MnSearch Summit - Session - Larry Kim - 10+ Years Of PPC Experience In Just 40 Minutes

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The Weirdest Intro to PPC Ever!

10+ Years of PPC Experience in Just 40 Minutes

The Weirdest Intro to PPC Ever!

10+ Years of PPC Experience in Just 40 Minutes

Larry Kim, Founder/CTO, WordStreamJune 27, 2014

About Me

Larry Kim (@larrykim)• Founder & CTO of WordStream

• Commander of the Google AdWords Quality Score Rebellion

• Had a Kid 7 Weeks Ago (#ppckid)

Larry Kim (@larrykim) #wordstream

Today’s Agenda: Weirdest Intro to PPC Ever

1. How AdWords Really Works

2. Winning at AdWords the Weird Way– Tips for Writing Killer Ads / Picking

Keywords– Tips for Writing Amazing Offers– User Context & Mobile Search– Converting Customers with Remarketing

Larry Kim (@larrykim)


Pick the Red or Blue Pill

The Rules of the AdWords Game

Understanding the AdWords Auction


How Quality Score Impacts Ad Position

• AdWords is Like Real Estate: It’s all about Location!

Larry Kim (@larrykim) #mnsearch

How is Quality Score Actually

Calculated?

Google Expects WAY More of Your Ads!


QS is Based on Your CTR vs. Expected CTR!

Larry Kim (@larryim) #mnsearch

What’s an Average Quality Score in 2014?

Avg. Quality Score Has Been Falling.

• Today, average score is 5/10. Previously was 7/10!


How Does Quality Score

Impact Cost Per Click?

How Quality Score Impacts Actual CPC



Impact Impressions?

Impression Share vs. Quality Score

• AdWords is Like Real Estate: It’s all about Location!

Larry Kim (@larrykim) #wordstream #mnsearch

How Does Ad Position Impact

Conversion Rates?

Do Certain Ad Positions Convert Better??


Conv. Rate vs. Average Search Position



Impact Cost Per Action?

Cost Per Conversion Greatly Impacted by QS


The Impact of Quality Score on Cost Per Conversion


But High QS Not Possible In My Industry!


B2B Industry Quality Scores


Finance Industry Quality Scores


Ecommerce Industry Quality Scores


But Google Says Don’t Obsess Over QS!


“Low CTR” = Losing PPC Strategy

Quick Recap

1. Below Avg. CTR = Low QS

2. Low CTR ads: Have Lower Ad Positions (Fewer Clicks) Often don’t even get displayed Get penalized w/ up to 400% higher CPCs Have up to 64% higher cost per conversion


The High CTR Game for AdWords

1. Be Very Picky. Bid on Only the Best Keywords and Get HIGH CTRs.

2. Delete Junk Keywords (Bottom Third of your Account)


How To WriteInsanely Great PPC Ads

What’s a Good CTR?


• Even the “Winner” is a Loser!


Your Best Ad Might Be Crap


How Great Can My CTR Be??

(You’d be surprised)

Click Through Rate Varies A Lot!!


Some Ads Do 2x, 3x or 6x Above Avg!?


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


@larrykim

Ad Unicorns?! (6x Avg. CTR!)

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

1. Keywords With High Commercial Intent


Does Dynamic Keyword Insertion Matter?

What is Dynamic Keyword Insertion?


2. Dynamic Keyword Insertion (DKI)


2. DKI Doesn’t Produce As Many Unicorns


Do Ad Extensions

Matter?

What Are “Ad Extensions”?

50Larry Kim (@larrykim) #mnsearch

3. Ad Extensions Impact on Click Through Rate


3. Ad Extensions Impact on Quality Scores


How To Write “Unicorn” Ads

4. Most Ads Suck. Create Emotional Ads.

54Larry Kim (@larrykim) #mnsearch

Creating “Emotional” Ads


An Example:


Versus…


These Emotions Make Things Spread Online


Source: Buzzsumo

You Need To Test 100 Ads To Find 1

Unicorn.

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!!


You’re Not Testing as Many Ads as You Think…


It’s Not as Hard As You Think

Most Small Businesses Aren’t That Active

Larry Kim (@larrykim) #wordstream #mnsearch

85% of Impressions are From 5% of Ads


Converting Clicks Into Leads

The Great Landing Page Optimization Fairy Tale

• We Changed the: – Font Type– Spacing– Button Color– Image– Etc.

• We got a 5% Increase in Conversions!!*


Typical Conversion Rate Optimization Test

• PTD- Premature Testing Dilemma (aka “Optimizatitis”)– The Early Lead Disappears!

– We want to believe our hard work paid off but we are often deluding ourselves…


Conventional Landing Page Optimization is Over-Rated

• Small Changes Result in Small Changes

• The x% Increase you think you got probably isn’t significant!


Re-Arranging Deck Chairs On the Titanic


What’s a Good Conversion Rate?

Unremarkable vs. Unicorns

Distribution Point Conversion Rate Vs Average Comments

Average 2.35% Unremarkable

Top 25% 5.31% 2x Awesome

Top 10% 11.45% 3-5x Unicorns


“top 10% of accounts have a CVR 3x average” rule


Distribution Point

All accounts Ecommerce Legal B2B Finance

Median Conversion Rate

2.35% 1.84% 2.07% 2.23% 5.01%

Top 25% Conversion Rate

5.31% 3.71% 4.12% 4.31% 11.19%

Top 10% Conversion Rate

11.45% 6.25% 6.46% 11.70% 24.48%

Aim For 2-5x Increases Not 2-5%!


@larrykim

Landing Page Unicorns?! (+3x Avg. Conversion Rate!)

What Do Landing Page Unicorns

Look Like?

1. Change The Offer


The New Offer:


How to Know if your Offer Stinks

• Average or Below Average Conversion Rates

• Ask Your Customer!


2. Change The Flow.


2. New Flow: Registration At End


Changing the Flow: Let Them Choose


You Need To Try Out 10 Landing Pages To Find 1

Unicorn

Relative Abundance

Name Percentile Relative Abundance

Vs. Expected Conversion Rate

Awesome Landing Pages

Top 25% 1:4 2x Higher

Unicorns Top 10% 1:10 5x Higher!!


This is the same landing page with different spacing…


Again,It’s Not as Hard As

You Think

80% of Traffic Goes to 10% of Landing Pages


The Bar for Landing Page Excellence is (Very) Low


You Don’t Need Dozens of Landing Pages…


But You Don’t Need Dozens of Landing Pages…


Understanding Mobile PPC

Larry Kim (@larrykim)Source: BIA/Kelsey


OMG a Call Button!!


Call Extensions Radically Change The Flow!

Calls to Businesses worth on Average 3x More Than Clicks to Websites!!

4. Captured Lead

2. Calls Business

2. Clicks On Ad

Desktop Search Conversion Funnel

3% Avg. Conversion Rate

Mobile Conversion Funnel

1. Sees Ad 1. Sees Ad

3. Visits Website Landing Page

3. Lead Captured!!


No, You Don’t Need A Mobile Website!


Avg. CTR Drops Off VERY Fast on Mobile


Mobile Impression Share VERY Competitive

Converting Traffic withRemarketing

Typical Conversion Rates Are in Single Digits

of people who visit a website leave without completing the actions marketers want them to take

~97%

Your Ad

Your Site

X-

of people abandon their shopping cart without completing a purchase

70%


How Remarketing Works


Typical Reach of Remarketing…

1. Reach 2. Frequency 3. DiversityOn various pagesReach more users

Reach them frequently

Of the typical remarketing audience, find

Reach them on between As they visit 20 or more pages on a typical day across

84%…within a month

10-18 days… or more out of the month

5-10 sites… of which all pages and

sites have ad space available to Google Display Network buyers


Audience Definition Strategy

• Funnel and Product Based List Segmentation


WordStream’s Remarketing Ads

• Ads that both reinforce your brand while driving to a conversion!


Impact on Repeat User Rate

• New Visitor Rate Fell From 79.8% to 66.63%

• (Meaning, Visitors are Now Returning)


Impact on User Engagement

• Time on Site Increased from 1:33 to 4:35 (TRIPLED!!)


Remarketing = Your Secret Weapon


1. Delete Bottom Third of your Search Marketing Campaigns (Worst Crap In Your Account)

2. Redeploy Budget to Remarketing!!

Larry’s Crazy PPC Strategy!!


Summary: Weirdest Intro to PPC Ever

1. Just Say No to Low CTR!

2. Write Insane Ads that Get 3x Avg. CTR

3. Crazy Offers that Get 3x Conversion Rates

4. Use Mobile Search to Triple ROI

5. Convert Customers with Remarketing


Thank You MNSearch & ThinkSEM!


Slides: bit.ly/mnsearch2014

MnSearch Summit - Session - Larry Kim - 10+ Years Of PPC Experience In Just 40 Minutes

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