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Larry Kim's SMX Advanced 2014 Presentation on Debunking AdWords Myths and Other Dogma (or, why you should say no to low CTR).
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CONFIDENTIAL – DO NOT DISTRIBUTE 1
Debunking AdWords Myths and Other Dogma
Larry Kim, Founder/CTO, WordStreamJune 12, 2014
@larrykim
In PPC, Low CTR = Low Profits??*
What’s a Low CTR Strategy?
a) “Broader Keywords” – Navigational/Informational/Ambiguous Intent (e.g.: “Web Development”)
b) “Fewer Clicks” – Discouraging people from clicking on ads, or going after lower ad positions
Larry Kim (@larrykim) #wordstream
CONFIDENTIAL – DO NOT DISTRIBUTE 4
Pick the Red or Blue PillWarning: Data Ahead!
Low CTR Used to Generate High Profits!
• Google Has Changed
• Old Strategies Need to be Revisited!
Larry Kim (@larrykim) #wordstream
Google Expects WAY More of Your Ads!
Larry Kim (@larrykim) #wordstream
Quality Score Based on Beating Expected CTR!
Larry Kim (@larrykim) #wordstream
Google Has Changed How Ad Auction Works
• Today, average score is 5/10. Previously was 7/10
Larry Kim (@larrykim) #wordstream
CONFIDENTIAL – DO NOT DISTRIBUTE 9
CONFIDENTIAL – DO NOT DISTRIBUTE 10
Low Quality Score Penalty on CPC is Brutal
Impression Share vs. Quality Score
Larry Kim (@larrykim) #wordstream
But High QS Not Possible In My Industry!
Larry Kim (@larrykim) #wordstream
B2B Industry Quality Scores
Larry Kim (@larrykim) #wordstream
Finance Industry Quality Scores
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Ecommerce Industry Quality Scores
Larry Kim (@larrykim) #wordstream
Why Cost Per Click Matters
Larry Kim (@larrykim) #wordstream
But Position 3 Converts Better for Me!!
Larry Kim (@larrykim) #wordstream
Conv. Rate vs. Average Search Position
Larry Kim (@larrykim) #wordstream
But My High CTR Ads Have High CPAs!
Larry Kim (@larrykim) #wordstream
How Do I Raise My Conversion Rates?!
Larry Kim (@larrykim) #wordstream
@larrykim
Landing Page Unicorns?! (+3x Avg. Conversion Rate!)
1. Change The Offer
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The New Offer:
Larry Kim (@larrykim) #wordstream
Epiphany:Low QS
Keywords Kill Your Account
Example Crap Account
Larry Kim (@larrykim) #wordstream
Larry Kim (@larrykim) #wordstream
OMG – Where Are My High QS Keywords!!
Example Awesome Account
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Even Low CTR Keywords Get High QS!!!
Larry Kim (@larrykim) #wordstream
But I REALLY NEED my Low CTR Keywords!
–Use RLSA!– Informal Google
Analysis of Regular Search Ads vs. RLSA Search Ads:• 2.5x Avg. CTR,• ½ Avg. CPC• ~1.5x higher Quality
Score.
Larry Kim (@larrykim) #wordstream
So How The Heck do I Scale Paid Search?
Larry Kim (@larrykim) #wordstream
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) #wordstream
Average CPA’s for Search & Display, by Industry
Larry Kim (@larrykim) #wordstream
A Quick Note On Averages!
Larry Kim (@larrykim) #wordstream
Summary
• It’s hard to win at AdWords with Below Avg. CTRs
• Look to Display Remarketing to Scale AdWords Campaigns
Larry Kim (@larrykim) #wordstream
THANK YOU SMX!!
Download Slides From Here:
http://bit.ly/just-say-no-to-low-ctr
Let’s Connect! ([email protected])• Linkedin: https://
www.linkedin.com/in/larrykim• Twitter: @larrykim• G+: +larrykim1
Larry Kim (@larrykim) #wordstream
