Data and action items on using quality score as a health indicator, rather than a KPI.

1. Quality vs Quality Score
Strategies that Achieve Real World Profit

2. | 2@navahf @wordstream e: nhopkins@wordstream.com
Agenda
• Why Do We Panic?
• Using Quality Score as a Health Indicator
• What Does Chasing Quality Look Like?
• Case Studies
• Worked in digital marketing since 2008
• Work with agencies and advertisers across
WordStream’s international customer base.
• I’m a proud pet mom and just adopted dog named HK
About Me:
#PPCPuppy

3. #wordstreamlive
Why Do We Panic?

4. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 4
How many of you have heard of the goldfish study?

5. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 5
So this was actually
disproved

6. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 6
We are capable of great focus, but only if we care

7. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 7
How many of you
read the Acquisio
study that told us to
strive for 7 quality
scores?

8. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 8
63,000 US Accounts in Q3 2018 Average QS in US is 5.6
• QS 1 = 8%
• QS 2 = 6%
• Q3 = 12%
• Q4 = 10%
• Q5 = 13%
• Q6 = 12%
• Q7 = 13%
• Q8 = 11%
• Q9 = 7%
• Q10 = 8%

9. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 9
12.3% of WordStream Customers
consider Quality Score to be their most
important metric.

10. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 10
We want to be exceptional!

11. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 11
We want discounts on clicks!

12. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 12
We want good impression share!

13. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 13
It Won’t Surprise Anyone To See This Chart of Average CTR by QS
63000 US
accounts
in Q2
2018

14. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 14
Or this one on Average CPC
63000 US
accounts
in Q2
2018

15. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 15
But What Happens When We Remove Branded Campaigns and Ad
Groups
63000 US
accounts
in Q2
2018

16. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 16
A similar impact is felt in CPC
63000 US
accounts
in Q2
2018

17. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 17
• Quality score of 6 beat 7 with cheaper
clicks and higher CTR
• Quality score of 9 beat 10 with higher
CTR (flat CPC)
• Quality Score of 1 had cheaper CPC than
QS 2-7
Filtering out Branded:

18. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 18
Impression Share with and without branded
63000 US
accounts
in Q2
2018

19. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 19
Conversions with and without branded
63000 US
accounts
in Q2
2018

20. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 20
• Quality score of 2 beat 3 and 5 on
impression share
• The gap in conversions between 8-10
vanishes when you remove branded
• Quality Score of 6 beat out 7 on
conversions
Filtering out Branded:

21. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 21
• Higher click through rate (CTR) and
auction prices tend to be lower.
• Perfect keyword to ad, to landing page
relevancy.
• Home pages tend to get the lion share of
development and design (experience)
Why do Branded campaigns
have such a strong impact on
quality score?

22. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 22
Just because you have a good quality score, doesn’t mean
your leads are converting.

23. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 23
Certain strategic objectives are predisposed to lower quality
scores.

24. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 24
Many Advertisers Fall Into the Trap of Conflating High Scores
With Quality.

25. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 25
Same Quality Score – drastically different results

26. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 26
Quality Score is a health indicator, not a
KPI!

27. #wordstreamlive
Using Quality Score as a
Health Indicator

28. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 28
Let’s break down Quality score into its base elements

29. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 29
If we “solved” for those elements we would have a healthy
account.

30. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 30
CTR Suffers If We Don’t Rank In The Top 4

31. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 31
Historical CTR Can Suffer if There Isn’t Enough Volume –
Some Industries Will Always Struggle Here

32. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 32
Boring Ads Kill CTR

33. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 33
Expanded Text Ads Mean Your Copy Is Due For A Revisit!
Description text would
have made great
headlines!

34. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 34
It’s Hard To Build Relevancy If Campaign Structure is Flawed

35. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 35
Sort By Impressions to See Where Ad Networks are Trying to
Put Your Money
60% of
impressions
Budget will
only go to
“winners”
instead of
everything

36. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 36
Serving For Auctions Your Ads Can’t Win On Will Hurt Relevancy.
Audit Broad Keywords!

37. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 37
Broad Keywords Can Drag Your Budget into Unintended
Auctions
162%
More
Than
Average

38. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 38
We need to ask ourselves: is this keyword/ad group failing
me, or am I failing it by not honoring its needs

39. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 39
If landing pages don’t deliver on your ad’s promise, you lose
relevancy.

40. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 40
Don’t put prospects/customers to sleep waiting for your site
to load!

41. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 41
• Gtmetrix
• WebPageTest
• Google Page Speed Insights
Here are some of my favorite
tools:

42. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 42
Users shouldn’t have to hunt
through a text-wall to contact you.

43. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 43
We live in a mobile first world – don’t build bad mobile
experiences
Wall of Text
Unclickable
Number
Tiny Menu

44. #wordstreamlive
What Does Chasing Quality
Look Like?

45. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 45
40.5% WordStream Customers consider
CPA to be their most important metric

46. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 46
• Too many targets
• Too wide a range in auction price
• Too many objectives
Budgets Underperform When:

47. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 47
Most Advertisers Struggle to Achieve 50%+ of Available
Impressions
Based on
2973
accounts
with at least
$.01 in
search
spend
Average
impression
share is 47%

48. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 48
3% cheaper
& perfect
conversion
rate!
What Auctions Will Give You a Positive ROAS

49. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 49
Are There Parts of Your
Business That Shouldn’t Get
Access To Budget

50. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 50
Any Redundancies to Clean Up?
Catching all “logo design”
keywords on mod broad

51. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 51
CTR and Conversion Rates Tell You If Your Message is
Landing

52. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 52
All of This is Meaningless if Your Audiences Aren’t Aligned
With Your Value Proposition

53. #wordstreamlive
Case Study: Koru K9

54. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 54
• Balanced in-home dog training
• Board and train programs
• Group classes for specializing dogs
(police, service, etc)
Koru K9 provides:

55. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 55
Feb 2018
• CPA: $25.13
• Search Conversion Rate: 11.62%
• Search CTR: 4.68%
• Average QS: 6.96
May 2018
• CPA: $45.02
• Search Conversion Rate: 5.78%
• Search CTR: 5.51%
• Average QS: 6.89
Which month was my client happier with me?

56. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 56
February Metrics

57. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 57
• 79 in-home engagements: $2,521
average customer value = $199,159 gross
revenue
• 13 Board and Train: $4,037 average =
$52,487.5 gross revenue ($251,646.5
total)
In February they “crushed” it

58. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 58
That means we achieved 38X return
on ad spend!

59. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 59
They obviously wanted to fuel the beast and go for more
leads!

60. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 60
May report

61. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 61
• 73 in-home engagements: $2,521
average customer value = $184,033 gross
revenue
• 37 Board and Train: $4,037 average =
$149,369 gross revenue ($333,402 total)
May’s numbers looked off
until we looked at the metrics
that mattered

62. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 62
We outperformed Feb by 130%...but not all the metrics
showed that
Feb 2018
• CPA: $25.13
• Search Conversion Rate: 11.62%
• Search CTR: 4.68%
• Average QS: 6.96
May 2018
• CPA: $45.02
• Search Conversion Rate: 5.78%
• Search CTR: 5.51%
• Average QS: 6.89

63. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 63
31% of
WordStream
customers correctly
value REVENUE as
their most
important metric:
we can help you
optimize for it!

64. #wordstreamlive
Action Items!

65. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 65
Treat Quality Score As A Health Indicator – Not A KPI

66. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 66
Honor Your Budget – Don’t Ask It To
Do Too Much

67. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 67
Build Branded Campaigns, Not Ad Groups

68. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 68
Strive to be the best in and set goals in line with your
industry

69. | @navahf @wordstream e: nhopkins@wordstream.com #wordstreamlive 69
Judge the Success of Your Campaigns By Profit, Not Vanity
Metrics

70. Questions? Connect with me:
nhopkins@wordstream.com / @navahf