Grab Your CMO's Attention: How to Effectively Explain Valuable PPC Insights

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Transcript of Grab Your CMO's Attention: How to Effectively Explain Valuable PPC Insights

Grab Your CMOs Attention: How to Effectively Explain Valuable PPC Insights

&Grab Your CMOs Attention:How to Effectively Explain Valuable PPC Insights



PresentersPaul DeravalCo-Founder & CEO at [email protected]

Kristine HymanAssociate Director of Client Services at Hanapin MarketingPPC Hero [email protected]


Who is Hanapin?Run the worlds most popular PPC blog and conference.We manage and optimize global paid search, paid social, and display programs. Within 12 months, brands can expect a 250% increase in their growth trajectory.


We run the worlds most popular PPC blog (PPC Hero) and conference (Hero Conf). IN April, well be in Los Angeles for our US Hero Conf. You can find more about that at (in fact, we are giving away a free ticket to one lucky listener of the webinar today. You will have to stay on til the end to win and will be notified by email. Ninjacat is graciously giving away an Amazon Echo to one lucky listener, Some cool ninjacat socks and also a 3 month free subscription of Ninjacat to anyone who isnt already a customer. Exciting stuff

Hanapin Marketing is an industry-leading digital marketing agency that manages and optimizes clients paid search, paid social, and display programs. Fun Fact - Our first and second clients are still with us today (12 years later). And thats because we have a pretty fantastic business model. Even better, is that clients will see their accounts grow 250% faster after signing with us, and 93% of partners keep working with us. So, If you need a team of experts, we have a building full of them.


Our Clients


Just a little look into who some of our clients are. Hanapin works with big brands and Fortune 500 companies in a variety of verticals. Check out our clients page on for more.


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Paul @ NinjaCatWe provide an all-in-one platform to leading agencies such as Hanapin that helps them track phone calls, monitor campaigns & budgets and effectively convey valuable PPC insights to their clients via client reporting and white-labeled dashboards. Anyone interested in taking a looks can request a demo or a free trial at 6

Grab Attention


So, the title of this prezo is Grab Your CMOs Attention: How to Effectively Explain Valuable PPC Insights...Today we are talking about How to discuss performance - the things to focus on and also What the CMO- C=level exec does with the information. This part will help you to understand what you need to know about how the data is used and really give you insight into what CMOs do with the information you provide. THis will help you craft the message you are trying to get across effectively.

But Dont ForgetWHO

But lets not forget about the who...Sometimes you are speaking directly to the CMO or C-level Exec. Sometimes you are not. You need to know the level of understanding the person you are talking to has of PPC. THat is one fact is going to make all the difference in what you are discussing. You might think that If they know a lot about PPC it should be easier and if they dont maybe more difficult., but that isnt always true. Sometimes people with preconceived notions or ideas about PPC are harder to talk to if you want to put the focus on certain KPIs. Their curiosity may be challenging. So keep that in mind.

On the opposite side, people without experience may be easier to weave that storyline with but you will have to take care they understand what you are trying to get across. So with that in mind..

Food For ThoughtHow are the insights going to be used?With whom will the information be shared?How can you effectively present the information?What is the ultimate goal?

Ill give you a little food for thought. Passing along the report, presented at a meeting, discussed on a callTeam members, executives, share holdersIs a high level report necessary or more nitty grittyWhat are trying to show or convey

So we have briefly mentioned the How, what and who lets now get more tangible

The 3 Layers of PPC ReportingExecutiveStrategicTactical

The 3 Layers of PPC Reporting.

The Executive LevelThe Strategic LevelAnd the Tactical Level

(next slide)

Executive LayerThe commercial benefits your PCC campaigns are delivering, NOT the detailed performance metrics.

Examples: Revenue, Web Leads, Phone Calls, Revenue/Conv, Spend, CPL, ROI, ROAS

Strategic LayerHigh-level campaign performance that outlines performance and sparks conversations around primary initiatives.

Examples: Spend, Revenue, Revenue/Conv., Conversions, Phone Calls, CTR, CPLSegmented ByChannel/Network/Campaign/Ad/Keyword/Device

Strategic: The senior marketing team will want to know how high level performance breaks down into overall trends in customer behaviour and high-level campaign performance.

Examples: Spend, Revenue, Conversions, Engagement, CAC, CLV by Channel/Network/Campaign/Device

Tactical LayerDetailed metrics segmented in various ways to surface tactical levers that can be pulled to optimize performance.

Examples: Impr., Impr. Share, Clicks, CTR, Convs, Revenue, Revenue/Conv., Conv. Rate, VTC, Pos. , Phone CallsSegmented byNetwork, Campaign, Keyword, Ad, Device, Region, Time of Day, Ad Extension

Unit Economics Speaking their LanguageA way to Calculate the Customer Lifetime Value (LTV) and the Customer Acquisition Cost (CAC) for a single customer to understand the short-term and long term viability of a business or marketing channel.

Transactional Centric Transactional Unit EconomicsCost Of Transaction Acquisition (COTA) : Average Order Value (AOV)

For every dollar you put into acquiring a transaction, you get X dollars back.

Average Order Value$5.90

So if you are helping a company sell a product through a marketplace like, you just list your products and transactions start flowing in. Transactional unit economics are expressed using a simple ratio:

Cost Of Transaction Acquisition (COTA) : Average Order Value (AOV)

This can be read as: "For every dollar you put into acquiring a transaction, you get X dollars back. So, for example, if you spend $100 on a PPC campaign and get one transaction where the average customer orders $200 worth of products, your ratio is $100:$200 or 1:2. Not bad! If I said to you Kristine "give me a dollar and I'd give you two dollars back" you'd probably be pretty happy with our friendship right?However, if Starbucks spent $1,000 to get a new customer that spent $5.90 on a cup of coffee, they would probably go out of business really quick right?Maybe not.. (Next slide please)

Customer Centric

Customer Centric Unit EconomicsCost of Customer Acquisition (CoCA) : Customer Lifetime Value (LTV)

For every dollar you put into acquiring a new customer, you get $X back over the course of their life time

Customer Lifetime Value$15,000

And here is where the huge difference between Transactional vs Customer Centric Unit economics makes all the difference in the world, as does knowing which one the CMO cares about the most. Customer centric unit economics are expressed using a slightly different ratio:

Cost of Customer Acquisition (CoCA) : Customer Life Time Value (LTV)

This can be read as: "For every dollar you put into acquiring a new customer, you get $X back over the course of their life time." So if, for example, you spend $1,000 on a PPC campaign where 5% of the visitors turn into pre-transactional contacts and 10% of those turn into customers, your CoCA is $400. If the average customer spends $4,000 with your company over their lifetime then your CoCA:LTV ratio is $400:$4,000 or 1:10 (or just 10 if you want to use whole numbers).

So you can see how this analysis of unit economics might change your approach to your marketing strategies and your communications with C-level execs. If you're a CMO at Starbucks, are you going to be happy with spending $400 to acquire a $5.90 AOV? Probably not. That's an absurdly bad ratio. But, you'd definitely be willing to spend $400 to acquire and maintain a $15,000 customer -- right? Of course..Fun fact: Apparently $15,000 is about the average lifetime value of a Starbucks customer although I do wonder if they factor the reduced customer lifetime of their customers in this calculation.bad joke??? Ill stick to funny cat pics in the future. I seriously spent almost an hour finding the perfect money hat for that money cat.

Anyways...This ratio also opens up a whole new universe of marketing activities that can contribute to the overall health and growth of the business. For example, many ecommerce companies invest a lot of time and money into lowering their CoCA by minimizing PPC costs and avoiding expenses in rich media like video or educational content. Instead, ecommerce marketers can focus on raising the LTV of their customers by improving their ability to up-sell, cross-sell, and re-sell additional products through a targeted and contextually relevant experience for each of their customers.

Online Marketing ROISourceSpendNewCustomersCACCustomer Lifetime Value(CLV:CAC)ProjectedProfitAffiliates$30,000550$55$5009$275,000CPC$20,561400$51$55011$220,000Display$18,200300$60$4508$135,000Social$14,589250$58$3005$75,000

So In the end, what is typically done with this PPC data you provide to a CMO or CEO? Well, the highest level metrics such as spend and revenue are typically entered into some kind of model that helps them compare true bottom line performance by channel so they can determine which channels are worth stepping on the accelerator pedal and which ones should be scaled back.In this example above, CPC has a ratio of 11 which means for every 1 dollar spent on CPC, 11 dollars is made over the lifetime of that customer. As a CEO myself, with this data in hand, I would be stomping on the accelerator pedal on that channel for sure.

What is a good ratio?

Its ALL relativeLearning to walk at 6 Months OldLearning to walk at 35 Years OldAMAZING!!!!!NOT SO IMPRESSIVE

3 Key TakeawaysAlign to their business objectivesSpeak their language, not yoursEstablish and report on KPIs most important to them

The person you are talking to may need more background but they should have a story to tell after talking to you. Every little detail isnt important.

Always Keep In MindConciseForward ThinkingKey TakeawayBottom Line

Too MuchEvery KPI

You dont want Show up and throw up or Data vomit I dont know if you have ever been in on a presentation and this kind of slide was shown. It is really difficult to know what to look at. It is the same in the report. It is a turn off, confusing and there is no focus.

This is oversimplifying it but you get the idea. This can a) confuse people b)allow them to lose focus and it is just too much information

The Right Balance

This on the other hand is the right balance has less information, but more focus. Almost like a presentation right? You want to show the information you are pointing out with some context.

What we want to focus on is the revenue/Conv. In this instance the amount of conversions for tablet is lower than mobile and desktop but the cost/conv is less than that of mobile and the revenue/conv is higher than that as mobile because of this you may want to focus on tablet)

Again, less information, but enough to get the point across

You can still have a lot of information in the report if you like but you should always be concise in what you point out.

Data Wrap up...What to focus on for continued successWhat the expected result isAny anecdotal infoPPC trends/Market/Industry Insights

So to wrap up data talk , think about what to focus on for continued success. What has been working and what do you think will work moving forward.

(Is there anything I have missed that you think should be included here?)

Think about and convey what the expected result is.

Anecdotal adds some credibility, People get confidence if you tell them that you have experience with or tried something with another client with success.

The Key Takeaway

Paul mention Key Takeaways earlier and I wanted to add a little more to that. Remember - key take aways they lead to Story. Kind of like a presentation. You want the people to know exactly what it all means, why and what result that the action should produce.

Its All About The Story

Keeps People Engaged

Provides Context

Reduces Complexity

We talk about telling a story alot at Hanapin and I actually borrowed this slide from Using Data To Create a Killer Business Story for Your C Suite webinar with Jeff Baum and Fred Vallaeys. I think it is pretty powerful and puts together why telling a story is important. (points in slides)

Final ThoughtsHow, What, WhoExecutive, Strategic, TacticalThe Right BalanceKey TakeawaysMake Sure to Tell the Story


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Live Q&A Time!

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