Are You Spending Your PPC Budget Wisely?

Presenters:

Larry Kim | Founder, CTO of WordStream

Carrie Albright | Writer and Account Manager at PPC Hero & Hanapin Marketing

Are You Spending Your PPC Budget Wisely?Best practices and creative tips for PPC budget management!

&HOSTED BY:

• How much budget do I need to get started in PPC?• How Impression Share Impacts Budgeting Decisions• X vs. Y – Things to Consider When Setting Budgets

– High Funnel Keywords vs. Money Keywords vs. Branded Terms– Search vs. Display– Bing vs. AdWords– Mobile vs. Desktop (including tablet)

• How Your PPC Budget impacts your PPC Management Model

Today’s Agenda

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Speaker Introductions

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• Larry Kim – Founder, CTO, WordStream, Inc.– Been doing PPC & SEO for 10 Years!– 3 Years ago, started WordStream!– Today we’re an industry-leading provider of a

PPC Management Platform and Keyword Research Tools

• Carrie Albright– Account Executive at Hanapin Marketing and

Blogger at PPC Hero– PPCHero.com is the leading site for PPC

Strategies, News and Information

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Take Part in Live Blogging on Twitter / Google+

• Include the hashtag #ppcclinic in your Twitter tweets, Google+ status updates, etc.

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Live-Poll Question 1

Question: What’s Your PPC Budget (in USD)?

a) Below $1000 / monthb) Between $1001 – 2500 / month c) Between $2501- 25,000 / monthd) More than $25,000 / monthe) $0. Not Currently Doing PPC Marketing

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Live-Poll Question 2

Question: What most frequently limits your budgets?a) Budget shared across multiple channels (PPC, SEO, etc)b) Performance not justifying expansionc) Nervousness about the effectiveness of expanding d) Lack of knowledge where to invest next in PPC

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Where to Start?

Leads

Visitor Frequency

Buying

Cycle

Geo

Quality

CPL

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Beginning At The Beginning

Questions you’re already asking:• What can I afford to spend? • What’s my CPL? • How do I place value on a “lead?”Questions to ask yourself:• How many leads am I expecting to bring in?• What is my current “conversion rate?”• How many leads do I need through PPC?• What can I afford to spend for each lead (CPL)?

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Calculations

Daily Budget = $1388

… … and now, Optimization Time!

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What affects how you value your leads?

• Geography – are your leads more or less relevant based on location?

• Frequency of interaction – do most leads have a complicated attribution system?

• Bounce rate/Time on site – what behavior does your user have post-click?

• Precedence – what have you seen to be qualified in the past?

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SegmentationNegativesPlacementsDay parting: time of day & day of week

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Day of Week Segmentation

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Growth OpportunitiesAdWords Tools: Estimations!

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It is estimated that doubling our budget, will lead to double our clicks.Keeping our conversion rate constant, our conversions are expected to increase by …

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Daily maintenance

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Overarching Strategies

• How can you better define your quality of leads?

• How can you identify your marginal gain from each dollar spent?

X vs. Y – Key Micro Level Budgeting Issues

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• High Funnel Keywords vs. Money Keywords vs. Branded Terms• Search vs. Display• Bing vs. AdWords• Mobile vs. Desktop (including tablet)

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1. High Funnel Keywords vs. Money Keywords vs. Branded Term Budget

The Basic Setup

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My Search Campaign Budget Model

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• Branded Searches Raise Account CTR• High Funnel Keywords = lower QS (higher cost) and push to

informational offers (lower value)• Low Funnel Keywords = more competition but higher QS and

push to demos (higher value)

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Raise/Lower Your Allocations if…High Funnel Keywords

Lower Funnel Keywords

Branded Search

Raise if… Lower if… Raise if.. Lower if… Raise if.. Lower if…

You’re doing lead generation

You're doing ecommerce

You're doing ecommerce

You’re doing lead generation

Competitors are bidding on your brand terms

You don’t have a brand

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2. Search vs. Display Budget

My Search vs. Display Model

• Warning: this is a bit of an unusual allocation

• We use remarketing as Conversion Rate Optimization to convert other traffic

• Average display share on GOOG is only 19.25%

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Raise/Lower Your Allocations Depending on Industry…

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Raise/Lower Your Allocations Depending on Competition…

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Don’t Even Bother With Display If..• You have a small budget (<1k / month)• Don’t do Managed Placements, Similar

Audiences, Interests (etc.) until you’ve exhausted Remarketing

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3. Bing/Yahoo vs. AdWords Budget

Bing/Yahoo Market Share Statistics for July 2013

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Bing/Yahoo Market Share Statistics for July 2013

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• 10.3% of our Client Spend Goes to Bing as of Last month

Raise/Lower Your Allocations if…Bing/Yahoo Google AdWordsRaise if… Lower if… Raise if.. Lower if…

You’re in an industry that Bing does well in (eg: Travel, Health, Entertainment, etc.)

You have a small budget (<2k)

You have a low impression share and your campaigns are doing OK

You want to diversify risk

Google is too competitive or too restrictive

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4. Mobile vs. Desktop

Mobile % Changing Rapidly

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No Longer an Issue with Enhanced Campaigns

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• Mobile and Desktop run in the same campaign!

Mobile vs. Desktop Now More of a Bidding Issue

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Things To Consider:• Are you a local business?• Do you have a call

center?• Do you sell to higher net

worth demographics?• What’s the ROI of your

mobile searches?

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5. How Budget Impacts PPC Management Model

Example 1: Lower PPC Budget

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– Assume $2500 / month PPC Spend– So, $30k / year PPC budget– Hiring a Dedicated PPC Manager for

$60k / year would TRIPLE your PPC spend– Agencies Typically Charge as a Percentage

of Ad Spend (e.g.: 10%) so $250 / month – No Agency will take on a client for $250 /

month.– Only options are DIY and Software like

WordStream, etc.

Example 2: Higher PPC Budget

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– Assume $50k/ month PPC Spend– So, $600k / year PPC budget– Hiring a Dedicated PPC Manager for

$60k / year would be 10% of PPC budget– Agencies would also Charge around 10%

of ad spend– Totally realistic to expect > 10%

improvement

WordStream PPC Advisor

SaaS platform connects to existing AdWords or Bing accounts

Alert driven. New alerts generated every week. “Make it so”

20 minutes a week equals PPC success!

$299/$499/$999/mo

Premiere Support (monthlycheck-ins)

Struggling with PPC? Let our software do all the work!CONFIDENTIAL – DO NOT DISTRIBUTE 38

Free Tools - AdWords Performance Grader

One of a kind, free performance grader

Deep analysis in 8 key performance areas

Compares businesses to industry benchmarks

Provides actionable recommendations

Biggest Insight: Big opportunities for improvement

Provide your AdWords credentialsInstant Report Card – On Demand

CONFIDENTIAL – DO NOT DISTRIBUTE 39

See how your account measures up! www.wordstream.com/google-adwords

Live-Poll Question 3

Question: Would you like…a) WordStream: Free Trial of PPC Advisorb) Hanapin: Free one-on-one account assessment ($20k+ spend)

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"After multiple negative agency experiences, the team at Hanapin stepped up to the plate and delivered the level of service and attention we had been looking for!"

- Stephen Ebbett

Thank you for attending WordStream & Hanapin Marketing’s Webinar on PPC Budgeting.

Don’t forget to sign up for a Free Trial of WordStream:http://www.wordstream.com/ppc-free-trial

Sign up for a Free Solutions Blueprint from Hanapin Marketinghttp://www.hanapinmarketing.com/solutions-blueprint-sign-up

“GASP! My AdWords click through rate is up 486% on the same period last year – mainly because I’m using @WordStream !”

-George Cole

Larry Kimlkim@wordstream.comhttp://twitter.com/larrykim

Carrie AlbrightCarrie.albright@hanapinmarketing.com