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PUBCON 2014: Hacking AdWords - Winning at PPC the Weird Way by Larry Kim, WordStream, Inc.

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How to win at AdWords the Weird Way

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PUBCON 2014: Hacking AdWords - Winning at PPC the Weird Way by Larry Kim, WordStream, Inc.

  1. 1. CONFIDENTIAL – DO NOT DISTRIBUTE 1 Hacking Adwords: Winning at PPC the Weird Way Larry Kim (@larrykim) Founder/CTO, WordStream, Inc. March 19, 2014
  2. 2. Win This $25 Amazon.com Gift Certificate!! • Include the hashtag #wordstream and #pubcon in your tweets • May the best tweet win! :) Larry Kim (@larrykim) #wordstream #pubcon
  3. 3. Epiphany #1: What is Quality Score and Why Does it Matter?
  4. 4. How Quality Score Impacts Ad Position • AdWords is Like Real Estate: It’s all about Location! Larry Kim (@larrykim) #wordstream #pubcon
  5. 5. How Quality Score Impacts Actual CPC Larry Kim (@larrykim) #wordstream #pubcon
  6. 6. Epiphany #2: What’s an Average Quality Score in 2014?
  7. 7. Avg. Quality Score Has Been Falling. • Today, average score is 5/10. Previously was 7/10! Larry Kim (@larrykim) #wordstream #pubcon
  8. 8. CONFIDENTIAL – DO NOT DISTRIBUTE 11
  9. 9. Cost Per Conversion Greatly Impacted by QS Larry Kim (@larrykim) #wordstream #pubcon
  10. 10. The Impact of Quality Score on Cost Per Conversion Larry Kim (@larrykim) #wordstream #pubcon
  11. 11. Epiphany #3 How is Quality Score Calculated?
  12. 12. QS is Based on Your CTR vs. Expected CTR! Larry Kim (@larrykim) #wordstream #pubcon
  13. 13. Quick Recap So Far 1. QS plays huge role in determining CPC and Avg. Position and cost per conversion 2. QS is largely based on beating the expected click through rate for your ad position 3. So Winning at AdWords Requires Writing Ads with Above Average CTR. Larry Kim (@larrykim) #wordstream #pubcon
  14. 14. Epiphany #4: Google Expects (Much) More Of Your Ads
  15. 15. Which Ad Wins? a)Ad A –32,423 Impressions –453 clicks (1.4% CTR) –Average Position: 2.8 b)Ad B –36,223 Impressions –760 clicks (2.1% CTR) –Average Position: 3.0 Larry Kim (@larrykim) #wordstream #pubcon
  16. 16. Trick Question! Both Ads Suck. • Neither ad is worth declaring a “Winner”. • Not even the 2.1% CTR in the 3.0 Avg. Position. • Why?? Larry Kim (@larrykim) #wordstream #pubcon
  17. 17. What’s a Good CTR? Larry Kim (@larrykim) #wordstream #pubcon
  18. 18. • Even the “Winner” is a Loser! CONFIDENTIAL – DO NOT DISTRIBUTE 21
  19. 19. Even the “Winning” Ad is a Loser! Larry Kim (@larrykim) #wordstream #pubcon
  20. 20. Epiphany #5: What’s a Good CTR These Days? (You’d be surprised)
  21. 21. What’s a Good Search CTR? (Account Avg. CTR’s) Larry Kim (@larrykim) #wordstream #pubcon
  22. 22. But Lots of Variance!! Larry Kim (@larrykim) #wordstream #pubcon
  23. 23. Under-Performing vs. Unicorns Percentile Vs. Expected CTR Name Bottom 50% Below Expected CTR Under- Performing Advertisers Top 15% 2X Higher Awesome Advertisers Top 5% 3x Higher Super Awesome Advertisers Top 1% 6x Higher!! Unicorns Larry Kim (@larrykim) #wordstream #pubcon
  24. 24. @larrykim Unicorns?! (6x Avg. CTR!)
  25. 25. What Unicorns (Top 1%) Look Like Larry Kim (@larrykim) #wordstream #pubcon
  26. 26. Ad Text Testing • Same Story – 20% of Ads Generate 92% of Spend • 20% of Ads Generated 65% of Impressions • But CPA, CTR, and Conversion Rates vary @larrykim, @perrymarshall
  27. 27. 1. Keywords With High Commercial Intent Larry Kim (@larrykim) #wordstream #pubcon
  28. 28. 2. Dynamic Keyword Insertion (DKI) Larry Kim (@larrykim) #wordstream #pubcon
  29. 29. 2. DKI Doesn’t Produce As Many Unicorns Larry Kim (@larrykim) #wordstream #pubcon
  30. 30. 3. Ad Extensions Impact on Quality Scores Larry Kim (@larrykim) #wordstream #pubcon
  31. 31. 3. Ad Extensions Impact on Click Through Rate Larry Kim (@larrykim) #wordstream #pubcon
  32. 32. Epiphany #6 How To Write “Unicorn” Ads
  33. 33. 4. Most Ads Suck. Create Emotional Ads. 36 Larry Kim (@larrykim) #wordstream #pubcon
  34. 34. Creating “Emotional” Ads Larry Kim (@larrykim) #wordstream #pubcon
  35. 35. An Example: Larry Kim (@larrykim) #wordstream #pubcon
  36. 36. Versus… Larry Kim (@larrykim) #wordstream #pubcon
  37. 37. Epiphany #7 You Need To Test 100 Ads To Find 1 Unicorn.
  38. 38. Relative Abundance Name Percentile Relative Abundance Vs. Expected CTR Awesome Ads Top 15% 1:6.7 2X Higher Super Awesome Ads Top 5% 1:20 3x Higher Unicorns Top 1% 1:100 6x Higher!! Larry Kim (@larrykim) #wordstream #pubcon
  39. 39. You’re Not Testing as Many Ads as You Think… Larry Kim (@larrykim) #wordstream #pubcon
  40. 40. Epiphany #8 It’s Not as Hard As You Think
  41. 41. Most Small Businesses Aren’t That Active Larry Kim (@larrykim) #wordstream #pubcon
  42. 42. 85% of Impressions are From 5% of Ads Larry Kim (@larrykim) #wordstream #pubcon
  43. 43. Epiphany #9 Life is Great for Unicorn Accounts
  44. 44. Here’s What It Looks Like IRL Larry Kim (@larrykim) #wordstream #pubcon • Grade Your Account at http://www.wordstream.com/google-adwords
  45. 45. Quality Score Average of 8.8/10!! Larry Kim (@larrykim) #wordstream #pubcon
  46. 46. 14% Click Through Rate!! Larry Kim (@larrykim) #wordstream #pubcon
  47. 47. Consistent Account Activity CONFIDENTIAL – DO NOT DISTRIBUTE 50
  48. 48. Mostly Targeting Long Tail Keywords! Larry Kim (@larrykim) #wordstream #pubcon
  49. 49. Negative Keywords Larry Kim (@larrykim) #wordstream #pubcon
  50. 50. 89% Impression Share Larry Kim (@larrykim) #wordstream #pubcon
  51. 51. Epiphany #10 Life Stinks for Low QS Accounts
  52. 52. The Bottom 4% of Accounts IRL Larry Kim (@larrykim) #wordstream #pubcon
  53. 53. Avg. Quality Score 3.8/10 Larry Kim (@larrykim) #wordstream #pubcon
  54. 54. Avg. CTR of 1.32% Larry Kim (@larrykim) #wordstream #pubcon
  55. 55. No Activity in Last Quarter Larry Kim (@larrykim) #wordstream #pubcon
  56. 56. Awful Keyword Targeting Larry Kim (@larrykim) #wordstream #pubcon
  57. 57. No Negative Keywords CONFIDENTIAL – DO NOT DISTRIBUTE 60
  58. 58. 61% Impression Share LOST Larry Kim (@larrykim) #wordstream #pubcon
  59. 59. Epiphany #11 Don’t Pursue a Low CTR Strategy (Low QS)
  60. 60. Quick Recap 1. Low CTR = Low QS 2. Low CTR ads don’t even get displayed 3. They get penalized with up to 400% higher CPCs 4. Dramatically increases cost per conversion Larry Kim (@larrykim) #wordstream #pubcon
  61. 61. Epiphany #12 How to Scale Your PPC?
  62. 62. 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 #pubcon
  63. 63. Average CPC’s by Industry and Network Larry Kim (@larrykim) #wordstream #pubcon
  64. 64. Average Conversion Rates by Industry Larry Kim (@larrykim) #wordstream #pubcon
  65. 65. Average CPA’s for Search & Display, by Industry Larry Kim (@larrykim) #wordstream #pubcon
  66. 66. Your Questions Thank You PUBCON! Benchmark your AdWords account today! http://www.wordstream.com/google-adwords Today’s Slides: http://bit.ly/hacking-adwords Larry Kim (@larrykim) #wordstream #pubcon

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