Topic: PPC – Finding the lost Profit PPC advertising often accounts for the greatest share of online marketing budgets however many advertisers miss golden opportunties to maximise their profit margin. In particular, recent ‘Enhanced Campaigns’ campaigns in Adwords have thrown advertisers a new curve ball to deal with. Key takeaways: - Adwords Enhanced Campaigns: How to adapt and tactics to make them work for you - PPC quick wins: Areas of PPC campaigns that are frequently overlooked yet contain massive profit potential - Nurturing Quality Score: Quality score is the key to unlocking increased traffic and cheaper click costs in both Adwords and Bing Ads.

1. PPC
MARKETING
FINDING THE
LOST PROFIT
JUNE 2013
Presented by Ben Wightman to:
On The Edge Digital Bristol
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2. INTRO:
RECENT PPC
TRENDS

3. A CONNECTED NATION
80
81
82
83
84
85
86
87
2011
Q1
2011
Q2
2011
Q3
2011
Q4
2012
Q1
2012
Q2
2012
Q3
2012
Q4
2013
Q1
UK Internet Users
Percentage of all adults
Office for National Statistics Data Q1 2013
0%
10%
20%
30%
40%
50%
60%
70%
2010 2011 2012 2013
UK Smartphone Ownership - %
of Population
86% of UK adults
are online

4. SEARCH QUERIES RISING
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13
Paid Search Impression Trends by Sector
Automotive B2B Gaming Insurance Legal Leisure Retail
Source: Latitude Digital Marketing

5. DIGITAL SPEND INCREASING
www.iabuk.net/: 2012 UK Digital Adspend up 12.5% YoY

6. CPC RISING
£0.00
£1.00
£2.00
£3.00
£4.00
£5.00
£6.00
£7.00
Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13
CPC Trends by Sector
Automotive B2B Gaming Insurance Legal Leisure Retail
Source: Latitude Digital Marketing

7. DEVICES EVOLVING
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13
PPC Click Share
Desktop Smartphones Tablets
Source: Latitude Digital Marketing

8. SERPs FRAGMENTING
Mobile
- High competition
for top 2 positions
- Harder to be seen
Desktop
- Easier to reach
above the fold

9. PPC CHALLENGES
• Audience > mobile
• Competition > increasing
• Technology > evolving
• SERPs > fragmenting
Google are hoping to simplify PPC
management and help advertisers to adapt to
changing trends…

10. ADWORDS
ENHANCED
CAMPAIGNS

11. ABOUT
ENHANCED CAMPAIGNS
“An AdWords enhanced campaign makes it
easier to reach people across all devices with
the right ads, based on their specific
location, time of day and device type.”

12. KEY
CHANGES
- Tablet targeting
- Smartphone-only campaigns
- Mobile keyword-level bids
- OS targeting
- Combined Desktop/Tablet bids
- Mobile customised messages
- Mobile bid multipliers (AdGroup level)
- Stackable location & time bid multipliers
- Upgraded Sitelinks
- Call & App download tracking
- Ad extension scheduling
- Cross-device tracking (late June)
Going
Out
Coming
In
Added
Benefits

13. 3 TIPS
FOR E.C.
SUCCESS1. Focus on User Context;
• Merge desktop & mobile keyword lists
• De-duplicate and group keywords by search query intent
• Arrange into tightly themed adgroups (<15 keywords) and campaigns
• Create mobile-preferred ads to improve CTR & Quality Score
Campaign Ad Group Keyword Desktop Ad Mobile Preferred Ad
Red BMX Bikes Red BMX Bikes red bmx bikes Latest Red BMX Bikes Latest Red BMX Bikes
Red BMX Bikes Red BMX Bikes bmx bikes red Shop our BMX Bike range online. Reserve on mobile & collect today,
Red BMX Bikes Red BMX Bikes bmx red frame Your Dream Red BMX is waiting! Your Dream Red BMX is waiting!
Red BMX Bikes Red BMX Bikes red bmx www.bmxbikeplace.co.uk www.bmxbikeplace.co.uk
Blue BMX Bikes Blue BMX Bikes blue bmx bikes Latest Blue BMX Bikes Latest Blue BMX Bikes
Blue BMX Bikes Blue BMX Bikes bmx bikes blue Shop our BMX Bike range online. Reserve on mobile & collect today,
Blue BMX Bikes Blue BMX Bikes bmx blue frame Your Dream Blue BMX is waiting! Your Dream Blue BMX is waiting!
Blue BMX Bikes Blue BMX Bikes blue bmx www.bmxbikeplace.co.uk www.bmxbikeplace.co.uk

14. 3 TIPS
FOR E.C.
SUCCESS2. Enrich Ads with Ad Extensions
• Sitelinks
• Social Extensions
• Seller Ratings
• Location Extensions
• Click-to-call
• Offer extensions
• Image extensions (in beta)
Use extension scheduling to show different ad extensions at different times of day
 Great for switching click-to-call to sitelinks when phone lines close for the night
 The reporting options are awesome!

15. 3 TIPS
FOR E.C.
SUCCESS3. Mobile Bid Adjustments
• Mobile bid multipliers can be set at adgroup level
• Adwords will automatically recommend bid adjustments
• Use a spreadsheet to set your own adgroup level bid multipliers if you
already have performance data
• Google‟s „Full Value of Mobile‟ calculator
is handy for quick calculations
www.google.com/think/tools/full-value-of-
mobile-calculator.html

16. EFFECTIVE
CAMPAIGNS
&
QUALITY
SCORE

17. A MEASUREMENT OF UX
60%
25%
10%
5%
CTR
Landing Page
Ad & KW
Relevance
Other factors
Quality Score Factors (estimated)
“Quality Score is an estimate of
how relevant your ads, keywords
and landing page are to a person
seeing your ad.”
Quality Score is one factor in Ad
Rank, which decides where ads
appear on the SERPs
Improving Quality Score helps to
reduce CPC and increase
average ad position…
…leading to more clicks, lower
costs and more conversions!

18. QS INGREDIENTS
60%
25%
10%
5%
CTR
Landing Page
Ad & KW
Relevance
Other factors
• Keyword historical CTR
• Display URL historical CTR
• Account historical CTR
• Landing page quality
• Keyword-ad relevance
• Keyword-search relevance
• Geo performance
• Image ad performance (per
placement)
• Device performance
Higher Quality Scores = lower
costs and better ad positions
Quality Score Factors (estimated)

19. QS IN ACTION
Max CPC Bid Quality Score Ad Rank Ad Position Avg CPC
Advertiser A £10.00 x 3 30 3 £10.00
Advertiser B £8.00 x 7 56 2 £4.43
Advertiser C £6.00 x 10 60 1 £5.70
The Auction Formula: Ad Rank = Max CPC bid * QS
Let‟s suppose an advertiser in P4 has an Ad Rank of 29. Three advertisers
compete for the top-of-page ad placements as follows;
Advertiser C wins top ad position, while Advertiser A pays the highest cost-
per-click!

20. QUALITY SCORE
7 TOP TIPS

21. 1. QS REPORTS
Know where you‟re starting from and measure your progress…
Adwords does not provide an historical QS report. Download and save
keyword reports to chart QS progress. Pivot tables are your friend…
1 2 3 4 5 6 7 8 9 10
CTR 0.3% 0.3% 0.9% 0.8% 0.7% 0.7% 1.0% 0.0% 1.5% 1.8%
CPC £0.5 £0.6 £0.6 £0.5 £0.5 £0.5 £0.5 £0.0 £0.5 £0.5
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
1.4%
1.6%
1.8%
2.0%
£0.00
£0.10
£0.20
£0.30
£0.40
£0.50
£0.60
£0.70
£0.80
Quality Score
Quality Score: Avg CPC vs CTR
£0
£500
£1,000
£1,500
£2,000
£2,500
£3,000
£3,500
£4,000
£4,500
£5,000
£0
£2
£4
£6
£8
£10
£12
1 2 3 4 5 6 7 8 9 10
Quality Score
Quality Score vs Spend / CPA
Cost
CPA

22. 2. AD EXTENSIONS
Ad Extensions are one of the fastest ways to increase CTR. They assist
users and the uplift in Ad performance can be surprisingly high;
Pro Tips:
- Use site search query reports to find ideas for CTR-boosting sitelinks
- Develop a Google+ strategy to enhance Adwords performance
- Cultivate positive reviews on trusted sites to get seller ratings
Social Extensions > +5-10% Sitelinks > +30%

23. 3. SEARCH QUERY
REPORTS
Negative Keywords are always a quick win. Review SQRs regularly and
exclude any search phrases you don‟t wish to pay for;
-”logo”
-”returns”
-”recruitment”
-”jpeg”
-”head office”
-”news”
-”jobs”
-”pictures”
-”careers”
-”reviews”
-”videos”

24. 4. ACCOUNT STRUCTURE
Exact match has the best keyword-search
relevance and allows ads to be optimised
for superior keyword-ad relevance
It’s ~15% cheaper to pick up a search query
with Exact than with phrase/broad match
Segment campaigns by keyword match
type. Use embedded negatives for
phrase/broad match campaigns to prevent
cannibalisation of Exact match traffic
Campaign Keyword Keyword Type
BMX Bikes | Exact bmx bikes exact
BMX Bikes | Exact blue bmx bikes exact
BMX Bikes | Exact bmx bikes blue exact
BMX Bikes | Exact red bmx bikes exact
BMX Bikes | Exact bmx bikes red exact
BMX Bikes | Phrase bmx bikes phrase
BMX Bikes | Phrase blue bmx bikes phrase
BMX Bikes | Phrase bmx bikes blue phrase
BMX Bikes | Phrase red bmx bikes phrase
BMX Bikes | Phrase bmx bikes red phrase
BMX Bikes | Phrase bmx bikes negative exact
BMX Bikes | Phrase blue bmx bikes negative exact
BMX Bikes | Phrase bmx bikes blue negative exact
BMX Bikes | Phrase red bmx bikes negative exact
BMX Bikes | Phrase bmx bikes red negative exact

25. 5. AD TESTING
Ad testing is a long-term strategy for
increasing CTR
• Be a scientist –
analyse, hypothesise, test, & refine
• Conduct tests in controlled conditions
• Tight keyword themes
• Exact Match only
• Even rotation
• Measure profit-per-impression for a
true end-to-end comparison
• End tests before they become
unprofitable!
0%
1%
1%
2%
2%
1 2 3 4 5 6 7 8 9 10
Avg CTR by Quality Score

26. 6. LANDING PAGES
• Landing page quality is a key
component in Quality Score
• Find clues about landing page
quality in the Keywords tab under
the speech bubble
• Deep link to the most relevant
landing page for each keyword &
advert
• Use A/B testing and conversion
rate optimisation to improve both
landing page performance and
Quality Score

27. 7. THE CUTTING EDGE
Follow official blogs to stay on
the cutting edge…
…and increase campaign
performance by testing new
features as soon as they are
released
Add to bookmarks;
http://adwords.blogspot.co.uk/
http://googlemobileads.blogspot.co.uk/
http://adwordsagency.blogspot.co.uk/
http://analytics.blogspot.co.uk/
http://community.bingads.microsoft.com
http://www.kaushik.net/avinash/

28. PPC HEROES
& VILLAINS

29. THE GOOD, THE
BAD, & DUCKS

30. THE GOOD, THE
BAD, & DUCKS

31. THE GOOD, THE
BAD, & DUCKS

32. THE GOOD, THE
BAD, & DUCKS

33. THE GOOD, THE
BAD, & DUCKS

34. THANK
YOU