PPC Masters PPT

MANAGING EFFICIENCY & VOLUME

MATT UMBRO, FEBRUARY 12, 2015

INTRODUCTION

MATT UMBRO

SENIOR ACCOUNT MANAGER,

COMMUNITY @ HANAPIN MARKETING

PPCCHAT FOUNDER

@Matt_Umbro

@Matt_Umbro

INTRODUCTION

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AGENDA

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• ROI VS REVENUE GROWTH

– DEFINITIONS

– DIFFERENCES

• CASE STUDY

– DATA & GRAPHS

– CONCLUSION

• TACTICS

• TAKEAWAYS

ROI VS REVENUE GROWTH

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ROI VS REVENUE GROWTH

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IMPROVING ROI MEANS SACRIFICING VOLUME

TO ATTAIN BETTER EFFICIENCY

ROI VS REVENUE GROWTH

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IMPROVING REVENUE MEANS POTENTIALLY

SACRIFICING EFFICIENCY TO GARNER MORE

VOLUME

ROI VS REVENUE GROWTH

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BUT HOW CAN THESE 2 COEXIST?

CASE STUDY

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CASE STUDY

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• ECOMMERCE CLIENT

• ROI AND REVENUE ARE PRIMARY GOALS –

ALL OTHER METRICS ARE SECONDARY

• JULY AND AUGUST ARE SLOW WHILE

TRAFFIC PICKS UP IN SEPTEMBER

• OCTOBER IS SLOWEST MONTH OF YEAR

• TRAFFIC PICKS UP IN NOVEMBER

CASE STUDY

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$0.00

$10,000.00

$20,000.00

$30,000.00

$40,000.00

$50,000.00

$60,000.00

$70,000.00

$80,000.00

$90,000.00

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

July Aug Sept Oct Nov Dec Jan

Clicks vs. Cost by Month

Clicks

Cost

CASE STUDY

@Matt_Umbro

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

$0.00

$100,000.00

$200,000.00

$300,000.00

$400,000.00

$500,000.00

$600,000.00

July Aug Sept Oct Nov Dec Jan

Revenue vs. Transactions by Month

Revenue

Transactions

CASE STUDY

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TRAFFIC INCREASED, BUT WHAT ABOUT

EFFICIENCY?

CASE STUDY

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$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

July Aug Sept Oct Nov Dec Jan

Clicks vs. Cost per Click by Month

Clicks

Cost per Click

CASE STUDY

@Matt_Umbro

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$0.00

$100,000.00

$200,000.00

$300,000.00

$400,000.00

$500,000.00

$600,000.00

July Aug Sept Oct Nov Dec Jan

Revenue vs. AOV by Month

Revenue Average Order Value

CASE STUDY

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0.00%

100.00%

200.00%

300.00%

400.00%

500.00%

600.00%

700.00%

$0.00

$100,000.00

$200,000.00

$300,000.00

$400,000.00

$500,000.00

$600,000.00

July Aug Sept Oct Nov Dec Jan

Revenue vs. ROI by Month

Revenue

ROI

CASE STUDY

@Matt_Umbro

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

July Aug Sept Oct Nov Dec Jan

Transactions vs. Cost per Transaction by Month

Transactions Cost per Transation

CASE STUDY

@Matt_Umbro

• AS WE ACCRUED MORE TRAFFIC AND WENT

FOR A GREATER SHARE OF THE

MARKETPLACE, COST PER CLICK

INCREASED

• TRANSACTIONS AND REVENUE FOLLOWED

SEASONAL TRENDS

CASE STUDY

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• CONVERSION RATE STEADILY INCREASED

FROM JULY TO JANUARY

• AOV INCREASED MONTH OVER MONTH,

ALLOWING ROI TO REMAIN CONSISTENT

• COST PER TRANSACTION STEADILY

INCREASED MONTH OVER MONTH DUE TO

GREATER VOLUME OF CLICKS AND HIGHER

AVERAGE COST PER CLICKS

TACTICS

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TACTICS

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SHOPPING CAMPAIGNS

• SEGMENT BY AD GROUP

• SUBDIVIDE TOP PERFORMERS

• LIBERALLY EXCLUDE KEYWORDS AND

PRODUCTS

• UPDATE THE FEED!

PRODUCT RATINGS

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PRODUCT RATINGS

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• BAZAARVOICE

• EKOMI

• FEEFO

• POWERREVIEWS

• REEVOO

• RESELLERRATINGS

• SHOPPERAPPROVED

• TURNTO

• VIEWPOINTS

• YOTPO

PROMOTIONS

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PROMOTIONS

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GOOGLE TRUSTED STORES

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DYNAMIC REMARKETING

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DYNAMIC REMARKETING

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DYNAMIC REMARKETING

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• ALWAYS TEST AT LEAST 2 – 3 SETS OF ADS

• USE A TRANSPARENT LOGO

• TEST USING SAME BUTTON COLOR IN YOUR

ADS AS ON SITE

• EXCLUDE POORLY CONVERTING

PLACEMENTS

RLSA

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CTR

CONVERSION RATE

ROI

COST PER CONVERSION

COST PER CLICK

RDSA

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RDSA COMPARED TO RLSA

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REVENUE

CTR

CLICKS

COST PER CONVERSION

COST PER CLICK

ROI

CONVERSION RATE

REMARKETING BETAS

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• REMARKETING LISTS

FOR PLAS

• RLSA USING GOOGLE

ANALYTICS

DSA

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DSA

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DSA

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TOP OF FUNNEL

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TOP OF FUNNEL

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TOP OF FUNNEL

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TAKEAWAYS

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TAKEAWAYS

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• RAPID REVENUE GROWTH IS POSSIBLE BUT

AT LEAST ONE EFFICIENCY METRIC WILL BE

IMPACTED

• WHEN PUSHING VOLUME, BUILD AND

ITERATE

• TOP OF FUNNEL CAMPAIGNS ARE

NECESSARY WHEN PUSHING VOLUME

TAKEAWAYS

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• EVEN THOUGH LAST CLICK METRICS WON’T

BE GREAT, TOF CAMPAIGNS HELP IN OTHER

AREAS

• HIGHER BIDS DON’T ALWAYS EQUAL

PROPORTIONAL REVENUE GROWTH

• AS ALWAYS, ENSURE A SOLID ACCOUNT

FOUNDATION

THANK YOU

MATT.UMBRO@HANAPINMARKETING.COM

@Matt_Umbro

@Matt_Umbro