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Google and WordStream Webinar:
3 Paths For Small Business PPC
Profitability

Howard Tung, Google
Larry Kim, WordStream
May 9, 2012
Today’s Agenda


•   Introductions
•   Key Trends in Online Marketing for 2012 from
•   Trivia & Poll
•   3 Paths for PPC Success
•   Questions & Answers




                                                   2
Take Part in Live Blogging on Twitter / Google+


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




                                                            3
Speaker Introductions

•   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!




                                                             4
Let’s learn a little about you….




                                   5
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




                                              6
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


                                                         7
Digital Overview
Acceleration of Everything




                             Google Confidential and Proprietary   8
Digital Revolution in Context

        Information           Distribution & Commerce      Communication
          “Read”                       “Buy”                    “Talk”




 Censored By Request


 1994                      1998        2000         2003     2006                  2010
             Internet Users: 77M       400M         500M      1B                   1.9B
                                                               Google Confidential and Proprietary   9
The Connected World


          > 2bn
          people




 Censored By Request
           > 35bn
           devices




                                                  Google Confidential and Proprietary   10
Source: “Learn from Google” Atlanta Event, 2011
Ad spend is following consumers online

consumers’                                                                                                                            advertising
media                                                        untapped audience                                                        Investments
consumption
                                                                gap between ad
                                                                investments and media                                                           19% online
  25% online                                                    consumption

   Censored By Request
                43% tv                                                                                                                           43% tv




                                                                                                                                                17% newspapers
   5% newspapers
    3% magazines
       16% radio                                                                                                                                11% magazines
            8% mobile                                                                                                                           11% radio
                                                                                                                                               0.5% mobile
  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
                                                                                                                                      Google Confidential and Proprietary   11
There is immense opportunity in Local




             Censored By Request

                       97%                                                     1 in 5                                    1 in 3
       online consumers use the web                                      desktop searches are                         mobile searches are
         to research for products.*                                      related to location.**                      related to location.**
Source: *Yahoo! and com Score Study Finds Online Consumers Who Pre-Shop on the Web Spend More In-Store. July 2007.
**Source: Google
                                                                                                                        Google Confidential and Proprietary   12
Healthy Y/Y grow in searches for “Local”
verticals




                        Censored By Request
 Indexed Query Growth




                                                    Google Confidential and Proprietary   13
Source: Google Internal Data, YoY is last 90 days
Censored By Request
    The Four B’s
    Addressing the Local Opportunity




                                       Google Confidential and Proprietary   14
The Four Be’s

        Be Found       Be Relevant




              >
 Censored By Request
       Be Engaging   Be Accountable




                              Google Confidential and Proprietary   15
Be Found - Search




  Censored By Request

• Search: Still the Web’s killer app
• Advertisers’ pay when users click on their ad & visit their page

                                                           Google Confidential and Proprietary   16
Be Found – G+ Pages
in the real world, people interact with businesses every day.
google+ brings those rich relationships online.




  Censored By Request

• 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




  Censored By Request>
• 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   18
Mobile allows for constant connectivity


                           PC                                                        11pm
                           Mobile




             Censored By Request                                1pm
       Traffic




                                                                             8pm


                     7am




                                                                      Time

Source: Internal Google Data 2010, typical across different markets
                                                                                   Google Confidential and Proprietary   19
Mobile complements desktop
                   Weekly View
                   Desktop Searches vs. Mobile Searches




          Censored By Request



Source: Citi Investment Research and Analysis; iCrossing Mobile U.S. Google Internal Data, 2010   Google Confidential and Proprietary   20
Be Engaging - Display




  Censored By Request


• Google Display Network reaches over 90% of internet users
• Engaging ad formats – rich media, banner, and video ads

                                                      Google Confidential and Proprietary   21
Reach customers while they explore their interest
     Think search + display

     95% of Time Online is Spent Outside
     of Search                                                                                •Nearly   four in 10
                                           Search                                             Internet users who respond to online
                                            5%
                                                                                              display advertising learn about the
                                                                                              brand/SMB for the first time as a

          Censored By Request
                    Community
                      26%
                                                   Email & IM
                                                     20%
                                                                                              result of their exposure to such an
                                                                                              ad.




                                                      Commerce
                                                        11%
                                                                                              •Nearly   four in 10
                                                                                              Internet users eventually perform a
                                 Content                                                      search on the company, product, or
                                  38%
                                                                                              service that is the focus of the online
                                                                                              display ad to which they are
                                                                                              exposed, and then visit the website
                                                                                              from the search results.



Source: Online Publishing Association and Nielsen//NetRatings, August 2010; iProspect Research 2010              Google Confidential and Proprietary
Be Accountable - Measurement




 Censored By Request


             Measure site performance and ROI

                                                Google Confidential and Proprietary   23
The Four Be’s

        Be Found       Be Relevant




              >
 Censored By Request
       Be Engaging   Be Accountable




                              Google Confidential and Proprietary   24
Sounds great but
how do I actually
DO this??




     CONFIDENTIAL – DO NOT DISTRIBUTE   25
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?



                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...




                                            CONFIDENTIAL – DO NOT DISTRIBUTE   27
PPC Trivia! (Continued)


 2. What percentage of AdWords
 accounts have used at least 1
 negative keyword in the last 90 days?




                 Answer:
                 • Less than 50%
                 • And 20% of them have yet use a negative
                   keyword… ever…




                                            CONFIDENTIAL – DO NOT DISTRIBUTE   28
PPC Trivia! (Continued)


3. What percentage of AdWords
accounts use Conversion Tracking?




                        Answer:
                        • Less than 50% of advertisers have
                          Conversion Tracking on. That means
                          they don’t know what’s working.




                                            CONFIDENTIAL – DO NOT DISTRIBUTE   29
The Average PPC Account for Small
& Medium-Sized Businesses.




                        CONFIDENTIAL – DO NOT DISTRIBUTE   30
What we know about PPC Failure


       Advertisers get                 Complexity and
         frustrated,                     lack of time
        conclude PPC                   results in poor
        doesn’t work                   understanding
          for them.                       of search.




                            Poor
                    Understanding
                         Yields Poor
                          Results

                                                CONFIDENTIAL – DO NOT DISTRIBUTE   31
Getting your PPC Marketing on the
Right Track

 1.   Identify the potential
 2.   Choose your yard stick
 3.   Take stock of your resources
 4.   Choose one of 3 paths to PPC Success!
Step 1: Identify the potential



  – Is your business a good fit for PPC?
  – Guestimate the potential
  – Figure out an initial budget




                                  CONFIDENTIAL – DO NOT DISTRIBUTE   33
Grade Yourself!          http://www.wordstream.com/google-adwords

•    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




                                                                        34
Step 2: Choose Your Yardstick
                                                              Better
                                                           Accountablity
How will you measure success?                              but Harder to
  – Sales: Return on Ad Spend (e.g. Online                  implement.

    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             Less
                                                           Accountability
    to your business)                                       but Easier to
                                                             implement.



                                             CONFIDENTIAL – DO NOT DISTRIBUTE   35
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

There are really 3 PPC Implementation Paths


                         1. Do it yourself
                         2. Leverage software
                         3. Outsource to an Agency




                                       CONFIDENTIAL – DO NOT DISTRIBUTE   37
Path 1: Do it Yourself


Pros                          Cons
No additional fees for       Time intensive - You have
 software or services          build, manage and optimize
Full control                  your campaigns
                              Easy to make costly mistakes
                              Requires deep
                               understanding of PPC
                               techniques

       Best for PPC professionals with expert
       knowledge and years of experience

                                        CONFIDENTIAL – DO NOT DISTRIBUTE   38
Path 2: Leverage PPC Tools


Pros                         Cons
Improve results             Cost for software
Save time                   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   39
CONFIDENTIAL – DO NOT DISTRIBUTE   40
Path 3: Outsource


Pros                          Cons
Experts To Handle            Not for control-freaks
 Everything                   Not “Free”
Better Results               Finding a partner you can
Peace of Mind                 trust
Quick set up


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


                                        CONFIDENTIAL – DO NOT DISTRIBUTE   41
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)




                                                                 43
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




                                                   44
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.




                                                   45
Your Questions


 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!


 Contact us directly:




                                                                                     46

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Google and WordStream Joint Webinar - 3 Paths to

  • 1. Google and WordStream Webinar: 3 Paths For Small Business PPC Profitability Howard Tung, Google Larry Kim, WordStream May 9, 2012
  • 2. Today’s Agenda • Introductions • Key Trends in Online Marketing for 2012 from • Trivia & Poll • 3 Paths for PPC Success • Questions & Answers 2
  • 3. Take Part in Live Blogging on Twitter / Google+ • Include the hashtag #3pathsppc in your Google+ status updates,Twitter tweets,, etc. 3
  • 4. Speaker Introductions • 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! 4
  • 5. Let’s learn a little about you…. 5
  • 6. 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 6
  • 7. 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 7
  • 8. Digital Overview Acceleration of Everything Google Confidential and Proprietary 8
  • 9. Digital Revolution in Context Information Distribution & Commerce Communication “Read” “Buy” “Talk” Censored By Request 1994 1998 2000 2003 2006 2010 Internet Users: 77M 400M 500M 1B 1.9B Google Confidential and Proprietary 9
  • 10. The Connected World > 2bn people Censored By Request > 35bn devices Google Confidential and Proprietary 10 Source: “Learn from Google” Atlanta Event, 2011
  • 11. Ad spend is following consumers online consumers’ advertising media untapped audience Investments consumption gap between ad investments and media 19% online 25% online consumption Censored By Request 43% tv 43% tv 17% newspapers 5% newspapers 3% magazines 16% radio 11% magazines 8% mobile 11% radio 0.5% mobile 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 Google Confidential and Proprietary 11
  • 12. There is immense opportunity in Local Censored By Request 97% 1 in 5 1 in 3 online consumers use the web desktop searches are mobile searches are to research for products.* related to location.** related to location.** Source: *Yahoo! and com Score Study Finds Online Consumers Who Pre-Shop on the Web Spend More In-Store. July 2007. **Source: Google Google Confidential and Proprietary 12
  • 13. Healthy Y/Y grow in searches for “Local” verticals Censored By Request Indexed Query Growth Google Confidential and Proprietary 13 Source: Google Internal Data, YoY is last 90 days
  • 14. Censored By Request The Four B’s Addressing the Local Opportunity Google Confidential and Proprietary 14
  • 15. The Four Be’s Be Found Be Relevant > Censored By Request Be Engaging Be Accountable Google Confidential and Proprietary 15
  • 16. Be Found - Search Censored By Request • Search: Still the Web’s killer app • Advertisers’ pay when users click on their ad & visit their page Google Confidential and Proprietary 16
  • 17. Be Found – G+ Pages in the real world, people interact with businesses every day. google+ brings those rich relationships online. Censored By Request • Start real conversations • Inspire your customers to recommend new ones • Boost the performance of your ads across the web Google Confidential and Proprietary
  • 18. Be Relevant - Mobile Censored By Request> • 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 18
  • 19. Mobile allows for constant connectivity PC 11pm Mobile Censored By Request 1pm Traffic 8pm 7am Time Source: Internal Google Data 2010, typical across different markets Google Confidential and Proprietary 19
  • 20. Mobile complements desktop Weekly View Desktop Searches vs. Mobile Searches Censored By Request Source: Citi Investment Research and Analysis; iCrossing Mobile U.S. Google Internal Data, 2010 Google Confidential and Proprietary 20
  • 21. Be Engaging - Display Censored By Request • Google Display Network reaches over 90% of internet users • Engaging ad formats – rich media, banner, and video ads Google Confidential and Proprietary 21
  • 22. Reach customers while they explore their interest Think search + display 95% of Time Online is Spent Outside of Search •Nearly four in 10 Search Internet users who respond to online 5% display advertising learn about the brand/SMB for the first time as a Censored By Request Community 26% Email & IM 20% result of their exposure to such an ad. Commerce 11% •Nearly four in 10 Internet users eventually perform a Content search on the company, product, or 38% service that is the focus of the online display ad to which they are exposed, and then visit the website from the search results. Source: Online Publishing Association and Nielsen//NetRatings, August 2010; iProspect Research 2010 Google Confidential and Proprietary
  • 23. Be Accountable - Measurement Censored By Request Measure site performance and ROI Google Confidential and Proprietary 23
  • 24. The Four Be’s Be Found Be Relevant > Censored By Request Be Engaging Be Accountable Google Confidential and Proprietary 24
  • 25. Sounds great but how do I actually DO this?? CONFIDENTIAL – DO NOT DISTRIBUTE 25
  • 26. Do you understand these terms? CONFIDENTIAL – DO NOT DISTRIBUTE 26
  • 27. 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? 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... CONFIDENTIAL – DO NOT DISTRIBUTE 27
  • 28. PPC Trivia! (Continued) 2. What percentage of AdWords accounts have used at least 1 negative keyword in the last 90 days? Answer: • Less than 50% • And 20% of them have yet use a negative keyword… ever… CONFIDENTIAL – DO NOT DISTRIBUTE 28
  • 29. PPC Trivia! (Continued) 3. What percentage of AdWords accounts use Conversion Tracking? Answer: • Less than 50% of advertisers have Conversion Tracking on. That means they don’t know what’s working. CONFIDENTIAL – DO NOT DISTRIBUTE 29
  • 30. The Average PPC Account for Small & Medium-Sized Businesses. CONFIDENTIAL – DO NOT DISTRIBUTE 30
  • 31. What we know about PPC Failure Advertisers get Complexity and frustrated, lack of time conclude PPC results in poor doesn’t work understanding for them. of search. Poor Understanding Yields Poor Results CONFIDENTIAL – DO NOT DISTRIBUTE 31
  • 32. Getting your PPC Marketing on the Right Track 1. Identify the potential 2. Choose your yard stick 3. Take stock of your resources 4. Choose one of 3 paths to PPC Success!
  • 33. Step 1: Identify the potential – Is your business a good fit for PPC? – Guestimate the potential – Figure out an initial budget CONFIDENTIAL – DO NOT DISTRIBUTE 33
  • 34. Grade Yourself! http://www.wordstream.com/google-adwords • 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 34
  • 35. Step 2: Choose Your Yardstick Better Accountablity How will you measure success? but Harder to – Sales: Return on Ad Spend (e.g. Online implement. 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 Less Accountability to your business) but Easier to implement. CONFIDENTIAL – DO NOT DISTRIBUTE 35
  • 36. 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
  • 37. Step 4: Choose a Path There are really 3 PPC Implementation Paths 1. Do it yourself 2. Leverage software 3. Outsource to an Agency CONFIDENTIAL – DO NOT DISTRIBUTE 37
  • 38. Path 1: Do it Yourself Pros Cons No additional fees for Time intensive - You have software or services build, manage and optimize Full control your campaigns Easy to make costly mistakes Requires deep understanding of PPC techniques Best for PPC professionals with expert knowledge and years of experience CONFIDENTIAL – DO NOT DISTRIBUTE 38
  • 39. Path 2: Leverage PPC Tools Pros Cons Improve results Cost for software Save time 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 39
  • 40. CONFIDENTIAL – DO NOT DISTRIBUTE 40
  • 41. Path 3: Outsource Pros Cons Experts To Handle Not for control-freaks Everything Not “Free” Better Results Finding a partner you can Peace of Mind trust Quick set up Best for those who are new too PPC, time constrained or not getting results they want CONFIDENTIAL – DO NOT DISTRIBUTE 41
  • 42. Example: PPC Express (From WordStream) CONFIDENTIAL – DO NOT DISTRIBUTE 42
  • 43. 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) 43
  • 44. 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 44
  • 45. 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. 45
  • 46. Your Questions 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! Contact us directly: 46