Professional Documents
Culture Documents
Adver+sing
Richard Fergie
What is PPC Adver+sing?
• Adver+sing where you pay each +me a user
clicks on your advert
• Adverts appear on the Google search results
page:
Why PPC Adver+sing?
"What are the top‐three most‐efficient forms of adver5sing or marke5ng
you spend money on in terms of the return on investment (ROI) or return
on ad spend (ROAS) that they yield?“
0% 10% 20% 30% 40% 50% 60%
Paid Placement
Organic SEO
Email Marke+ng
Conferences
PR
Affiliate Marke+ng
Direct Mail
Contextual Text Ad
Web Graphical Ad
Print Magazine Ad
TV Ad
Paid Inclusion
Search KW Graphical Ad
Rich Medium
Telemarke+ng
Print News Ad
Print Yellow Page
Radio
POS Promo+on
Paid Lis+ng in Shop directory
Online Yellow Pages
Coupons
Other
So why does PPC perform beYer than offline
adver+sing and other online channels?:
1. The adverts can be targeted only towards users
who are interested in your service or product.
2. Only 18% of people can iden+fy which results on
Google are paid ads and which are organic
lis+ngs:
This means that people are not “Banner Blind” to
PPC adverts unlike other forms of online
adver+sing.
Auc+ons & Targe+ng
• All the major search engines require adver+sers
to “bid” on “keywords”
• Simply speaking a keyword is a word or phrase
that you want your adverts to appear on.
• The bid is the maximum amount that you are
willing to pay for one click on your advert
• Deciding if your ad shows and how high up the
page it appears is done using a modified version
of a Vickrey auc+on.
• This type of auc+on is similar to an eBay auc+on.
A Very Simple Example
Suppose you run a business that sell “widgets.”
You already have a website and you’re interested in
geeng some customers using this new fangled
“AdWords” thing.
Since you sell
widgets you bid
on the keyword
widgets
... A few weeks later ...
The sta+s+cs for the account look like this:
On its own this is not useful informa5on!
Click divided by Average amount
Number of +mes
impressions. spent on each
the advert has
been clicked Number of +mes click
the advert has
Total amount spent
been seen
so far
What Informa+on is Useful?
There is only 1 ques+on that maYers:
How much money have I made by using PPC?
This is a simple concept to state but ojen it is harder to
measure
Business to Customer Business to Business
• Average order value • Lead Genera+on
• Life+me Customer value • White Paper downloads
• Return on Investment (ROI) • Brochure downloads
• Profit • ROI
Tracking is complicated if Lead Genera+on is the most
customers can convert through important and also the most likely
other online channels or offline to be concluded offline
Conversion Tracking
AdWords Conversion Tracking Google Analy5cs Goal Tracking
• Put a simple piece of javascript • Slightly more advanced than
on the “conversion page” AdWords conversion tracking
• Good for campaigns where all • Can track up to 4 different “goals”
conversions are equal per profile
• Each visitor can only convert • Each goal can be assigned a
once monetary value
• Simplest to setup and manage • Can also track non PPC traffic
Google Analy5cs Ecommerce Tracking
• Can track the value of individual orders
• Also provides informa+on on the
number of visits and length of +me
before a purchase is made
• Can track non PPC traffic
• The hardest to setup, but also the most
powerful
Back to Widgets...
Now we’ll assume that our widget salesman now has a
good tracking solu+on on his website.
There are two things that can happen when he next
looks at his stats:
1. Everything is great. How do I get more?
2. I am not making money with PPC Ads
Next Steps
1. Change the budget
2. Change the average CPC
3. Try and increase the conversion rate or the average value per
visit
4. Diversify the keyword list
1. Budget Changes
If you are making money with PPC then you should increase your
spend un+l the ROI begins to fall.
If you are not making money with PPC you should reduce your
budget un+l you have made changes to your campaign that give
you a posi+ve ROI
2. Reducing the Average CPC
There are two main approaches here. One is very simple. One is
more complicated and not completely understood.
1. Decrease the maximum CPC bid
• Easy to do and easy to understand
• For some keywords reducing the
bid will mean your ad will never be
shown
2. Improve your Quality Score
• Quality score is Google’s way of safeguarding their income from AdWords. If people
click on adverts that are not relevant to their search query then they will eventually
develop “banner blindness” and will not click on AdWords ads in the future.
• In the AdWords auc+on your “bid” is actually the maximum CPC bid mul+plied by the
quality score. This means that high quality scores pay less!
• The main factors that influence the quality score on a given search are:
1. The keyword/search query
2. The ad text
3. The landing page
4. The click though rate
3. Improving Conversion Rates
A higher conversion rate or a higher value per customer means
that you can afford to pay more for each click or make more
profit for the same CPC.
There are 3 things you can do to increase your value per click:
Select the right keywords Change your ad text Change your landing page
• I’ll talk about keyword • Ads with a clear call to • Send clicks to the most
selec+on next. Hope you ac0on work beYer relevant page on your site
can contain your • Link your ad as closely as • This will also improve your
excitement un+l then possible to the keyword or quality score
to the searchers intent • Use Google Website
• Test, test, test, test, test. Op+miser to find out which
Google make it easy for landing pages work best
you to do this. • These changes can also
• Test. help with non PPC visits
4. Keyword Selec+on
• Bidding only on widgets is not enough
• Compe++on on this keyword may be too high
• You end up missing out on what could be valuable traffic
• Use the Google Keyword Tool for ideas.
350
300
250
Sales
200
150
100
50
0
Different Match Types
Exact Match
• Will only display your ads if the search query is exactly the same as
the keyword.
• Normally denoted by square brackets: [red widgets]
• The above example would match the query red widgets but not cheap
red widgets
Phrase Match
• Will display your ads if the query contains your keyword.
• Normally denoted using quota+on marks: “red widgets”
• This will match the query cheap red widgets but not the query red
cheap widgets
Broad Match
• Used to be that the search query would contain the keyword word in any
order
• Now it is far more powerful than that
• And far more dangerous
Account Structure
• A properly structured account is important for the efficient
management of a large number of keywords.
• Even for a small account it will help show the most appropriate
ad to the searchers.
• There are 3 main levels in the account structure
Campaign
• Can set daily budgets
• Loca+on Targe+ng
• Platorm Targe+ng Ad Group
• Contains Ad Groups
• Can set CPC bids
• Contains keywords and ads
• Make sure keywords and ads Keywords and Adverts
are linked as closely as possible • The boYom level of your account
• Can set landing pages appropriate
to each keyword or advert
• CPC bids can also be set at the
keyword level
What Next?
• Start again by trying to maximise value over the whole account
• Follow the same steps as before:
1. Change the budget
2. Change the average CPC
3. Try and increase the conversion rate or the average
value per visit
4. Diversify the keyword list
• Now it is much harder because the account is bigger and more
complicated
• You should also integrate PPC with your other marke+ng
channels
Integrated Marke+ng
• PPC adver+sing produces a lot of data about poten+al
customers.
• You should use this data in other online marke+ng channels
Email Marke5ng Print Adver5sing
Use your best PPC headlines as Make sure that you emphasise
the subject of your emails. This keywords that you know convert
can triple your opening rate well.
Radio and Television Search Engine Op5misa5on
Measure the reach and Establish which keywords are the
memorability of your television most important to target and which
and radio ads meta descrip+ons are likely to result
in clicks.
Ques+ons?