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Hero Conf 2015 - PPC Audits - AdWords Scorecard

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Hero Conf 2015 - PPC Audits - AdWords Scorecard

  1. 1. Wijnand Meijer | @wijnandmeijer Quality & Learning Manager | iProspect Re-Evaluating Success: The Value of PPC Audits
  2. 2. Wijnand Meijer • Quality & Learning Manager at iProspect Amsterdam, the Netherlands • Started with PPC in 2006 for SMB accounts on my own (True Clicks) • Joined iProspect in 2009 to work on larger accounts as Sr. Consultant • Currently writing out an AdWords Audit article series (13 down, 6 to go) on the Certified Knowledge Blog, also written posts for PPC Hero and several Dutch blogs • Specialized in PPC audits for the last 3 years • nl.linkedin.com/in/wijnandmeijer
  3. 3. Why Audit?
  4. 4. Why Audit? 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Tracked at least 1 goal Had negative keywords Had 2+ ads in majority of ad groups Didn't have ad serving problems Had sitelinks in every search campaign Used exact match Didn't have the same sitelinks in every campaign Had at least 2 extensions Tracked calls (when it mattered) Had sitelink description in brand campaigns Tracked all their goals Used remarketing Didn't use traditional broad match Used modified broad match Regularly tested ads Had negative keywords list(s) Had mobile preferred ads Tested mobile ads Used RLSA Best Practice Analysis of 350+ accounts (mixture of SMB, Enterprise and mid-sized), actively being managed, spending over $600 million / year Implemented Not implemented Source: Brad Geddes @ Market Motive, January 13, 2015 And that’s just 19 best practices (out of 100+ you could check)
  5. 5. Goal of PPC Audits • Audits start with a thorough analysis of best practices and results. • But don’t stop there, include specific and actionable recommendations. • Even better: prioritize these recommendations. Start with goal setting, tracking, quick wins and cutting waste. • Be an audit ninja: try to estimate the impact of your recommendations.
  6. 6. Google’s Audit: the Opportunities Tab
  7. 7. Audit Starting Point: Goal Setting • Goal Setting • Tracking • Campaign Settings & Bid Adjustments • Ad Extensions • Impression Share & Auction Insights • Quality Score • Account Structure • Keywords & Match Types • Ad Copy • Testing • Lin-Rodnitzky Ratio • Shopping Campaigns • Bid Management • Landing Pages • Mobile • Remarketing • Display Network
  8. 8. Goal Setting- Essentials ROAS Example: M = 40% A = 50% ROAS target = 1 / (M x A) = 1 / (40% x 50%) = 1 / 0.2 = 5.0 or 500% This means for every dollar you invest in paid search, you’ll want at least $5 in revenue. CPA Example: M = $500 A = 50% C = 30% CPA target = (M x A) x C = ($500 x 50%) x 30% = $75 That’s what you’re willing to invest in acquiring 1 lead.  Define a non-branded efficiency target (e.g. CPA or ROAS) based on: M = Your margin (Ecommerce: in % | Lead-gen: in $) A = The part of this margin you’re willing to invest in acquisition C = Lead-to-sale conversation rate (if you’re a lead-gen advertiser)  Make sure these efficiency targets are leading your optimizations (and budget isn’t)
  9. 9. Goal Setting- Advanced  Approximate (or calculate, if possible) the value (in terms of eventual revenue) of all micro conversions on your website, such as: • Newsletter sign up • Downloads • Using the store locator (alternative: determine an offline multiplier) • Sharing (on social media)  Include the customer lifetime value. Or it least the value beyond the first purchase / interaction (e.g. value in first year).
  10. 10. Goal Setting – Advanced Example of profit without lifetime value and in-store & word-of-mouth multiplier: Example of profit for same advertiser including lifetime value and multipliers: Be as conservative as you want to be with customer lifetime value, the value of micro conversions and in-store / word-of-mouth multipliers. But pretending these things don’t exist or have no value will cause you to greatly undervalue your marketing efforts (which has far-reaching implications).
  11. 11. Goal Setting – Advanced Source: Avinash Kaushik: Your Web Metrics: Super Lame or Super Awesome?
  12. 12. Goal Setting – Cutting Edge How do you currently treat your efficiency target? A) I absolutely want to achieve and keep a certain target CPA or ROAS B) I’m mostly interested in the combination of volume (# of conversions or revenue) and efficiency (CPA or ROAS) that maximizes my profit. So I’m flexible in trying different CPA/ROAS targets to find out.  Do you acknowledge the trade-off between volume and efficiency and are you therefore willing to test different efficiency targets to find the profit maximizing combination?
  13. 13. “Quality and process improvement programs are like teaching people how to fish. Strategy maps and scorecards teach people where to fish.” Robert S. Kaplan
  14. 14. We already have checklists
  15. 15. But checklists have their drawbacks • Checklists are often too simplified: yes or no What do you answer when it’s ‘yes’ 70% of the time? • Checklists give no weight to answers, however, not everything is equally important • Most checklists don’t differentiate between high priority and low priority • People like to work with grades on a 0 - 10 or 0 – 100 scale to get a quick feel for performance and a sense of achievement when grades go up. • The solution: a prioritized, weighted scorecard, currently checking for over 140 best practices
  16. 16. Framework of the Audit Scorecard • Topics are scored in order of priority and best practices are categorized as: • Essentials • Advanced • Cutting Edge (if applicable) • Different types of questions: • Checklist type: yes or no when it makes sense • Percentage: how often is a specific best practice implemented (when it’s easy to count)? • To what extent… : with these questions, we rely more on human analysis and interpretation as it’s not a straightforward check or count
  17. 17. Sneak Preview
  18. 18. Sneak Preview
  19. 19. Thank You!  Download your free copy of the AdWords Audit Scorecard over here (it will be updated regularly): http://bitly.com/adwords-scorecard  Want to Learn More? My audit articles so far: Introduction, Goal Setting, Measurement, Campaign Settings & Bid Adjustments, Ad Extensions, Impression Share & Auction Insights, Quality Score, Account Structure, Keywords & Match Types, Ad Copy, Testing, The Lin-Rodnitzky Ratio and Google Shopping Campaigns. Coming up: Bid Management, Landing Pages, Remarketing, Google Display Network, Mobile and YouTube.

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