Google and WordStream Webinar:

3 Paths For Small Business PPC

Profitability

Howard Tung, Google

Larry Kim, WordStream

May 9, 2012

• Introductions

• Key Trends in Online Marketing for 2012 from

• Trivia & Poll

• 3 Paths for PPC Success

• Questions & Answers

Today’s Agenda

2

Take Part in Live Blogging on Twitter / Google+

• Include the hashtag #3pathsppc in your Google+ status updates,Twitter tweets,, etc.

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Speaker Introductions

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• Howard Tung

– 8+ years in Online industry with Google, Microsoft, and IGN Entertainment

– Recently joined Google in early 2010 to focus on Strategic Partnerships for Small-Medium Business/ Local Channel.

• 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

– WordStream helps people get their website found on the internet!

Let’s learn a little about you….

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Quick Poll

How long have you been involved with Search

Marketing?

o Less than 1 year

o 1-3 years

o 3-5 years

o 5+ years

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Quick Poll

How would you describe your Search Marketing

results?

o I’m new to Search Marketing

o Who knows – I don’t measure my results

o Disappointing – I expected so much more from PPC

o Satisfactory – I’m seeing return on my investment into

PPC

o Stellar – PPC is my most successful lead/traffic

generating channel

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Google Confidential and Proprietary

Digital Overview

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Acceleration of Everything

Google Confidential and Proprietary

Digital Revolution in Context

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Information “Read”

Distribution & Commerce

“Buy” Communication

“Talk”

1994 2010 1998 2000 2003 2006

1.9B Internet Users: 77M 400M 500M 1B

Google Confidential and Proprietary

The Connected World

> 2bn people

> 35bn devices

10 Source: “Learn from Google” Atlanta Event, 2011

Google Confidential and Proprietary

Ad spend is following consumers online

Source: eMarketer, March 2011; Share of Avg. Time Spent Per Day with Select Media by U.S. Adults vs. U.S. Ad Spending Share, 2010

11% magazines

43% tv

19% online

17% newspapers

11% radio

5% newspapers

3% magazines

43% tv

25% online

16% radio

0.5% mobile

8% mobile

gap between ad

investments and media

consumption

untapped audience consumers’ media consumption

advertising Investments

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Google Confidential and Proprietary

Source: *Yahoo! and com Score Study Finds Online Consumers Who Pre-Shop on the Web Spend More In-Store. July 2007. **Source: Google

1 in 5 desktop searches are related to location.**

1 in 3 mobile searches are related to location.**

97% online consumers use the web

to research for products.*

There is immense opportunity in Local

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Google Confidential and Proprietary

Healthy Y/Y grow in searches for “Local” verticals

Source: Google Internal Data, YoY is last 90 days 13

Ind

ex

ed

Qu

ery

Gro

wth

Google Confidential and Proprietary

The Four B’s

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Addressing the Local Opportunity

Google Confidential and Proprietary

The Four Be’s

Be Accountable

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Be Relevant Be Found

Be Engaging

> Be Engaging Be Accountable

Google Confidential and Proprietary

Be Found - Search

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• Search: Still the Web’s killer app

• Advertisers’ pay when users click on their ad & visit their page

Google Confidential and Proprietary

Be Found – G+ Pages

in the real world, people interact with businesses every day. google+ brings those rich relationships online.

• Start real conversations

• Inspire your customers to recommend new ones

• Boost the performance of your ads across the web

Google Confidential and Proprietary

Be Relevant - Mobile

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>

• Mobile: bigger than desktop within 3 years

• Mobile searches grew 500% in the last 2 years

• After looking up a local business on a smartphone, 61% of users called and 59% visited

Google Confidential and Proprietary

Time

Tra

ffic

7am

1pm

8pm

11pm PC

Mobile

Mobile allows for constant connectivity

Source: Internal Google Data 2010, typical across different markets

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Google Confidential and Proprietary

Mobile complements desktop

Source: Citi Investment Research and Analysis; iCrossing Mobile U.S. Google Internal Data, 2010

Weekly View

Desktop Searches vs. Mobile Searches

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Google Confidential and Proprietary

Be Engaging - Display

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• Google Display Network reaches over 90% of internet users

• Engaging ad formats – rich media, banner, and video ads

Google Confidential and Proprietary

Search5%

Email & IM20%

Commerce11%

Content38%

Community26%

•Nearly four in 10

Internet users who respond to online

display advertising learn about the

brand/SMB for the first time as a

result of their exposure to such an

ad.

•Nearly four in 10 Internet users eventually perform a

search on the company, product, or

service that is the focus of the online

display ad to which they are

exposed, and then visit the website

from the search results.

Think search + display

Reach customers while they explore their interest

95% of Time Online is Spent Outside of Search

Source: Online Publishing Association and Nielsen//NetRatings, August 2010; iProspect Research 2010

Google Confidential and Proprietary

Be Accountable - Measurement

Measure site performance and ROI

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Google Confidential and Proprietary

The Four Be’s

Be Accountable

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Be Relevant Be Found

Be Engaging

> Be Engaging Be Accountable

CONFIDENTIAL – DO NOT DISTRIBUTE 25

Sounds great but

how do I actually

DO this??

Do you understand these terms?

CONFIDENTIAL – DO NOT DISTRIBUTE 26

PPC Trivia! 5 Quick Questions about AdWords Accounts

1. How often do small businesses (spending

under $5k / month on AdWords) do work in

their AdWords account?

CONFIDENTIAL – DO NOT DISTRIBUTE 27

Answer:

• 50% of them don’t even check once per month

• 25% haven’t done anything in the last 90 days

• Agencies and advertisers appear to be equally

guilty...

PPC Trivia! (Continued)

2. What percentage of AdWords

accounts have used at least 1

negative keyword in the last 90 days?

CONFIDENTIAL – DO NOT DISTRIBUTE 28

Answer:

• Less than 50%

• And 20% of them have yet use a negative

keyword… ever…

PPC Trivia! (Continued)

3. What percentage of AdWords

accounts use Conversion Tracking?

CONFIDENTIAL – DO NOT DISTRIBUTE 29

Answer:

• Less than 50% of advertisers have

Conversion Tracking on. That means

they don’t know what’s working.

CONFIDENTIAL – DO NOT DISTRIBUTE 30

The Average PPC Account for Small

& Medium-Sized Businesses.

Complexity and lack of time

results in poor understanding

of search.

Poor

Understanding

Yields Poor

Results

Advertisers get frustrated,

conclude PPC doesn’t work

for them.

What we know about PPC Failure

CONFIDENTIAL – DO NOT DISTRIBUTE 31

1. Identify the potential

2. Choose your yard stick

3. Take stock of your resources

4. Choose one of 3 paths to PPC Success!

Getting your PPC Marketing on the

Right Track

Step 1: Identify the potential

– Is your business a good fit for PPC?

– Guestimate the potential

– Figure out an initial budget

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• Baseline your performance

• A free, instant PPC audit in under a minute!

• Grades your AdWords account performance based on the 8 PPC metrics that really matter

• Compares how you’re doing against other accounts of similar size (monthly spend)

• http://www.wordstream.com/google-adwords

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Grade Yourself! http://www.wordstream.com/google-adwords

Step 2: Choose Your Yardstick

How will you measure success?

– Sales: Return on Ad Spend (e.g. Online

Retail)

– Leads: Cost per lead

• Comparing it to the average value of a

lead

• Comparing to what you pay for other

marketing venues

– Traffic: Driving traffic to your site (or calls

to your business)

CONFIDENTIAL – DO NOT DISTRIBUTE 35

Better

Accountablity

but Harder to

implement.

Less

Accountability

but Easier to

implement.

Step 3: Define your Resources

What can you devote to your PPC Program?

– Time

• How much time can you devote?

– Budget

• How much budget do you have?

– Staff

• Hire vs. outsource?

CONFIDENTIAL – DO NOT DISTRIBUTE 36

Step 4: Choose a Path

1. Do it yourself

2. Leverage software

3. Outsource to an Agency

CONFIDENTIAL – DO NOT DISTRIBUTE 37

There are really 3 PPC Implementation Paths

Path 1: Do it Yourself

CONFIDENTIAL – DO NOT DISTRIBUTE 38

Pros Cons

No additional fees for software or services

Full control

Time intensive - You have build, manage and optimize your campaigns

Easy to make costly mistakes Requires deep

understanding of PPC techniques

Best for PPC professionals with expert knowledge and years of experience

Path 2: Leverage PPC Tools

CONFIDENTIAL – DO NOT DISTRIBUTE 39

Pros Cons

Improve results Save time

Cost for software You still have build, manage

and optimize your campaigns

Best for those who have PPC experience and time or resources to managed program

CONFIDENTIAL – DO NOT DISTRIBUTE 40

Path 3: Outsource

Pros Cons

Experts To Handle Everything

Better Results Peace of Mind Quick set up

Not for control-freaks Not “Free” Finding a partner you can

trust

CONFIDENTIAL – DO NOT DISTRIBUTE 41

Best for those who are new too PPC, time constrained or not getting results they want

Example: PPC Express (From WordStream)

CONFIDENTIAL – DO NOT DISTRIBUTE 42

Path to Success

Identify the potential

Take stock of your resources

Choose one of 3 paths to PPC success

• Do it Yourself (Go it alone)

• Use Software (WordStream PPC Advisor + Premier Consulting)

• Outsource (WordStream Services)

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Want Some Help?

If you have a PPC budget of at least $1,500 take

advantage of this free offer:

o A free Path Analysis with one of our Search

Marketing Experts

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Special Offers

If you have a PPC budget of at least $1,500 take

advantage of these free offers:

1. Sign up for WordStream PPC Advisor and get 2

months of free Premier Consulting.

2. Sign up for PPC Express service and get up to

$600 of free advertising.

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Your Questions

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Start down your ideal path today: Baseline your current AdWords account using WordStream’s Free Performance Grader:

http://www.wordstream.com/google-adwords

Thank you for attending our webinar!

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