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Paid search best practices are crucial to your success, but no longer sufficient. If you are spending money on PPC but not actively evaluating the competitive landscape for risks and opportunities you will quickly fall behind. In this webinar, WordStream's founder Larry Kim joins up with competitive intelligence experts at SEMrush to bring you a completely new approach to PPC advertising. They'll share the 4 most important strategies for a comprehensive, holistic approach to paid search sure to make you the leader in your market. You’ll learn how to: -Analyze the competition’s performance and strategy -Assess and optimize your campaign performance -Apply PPC best practices -And repeat. adjusting to trends and changes in your market Visit www.wordstream.com for more details.
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#PPCcompetition
Brought to you by:
www.wordstream.com/learn
4 Steps to Outrank the PPC
Competition: Assess, Apply,
Analyze, Adjust
www.wordstream.com/learn
Want to get smart in paid search?
#PPCcompetition
Larry KimCTO and Founder, WordStream
@larrykim
Today’s Panelists:
Michael StrickerMarketing Director, SEMrush
@RadioMS
#PPCcompetition
PPC Competition:
Internal vs. External
View
PPC Competition:
Internal vs. External View
• Internal: Are my Key Performance Metrics any Good or Not vs. my competitors?
• External: What are my competitors doing?
#PPCcompetition
Google Keeps Advertisers in the Dark
#PPCcompetition
Not Much Transparency Around How
Things Really Work
#PPCcompetition
Example: Which Ad Wins?
•Ad A• 2,423 Impressions• 453 clicks (1.4% CTR)• Average Position: 2.8
•Ad B• 36,223 Impressions• 760 clicks (2.1% CTR)• Average Position: 3.0
#PPCcompetition
•Neither ad is worth declaring a “Winner”
•Not even the 2.1% CTR in the 3.0 Avg. Position
Trick Question: They Both Suck
Why??
#PPCcompetition
Because Competitors are Kicking
Your Butt
#PPCcompetition
Even Your “Winning” Ad is a Loser!
#PPCcompetition
Because Competitors are Kicking Your Butt
Forest vs. Trees
So What is a Good
CTR These Days?
#PPCcompetition
Higher Than Most Would Expect
#PPCcompetition
Some Competitors Doing 2x, 3x, 6x Better
#PPCcompetition
Unicorn vs. Donkey PPC Accounts
Percentile Vs. Expected CTR Name
Bottom 50% Below Expected CTR Donkeys
Top 15% 2X Higher Good
Top 5% 3x Higher Really Good
Top 1% 6x Higher!! Unicorns
#PPCcompetition
Why Should I Care
About High CTR?
#PPCcompetition
Because Quality Score is Calculated
Based on Beating The Average.
It’s Graded on a Curve.
#PPCcompetition
Why Should I Care
About High Quality
Score?
#PPCcompetition
Quality Score Impacts CPC
[graphic]
#PPCcompetition
QS Impacts Ad Position
[graphic]
#PPCcompetition
QS Impacts Cost Per Conversion
[graphic]
#PPCcompetition
QS Impacts Impression Share
[graphic]
#PPCcompetition
[graphic]
QS Matters 2x More on Mobile
#PPCcompetition
What’s an Average
Quality Score?
#PPCcompetition
It’s Been Falling. Today: 5/10
[graphic]
#PPCcompetition
Winners and Losers in the AdWords Game
• Lower CTR vs. Competitors = Low Quality Score
• Low Quality Score means…• Less prominent ad positions
• Very low impression share
• Huge CPC penalties (+400% Tax)
• High Cost Per Conversion (+64%)
#PPCcompetition
Beating Your Competition is the Key to
Everything*
• Be Very Picky. Bid on Only High Commercial Intent Keywords and Get HIGH CTRs.
• Delete Junk Keywords (Bottom Third of your Account)
• PRO TIP: Use impression weighted average quality scores for Campaigns & Accounts (ignore keyword-level QS)
#PPCcompetition
Is My Conversion
Rate Any Good?
#PPCcompetition
Typical Conversion Rate for PPC
#PPCcompetition
Donkeys vs. Unicorns
Donkeys vs. Unicorns
Distribution
Point
Conversion
RateVs Average Comments
Average 2.35% Donkeys
Top 25% 5.31% 2x Good
Top 10% 11.45% 3-5x Unicorns!!
#PPCcompetition
Top 10% of Accounts have 3-5x
Conversion Rate!
Distribution Point
All accounts Ecommerce Legal B2B Finance
Median Conversion
Rate
2.35% 1.84% 2.07% 2.23% 5.01%
Top 25% Conversion
Rate
5.31% 3.71% 4.12% 4.31% 11.19%
Top 10% Conversion
Rate
11.45% 6.25% 6.46% 11.70% 24.48%
#PPCcompetition
Aim For 3-5x Increases! (not 3-5%)
#PPCcompetition
Am I Doing Enough
Work?
#PPCcompetition
What PPC Marketers Say They Do vs.
What They Actually Do!
#PPCcompetition
Exhibit A: Self Reported PPC
Management Activities
#PPCcompetition
Exhibit B: What They’re Really Doing
#PPCcompetition
The Bar is Very Low
#PPCcompetition
What’s an
Average CPC?
#PPCcompetition
Average Cost Per Click
Industry Google Search Display Network
Finance $3.09 $1.03
Travel $0.29 $0.28
Shopping $0.25 $0.27
Jobs & Education $1.80 $0.34
Internet & Telecom $1.11 $0.40
Computers & Electronics $1.29 $0.44
Business & Industrial $1.67 $0.97
Home & Garden $0.76 $0.83
Autos & Vehicles $0.97 $1.03
Beauty & Fitness $1.11 $1.01
#PPCcompetition
What’s an
Average
Conversion Rate?
#PPCcompetition
Average Conversion Rates
Industry Google Search Display Network
Finance 6.12% 5.12%
Travel 1.45% 2.99%
Shopping 3.58% 2.19%
Jobs & Education 6.09% 2.09%
Internet & Telecom 6.27% 8.59%
Computers & Electronics 4.79% 2.96%
Business & Industrial 4.23% 4.10%
Home & Garden 2.21% 3.43%
Autos & Vehicles 4.29% 6.15%
Beauty & Fitness 4.56% 2.27%
#PPCcompetition
What’s an Average
CPA?
#PPCcompetition
Average Cost Per Conversion
Industry Google Search Display Network
Finance $50.49 $20.12
Travel $20.00 $9.36
Shopping $6.98 $12.33
Jobs & Education $29.56 $16.27
Internet & Telecom $17.70 $4.66
Computers & Electronics $29.02 $14.86
Business & Industrial $39.48 $23.66
Home & Garden $34.39 $24.20
Autos & Vehicles $22.61 $16.75
Beauty & Fitness $24.34 $44.49
#PPCcompetition
Don’t Settle For Average. Be The Unicorn Among a Sea of Donkey Advertisers.
www.wordstream.com/google-adwords www.wordstream.com/landing-page
Grade Your AdWords Account Grade Your AdWords Landing Pages
#PPCcompetition#PPCcompetition
Analyze From Without(Look externally)
Google’s 2013 revenue
exceeded $57 billion__________
90% of that from Ads
#PPCcompetition
PPC Advertising is a key
component for 48% of
Marketers*
*MarketingSherpa 2012 Lead Generation Benchmark Report
#PPCcompetition
..66% of those marketers
were dissatisfied, finding
their ad campaigns only
somewhat effective to
not effective……..
at all
#PPCcompetition
We could all learn a lesson from the
32% who labeled their PPC
as “very effective”.
Harness the power of competitive
intelligence for your PPC campaign
• Relevant keyword research
• Traffic estimations at domain and keyword level
• Spend trends
• Budget comparisons
• Real-world, crowd-sourced campaign ideas.
#PPCcompetition
Whatever tool you use, the data must be:
• Big (106M U.S. keywords)
• Fresh (popular terms daily)
• Growing (add new terms)
#PPCcompetition
• Showing Ads (historical trends)
Whatever tool you use, the data must be:
#PPCcompetition
• Tied to Domains (40M U.S.)
• Linked to Landing Pages
Whatever tool you use, the data must be:
#PPCcompetition
• Estimate Traffic by keyword
• Estimate Level of Competition
Whatever tool you use, the data must be:
#PPCcompetition
• Estimate Spends, domain-level
• Estimate Spends, keyword-level
#PPCcompetition
Seek Rewards
While Minimizing
Risk
Identify True Competitors…
Crush the rest
• Business Competitors
• Logically Unrelated Businesses
• Ambiguated entities
• Aggregators, catalogs and resellers
• Homographs (e.g. bar)
#PPCcompetition
That’s the First Power of
Competitive Intelligence
But wait, there’s more
#PPCcompetition
Analyze
AssessApply
Again
Again and Again
#PPCcompetition
“We look at the present
through a rear view mirror;
we walk backwards into the
future”
~ Marshall McLuhan
#PPCcompetition
Bring your success full-cycle
• Competitive research to periodically sample the market
• Detect spend reallocations
• Use trends to detect market changes
• Keyword research to take advantage of semantic shifts.
#PPCcompetition
What changes?
How customers use keywords
• New Opportunities Open Up
• Grab the ‘first-in’ advantage
“Over 15% of daily searches
are for new terms.”
#PPCcompetition
How customers use keywords
• Old standby’s start to decay
• Competitive research to prove the value of alternative keywords
• Trends!
#PPCcompetition
Pride comes before the fall
• The cleverest phrases are not the smartest strategy
#PPCcompetition
Trademark Hijacking
• How competitors use keywords
#PPCcompetition
Final takeaways
1. Sit “at the shoulders” of searchers
2. Use data with broad reach across millions of keywords
3. Track results historically to capture trends that can be judged for their severity and established reliability
#PPCcompetition
There is no end…
• Bring it Full Cycle
• Increased revenue AND reduced risk? What advertiser can’t get behind that?
#PPCcompetition