The Business of PPC: What’s the True Value?

The Value of Paid Search

April 2014

PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 2!

About Dan!

linkedin.com/in/dangolden @thegoldendan

President & Chief Search Ar<st, Co-‐founder at Be Found Online


Key Topics!

1

2

3

The Media Mix Tracking & KPI’s Valuing Mobile 4 Tac<cal Tips 4


Digital vs Other Advertising!

2013 Media Spend 2013 Media Spend Growth

Source: hKp://techcrunch.com/2014/01/27/nielsen-‐internet-‐adver<sing-‐grew-‐32-‐in-‐2013-‐but-‐its-‐s<ll-‐only-‐4-‐5-‐of-‐spend-‐vs-‐tv-‐at-‐57-‐6


SEM vs Other Digital Media!

Source: Winterberry Group analysis of mul<ple sources. Excludes social display and social search


Search Vs. Display!

•  Users spend more <me on content related sites

•  Ads are visually more appealing •  Creates Demand

Display Ads Search Ads

•  Users only spend 5% searching, but purchase intent is high

•  Ads speak directly to needs •  Conversion king •  Captures Demand


The Big 5 SEM KPI’s!


•  New Metrics in 2013 – Phone Calls (Set Dura<on) – App Downloads – Es<mated Total Conversions

•  Cross-‐Device!

•  Newer Metrics (Announced 4/22) – Enhanced App Metrics – Offline Sales/Offline Visitors (Shh… Currently in Alpha)

Tracking is Catching Up!


Valuing Mobile !

If you are an ecommerce pure play…. If you have stores or transact offline… keep listening


The sales return on search ad spend was significant as well — between two and 14x.

Online Ads Increase Offline Sales!

Source: GoogleThink, Nov. 2013 -‐ hKp://www.thinkwithgoogle.com/ar<cles/proof-‐online-‐ads-‐increase-‐offline-‐sales.html


Mobile = Local Search!

62% consumers who search for local business prefer local search results.

86MM mobile phone subscribers access local business informaHon from their phone in the US

4 out of 5 apps used on devices are map centric

Source: comScore, Neustar Localeze and agency 15 Miles, Local Search Study, Dec 2013, 5,000 US adults


Mobile search drives buying habits! Nearly 80% of local searches on mobile devices turn into a purchase.

Mobile Drives Action!

Source: comScore, Neustar Localeze and agency 15 Miles, Local Search Study, Dec 2013, 5,000 US adults, Google Mobile


Valuing Non-Brand!

Brand + Non-‐Brand = Bigger Piece of the Pie!

Your Share Your CompeHHon


Valuing Non-Brand!

Last Click ü Conversion

•  In reality, it is ofen more than one search that lead to the final conversion. These non-‐brand searchers deserve credit in assis<ng.

•  Typically, the last click gets all the credit—which is misleading and inaccurate


Search Attribution Modeling!•  Last Click: Gives all credit for the conversion to the last-‐

clicked keyword •  First Click: Gives all credit for the conversion to the

first-‐clicked keyword •  Linear: Distributes the credit for the conversion equally

across all clicks on the path •  Time Decay: Gives more credit to clicks that happened

closer in <me to the conversion •  PosiHon-‐based: Gives 40% of credit to both the first-‐

and last-‐clicked keyword, with the remaining 20% spread out across the other clicks on the path


Tactical Tip #1: Measure Search Share!•  Auc<on Insights = Awesome •  Impression Share, Overlap, Top of Page Rate •  Make the Case with Search Funnel Data

•  Average Impressions before Search

•  Reminder/Warning: AI Reports don’t measure missed keyword and targe<ng opportuni<es •  Your Keywords •  Your Geo-‐Targe<ng


Tactical Tip #2 – Measure Conquesting!•  Measure Impressions/CPM •  Dos & Don’ts

•  Determine your landing page and watch your bounce rate •  Don’t use when it hurts your quality score and drives bids too

high

•  Disadvantages outweigh Advantages?


Tactical Tip #3 – Offline Testing!•  Clients don’t believe all of Google’s Case Studies? •  Test For Yourself

•  Unique Digital Coupons

•  Market-‐Level Tests •  On vs Off Markets


On a good day, 5% of your paid traffic results in a “conversion” measured by most brands. Here’s how to value that 95% that still matters.

•  Step #1 – Assign Multiple KPI’s •  Step #2 – Assign Values to Each

KPI •  Step #3 – Integrate KPI mix into

Reporting •  Step #4 – Act & Optimize to

Blended Conversion Rates •  Step #5 – Grow your search

budgets!

Primary ROI Metrics

Cost/Lead

ROAS

ROAS (Last Click)

Addi<onal Leads Metrics

NewsleKer Signups

Phone Calls

Online Chats

Engagement Metrics

Time on Site

Pageviews

Social Ac<ons

Offline Ac<ons

Store Locator

Get Direc<ons

Coupon Pageviews

Search Share

Impression Share

Top of Page Rate

Average Posi<on &

CTR

Tactical Tip #4 – Blended KPIs!


FREQUENCY!


SUMMARY!

No silver bullets, but inquisi<ve minds can find silver linings.

Thank You! Ques<ons?

The Business of PPC: What’s the True Value?

Marketing

Transcript of The Business of PPC: What’s the True Value?