10 years of bidding, 10 lessons learned: large enterprise advertisers by ian lopuch
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From the SMX East 2014 Conference in New York City, NY. SESSION: A Deep Dive Into Bidding Strategies & Bid Modifiers. PRESENTATION: 10 Years of Bidding, 10 Lessons Learned: Large Enterprise Advertisers - Given by Ian Lopuch, @IanLopuch, VP Customer Acquisition - eHealth. #SMX #23BTRANSCRIPT
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10 Years of Bidding, 10 Lessons Learned: Large Enterprise Advertisers Ian Lopuch Vice President, Customer Acquisition, eHealth #SMX | @ianlopuch
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Ian Lopuch: About Me • 10 years of digital marketing experience • $200 MM+ career spend • Bidding, Bid Technology Enthusiast
§ Experience with manual bidding, building bidding platforms/technologies, leveraging enterprise-level bid management systems
• Stanford Computer Science Major
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Lesson #1: Traditional CPA-Based Bidding Is Bad
• What about the lifetime value of your customers? § Will they come back and buy
more in a month?
• What about attach rate? § Did they purchase multiple
products?
• What about relative value of different products? § Did they buy the $100 product
or $200 product?
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• CPA limits your ability to optimize. It may have worked in the past, but is unlikely to work as well going forward as competition increases.
Not this kind of CPA!
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Lesson #2: Traditional CPL-Based Bidding Is Worse
• CPA misses the full picture, CPL misses even more.
• Not all leads are created equally.
• If your business requires a long, offline sales process, build a quality based feedback loop into your CPL-based bidding. § With aggressive account
segmentation, leverage a multiplier-based feedback loop.
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Quantity Does Not Equal Quality
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Lesson #3: Modern CPA and CPL-Based Bidding (With Aggressive Feedback Loops) Works
• Have granular tracking in place.
• Track conversions on your back end, and consistently score their effectiveness.
• Pass feedback into your bidding in the form of a multiplier, differentiating keywords based on the true value of the conversions (or leads).
• This solution is an approximation of revenue-based bidding.
The Faster The Loop The Better
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Lesson #4: Great Account Structure & Segmentation Makes Your Bidding Excel
• Before you even start bidding, invest in a solid account structure.
• Segment wherever possible. § Geo, network (search vs.
syndication), match type, keyword theme, device
• Incorporate differences in conversion rates and back end performance (see prior feedback loop tip) when bidding.
Quality Foundation & Framing, The Basis For A Strong House
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Lesson #5: Revenue-Based Bidding Is The Future
• Why are we here? What do we do as digital marketers?
• We acquire, retain, and develop customers.
• Ultimately, we drive revenue with the lowest possible cost.
• Find a way to incorporate revenue into your bidding on a keyword level. Incorporate current revenue and future projected revenue discounted to present value.
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Skyrocket Your Bidding Into The Future With Revenue Integration
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Lesson #6: Buy A World-Class Bidding Platform
• On an enterprise level, it’s really expensive/problematic to bid manually.
• Building your own platform requires huge overhead, and you’ll become obsolete.
• How do you keep up with the future, such as revenue-based bidding, with lowest possible investment?
• Leverage the world-class bid management platforms.
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Let Your Platform Do The Heavy Lifting
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Lesson #7: Think About The Entire Stack; Search Bidding Cannot Be A Silo
• The market is competitive, and will consistently get more competitive.
• Search technology is not a standalone application anymore. § What about integration with your
website analytics, retargeting, and email?
• Digital marketing is multi-channel and fluid, the stack creates value and drives conversions.. § Search is expensive; the stack
optimizes media yield. The Future of Digital Marketing Technology, The Stack
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Lesson #8: No Sales Yet? Leverage Your Data Layer
• Your analytics platform has so much data. § Time on site, pages viewed,
shopping cart full, checkout process started, for example.
• How do you bid keywords that haven’t driven sales revenue yet? Those incremental touch points (yes, even leads) add value to your bidding strategy. § Just scale down credit given to
intermediate steps and limit exposure.
• Great technology stacks make this easy.
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There’s Immense Bidding Value In Your Data Layer
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Lesson #9: Search Clicks Provide Some of the Best Value Around
• Search clicks are incredibly valuable.
• If you just look at last click attribution, you are missing half the value of Search and will bid too low.
• Have a great attribution strategy in place to give value to those assisting conversions. § Quick hack: Have your conversion
pixels loading persistently.
Search Clicks Are Pure Gold
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Lesson #10: Avoid Competing With Yourself
• Search bidding drives incredible brand awareness and long-term residual value.
• Large company with partnership deals?
• Coordinate with your business development and affiliate teams. Don’t get into a situation where you’re competing with yourself.
• Internal campaigns are always better.
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Don’t Compete With Yourself!
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Bonus Lesson #11: Be Careful, Things Can Go Wrong
• Enterprise-level digital marketing is a high stakes game.
• Bid and budget changes create risk.
• Have the right safety precautions in place. § Test plans, rollback plans, 24/7
monitoring, conservative budgets, avoid testing during seasonal peaks, only work with trusted platforms, give out your API key very sparingly.
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Avoid Bidding Mistakes, Be Careful