For more information, visit www.wordstream.com So, you've got an awesome product or service and breathtaking, targeted landing pages that are sure to convert. High five! Just one problem – people aren't clicking on your ads. Bummer. :( Could it be that your ads are boring? Creating compelling ads that urge the reader to click is absolutely crucial to the success of your AdWords and Bing pay-per-click campaigns. In this free webinar, WordStream's Founder & CTO Larry Kim will share ground-breaking research on 10,000+ PPC ads and divulge techniques guaranteed to triple your Click-Thru Rate. You'll learn: - Features of top-performing ads and how to follow suit - Precise impact of CTR on Quality Score, CPC, & CPA - Pitfalls of conventional A/B ad testing: you'll be shocked! - Insane ad testing techniques to send your CTR soaring! Check the webinar out now and arm yourself with tools to kick your CTR (and PPC campaign success) into hyperdrive!

1. Larry Kim, Founder/CTO, WordStream
CONFIDENTIAL – DO NOT DISTRIBUTE
1

2. Today’s Agenda
• What’s a good Click-Through Rate?
• Why does CTR matter?
• Review: The Top 1% of PPC Ads
• What makes them tick?
• How can I replicate them?
• What does it all mean?
Larry Kim (@larrykim) #wordstream

3. Speaker Introductions
• Larry Kim
– Founder, CTO, WordStream, Inc.
– Been doing PPC & SEO for 10
Years!
– Provider of 20 Minute PPC Work
Week and AdWords Grader
– #1 PPC Expert According to PPC
Hero!
Larry Kim (@larrykim) #wordstream

4. Take Part in Live Blogging on Twitter / Google+
Include the hashtag #wordstream in your
Twitter tweets, Google+ status updates, etc.
Larry Kim (@larrykim) #wordstream

5. Let’s learn a little about you….
Larry Kim (@larrykim) #wordstream

6. Live-Poll Question
How Long Have You Been Using AdWords?
a)
b)
c)
d)
Less Than 1 Year
1-2 Years
3-5 Years
Over 5 Years
Larry Kim (@larrykim) #wordstream

7. Most of the Ad Testing Stuff You Read is CR*P
Your Doing PPC Wrong
• Platitudes
• Bad Advice
• Dumb Examples
CONFIDENTIAL – DO NOT DISTRIBUTE
7

8. The Ad Testing “Experts”
Are All Wrong

9. Warning: Lots of Data
Ahead!

10. Epiphany #1:
An Example
A/B Ad Test

11. Live Poll Question: 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
Assumptions:
• Both ads were running during the same time period
(last 7 days), ads “rotating” evenly on the Google
Search Network.
Larry Kim (@larrykim) #wordstream

12. 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

13. What’s a Good CTR?
Larry Kim (@larrykim) #wordstream

14. Survey Methodology
Larry Kim (@larrykim) #wordstream

15. • Even the “Winner” is a Loser!
Forest vs. Trees
CONFIDENTIAL – DO NOT DISTRIBUTE
15

16. Even the “Winning” Ad is a Loser!
Larry Kim (@larrykim) #wordstream

17. Epiphany #2:
What’s a Good CTR?

18. What’s a Good Search CTR? (Account Avg. CTR’s)
Larry Kim (@larrykim) #wordstream

19. But… Lots of Variance!
Larry Kim (@larrykim) #wordstream

20. Winners vs. Losers
Larry Kim (@larrykim) #wordstream

21. Junky vs. Unicorns
Percentile
Vs. Expected CTR
Name
Bottom 50%
Top 15%
Below Expected
CTR
2X Higher
“Junky
Advertisers”
Awesome
Advertisers
Top 5%
3x Higher
Top 1%
6x Higher!!
Super Awesome
Advertisers
Unicorns
Larry Kim (@larrykim) #wordstream

22. Unicorns?! (6x Avg. CTR!)
@larrykim

23. What Unicorns (Top 1%) Look Like
Larry Kim (@larrykim) #wordstream

24. Epiphany #3:
Why Unicorns Matter
(How AdWords
Works)

26. How Quality Score Impacts Ad Position
Larry Kim (@larrykim) #wordstream

27. How Quality Score Impacts Actual CPC
Larry Kim (@larrykim) #wordstream

28. What’s an Average Quality Score? Around 5.1/10
Larry Kim (@larrykim) #wordstream

29. CONFIDENTIAL – DO NOT DISTRIBUTE
29

30. Cost Per Conversion is Largely Based on QS
Larry Kim (@larrykim) #wordstream

31. The Impact of Quality Score on Cost Per Conversion
Larry Kim (@larrykim) #wordstream

33. Epiphany #4:
How is Quality Score
Really Calculated?

34. How is QS Really Calculated? Mostly CTR.
Larry Kim (@larrykim) #wordstream

35. Relationship Between CTR and QS?
Larry Kim (@larrykim) #wordstream

36. Epiphany #5:
It’s All Relative

37. What’s an Expected (or Average) CTR?
Larry Kim (@larrykim) #wordstream

38. QS Based on Your CTR vs. Expected CTR!
Larry Kim (@larrykim) #wordstream

39. Epiphany #6
Quality Score
Cracked.
Now What About
Those Unicorns?

40. Ad Text Testing
Hunting Unicorns
• 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

41. 1. Keywords With High Commercial Intent
Larry Kim (@larrykim) #wordstream

42. 2. Dynamic Keyword Insertion (DKI)
Larry Kim (@larrykim) #wordstream

43. 2. DKI Doesn’t Produce As Many Unicorns
Larry Kim (@larrykim) #wordstream

44. 3. Ad Extensions Impact on Quality Scores
Larry Kim (@larrykim) #wordstream

45. 3. Ad Extensions Impact on Click Through Rate
Larry Kim (@larrykim) #wordstream

46. Epiphany #7
How To Write
“Unicorn” Ads

47. 4. Most Ads Suck. Create Emotional Ads.
47

48. Creating “Emotional” Ads

49. Example
Larry Kim (@larrykim)

50. Versus…
Larry Kim (@larrykim)

51. Epiphany #8
A Few Notes on
Effort…

52. Relative Abundance
Name
Percentile
Relative
Abundance
Vs. Expected
CTR
Awesome
Ads
Super
Awesome
Ads
Unicorns
Top 15%
1:6.7
2X Higher
Top 5%
1:20
3x Higher
Top 1%
1:100
6x Higher!!
Larry Kim (@larrykim)

53. Epiphany #9
You Need To Test
100 Ads To Find 1
Unicorn

54. You’re Not Testing as Many Ads as You Think…
Larry Kim (@larrykim)

55. Most Small Businesses are Lazy…
Larry Kim (@larrykim)

56. Epiphany #10
It’s Not as Hard As
You Think

57. 85% of Impressions are From 5% of Ads
Larry Kim (@larrykim)

58. Epiphany #11
A Note on Mobile Ads

59. Calls are Worth Way More Than Clicks
• The calls from mobile traffic converted
at a 3x higher rate than clicks to a
website
• Mobile Ad Testing should
be based on call rate, not
CTR or Conversion Rates
Larry Kim (@larrykim)

60. Epiphany #12
What Does It All
Mean? How to Scale
Your PPC

61. A 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)

62. Average CPC’s by Industry and Network
Larry Kim (@larrykim)

63. Average Conversion Rates by Industry
Larry Kim (@larrykim)

64. Average CPA’s for Search & Display, by Industry
Larry Kim (@larrykim)

65. Summary / Key Takeaways:
• What’s a Good CTR?
• How is Quality Score Calculated and Why Does it
Matter in Theory?
• Review: Unicorn account vs. Junk Account
• What Makes a Unicorn Tick – 5 Common
Ingredients and Workflow To Create Them
• What Does it all Mean: How to Modify your PPC
strategy for best results.
Larry Kim (@larrykim)

66. Special Thanks
• Perry Marshall (@perrymarshall)
– Author of the most popular AdWords book in
the world.
– #1 author and world’s most-quoted
consultant on Google Advertising
– Published thousands of articles on sales,
marketing and technology

67. Grade Your Quality Score with The AdWords Grader!
•
A free, instant PPC audit in
under a minute!
•
Grades your AdWords account
performance based on the 8
PPC metrics that really matter
•
Compares how you’re doing
against other accounts of
similar size (monthly spend)
www.wordstream.com/google-adwords
Larry Kim (@larrykim)

68. WordStream’s
20 Minute PPC Work Week
• We find all the low hanging
fruit in your account
• You just review / approve the
findings.
• Quick. Easy. Powerful.
• 20 Minutes a Week can
improve your ROI on
AdWords by 20% or more!™
www.wordstream.com/ppc-free-trial
Larry Kim (@larrykim)

69. New: Leads & Landing Page Management Software
www.wordstream.com/ppc-free-trial
@larrykim

70. Special Offers! Would you like…
a) A FREE live demo of WordStream PPC Advisor
b) Get a 1-on-1 AdWords Grader walk-through with a
PPC expert
c) Nothing at the moment
Larry Kim (@larrykim)

71. Your Questions
Thank you for attending
WordStream’s webinar!
Benchmark your AdWords account today!
http://www.wordstream.com/google-adwords
Or contact us directly:
Larry Kim
lkim@wordstream.com
http://twitter.com/larrykim
Larry Kim (@larrykim)