For more information, visit www.wordstream.com Are you familiar with the 80/20 rule? It means that 80% of your results come from 20% of your work. And guess what: You can apply this mindset in your AdWords campaigns. Bestselling author and AdWords expert Perry Marshall spent over 10 years exploring the 80/20 rule, developing powerful insights which he reveals in his new book, 80/20 Sales and Marketing: The Definitive Guide to Working Less and Making More. In this free webinar, WordStream Founder Larry Kim and Perry Marshall do a deep dive and show you how 80/20 can revolutionize your AdWords management. You'll discover... - How to prioritize the millions of things you can potentially optimize in your AdWords account - How 20% of your campaign management work results in 80% of the benefits - How to generate amazing returns from AdWords in minimal time - And so much more!

1. Larry Kim, Founder/CTO, WordStream
Perry Marshall, Founder, PerryMarshall.com
December 10, 2013
CONFIDENTIAL – DO NOT DISTRIBUTE
1

2. Today’s Agenda
How The 80/20 Principal Works
and Why
Applying the lessons of 80/20 to
AdWords Campaign Management
Q & A
@larrykim, @perrymarshall

3. Speaker Introductions
• Perry Marshall
– 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
• 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!
@larrykim, @perrymarshall

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

5. Let’s learn a little about you….
@larrykim, @perrymarshall

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
@larrykim, @perrymarshall

7. Live-Poll Question
Besides PPC, what other types of marketing channels do
you utilize? (select all that apply)
a) SEO
b) Email
c) Affiliate Marketing
d) Social Media
e) Mobile
@larrykim, @perrymarshall

8. 80/20:
THEE #1 Principle of
Sales, Marketing &
Business
Perry Marshall, Author of
Ultimate Guide to Google AdWords
Ultimate Guide to Facebook Advertising
80/20 Sales & Marketing

9. Page 14... my mind set on
fire!

10. Epiphany

11. Social
Experiment

12. How accurately does
80/20 predict stuff?

13. SWA & Fortune 500

14. Forbes 400

15. Population of Cities in
USA

16. Donations to a
Church

17. Dairy Output of
Wisconsin Counties

18. How You Find
Superstars
Flickr/matthewstraubmull
er
Flickr/gregp
c

19. 30
Customers

20. Even my tiny business
matched the pattern!
• 1 $10,000 Client
• 10 $1,000 buyers
• 1,000 Leads
• 10,000 Visitors

21. A Very Strange Day

22. Epiphany #1:
Everybody’s Counting
The Wrong Stuff.
Science
Test

23. Science Ability
=“Horsepower
”

24. “What’s AVERAGE”
is the WRONG
question.
• The RIGHT question is: “Who are the
superstars? And how super are they?!”

25. The Principle of the
$2,700 Espresso
Machine
•
For every 10,000
$1.40 cups of coffee,
you will sell one
$2,700 espresso
Machine!

27. My Life of Misery
Flickr/tim g photography

28. Suddenly, everything
changed!

29. Company I Worked For
Sold for $18 Million

30. Now I knew how to
rack the shotgun!
• When you know how to get customers,
you never go hungry

31. 80/20 in Google
AdWords

32. $10, $100, $1,000
or $10,000 Per Hour?

33. Even a
$20/hour
person
makes
$1,000/hour
at least 1
minute per
day!
flickr/kheel_center_corne
ll

34. • 80/20 Sales &
Marketing
• $7
www.sell8020.com

35. Applying the 80/20 Principal to
AdWords Campaign Management
@larrykim, @perrymarshall

36. What to Focus On in AdWords?
• Top 4 campaigns (19%) = 78.8% of Spend
• Top 1 campaign (4.7%) = 31% of Spend
@larrykim, @perrymarshall

37. Where do conversions come from?
• 68.4% of conversions from 19% of campaigns
• 21.5% of conversions from 4.7% of campaigns
• Not the same as the high spending campaigns
@larrykim, @perrymarshall

38. Takeaways – Where to Optimize
• Focus on Big Spending Campaigns with worst
average CPA’s.
@larrykim, @perrymarshall

39. Typical Campaign Spend Distribution
• 86% of spend came from 20% of keywords
• 92.2% of conversions came from 20% of keywords
• Again different keywords had wildly different performance
@larrykim, @perrymarshall

40. Takeaways – Keyword Expansion
• Test out many keywords since many get very little
volume
• Watch high spending keywords closely, keep
winners, delete losers
• Delete keyword clutter
@larrykim, @perrymarshall

41. Ad Text Testing
• 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

42. Takeaways – Ad Testing
• Prioritize ads with the most impressions with below
average conversion or CTR metrics
• Periodically delete and replace the “worst ad” with a
new ad!
• Or … Write 50 Ads, one will be a winner!
@larrykim, @perrymarshall

43. Landing Page Optimization
• 20% of Ad Groups are 85.6% of the clicks
• CPA, CPC, CTR all over the place
@larrykim, @perrymarshall

44. Takeaways – Landing Page Optimization
• Not every ad group requires dedicated Landing
Page
• Prioritize high traffic Ad Groups (without dedicated
landing pages) with below-average CPA or
Conversion Rates
• Or… a few number of Landing Pages better be
Amazing, the rest can be “Good Enough”
@larrykim, @perrymarshall

45. 80/20 Rule for PPC Management Effort
@larrykim, @perrymarshall

46. What Does it All Mean?
• 80/20 Applies to AdWords Campaign Management
– Millions of possible things to do
– Some generate huge impact, others are negligible
• How You Spend Your Time Matters
–
–
–
–
–
Keyword Expansion
Keyword Deletion
Ad Text Optimization
Landing Page Optimization
Etc.

47. 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
@larrykim, @perrymarshall

48. 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
@larrykim, @perrymarshall

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

50. Special Offers! Would you like…
a) A FREE live demo of WordStream PPC Advisor
including a PPC audit from a certified AdWords
Expert
b) Nothing at the moment
@larrykim, @perrymarshall

51. Your Questions
Thank you for attending
WordStream & Perry Marshall’s webinar!
Benchmark your AdWords account today!
http://www.wordstream.com/google-adwords
Get Perry’s 80/20 book for 1 penny!
http://www.sell8020.com
Or contact us directly:
Larry Kim
lkim@wordstream.com
http://twitter.com/larrykim
Perry Marshall
perry@perrymarshall.com
http://twitter.com/perrymarshall
@larrykim, @perrymarshall