Effective SEM for E-Commerce

Bidding Strategy & Integrated Search

SEM at its core

Adrank = Bid x Quality Score(it’s not about the money, it’s about quality)

Advertiser Max CPC Quality Score Ad rank Position

Advertiser A $0.40 6 $0.40 x 6 = 2.4 1

Advertiser B $0.35 5 $0.35 x 5 = 1.8 2

Advertiser C $0.80 2 $0.80 x 2 = 1.6 3

Advertiser D $1.00 1 $1.00 x 1= 1 4

Advertiser E $0.05 5 $0.05 x 5 = .3 5

Advertiser F $0.10 2 $0.10 x 3 = .2 6

What affects Quality Score? Campaign structure Ad copies Landing Pages The bid itself

Actually, it’s the fucking CTR

Effective Campaign Structure

Thoi Trang Nam

Ao So Mi Ao Khoac Quan Jeans Ao Thun Quan

Short Quan Tay Cong So

Brands

Blue Exchang

eMattana G2000 Owen

Granularity is key Rule of Thumb: max 15 KWs & min 4 ad copies/ ad group |

consider DKI Use Ad Group Ideas in GKT for easier setup

Effective Ad copies KW should be in headline, preferentially on

the left Strong USP & CTA Promotional messaging whenever applicable A/B Test ad copies for better conversions

Landing Pages Use the most detailed page available (product

KWs to product pages, category KW to category pages, brand KWs to search result pages, etc.)

Optimize landing pages for conversion: Are we happy with the CR of the page(s)? What can be improved on? (CTA button, Page

headline, overall layout, video vs images, KW/ Ad Copy match with Page Content, etc.)

A/B Test all the time: Google Content Experiment, Visual Website Optimizer, Optimizely, etc.

Bidding Strategies Top – Down bidding (higher bid then lower over time: plz ask

WHY if I forget to explain :D) Bidding Steps:

Set bids (ad groups) and let the campaign run for a period of time (depending on your conversion cycle)

Identify converting KWs & their CPA If KW’s CPA is higher than targeted CPA check QS (can we improve QS

to lower bid?) and search term report (are there terms getting clicks but not conversions?)

If all fails, use Bid Simulator to lower bid or kill the KW If KW’s CPA is lower: check QS (can we still squeeze it?) and STR (can

we still fucking squeeze it) and finally raise the bid to targeted CPA (why waste the opportunity?) and higher position (more conversions)

Non-converting KW: if it costs too much, kill it. If cost is trivial, give it a second chance (maybe volume is small but hopefully can convert)

Consider Conversion Optimizer when you think the campaign performs well and need more time on the beach

Optimization in practiceKeywor

d Clicks CTRAvg. CPC Cost A.P QS C CC CR What to do? (assuming target CPA = 0.4)

KW1 440 1.17% 0.02 10.91 2.07 10 24 0.44 5.68%QS = 10 & P = 2 raise bid to improve

position & ctr? Check search term reportKW2 406 7.44% 0.02 6.27 1.85 10 22 0.28 5.42% Raise bid to bring up volumeKW3 246 8.32% 0.02 5.38 2 10 25 0.1911.38% Raise bid to bring up volumeKW4 261 11.36% 0.02 5.06 1.27 10 6 0.84 2.30% WTF? Check STR! Murder candidate KW5 208 6.67% 0.02 3.28 2.29 10 20 0.1411.06% Raise bid to bring up volumeKW6 117 7.12% 0.03 3.07 2.73 10 13 0.1913.68% Raise bid to bring up volumeKW7 148 20.22% 0.02 2.91 1.21 10 11 0.24 8.11% Raise bid to bring up volumeKW8 172 2.55% 0.01 2.28 1.93 10 2 1.14 1.16% WTF? Check STR! Murder candidate

KW9 219 0.41% 0.01 2.19 1.51 4 2 1.1 0.91%

Check to see if QS can be improved. No need to raise bid as POS is already 1.

Otherwise, kill it KW10 195 14.67% 0.01 2.16 1.22 10 15 0.12 9.23% Raise bid to bring up volumeKW11 103 10.40% 0.02 2.02 1.12 10 1 2.02 0.97%KW12 137 16.83% 0.01 1.93 1.3 10 15 0.1211.68% Raise bid to bring up volumeKW13 84 2.81% 0.02 1.67 2.42 10 4 0.42 4.76% Check STR if we can squeezeKW14 129 4.02% 0.01 1.57 1.84 10 9 0.17 6.98% Raise bid to bring up volumeKW15 115 2.15% 0.01 1.55 4.47 10 9 0.14 9.57% Raise bid to bring up volumeKW16 152 4.34% 0.01 1.52 1.22 7 3 0.51 1.97% Improve QS, check STRKW17 107 2.92% 0.01 1.48 1.1 10 0 0 0.00% Non-converting, kill itKW18 81 12.29% 0.02 1.46 2.59 10 9 0.1611.11% Raise bid to bring up volumeKW19 106 17.76% 0.01 1.34 1.54 10 8 0.15 8.49% Raise bid to bring up volumeKW20 119 13.55% 0.01 1.33 1.64 10 11 0.1110.08% Raise bid to bring up volume

For KWs that we can raise bids, use Bid Simulator

Use search terms report to identify KWs for negative filteringSearch Terms Clicks CTR Avg. CPC Cost Pos QS C CC CR

Search Term 1 440 1.17% 0.02 10.91 2.07 10 24 0.44 5.68%

Search Term 2 406 7.44% 0.02 6.27 1.85 10 22 0.28 5.42%

Search Term 3 246 8.32% 0.02 5.38 2 10 25 0.19 11.38%

Search Term 4 261 11.36% 0.02 5.06 1.27 10 6 0.84 2.30%

Search Term 5 208 6.67% 0.02 3.28 2.29 10 20 0.14 11.06%

Search Term 6 117 7.12% 0.03 3.07 2.73 10 13 0.19 13.68%

Search Term 7 148 20.22% 0.02 2.91 1.21 10 11 0.24 8.11%

Search Term 8 172 2.55% 0.01 2.28 1.93 10 2 1.14 1.16%

Search Term 9 219 0.41% 0.01 2.19 1.51 4 2 1.1 0.91%

Search Term 10 195 14.67% 0.01 2.16 1.22 10 15 0.12 9.23%Search Term 11 103 10.40% 0.02 2.02 1.12 10 1 2.02 0.97%

Search Term 12 137 16.83% 0.01 1.93 1.3 10 15 0.12 11.68%

Search Term 13 84 2.81% 0.02 1.67 2.42 10 4 0.42 4.76%

Search Term 14 129 4.02% 0.01 1.57 1.84 10 9 0.17 6.98%

Search Term 15 115 2.15% 0.01 1.55 4.47 10 9 0.14 9.57%Search Term 16 152 4.34% 0.01 1.52 1.22 7 3 0.51 1.97%

Search Term 17 107 2.92% 0.01 1.48 1.1 10 0 0 0.00%

Search Term 18 81 12.29% 0.02 1.46 2.59 10 9 0.16 11.11%

Search Term 19 106 17.76% 0.01 1.34 1.54 10 8 0.15 8.49%

Search Term 20 119 13.55% 0.01 1.33 1.64 10 11 0.11 10.08%

CPA Elasticity of Volume Tough question: at what cost can we achieve

maximum profit? Food for thought: does low CPA means

success? Micro-Economics 101: Price Elasticity of

Demand

Price Elasticity of Demand

CPA Conversions Revenue20 200 4,00018 280 5,04016 360 5,76014 440 6,16012 520 6,24010 600 6,0008 680 5,4406 760 4,560

 

A/B Test CPAs for better sales & profits

Integrated SEM - SEO Keyword Selection Meta-description to improve SEO CTR SEM on site-branded KW

SEM for SEO KW Research SEO keyword research alone is almost like guess-

work: Should we target head-terms or long-tail? Competitive analysis Commercial value Overall, it takes 2-3 months to see if certain KWs can sell

Enter SEM: We know exactly what KWs bring in sales We can estimate sales volume once the KW is organically

optimized to be top 3 (click volume distribution) Investment in SEM is not a big deal compared to link-

building for KWs that we have no idea about No SEM budget? Get your brands to top and monitor

organic conversions

Integration Model 1: High cost/Low return PPC to SEO

Integration Model 2: Top Performers

Borrow SEM ad copies for better SEO meta-desc (and other content section like Title, H1, Body)

A/B Test Meta-desc takes time for the pages to be re-crawled

SEM for site-branded KWs? Ideally, always go for the combination To prevent competitors from hijacking your

branded traffic (especially when you cannot trademark the brand)

To immediately update promotional / branding messages that you cannot tight into meta-desc