Larry Kim's State of PPC in 2015 & Beyond

March 3rd, 2015
The State Of
PPC In 2015
& Beyond Larry Kim
Founder & CTO,
WordStream
@LarryKim

searchmarketingexpo.com
@LarryKim
#SMX #futurePPC
About Larry
• Founded WordStream
in 2007
• Obsessed about
Quality Score
• Have a 9-Month Year
Old Kid (#ppckid)

@LarryKim
#SMX #futurePPC
Actual Photos From My Commute
From Boston to SMX West …

@LarryKim
#SMX #futurePPC
PPC TREND #1
Price and Inventory
Headwinds in Paid
Search

@LarryKim
#SMX #futurePPC
GOOGLE: SEARCH CPCs KEEP FALLING (overall)

@LarryKim
#SMX #futurePPC
HOWEVER, PAID SEARCH CPCs AT ALL TIME HIGH
IN ESTABLISHED MARKETS!
Source: Approx. 2000 WordStream Customers

@LarryKim
#SMX #futurePPC

@LarryKim
#SMX #futurePPC
What About Ad
Inventory Volumes in
Established Markets?

@LarryKim
#SMX #futurePPC
APPS ARE STEALING FROM DESKTOP SEARCHES!

@LarryKim
#SMX #futurePPC
FEWER AD SPOTS ON MOBILE (which is
50% of searches in 2015)
VS.

@LarryKim
#SMX #futurePPC
High CPCs & Low
Growth in Search
Volume in
Established Markets
(YIKES!)

@LarryKim
#SMX #futurePPC
WINNING AT PAID SEARCH IN 2015 MEANS BEING
MORE PICKY THAN BEFORE
Quantity of Searches
PriceofPaidSearchClicks
Fewer, Higher
Quality, more
expensive clicks

@LarryKim
#SMX #futurePPC
NEW DEMOGRAPHIC BIDDING OPTIONS (Bing Ads)

@LarryKim
#SMX #futurePPC
• 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

@LarryKim
#SMX #futurePPC
So Where Will
Growth in PPC
Come From?

@LarryKim
#SMX #futurePPC
Your audience spends 95%
of its time on the web
reading and engaging with
news sites, blogs, general
interest sites, social
networks, email, etc.
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
Everything else
95%
Search
5%

@LarryKim
#SMX #futurePPC
DISPLAY CLICKS ARE CHEAPER
Industry Google Search Display Network
Finance $3.09 $1.03
Travel $0.29 $0.28
Shopping $0.25 $0.27
Jobs & Education $1.80 $0.34
Internet & Telecom $1.11 $0.40
Computers & Electronics $1.29 $0.44
Business & Industrial $1.67 $0.97
Home & Garden $0.76 $0.83
Autos & Vehicles $0.97 $1.03
Beauty & Fitness $1.11 $1.01
AVERAGE $1.23 $0.66

@LarryKim
#SMX #futurePPC
DISPLAY CLICKS CONVERT OK
Finance 6.12% 5.12%
Travel 1.45% 2.99%
Shopping 3.58% 2.19%
Jobs & Education 6.09% 2.09%
Internet & Telecom 6.27% 8.59%
Computers & Electronics 4.79% 2.96%
Business & Industrial 4.23% 4.10%
Home & Garden 2.21% 3.43%
Autos & Vehicles 4.29% 6.15%
Beauty & Fitness 4.56% 2.27%
Average 4.36% 3.99%

@LarryKim
#SMX #futurePPC
DISPLAY CPAs ARE USUALLY LOWER
Finance $50.49 $20.12
Travel $20.00 $9.36
Shopping $6.98 $12.33
Jobs & Education $29.56 $16.27
Internet & Telecom $17.70 $4.66
Computers & Electronics $29.02 $14.86
Business & Industrial $39.48 $23.66
Home & Garden $34.39 $24.20
Autos & Vehicles $22.61 $16.75
Beauty & Fitness $24.34 $44.49
Average $27.46 $18.67

@LarryKim
#SMX #futurePPC
WEIRD THING ABOUT DISPLAY REMARKETING
Conversion
Rates Increase
With More Ad
Impressions

@LarryKim
#SMX #futurePPC
• CPCs from search are going up, inventory down (in
established marketing) – so be pickier!
• Display ads have a much higher inventory, lower
CPCs, Convert OK = Decent ROI and Scale
QUICK RECAP

@LarryKim
#SMX #futurePPC
PPC TREND #2
The Rise of Identity-Based
PPC Marketing

@LarryKim
#SMX #futurePPC
EVOLUTION OF DISPLAY AD TARGETING OPTIONS
5. Website
Targeting
(e.g.: Inc. Magazine
or Home & Garden
Weekly)
4. Keyword
Targeting (e.g.
Articles containing
“Health Insurance”)
3. Interests &
Market Segments
(e.g. Business
Services,
Photography)
2. Remarketing
(e.g. People who
visited the “buy” page
of your website)
1. Identity
(e.g. Specific Emails or
Phone Numbers)

@LarryKim
#SMX #futurePPC
Email Marketing
• Limit # of blasts to reduce
unsubscribes
• 0.5-2% unsubscribes each
blast
• People need to opt into your list
• Tons if unqualified emails on
the list
People-Based Marketing
• FIXED
• FIXED
• FIXED
• FIXED
PEOPLE-BASED PPC IS LIKE EMAIL
MARKETING BUT WAY BETTER!

@LarryKim
#SMX #futurePPC
Identity Based Marketing
Opens Up a TON of New and
Exciting Advertising Use
Cases!!

@LarryKim
#SMX #futurePPC
How does stuff go “Viral”?

@LarryKim
#SMX #futurePPC
ARTICLE PUBLISHED ON FRIDAY AT 5PM ET

@LarryKim
#SMX #futurePPC
SHARED CONTENT ON MY SOCIAL MEDIA

@LarryKim
#SMX #futurePPC
CREATE A CUSTOM LIST OF “INDUSTRY INFLUENCERS”

@LarryKim
#SMX #futurePPC
STORY PICKED UP IN MARKETING LAND
TWO HOURS LATER…

@LarryKim
#SMX #futurePPC
Exponential Growth

@LarryKim
#SMX #futurePPC
Key Takeaway:
You need interesting content +
influential people finding your stuff

@LarryKim
#SMX #futurePPC
PEOPLE WHO AREN’T JOURNALISTS CAN MAKE
STUFF GO “VIRAL” TOO

@LarryKim
#SMX #futurePPC
IDENTITY MARKETING TO SPECIFIC
INFLUENCES INCREASES THE CHANCE OF
GETTING “NOTICED”
WordStream Articles
#ofSocialShares

@LarryKim
#SMX #futurePPC
WordStream Articles
#ofSocialShares
IDENTITY MARKETING TO SPECIFIC
INFLUENCES INCREASES THE CHANCE OF
GETTING “NOTICED”

@LarryKim
#SMX #futurePPC
IDENTITY + USER DEMOGRAPHICS
(CUSTOMER PERSONA) = $$$

@LarryKim
#SMX #futurePPC
THE FUTURE OF DISPLAY ADS IS NATIVE MOBILE

@LarryKim
#SMX #futurePPC
• Display ad targeting is better than ever
• Identity-based ad targeting opens up all sorts of
new PPC marketing use cases!
• Identity + Behavioral/Demographic Filters = $$$
• Future of Display Ads = Native Mobile
QUICK RECAP

@LarryKim
#SMX #futurePPC
PPC TREND #3
Google Taking
Away All Our
Toys!

@LarryKim
#SMX #futurePPC
RIP KEYWORD MATCH TYPES
These are Pretty Much all
the Same Now!

@LarryKim
#SMX #futurePPC
RIP DEVICE TARGETING

@LarryKim
#SMX #futurePPC
Recently Added/Changed or In Danger:
• Keywords (seriously!)
• Dynamic Sitelinks
• Etc.
MINDLESS REPETITIVE TASKS ARE
GOING EXTINCT

@LarryKim
#SMX #futurePPC
So, What Do We
Focus Our Efforts
On?

@LarryKim
#SMX #futurePPC
Be a unicorn not a donkey!
DONKEYS VS. UNICORNS

@LarryKim
#SMX #futurePPC
TOP 1% OF ADVERTISERS GET 6x AVG. CTR

@LarryKim
#SMX #futurePPC
TOP 10% OF ADVERTISERS GET 3-5X AVG.
CONVERSION RATES

@LarryKim
#SMX #futurePPC
FIRST MOVER ADVANTAGE

@LarryKim
#SMX #futurePPC
NEW AD FORMATS: YOUTUBE & GMAIL

@LarryKim
#SMX #futurePPC
• Mindless repetitive optimizations = smaller gains
• Strategic marketing focus = HUGE gains
• Don’t fret loss of old features, be the FIRST to
use new features
• Be a unicorn among a sea of donkeys
QUICK RECAP

@LarryKim
#SMX #futurePPC
PPC TREND #4
Convergence of
Paid/Organic Teams,
Rise of “Content
Remarketing”

@LarryKim
#SMX #futurePPC
HELL HAS FROZEN OVER: ME DOING THE ONLY PPC
MARKETING SESSION AT HUBSPOT INBOUND 2014

@LarryKim
#SMX #futurePPC
SOCIAL PLATFORMS ARE KILLING OFF ORGANIC REACH

@LarryKim
#SMX #futurePPC
Content Marketing +
Remarketing =
Content Remarketing

@LarryKim
#SMX #futurePPC
• Amplify/promote your content to the right people
• Dramatically accelerate & increase brand recall
• Generate sales and qualified leads
INTRODUCING CONTENT REMARKETING

@LarryKim
#SMX #futurePPC
How Content Remarketing Works
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

ADVERTISE
Target your
audience with
display &
social ads
promoting
offers
FILTER
Apply behavioral
and
demographic
filters on
audience
CONVERT
Capture
qualified leads
or sale

@LarryKim
#SMX #futurePPC
WHERE CONTENT REMARKETING FITS IN THE
INBOUND MARKETING FUNNEL
Content
Remarketing…
Relies on having great
content
Dramatically amplifies
social visibility
Makes this happen
faster and more often
Lead Capture /
Nurturing
Social Media Promotion
Blogging /Content Creation

@LarryKim
#SMX #futurePPC
Content
Remarketing!
WHERE CONTENT REMARKETING FITS IN
SEO & Content
Marketing
PPC
Marketing
Social Media
Marketing
Content Remarketing
is on the intersection
of social, content, and
PPC marketing.

@LarryKim
#SMX #futurePPC
Lets Review Some
Key Steps in Detail.

@LarryKim
#SMX #futurePPC
PROBABLY WON’T END UP IN THE
WALL ST. JOURNAL

@LarryKim
#SMX #futurePPC
PAID SOCIAL PROMOTION TO REGULAR FANS
MAKES ALL OF YOUR CONTENT DO BETTER
WordStream Articles
#ofSocialShares

@LarryKim
#SMX #futurePPC
How to (Cheaply) Target Fans
(Regular People) on Social Media

@LarryKim
#SMX #futurePPC
PAID PROMOTION YIELDS ORGANIC EXPOSURE

@LarryKim
#SMX #futurePPC
TARGET USING REMARKETING

@LarryKim
#SMX #futurePPC
TARGET FANS WITH POST ENGAGEMENT ADS

@LarryKim
#SMX #futurePPC
TARGET FANS ON TWITTER

@LarryKim
#SMX #futurePPC
TARGET FANS ON GOOGLE+ USING +POST
ADS AND RETARGETING

@LarryKim
#SMX #futurePPC
THE FLYWHEEL EFFECT OF SOCIAL PROMOTION
AfterBefore

@LarryKim
#SMX #futurePPC
Promoting Content on the Google
Display Network Using Remarketing

@LarryKim
#SMX #futurePPC
CPC VS. CTR ON GOOGLE DISPLAY NETWORK
Higher Ad CTR
= Lower CPC!!
Every +0.1%
CTR Yields -
20% CPC.

@LarryKim
#SMX #futurePPC
NOT ALL CONTENT IS EQUAL: ONLY
PROMOTE YOUR BEST STUFF
Identify and
Promote These
Like Crazy

@LarryKim
#SMX #futurePPC
PUSH DISPLAY ADS BACK TO YOUR CONTENT

@LarryKim
#SMX #futurePPC
THESE EMOTIONS MAKE PEOPLE CLICK ON THINGS

@LarryKim
#SMX #futurePPC
GREAT DISPLAY ADS LOOK MORE LIKE CONTENT

@LarryKim
#SMX #futurePPC
• Content remarketing, social media, and PPC
marketing are rapidly converging. Success will
require integrated paid/organic teams.
• Content remarketing greatly amplifies content
marketing and social media marketing
QUICK SUMMARY

Larry Kim's State of PPC in 2015 & Beyond

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