Embed Size (px)
DESCRIPTION
Smx West 2014 Session #Smx #21B - Keeping Your Edge Sharp: Revisiting Fundamentals Of Paid Searchpresentation Former Ppc Best Practices Gone Wild By Larry Kim @@Larrykim Of Wordstream
Citation preview
CONFIDENTIAL – DO NOT DISTRIBUTE 1
Former PPC Best Practices
Gone WildLarry Kim, Founder/CTO,
WordStream
March 12, 2014
@larrykim
Epiphany #1:
Value of Quality
Score in 2014
Avg. Quality Score Has Been Falling.
• Today, average score is 5/10. Previously was 7/10
Larry Kim (@larrykim)
CONFIDENTIAL – DO NOT DISTRIBUTE 7
The Impact of Quality Score on Cost Per Conversion
Larry Kim (@larrykim)
Epiphany #2:
Google Expects
(Much) More Of
Your Ads
Which Ad Wins?
a)Ad A
– 32,423 Impressions
– 453 clicks (1.4% CTR)
– Average Position: 2.8
b)Ad B
– 36,223 Impressions
– 760 clicks (2.1% CTR)
– Average Position: 3.0
Larry Kim (@larrykim) #wordstream
Trick Question! Both Ads Suck.
• Neither ad is worth declaring a “Winner”.
• Not even the 2.1% CTR in the 3.0 Avg. Position.
• Why??
Larry Kim (@larrykim)
What’s a Good CTR?
Larry Kim (@larrykim)
• Even the “Winner” is a Loser!
CONFIDENTIAL – DO NOT DISTRIBUTE 13
Even the “Winning” Ad is a Loser!
Larry Kim (@larrykim) #wordstream
Epiphany #3:
What’s a Good
CTR These Days?
(You’d be
surprised)
What’s a Good Search CTR? (Account Avg. CTR’s)
Larry Kim (@larrykim)
But Lots of Variance!!
Larry Kim (@larrykim) #wordstream
Under-Performing vs. Unicorns
Percentile Vs. ExpectedCTR
Name
Bottom 50% Below Expected CTR
Under-Performing Advertisers
Top 15% 2X Higher Awesome Advertisers
Top 5% 3x Higher Super Awesome Advertisers
Top 1% 6x Higher!! Unicorns
Larry Kim (@larrykim) #wordstream
@larrykim
Unicorns?!
(6x Avg. CTR!)
What Unicorns (Top 1%) Look Like
Larry Kim (@larrykim) #wordstream
Epiphany #4
Quality Score is
Mostly Just About
Getting Above
Average CTRs!
QS is Based on Your CTR vs. Expected CTR!
Larry Kim (@larrykim)
Ad Text Testing
• Same Story – 20% of Ads Generate 92% of Spend
• 20% of Ads Generated 65% of Impressions
• But CPA, CTR, and Conversion Rates vary
@larrykim, @perrymarshall
1. Keywords With High Commercial Intent
Larry Kim (@larrykim) #wordstream
2. Dynamic Keyword Insertion (DKI)
Larry Kim (@larrykim) #wordstream
2. DKI Doesn’t Produce As Many Unicorns
Larry Kim (@larrykim) #wordstream
3. Ad Extensions Impact on Quality Scores
Larry Kim (@larrykim) #wordstream
3. Ad Extensions Impact on Click Through Rate
Larry Kim (@larrykim) #wordstream
Epiphany #5
How To Write
“Unicorn” Ads
4. Most Ads Suck. Create Emotional Ads.
30
Creating “Emotional” Ads
An Example:
Larry Kim (@larrykim)
Versus…
Larry Kim (@larrykim)
Epiphany #6
“Always Be
Testing”?
Relative Abundance
Name Percentile RelativeAbundance
Vs. ExpectedCTR
Awesome Ads
Top 15% 1:6.7 2X Higher
Super Awesome Ads
Top 5% 1:20 3x Higher
Unicorns Top 1% 1:100 6x Higher!!
Larry Kim (@larrykim)
Epiphany #7
You Need To Test
100 Ads To Find 1
Unicorn. You need
one Great Ad.
You’re Not Testing as Many Ads as You Think…
Larry Kim (@larrykim)
Epiphany #8
It’s Not as Hard
As You Think
Most Small Businesses Aren’t That Active
Larry Kim (@larrykim)
85% of Impressions are From 5% of Ads
Larry Kim (@larrykim)
Epiphany #9
How to Scale
Your PPC?
Quick Recap
1. Above Average CTR Keyword/Ads = Great Success.
2. Below Average CTR Keyword/Ads = Train Wreck
3. So … Delete the bottom third of your account and re-deploy that spend to remarketing
Larry Kim (@larrykim)
Average CPC’s by Industry and Network
Larry Kim (@larrykim)
Average Conversion Rates by Industry
Larry Kim (@larrykim)
Average CPA’s for Search & Display, by Industry
Larry Kim (@larrykim)
Your Questions
Thank You SMX!
Benchmark your AdWords account today!
http://www.wordstream.com/google-adwords
Larry Kim
http://twitter.com/larrykim
Larry Kim (@larrykim)
