Tesla Paid Search

Outline

● Big Picture
● Channel Audit & Recommendations
○ Google Ads Search Performance
○ Google Ads Recommendations
○ Youtube Performance
○ Youtube Recommendations
● Attribution and Incrementality
Big Picture
 Successful Scale for Both Search & Video

Total Monthly Spend By Source vs. CPA

Search
adjustments
for seasonality
Paid Search scaled by 2x headed and YT

into Q4, improving eiciency in October, Initial Geo

Testing Includes YT
but still testing into the right channel mix View Through
and balance between Seasonality and our
marketing funnel.
 0-6 months: Prioritize Upper Funnel to Build Awareness & Drive Demand

Focus budget on key channels to establish initial learnings

Demand Creation
Build product demand & top of
funnel prospecting audiences

Awareness Awareness
YouTube Awareness Store Traic Awareness, video
view, Traic
Acquisition Acquisition
Traditional Search, Dynamic Advantage+ Shopping
Search Ads, Performance Max, Campaign, Advantage+
Retargeting Remarketing List Search Ads Catalog Ads
Convert consumers in
the consideration phase

Lean into mid-lower funnel initiatives to encourage consumers to engage and make first purchases
6-12 months: Prioritize Full Funnel Approach to Drive Demand & Motivate Down the Funnel Actions

Diversify tactics in current

Employ omni-channel partner
1 channels to identify audience 2 that connects Connected
Demand Creation targets & creative winners
TV/Video, Audio, Native, etc.
Build product demand & top of based on CAC
funnel prospecting audiences (Long-Term Strategy)

Awareness & Awareness Awareness Awareness Awareness & Awareness

Acquisition & Acquisition
Acquisition

Retargeting
Convert consumers in
the consideration phase

Lean into mid-lower funnel initiatives to encourage consumers to take in-app actions and drive longer term retention

Retention
Subscribers &
converters
Account Performance &
Recommendations
 Google Search Account Performance

● Running for 21 weeks, with first 2-4 weeks at learning level scale.
● Driving ~2031 Appointments weekly, converting at an efficient rate of ~21%, leading CPA = ~$474 & 476 Purchases at scale.
● Given Tesla’s increased production capacity, and assuming Growth will target moving the Production vs. Delivery delta left in inventory
that Earned & Owned channels are not able to move, Search appears to have additional search volume to profitably assist Tesla as it
scales.
 Google Search Campaigns
Geo Spend Distribution and Performance

● After a few months of testing, National and

CA showed the most consistent
performance at higher levels of scale vs.
remaining 7 states.
● Avg. Click Share shows more room for
continued scale, although I usually
recommend consolidating campaigns via
reduction or portfolio strategies, as I’ll State Cost Purchases CPA Avg. Click Share

outline in the recommendations section. National $1,524,913 2798.18 $545 9.17%

CA $1,242,193 2561.61 $485 21.15%
TX $500,947 854.79 $586 15.61%
NY $486,410 787.07 $618 12.26%
NJ $422,612 735.68 $574 17.41%
FL $338,546 520.28 $651 13.90%
MA $177,747 292.4 $608 13.13%
CO $114,371 227.9 $502 16.51%
CT $34,732 62.72 $554 11.20%
 Google Search Keywords
Keyword Performance

Total KWs Spend > 0 Conversions > 0

● 1400+ Unique Keywords, Spending on 964, 1489 964 395
395 of which are Converting.
● Highly suggested to consolidate creative
and budget towards top keywords if exact
match, and test into Broad in separate
campaigns.
 Google Search Recommendations
With lots of valuable Geo and Keyword learnings in the Search account, and having established good baselines
for eicient scale on a National level, the Algorithm should be in a great place to continue implementing ML best
practices. Based on the

● Account Consolidation
○ Create Campaigns or Portfolio+Budgets Based on Creative Theme or tCPA / ROAS
● KW Optimization
○ Test into Broad Match only campaigns
○ KW Discovery for Highly Efficient exact Match w/ % of Budget
● Test Sprint Cycles to Separate and Control Learnings
● Further Information
○ Conversions Segmented by Product
○ Conversion Lag & Avg. Time to Purchase
○ Lost IS (Bid or Budget)
○ State based performance / Brand Category Insights
○ Additional ML Best Practice Implementation: Audience, Conversions, Customer Lists
○ Seasonality / Deals
 Geo-focused Growth Program Best Practices

● Verify performance with incrementality and biz level reporting

○ City-based ads are highly subject to misattribution at the channel level, even in cases where no
fraud is present.
● Simplify campaign structure to allow for scalability and testing
○ A market grouping strategy simplifies all ad operations and creative testing, which shortens
feedback loops and improves ROI/CPA.
● Lean into AI-based dynamic ads
○ Rather than manual audience segmentation, make sure broader audiences have feeds of localized
creative that AI can leverage.
● Stand out with diversified creatives
○ Creative is the biggest lever for improving performance within each channel and that’s magnified
for location-based advertisers.
Ex. Budget+Bid Action Plan / Recommendations
Combining shared budgets with portfolio bidding strategies will allow smart bidding campaigns to optimize more
eiciently by dynamically shifting budgets in real time to top performing campaigns in need of budget.
tCPA
$600
Reasoning: Setting low tCPA
doesn’t guarantee low CPA (as
we’ve seen), and setting higher
tCPA doesn’t guarantee higher
CPA. We’ve seen lower CPA,
higher CPC, and higher CVR due
to Google serving our ads in
premium auctions with higher
probability of CVR.
We also want to balance our
starting tCPA between historical
performance & max allowable
conversions for set budgets.
Shared Daily Budget
$8,571 (10 campaigns)
Reasoning: Using tCPA
($600) & avg. daily budget
needed to convert ~10/week
($857), we get a shared daily
budget by multiplying for the
count of campaigns that will
be in the shared budget (10).
We will segment by different
expected/actual CPAs for
products, audiences, or
keyword topics later in the
program.
Budgeting + tCPA Process
1. Segment campaign tCPA by topic,
audience, or product.
2. Based on historical CPA performance,
expected improvements, and budget,
set a portfolio tCPA.
3. Factoring in portfolio tCPA, shared
budget campaign count, and avg.
weekly goal, create a shared daily
budget. (Will typically spend 40%-60%
on a monthly basis to start.)
4. Adjust tCPA & shared budget down as
performance improves M/M, or based
on campaign updates.
Non-Brand Test Discovery Cycle
Align Month 1 research cycle with Phase 1 objective: $300 CPA w/ 10% of Budget

Step 3: Plan, Build & Test

1. Integrate identified opportunities Step 1: Analyze by Objective: CPA
into an ongoing dynamic list of test
ideas, prioritized by volume, ICP 1. N-Gram
Alignment, potential, and business a. Utilize Google scripts to
need. identify potential keyword
2. Build out campaign shells and ads. themes and negative kws
3. Adjust Portfolio Bid+Budget for Month 1 KW
2. Below Avg. Expected CTR
new test KW volume if necessary. Cycle 3. Below Avg. Ad Relevance
4. Launch test campaign until it’s able 4. CPA
to exit learning, optimize according
to performance.

Step 2: Prioritize Opportunities, Cross Reference Discovery Campaigns

1. Breakout -> High KW, High Cost, High CPA, Low QS
2. New -> High Cost, High Impr, High QS, High Conv., High CPA, Low KW
3. Cross reference phrases/topics with DSA n-gram analysis for optimal structure.
Proposed Test Campaign Staggered Sprints
To allow for algorithm learning & dynamic prioritization, every 2 weeks for 2 campaigns, a new sprint starts, incorporating
updated findings from Discovery into the prioritization test list, then planning+launching the next group. Cycles subject to
business needs/discussion, not static.

01 02 03 04
W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13 W14 W15 W16

Campaign Test Sprint Potential Period Retro

1. Analyze &
Prioritize
2. Campaign
Prep
3. Test Campaign Launch (1.5-2 wks min 4.
w/out budget, kw, or LP changes) Expand

Campaign Test Sprint Potential Period Retro

1. Analyze &
Prioritize
2. Campaign
Prep
3. Test Campaign Launch (1.5-2 wks min 4.
w/out budget, kw, or LP changes) Expand
 Youtube Account Performance

Cost Views Total Conv. CPM CPV VT CPA CPA

672009.68 14061133 19333.58 7.704304257 0.04779200083 43.90785234 166.8105586

● Creative was well segmented by theme, video length & format, and car model, allowing for great results throughout the
funnel.
● Performance by Video Theme and Car Model will follow in the next few slides, but overall, assuming this was M1 for the
campaign, the aggregate ~15% view rate, ~30% engagement rate, and $166 non-view CPA.
 Youtube Creative Themes

Texas Cost Features Features

Theme Cost Views Total Conv. CPM CPV VT CPA CPA

Cost $144,595.46 2,784,035 4,584 $5.26 $0.05 $38.66 $171.25
Features $400,709.62 9,243,318 10,346 $11.93 $0.04 $50.94 $161.63
Texas $126,704.60 2,033,780 4,403 $4.85 $0.06 $34.26 $179.73
 Youtube Creative Car Models
Model 3 Model Y

Model Cost Views Total Conv. CPM CPV VT CPA CPA

Model 3 $132,781.50 2,914,409 4,680 $12.47 $0.05 $35.91 $135.18
Model Y $539,228.18 11,146,724 14,653 $7.04 $0.05 $46.46 $177.01
 Youtube Recommendations
.

● Full Funnel Campaigns

○ Demand Creation - Integrate Brand and Consideration campaigns for reach and engagement, measuring
performance based on Brand Search lift and Incremental lift within less aware audience segments. (Examples
in following slides, based on actual campaign ran for Trupanion)
○ Masthead - Test for product releases or big brand announcements.
● Further Information
○ Conversion Definition
○ Campaign audiences and performance
○ State Based Performance
○ Brand Search or Lift Test Results
○ Sequence Ad Results
Two marketing strategies: Demand Capture & Demand
Generation
Demand Demand
Capture Generation

ACTION REACH
Capture existing demand Pull new consumers into the market
 Comparing Strategies
Let’s say we have a $200K budget… what would we expect from each strategy?

Incremental
CPM Frequency Reach YouTube Format KPI Brand
Searches?

Skippable
Demand Generation

CPM
Reach $5.76 1.7 19.2M In-Stream (15%),
Unique Reach
Bumper (85%)

CPV (est $0.02)

Skippable Brand Lift
Consideration $10.95 1.6 11.3M All strategies
In-Stream (100%) (Purchase Intent,
should lift
etc.)
branded
search if we
have good YT
creative
Skippable
Demand
Capture

In-Stream, Home Quotes

Action $10-26* 1.4 5.5-14M
Feed, Watch Next Enrollments
page
Attribution and
Incrementality
 Using Incrementality to Inform Budget
Allocations
. Awareness Acquisition Retention

● Brand lift study
● Lift in branded search
● Conversion lift study (geo
lift)
● Lift in total sales from new
customers
● Post-purchase survey data
● Conversion lift study (geo
lift)
● Lift in total sales from
returning customers

Between day 60-90, utilize in-platform lift studies & first-party data to measure the true impact of
paid media campaigns by tactic to inform where to increase/decrease investment.
Utilize Multi-Cell Geo Lift Tests to
Understand Diminishing Returns by Channel
 Implement MTA Attribution, Similar to Rockerbox
Fractional Aribution Last Touch Aribution
Assigns fractional credit to all Assigns 100% of the credit to the
marketing touchpoints the user is last marketing touchpoint
exposed to

Click & View Tracking Click Tracking Only

Allows new channel testing since Does not capture view through
it gives visibility into both view conversions limiting channel
thru and click conversions expansion and testing

Full User Journey Internal Limited User Journey

Rockerbox
Provides insight into user cohorts Attribution Limited insight into user journey due
across all channels for both new to current limitations with aribution
and returning users and measurement

Conversion Value No Conv. Value Captured

Does not capture
Captures conversion
conversion value/revenue
value/revenue

Data Deduplication No Data Deduplication

Deduplicates conversions across
Likelihood of duplication
channels using
across multiple channels
customer/transaction id
Questions?
Appendix
Assumptions

● M3 CLTV
○ High - $14,500
○ Average - $6000
● Time to purchase = 6 months
● Search using Broad Match, AI checklist satisfied
 Business Research: Auto Benchmarks

● https://www.wordstream.com/blog/ws/2016/02/29/google-adwords-industry-benchmarks
Platform Comparisons
 Proprietary + Confidential

Broad Match Best Practices

SMART BIDDING + ATTRIBUTION + Use fully automated Smart Bidding strategies aligned to your goals in combination with Data-Driven
BUDGET Attribution models and ensure Budgets are able to capture increased conversions

Ensure you have set the right targets for your business goals. Make sure the conversion data being
SET RIGHT CONVERSION VALUE
passed on to Google accurately reflects the data of your business

DRAFTS & EXPERIMENTS Make sure you follow Drafts & Experiments Best Practices in setup and evaluating successes

CREATIVE BEST PRACTICES Use RSAs and ensure your ad copy & landing pages fully reflect queries being targeted

Be mindful of negative Keywords accumulated over the years. Regularly work with negative Keyword
NEGATIVE TARGETING
targeting to refine your queries

Note that the 1-10 number estimates your Quality Score for a query that exactly matches your Keyword,
QUALITY SCORE
but it it doesn’t reflect Match Types or negative Keywords you may use
Channel Expansion

YouTube
● Scalability (reach)
● Randomized A/B tests for Brand Search lift
● Need video creative, but have UGC we can
repurpose since UGC was top performing for
Trupanion and PHI
Snapchat
● Low CPMs (see Statista chart below)
● Need video creative, still unsure what the lift
would be here.
● Largest audience 18-24
● Also interested in becoming familiar with
Snapchat platform to test a new Last Click
optimization campaign.
Pinterest
● Second lowest CPMs
● Limited audience options, frequent ad fatigue
● Smallest reach, will have scale issues here.
● Already have static creative we can use.
 What We’re Solving For:Having a single source of truth for marketing

Ongoing & Future

Current Use Case Use Case

Deduplication & MTA Budget Decisions Customer Journey Channel Optimizations Diversification & Testing

Tracking Budgeting Journey Optimizations Testing

Q: Are we using the right Q: Is our budget Q: Which channels are Align on source of truth New top of funnel
data source to make allocation aligned with RB driving first/mid/last & ● Set channel channels
decisions? insights? assisted touch enrollments? targets in RB ● Use view-through,
● Allocate budgets halo, incrementality,
Understand the disparity Update budget Understand overlap for and walled garden
between the sources allocations based on rough understanding of to optimize for
eiciency analysis for improved
we’re using to make more accurate Rockerbox incrementality. measurement.
decisions. data.

Trupanion x Bamboo | Rockerbox

BI reports led to over investments in Search over social [Channel]
● Insights:
○ Budget decisions were mostly made based on BI data, next
step was to analyze channels.
○ BI consistently showed great performance for Paid Search
($125) and underperformance for Paid Social ($546)
○ User Journey reports showed that both channels
complement each other and are closer to each other in
eiciency when factoring in first and middle touch points.
○ Over-emphasis on optimizing BI CPE, resulted in -80%
budget cut to the Paid Social program from May to June
○ The paid social program benefits from consistent budgets
MoM as shown in April -> May.

CPE Averages Paid Search Paid Social

BI $125.94 $546.24
Platform $143.20 $55.54
Rockerbox $168.79 $177.85

Budget Decisions
Bamboo Example: Leveraging Benchmark Data

Search Demand by Region Competitor Brand Search Competitor Investments

Insight: Spending too much in Canada and Insight: Company was second most Insight: Peers investing 4x more in US
on Brand Search given limited volume. searched brand in the US. Google Search

● Re-allocated 15% of CAN Brand ● No increase in US budget after 10%

● Used the search volume gap to set
budget to Generic, with plans to increase due to highly competitive US
our impression share targets.
continue testing gradually. market and high CPC/CPA. (Found via
● Plan top-of-funnel investments into
● Started testing 10% of Canada industry & own Benchmarks)
our channel mix.
budget in the US to see if we could ● Decided to test Value Based Bidding in
remain under target CPE in the US to account for higher CPA.
competitive US.