Drive up average order value: How YOU can get more products into the buyer's cart Lifetime Value: Do you really understand yours? Additional actions: Combat a longer purchase cycle by sharing valuable content you already have Mobile PPC for eCommerce: Straight talk from Google, plus how to integrate Bing Automate your keyword portfolio? Why you should consider going old-school In this information-dense hour, we'll share right-now strategies for busy marketing leaders (and wannabe leaders) who are under pressure to drive more sales, plus real-life stories of eCommerce PPC successes. We'll answer your questions and send you packing with ideas to implement right now.

1. Advanced for
Pay-Per-
Click eCommerce
TRADA WEBINAR SERIES

2. Meet Your Speakers
Matt Hessler
Director of Account Management, Trada
13 years of PPC and SEO
@fasterstill

3. Meet Your Speakers
Bill D’Alessandro
Founder, Elements Brands
Manages a portfolio of
high quality consumer products brands
@BillDA

4. Meet Your Speakers
Anna Sawyer
Head of Content, Trada
AdWords Qualified, AdCenter Enthusiastic
Digital Marketing Educator
@annafsawyer

5. Advanced Pay-Per Click for
eCommerce
Are you under pressure to drive more sales?
Right-now strategies
and real-life
eCommerce success.
Lifetime Value and Average
Order Value
Additional conversion actions
Mobile PPC for eCommerce
Automation or human-driven?

6. Why is Lifetime Value so important?
Pay-per-click marketing levels the
playing field for advertisers that But why can the giants of pay-per-
aren’t giants... because you are click afford to spend so much more
rewarded for relevance as well as on a single click?
price.
Your
Company

7. These guys know their LTV.
d to r a
Can Walmart afford r spend $15
foto d fo
f
on a click fortaa stapler?
$10 a
ar n an
alm 5 o
n Wd $1 er?
Ca en l
sp 0 st ap
$1

8. Big companies know how much they
can afford to acquire a customer.
First understand your Average Order Value (AOV)
and your Lifetime Value (LTV)
Understanding these
metrics isn’t difficult, but
you will need to know
them to be able to
compete in PPC.

9. How much can you pay for a sale?
It seem reasonable that if you areselling a t-shirt for $10,
and your profit margin is 50%,
you can only spend $5
on a PPC ad marketing that t-shirt
in order to break even.
But...

10. Look a little closer.
yourAverage
$70 Order Value
is $70
and once you’ve
sold to a customer,
because you
market to them
effectively,
they tend to buy
from you
6x/year for 5 years.
Plus, you have an awesome referral program
and your average customer refers 1 friend.

11. What Can You Afford to Acquire a Customer? | DON’T LOSE TO THE COMPETITION
So how much Value (LTV) spend to
Understanding Lifetime
can you
acquire a customer?
Lifetime value is the amount of revenue an average customer will generate during the span of their relationship with your business, and
it’s another easy-to-calculate metric. When you understand your LTV, you can compare the revenue generated by a customer to the costs
associated with acquiring it - and set an effective CPA.
# of Transactions
NUMBER OF TRANSACTIONS PER MONTH
In this simple equation, x
determine how many
transactions an average
# of Months
AVERAGE NUMBER OF MONTHS AVERAGE CUSTOMER IS RETAINED
x
x Profit Margin
PROFIT MARGIN PER CUSTOMER
=
LTV
customer makes in a $ of Average Order
AVERAGE ORDER SIZE
month, and multiply it by
the number of months a This will give you a very basic number.
customer tends to last. You may choose to consider additional
Then, take this number values, such as discounts given or the
amountAssuming a 60% profit
of referral revenue a customer
and multiply it by your brings over her “lifetime”.
margin per customer, your
AOS. Finally, multiply
customer LTV could be as
by the percent profit
$1260.
C O N S I D E R T H I S V E RY
margin you make from BASIC EXAMPLE
much as
each customer over her A health club sells membership
“lifetime”. packages. The club has three
packages at different prices, and
their calculated AOS is $110.

12. It gets even more interesting!
Your buyers don’t all look the
same.
Calculate LTV for your different
buyer profiles. You may be able to
spend more to acquire customers
who spend more.

13. You’re up against giants.
How much have you spent at
calculating Starbucks in your lifetime?
Lifetime Value
a case study » One way to analyze acquisition strategy and estimate marketing
$$
$
$
costs is to calculate the Lifetime Value (“LTV”) of a customer. Roughly
$
$
defined, LTV is the projected revenue that a customer will generate
during their lifetime. In this graphic we’ll briefly cover how to calculate
LTV and how to use LTV to help solidify your marketing budget. $
$
$
Special thanks to @avinash.
Case Study: Starbucks
» Despite the shaky economy, Starbucks is opening new stores around the world. In 2012, Starbucks
expects to open 600 new locations internationally, about 25 percent of which will be in China. It’s no
secret that Starbucks’ acquisition strategy is closely scrutinized and routinely copied. Using rough
sales figures from 2004, we’re able to estimate the LTV of an average Starbucks customer. The sales
data from Starbucks may not reflect current marketing trends, and is only provided to illustrate the
steps necessary to calculate LTV.
average ltv
$14,099
Source: KISSMetrics

14. But you’re more advanced than most.
Huge companies live and die SMBs and mid-market
by LTV metrics. They have a companies usually aren’t
ton of data velocity and they that smart. The vast majority
analyze it constantly. of businesses use a very
basic cost-benefit analysis.

15. (This paper will help you.)
I’ll share this whitepaper in
your follow-up email after the
webinar.

16. Increase AOV, and you can spend
more in PPC. Not included:
sword and
shield
Free shipping with an order
threshold
Would you like fries with that?
(Related items)
Classic upsell (Most popular!)
from buycostumes.com

17. Combat a long purchase cycle
Stay on the radar with
additional actions like
newsletter and blog signups.
Offer value and keep your
company top of mind for the
buyer.
Prompt a buy earlier by
sharing product
announcements and sales.
17

18. Use a data-driven approach–and
talk to your customers.
Research what your competitors are doing to increase cart size,
and read forums/blogs to see how people use your products.
Listen to your customers. Survey and call them.
Measure and track what customers order over time, and look
for patterns.

19. The state of mobile PPC for
buyers
Buyers use mobile to research, to
compare in-store, and to make
purchases.
Mobile search makes up 25% of all
searches.
- Covario 2013
4 out of 5 smartphone owners use their
devices to shop, and 25% engage in
online shopping exclusively via mobile.
- Radware 2012

20. The state of mobile PPC for
eCommerce advertisers
Once again, you have an ... the vast majority of mid-
advantage. While the biggest market and smaller
retailers are really investing advertisers don’t have a
in mobile... sophisticated strategy.

21. Google’s enhanced campaigns
The enhanced campaigns
update will force the issue for
eCommerce marketers. You
need to make sure you’re
prepared to take advantage of
mobile.

22. Mobile for eCommerce: 3 steps
1
Make sure you have
Responsive design means landing pages designed
your website is built to be to handle a mobile buyer.
readable, usable and
conversion-centric on any
device.
If you don’t have a responsive site,
you may already have mobile-
optimized pages hosted in a sub-
directory. Enhanced campaigns
makes it very easy to select URLs and
set their device preference.

23. Mobile for eCommerce: 3 steps
2
Important Considerations Before Switching To Enhanced Campaigns
Gather data before you
switch to enhanced
campaigns, to determine
bid multiplier settings.
EXAMPLE
1 Determine different click costs and
conversion rates for all devices. This
Consideration will help youIMPACT
MOBILE’S understand mobile’s
impactHow in the CampaignsbusinessAdWords, segment by device. Scrollhowthe find
on youryour view in rely onand and tablets? Here’s to to
out:
much does
business mobile will help
you set a realofPPCbid expand Total = all campaigns. Let’s look at the campaign
your client. multipliers.
bottom the list to
of

24. Mobile for eCommerce: 3 steps
3 Bing looks more and
more like Google
If you’re not on Bing,
there are buyers out there
looking who can’t find you
Use Bing.
Importing your AdWords
data is easy–including
enhanced campaigns’
mobile settings (coming
soon!)

25. More Enhanced Campaigns.
I’ll share this whitepaper in
your follow-up email after the
webinar.

26. Automation?

27. Automation talk is everywhere!
The vast majority of mid-sized
companies don’t use big
automation tools. You use:
An agency
An in-house solution or team

28. Yes, we need automation.
One person alone cannot effectively:
update and create ads for each product
take them down when the inventory is out of
stock
Constantly A/B test ads and incrementally
increase performance
Bid knowledgeably at the keyword level
Model keyword performance and predict
results

29. Big automation tools are really
cool.
Real-time relevant
content
Pros
Data visualization
Predictive analysis
But you need a TON of data velocity to make it
Cons
work
And you need to be a big fish to be able to afford
it
Also, any robot tool still needs a human to
manage it

30. We also need people.
An algorithmic product cannot effectively:
Generate highly targeted keywords for
buyers, and manage them intuitively
Write compelling ads that think like buyers
Use information from the marketing team’s
other programs to inform strategy
Spot errors and FAILS
Hide the fact that it’s a robot, not a person

31. People (agencies/in-house
teams) are really cool!
Can solve problems and manage
ad campaigns for buyers
Pros
You don’t need to build new
people when Google changes
the rules
Expensive, complicated and time-consuming to
Cons
hire, make space for, manage in-house teams
A large in-house team is required to have time
and diversity of strategy to manage complex
eCommerce campaigns
Agency models are often motivated to spend
your budget. Plus... who’s really doing the work?

32. The ideal scenario
You could have a team of experts doing They would be paid based on
the work of PPC on your behalf. They performance goals you set,
would work with your in-house person, meaning they would fight to get
who would manage strategy. YOU results.
They would collaborate within an
Your in-house team would have
application that would allow them
control over their strategy and
to see the performance data they
visibility into ALL the data.
need to succeed.

33. You can have both.
Trada is the world’s only performance-based
online advertising marketplace.
When you join Trada, we assign a
highly specialized team of paid
search experts (Optimizers) to
work on your PPC campaigns.
We have a global community of
certified paid search experts.

34. Optimizers and Trada partners are
supported by the Trada Marketplace.
Our automated Optimizer Matching™
Trada’s Marketplace is where our
algorithm makes sure your Optimizer
global community of certified
team is qualified based on experience,
PPC experts work.
historical performance and other factors.
Your
Company

35. Optimizers do work, you maintain
control, Trada supports it all.
Your Optimizer team does the daily
Your dedicated work of campaign research, ad copy
account manager acts and testing, and constant refinement.
as strategic partner
and Optimizer liaison.
! createand test
targeted ad copy
! generate keyword
lists
! manage bid prices
! respond
quickly to
campaign requests

36. ighly specialized experts
and execution.
Goals are finally aligned.
ed experts—Optimizers—creating and testing strategies. You
y with proprietary features like the ability to measure return
Trada is
performance
based: you set goals,
ow experts work to beat them.
re
Our unique method of goal alignment is not just
nd Traditional agencies charge
a feature - it is the driving force in our
marketplace. You set goals, your Trada team
a percent of marketing
ule. spend. They are motivated
works to beat them, and they are compensated
to spend your budget.
for their success.
15%
of marketers with
Only
marketers
Only 1 in 5
are
satisfied withare
marketers their
agency’s with their
satisfied
their PPC performance agency’s performance
The agency model for PPC is
outdated. It was designed for

37. Trada’s customers
Seth from Dr Vita loved that his
Optimizer team would react
immediately to the need for ads for a
new product–within hours, ads would
be running live on the networks.

38. Trada’s customers
We’d love to analyze your current PPC
and determine if Trada is a fit for a
partnership with you.
Type “I’d like a demo”
into the chat box.

39. ?
Don’t forget to check your
email for these two essential
whitepapers!
@BillDA
@fasterstill
@annafsawyer
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