The future of search advertising at first glance looks bleak. Competition and CPCs keep rising, ad inventory is flat and in some cases shrinking, ad blockers are ruining ROI, etc. It’s kind of a bummer, yet the future of PPC is bright, albeit much different from what we’ve seen in the past. In this keynote presentation, Larry Kim will cover the 5 biggest trends that are radically changing the future of PPC marketing and how marketers must quickly adapt their strategies and tactics to win at PPC marketing in 2016 and beyond.

1. The Future of PPC Marketing
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2. A Few Random
Facts About Me

3. This is my Second Trip
to Czech Republic!
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4. Me Visiting Český
Krumlov Two Years Ago…

6. Originally from Winnipeg, Canada

7. Actual Photos of Boston From February This Year
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8. I Live in Harvard Square, Cambridge,
Massachusetts, USA

9. WordStream’s Global Headquarters in Boston
2008 2015
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10. The FUTURE of PPC Marketing
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11. #mktfest @larrykim
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12. #mktfest @larrykim
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Google Search = Transformed Direct
Response Marketing !

13. PPC Search Ads = Direct Conversion

14. Direct Conversion =
Holy Grail of PPC
Marketing

15. PPC Marketing 15 Years Ago
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17. 1. PAID SEARCH CPCs AT ALL TIME
HIGH IN ESTABLISHED MARKETS!
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Source: Approx. 2500 WordStream Customers
(Not official Google Data.)

18. Brought to you by:
#2: Certain Verticals Are Insanely Expensive
TOP COST PER CLICK ON BING ADS (Feb. 2015)
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19. #mktfest @larrykim
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3. Mobile is +50%
of Google searches
(October, 2015)

20. #mktfest @larrykim
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Mobile vs. Desktop Search Clicks, Jan. 2013 –Nov. 2015
Source: Approx. 2500
WordStream Customers
(Not official Google Data.)

21. 4. FEWER AD SPOTS ON MOBILE
(which is 50% of searches in 2015)
VS.
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22. 5. APPS ARE STEALING FROM DESKTOP SEARCHES!
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Mobile
App
Desktop

23. 6. Half Do No Searches
on Mobile Per Day
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Source: https://theoverspill.wordpress.com/2015/10/19/searches-average-mobile-google-problem/
95% do fewer than 7 searches daily;
Only 47% do more than 1 search per day

24. Your audience
spends 95% of its
time the Web
consuming content
and just 5% of
time spent
searching for it.
7. 95% OF TIME ONLINE IS SPENT ON CONTENT
WHERE DISPLAY ADS CAN REACH USERS
Customers consider, evaluate, and advocate online.
Source: Internet Activity Index (IAI) by the Online Publishers Association (OPA);
http://www.online-publishers.org/page.php/prmID/421
Search 5%
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25. High CPCs & Low Overall Search Ad
Inventory in Established Markets (YIKES!)
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26. #mktfest @larrykim
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8. Low Brand Recall from PPC Ads
Text Link Ads are
Not Particularly
Memorable or
Inspiring

27. #mktfest @larrykim
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9. Cookies Crumble
on Mobile & Ad
Blockers Impacting
Display Ads

28. #mktfest @larrykim
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Google Display Network Clicks, Jan. 2013-Nov. 2015
Source: Approx. 2500
WordStream Customers
(Not official Google Data.)

29. #mktfest @larrykim
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10. Typical Conversion Rate Via PPC Ads <2.35%
Search Ad Impressions
Clicked on Ad
Lead or Sale

30. Future of PPC Marketing
Kind of Feels Like ….
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31. What Are
Search Engines
Doing To Address
These PPC Ad
Challenges
?
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32. #mktfest @larrykim
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33. NEW DEMOGRAPHIC BIDDING OPTIONS (Bing Ads)
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34. Customize search ads
specifically to people who
recently visited your site!
On average:
• Doubles CTR, raises
Quality Score
• Cuts CPC in HALF!
REMARKETING LISTS FOR SEARCH ADS (RLSA)
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Users visit your site, get added
to your remarketing list
Show them customized ads
when they search on Google!

35. I DON’T BUY EVERY KEYWORD SEARCH
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36. MOST NEW PAID SEARCH FEATURES HELP
YOU BE MORE PICKY THAN BEFORE
Quantity of Searches
PriceofPaidSearchClicks
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Fewer, Higher Quality,
more expensive clicks



37. The Greatest
Strength of PPC
Search Ads is Also
its Greatest
Weakness.
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38. #mktfest @larrykim
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Searchers Have
*Already* Decided
to Buy
“Buy Zumba
Workout DVD”

39. PPC Search Ads Don’t Create
*NEW* Demand
More About Fighting
Competitors to Capture
*Existing* Market
Demand
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40. How to make PPC Ads
• Create NEW demand for
your Products & Services
• Convert at much higher
rate for less spend
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Note: Looking for BIG Transformative gains (+10x Improvements) not
10% changes – Like the original Google Search Ads 15 Years Ago!

41. #mktfest @larrykim
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You Are Part of the Social
Media Ad Rebellion … and
a Traitor.

42. Why
PPC Marketers
Should Care
About Social Ads
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43. Assisted
Conversion
Direct
Conversion
Vs.
(Too Much Focus Here) (Not Enough Focus Here)

44. #mktfest @larrykim
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How Does
Indirect Conversion
via Paid Social Ads
REALLY work?
?

45. #mktfest @larrykim
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(a) Paid Social Ads Builds Up Builds Up Your BRAND
CREATE
Produce content
& share on social
AMPLIFY
Selectively promote top
content on social media
TAG
Build remarketing
audience by tagging site
visitors with a cookie

46. ADVERTISE
Target your
audience with
display & social ads
promoting offers
FILTER
Apply behavioral
and demographic
filters on audience
CONVERT
Capture qualified
leads or sale
(b) Social Ads Turn
Visitors into Leads
& Customers
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47. #mktfest @larrykim
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48. You Can Do
Paid Social Ads
with 1000 Kč
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49. #mktfest @larrykim
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The Top 10 Social PPC Advertising
Hacks of All Time!

50. #mktfest @larrykim
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We’re Focusing on Facebook (Instagram) &
Twitter Today

51. #mktfest @larrykim
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Apologies to Google+ Fans…
SOCIAL NETWORKING
On Google+

52. #mktfest @larrykim
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Larry’s #10 Social Ads Hack:

54. #mktfest @larrykim
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How Does Google Search Decide
Which Ad is Shown Where?
Ad Rank
Quality Score
Max CPC Bid
Amount
x
=

55. #mktfest @larrykim
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HIGHER POST ENGAGEMENT
Higher Relevance Score
HIGHER RELEVANCE SCORE
More Impression Share and
Lower Cost Per Engagement
“Relevancy Score” in Facebook
=
=

56. #mktfest @larrykim
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“Quality Adjusted Bid” in Twitter
HIGHER Relevance, Resonance, Recency =
HIGHER Quality Adjusted Bid =
MORE Ad Impressions at Lower Cost
RESONANCE: Are consumers
engaging your Tweet? Do they
retweet, favorite, or reply?
RELEVANCE: Is your Tweet
related to things a user is
interested in?
RECENCY: Is your Tweet fresh?
Fresher Tweets get higher
priority.

57. #mktfest @larrykim
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Higher Engagement Rate = (Much)
Lower Cost Per Engagement
Engagement Rate
Cost per engagement
$.005 $.02 $.03 $.08
68%
7%
21%
37%
$3.00
1%

58. #mktfest @larrykim
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1% Increase in
Post Engagement
5% Reduction in Cost
Per Engagement!
“Quality Adjusted Bid” in Twitter
=

59. Quality Score & Ad Impression Share
A TYPICAL TWITTER CAMPAIGN
FEWER AND FEWER AD IMPRESSIONS
AS THE CAMPAIGN AGES!
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60. High QS (Great!)
• High Ad Impression Share
• Low Cost Per Engagement
• More Qualified People!
Low QS (Terrible!)
• Low Ad Impression Share
• High Cost Per Engagement
• More Unqualified Randos…
Get a High Quality Score! (Duh)
High Post Engagement = High Quality Scores
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62. #mktfest @larrykim
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Just Say NO to Promoting Junk Updates
I DON’T PROMOTE EVERY TWEET

63. #mktfest @larrykim
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Only Promote Your Best Stuff
(Unicorns!)

64. #mktfest @larrykim
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Promote Your BEST Stuff Instead (Top 1-2%)
RETWEETS
1,488
FAVORITES
1,284
6:15AM – 7 Mar 2015

65. #mktfest @larrykim
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Paid Social Ads ROI Analysis:

66. How to ALWAYS get High Quality Scores?
Unicorn Detector!

67. #mktfest @larrykim
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Larry’s Organic & Paid Social Network
Sharing/Posting Pyramid Scheme
1. Post Lots of stuff (organically)
to Twitter (or email or other
channels)
2. Post Top stuff from (1), to LinkedIn
& Facebook
3. Pay to Promote the Unicorns on
Facebook & Twitter!

68. #mktfest @larrykim
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How to Find High Engagement Posts? (Unicorns!)

69. Paid Social Hunger Games
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70. #mktfest @larrykim
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What’s The Biggest Difference??

71. #mktfest @larrykim
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Paid Social = Be Picky!
Cast a Narrow Net,
Maximize Engagement Rates.

72. #mktfest @larrykim
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Larry’s #9 Social Ads Hack:
Turn Low Engagement
Updates Into High Engagement
Sponsored Updates

73. #mktfest @larrykim
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zOMG 10X Higher Engagement
By Targeting #alphabet

74. #mktfest @larrykim
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Precise Ad Targeting Boosts Engagement Rate

75. #mktfest @larrykim
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Larry’s #8 Social Ads Hack:
Increase Commercial
Intent (Chance of People
Buying Your Stuff) Using
“In-Market Segments”

76. #mktfest @larrykim
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Website
HITSHow Idiots Track Success

77. #mktfest @larrykim
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Precise Ad Targeting Boosts Engagement Rate

78. #mktfest @larrykim
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“Partner Audiences” in Twitter

79. #mktfest @larrykim
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Larry’s #7 Social Ads Hack:
Further Increase
Commercial Intent
Using Demographic
Targeting

80. #mktfest @larrykim
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Demographic Ad Targeting in Facebook

81. #mktfest @larrykim
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Demographic Ad Targeting in Twitter

82. #mktfest @larrykim
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Larry’s #6 Social Ads Hack:
Social Media
Remarketing
I’LL BE
BACK

83. Facebook Dynamic Product Ads
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84. #mktfest @larrykim
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Power of Social Remarketing
So Push HARD OFFERS (Sign-Ups,
Consultations, Downloads, etc.)
Engagement
Rates!
Conversion
Rates!
3X
2X

85. #mktfest @larrykim
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Larry’s #5 Social Ads Hack:
Super Remarketing!
Combining Remarketing +
Demographic + Behavioral
Targeting + High
Engagement Content

86. #mktfest @larrykim
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Behold The Awesome Power of Super Remarketing
Behavioral & Interest Targeting =
They’re interested in your stuff
Remarketing = They Recently
Checked Out Your Stuff
Demographic Targeting =
They Can Afford to Buy Your Stuff
Target a Narrow
Audience That Meets
all 3 Criteria = $$$

87. #mktfest @larrykim
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Larry’s #4 Social Ads Hack:
Custom Audiences

88. #mktfest @larrykim
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The Evolution of Display Ad Targeting
5. Website Targeting
(e.g. Inc. Magazine or
Home & Garden Weekly)
3. Interests & Market Segments
(e.g. Business Services, Photography)
4. Keyword Targeting
(e.g. Articles
containing “Health
Insurance”)
2. Remarketing
(e.g. People who
visited the “buy”
page of your website)
1. Identity
(e.g. Specific emails
or phone numbers)

89. #mktfest @larrykim
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New “Tailored Audiences” or “Custom Audiences”

90. #mktfest @larrykim
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People-Based Marketing is Like
Email Marketing But Better
Email Marketing
Limit number of blasts to
reduce unsubscribes
.5-2% unsubscribes each blast
People Need to opt into your list
Tons of unqualified emails on the list
People-Based Marketing
Fixed
Fixed
Fixed
Fixed

91. #mktfest @larrykim
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Identity Marketing Using Custom
Audiences in Social Ads
Identity based marketing opens up a TON
of new and exciting advertising use cases!

92. A True Story
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93. Shared the Article on My Social Media
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94. #mktfest @larrykim
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Promoted Post to My List of Influencers

95. Business Insider
Asks To Publish
Story
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96. #mktfest @larrykim
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SEO Link Building Dance

97. Shared the Article on My Social Media
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98. Promote Your
Unicorns, Larry!
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99. Promoted Post to My List of Influencers
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100. Fox News
Producer
Emails One
Hour Later
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101. #mktfest @larrykim
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102. #mktfest @larrykim
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103. #mktfest @larrykim
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Facebook Baby Hoodie ($25 value!) #ppckid

104. Custom Audience Social
Ads ROI Analysis:
• Live Interviews with Fox, BBC, etc.
• 250 High Value Press Pickups + Links
• Massive Brand Exposure
• +100k Site Visitors
• 1366 Sales Qualified Leads
• I’m a Columnist on Business Insider
• Business Relationship /w Facebook
• Facebook Baby Hoodie worth $25
Total Cost: $50
Total Time: 10 minutes
@larrykim #pubcon#mktfest @larrykim
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105. Many
Ecommerce
Applications
for Custom
audiences!
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106. New
Purchasers
Non-Purchase
Users
Active
Purchasers
Customers
with Expired
Warranty
Abandoned
Shopping Cart
Users
Frequent
Purchasers
High Price Item
Purchasers
Recent
Purchasers
Ecommerce Audience Email Segmentations
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107. #SMX #14B3 @larrykim
Clone Your Audience List
Using Similar Audiences!
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108. Larry’s #3 Social Ads Hack:
Leverage
Insanely
Powerful New
Ad Formats
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109. You can
bypass this
funnel
entirely!
This Stupid Marketing
Funnel is a Ridiculously
Dated Concept
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110. Facebook Call Buttons
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111. New Facebook Social Direct
Response Ad Formats
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112. Twitter Lead Generation Card Format
User’s Name, Email
and Twitter Name are
automatically emailed
or posted to you!
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113. #3XEdigital @larrykim
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114. Call Buttons are Game Changers
Desktop Search
Conversion Funnel
Mobile
Conversion Funnel
1. Sees Ad
2. Clicks on Ad
3. Vists Website
Landing Page
4. Lead Captured
1. Sees Ad
2. Calls Business
3. Lead Captured
No Leaky Landing Page!
Golden Rule of Mobile: “Calls to businesses are
worth +3x more than clicks to websites”
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115. +Half Billion Use FB on Mobile Only
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116. 80% of Twitter Users are Mobile
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117. #3XEdigital @larrykim
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118. Larry’s #2 Social Ads Hack
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The Snowball Effect of
Social Media Ads

119. #mktfest @larrykim
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Engagement Snowballs As You Go

120. #mktfest @larrykim
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Because Paid Social Ads Generate Fans!

121. #mktfest @larrykim
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Larry’s #1 Social Ads Hack:
Pay For
Free
Clicks!

122. #mktfest @larrykim
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Buy 1 Retweet/Like, Get 3 Clicks Free!

123. #mktfest @larrykim
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Summary: Larry’s Top 10 Social Ad Hacks
Quality Score in
Social Ads!
Post More, Promote
Best Stuff
Keyword Targeting &
Hashtags!
In-Market Segments
= Commercial Intent
Layer Demographic
Targeting
1
2
3
4
5
Do Social Media
Remarketing
Custom Audiences =
Incredibly Precise Targeting
Use New Direct Response
Mobile Ad Formats
Leverage Snowball
Effect of Social Media Ads
Free Clicks!
6
7
8
9
10

124. The Future of PPC Search:
Indirect Conversion via Paid
Social Media Ads
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125. #mktfest @larrykim
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Indirect Conversion!
Step 1: Build Brand Exposure First
CREATE
Produce content
& share on social
AMPLIFY
Selectively promote Unicorn-
level content on social media
TAG
Build remarketing
audience by tagging site
visitors with a cookie

126. ADVERTISE
Target your
audience with
display & social ads
promoting offers.
Use new conversion-
friendly Mobile Ad
Formats.
FILTER
Apply behavioral
and demographic
filters on audience
CONVERT
Capture qualified
leads or sale
Step 2: Turn
Readers into Leads
& Customers with
Super-
Remarketing
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127. Vs.
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128. Assisted
Conversion
Direct
Conversion
Vs.
(Keep Doing What
You’re Doing in Search
Ads)
(Focus more here in
2016 to Build Your Brand
and Create New Demand)

129. Branded
Search
(Unicorn!)
Vs.
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Non-Branded
Search
(Rat Race!)
Vs.

130. #mktfest @larrykim
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Indirect Conversions are the
New Direct Conversions!

131. What is The Future of PPC Marketing?
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132. AdWords Scripts?
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133. Changes to Quality Score Algorithm?
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134. Pay Per Click Marketing
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135. #mktfest @larrykim
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Thank You, #mktfest!
Jindrich Faborsky
(Genius Level 999)