA
                                                                conversions (and plummeting                (sweepstakes)

          $3.25                                                 CPA’s) accompanying sudden                            8,000
                                                                spikes in Google’s general
                                                                search traffic volume.
          $3.00                                                                                                       7,000



          $2.75                                                                                                       6,000
                                                                AdMetrica GDN Conv #
                                                           AdMetrica GDN CPA
          $2.50                                                                                                       5,000
                  dddddddddddddddddfdffffggfffffffffffffffffffffffffffffffffffffffffffffgfffffffffffvggd         z

          $2.25                                                              Google Search                            4,000
                                                                             Vol.
          $2.00                                                                                                       3,000



          $1.75                                                                                                       2,000



          $1.50                                                                                                       1,000



          $1.25                                                                                                       0



Google Display Network ad engine engine
Google Display Network conversion
                                                                                                                       * Source: Google Trends
Clients


“The (Google) display network has always been cloaked in mystery, but
AdMetrica seems to have cracked the code. This technology allows us to scale
faster while lowering costs. I’ve never seen anything quite like it.”
                                           – Joe Davison, eComm. Mgr., Meredith Media




“American Family has never seen conversion numbers like this; it took
AdMetrica only 3 days to outperform our prior GDN numbers by more than
100%.”

                                        – Scott Krauss, Mtg. Mgr., Am.Family, Time Inc.
Getting started with AdMetrica

1. Paperwork complete
2. Provided by client
     •   Ads for campaigns
     •   Sales funnels (landing page to thank you page)
     •   Performance data on previous efforts
     •   Account access granted for MCC access
3. Kickoff meeting
4. Initial keyword lists created and approved
5. Initial launch
6. 30 day incubation period
THANK YOU


QUESTIONS?

Webinar: How to increase your conversions and lower your cpa on GDN

  • 1.
    How to increaseconversions and lower CPA for Google Display Network using AdMetrica
  • 2.
    House Keeping • Thewebinar is recorded and will be made available • The slides will also be available • Q&A session at the end of the webinar • Use the Chat box to submit your questions at any time
  • 3.
    AdMetrica: How to increaseconversions and lower CPA for Google Display Network
  • 4.
    ScienceOps Algorithmic expertise inastrophysics, genetics, and online advertising
  • 5.
    Google Display Network Thefirst technology devoted exclusively to optimizing GDN conversions.
  • 6.
    AdWords API The Algorithmsof AdMetrica run within Google AdWords (via API).
  • 7.
    Purpose • CPA target+ Conversion volume + Spend control
  • 8.
  • 9.
  • 10.
    GDN Display MarketShare 2011 Display Ad Spend (in Billions $ with and Market Share %) $5.8, 19% Other Display International GDN US GDN $6.5, 21% $18.1, 60%
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
    Scope of AdMetrica Client Client Landing Purchase Ad Keyword URL Ad Thank- or Creative Lists Placement Selection Page Registration you Page Bidding Budget AdMetrica
  • 16.
    Variables Optimized Five Conv.Variables 1. Keyword Lists 2. Ad Placement 3. Bid Pricing 4. Budget Control 5. Ad Selection
  • 17.
    Keywords Keyword lists are constantly (algorithmically) sampled, tested and rewarded according to live 1. Keyword Lists performance data and quality score feedback. This gains access to an ever-expanding number of GDN pages that convert.
  • 18.
    Ad Placement Ad-to-page placements are controlled down to the URL level, increasing a given ad’s relevance (and 2. Ad Placement its CTR) by more closely fitting the ad to the content of the page.
  • 19.
    Bids Algorithms bid in a live and dynamic process that 3. Bid Pricing allows for far greater control over bid pricing. This enables either suppression of CPA or, if desired, incremental bid increases to gain conversion volume
  • 20.
    Daily Budget By monitoring of daily budgets hourly, algorithms can 4. Budget Control allocate budgets only to campaigns that warrant it. This lowers CPA by cutting off underperforming campaigns, and feeds budgets to high performance campaigns.
  • 21.
    Ads Metrics-based analysis allows for comparative 5. Ad Selection performance evaluation between ad creatives This allows for an objective measurement of ad performance.
  • 22.
    Not for Humans Decisions: 100,000+/day/account To effectively gain conversions at the right price, an enormous number of decisions are made by adMetrica’s algorithms. The daily job of properly managing a GDN account (i.e. choosing keyword list combinations, making budgeting adjustments, targeting URL’s for ad placement, and fine tuning bid prices; with 50 campaigns) requires an average of over 100,000 decisions. For this, a human would be need to make 1.2 decisions every second – with perfect accuracy.
  • 23.
  • 24.
    2 Stage ConversionApproach • Stage 1 • Customer joins site with a free membership • Customer information acquired • Stage 2 • Conversion event with revenue • Campaign Quality of conversions • Feedback drives the process
  • 25.
    Target = $1.40 Mean = 1.39, SD = 0.27 140 120 100 80 Frequency 60 40 20 0 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 2.2 2.4 avgCPA
  • 26.
    Case Study #1– MRD1 • CPA decreased • CPC targeting optimization on major solo site – 30% decrease • Mobile advertising • Dropped overall CPA by 30%+ • 35% cheaper than average • Conversions increased • Mobile increased volume by 180%+ • Audiences increased volume by 15%+ • More solo site targeting increased volume by 10%+
  • 27.
    Online Dating campaigns •CPA decrease • Decreased by 30% due to fine grain targeting • Focused optimization of bidding on the very best sites • Conversion increase • Great solo placement (domain) targeting increased by 40%+ • Increased Side door targeting increased by 20%+
  • 28.
    Google Search Activity Tsunami Effect Google Search* AdMetrica GDN Conv.s (sweepstakes) (sweepstakes) AdMetrica captures surges of $ CPA conversions (and plummeting (sweepstakes) $3.25 CPA’s) accompanying sudden 8,000 spikes in Google’s general search traffic volume. $3.00 7,000 $2.75 6,000 AdMetrica GDN Conv # AdMetrica GDN CPA $2.50 5,000 dddddddddddddddddfdffffggfffffffffffffffffffffffffffffffffffffffffffffgfffffffffffvggd z $2.25 Google Search 4,000 Vol. $2.00 3,000 $1.75 2,000 $1.50 1,000 $1.25 0 Google Display Network ad engine engine Google Display Network conversion * Source: Google Trends
  • 29.
    Clients “The (Google) displaynetwork has always been cloaked in mystery, but AdMetrica seems to have cracked the code. This technology allows us to scale faster while lowering costs. I’ve never seen anything quite like it.” – Joe Davison, eComm. Mgr., Meredith Media “American Family has never seen conversion numbers like this; it took AdMetrica only 3 days to outperform our prior GDN numbers by more than 100%.” – Scott Krauss, Mtg. Mgr., Am.Family, Time Inc.
  • 30.
    Getting started withAdMetrica 1. Paperwork complete 2. Provided by client • Ads for campaigns • Sales funnels (landing page to thank you page) • Performance data on previous efforts • Account access granted for MCC access 3. Kickoff meeting 4. Initial keyword lists created and approved 5. Initial launch 6. 30 day incubation period
  • 31.

Editor's Notes

  • #13 1 Jul 2012 – 372 conv @ $1.91 CPACross over – 19 Jul 2012 – 965 conv @ $1.21 CPA31 Jul 2012 – 1,864 conv @ $0.98 CPA
  • #14 25 Aug 2012 – 33 conv @ $3.20 CPA23 Sep 2012 – 92 conv @ $1.37 CPA