ppc profitability for small business

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Google and WordStream Webinar: 3 Paths For Small Business PPC Profitability Howard Tung, Google Larry Kim, WordStream January 11, 2012

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With the right tools and processes, small businesses can succeed at PPC. Together with insight from Howard Tung, Strategic Partner Manager - Google Channel Sales, WordStream Founder Larry Kim will show you how to make PPC work for your business.In this webinar, we explore three successful models for managing PPC. You'll:Learn how to evaluate your potential gains from PPC, including Google AdWordsDiscover three models for managing and executing a PPC programIdentify the right path for your business

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Page 1: PPC Profitability for Small Business

Google and WordStream Webinar: 3 Paths For Small Business PPC Profitability

Howard Tung, GoogleLarry Kim, WordStreamJanuary 11, 2012

Page 2: PPC Profitability for Small Business

• Introductions• Key Trends in Online Marketing for 2012 from • Trivia & Poll• 3 Paths for PPC Success • Questions & Answers

Today’s Agenda

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Page 3: PPC Profitability for Small Business

Take Part in Live Blogging on Twitter / Google+

• Include the hashtag #3pathsppc in your Google+ status updates,Twitter tweets,, etc.

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Page 4: PPC Profitability for Small Business

Speaker Introductions

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• Howard Tung

– 8+ years in Online industry with Google, Microsoft, and IGN Entertainment

– Recently joined Google in early 2010 to focus on Strategic Partnerships for Small-Medium Business/ Local Channel.

• Larry Kim

– Founder, CTO, WordStream, Inc.

– Been doing PPC & SEO for 10 years

– 3 years ago, started WordStream

– Today we’re an industry-leading provider of a PPC Management Platform and Keyword Research Tools

– WordStream helps people get their website found on the internet!

Page 5: PPC Profitability for Small Business

Let’s learn a little about you….

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Page 6: PPC Profitability for Small Business

Quick Poll

How long have you been involved with Search Marketing?

o Less than 1 yearo 1-3 yearso 3-5 yearso 5+ years

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Page 7: PPC Profitability for Small Business

Quick Poll

How would you describe your Search Marketing results?

o I’m new to Search Marketingo Who knows – I don’t measure my resultso Disappointing – I expected so much more from PPCo Satisfactory – I’m seeing return on my investment into

PPCo Stellar – PPC is my most successful lead/traffic

generating channel

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Page 8: PPC Profitability for Small Business

Do you understand these terms?

CONFIDENTIAL – DO NOT DISTRIBUTE 8

Page 9: PPC Profitability for Small Business

PPC Trivia! 5 Quick Questions about AdWords Accounts

1. How often do small businesses (spending under $5k / month on AdWords) do work in their AdWords account?

CONFIDENTIAL – DO NOT DISTRIBUTE 9

Answer: • 50% of them don’t even check once per month• 25% haven’t done anything in the last 90 days• Agencies and advertisers appear to be equally

guilty...

Page 10: PPC Profitability for Small Business

PPC Trivia! (Continued)

2. What percentage of AdWords accounts have used at least 1 negative keyword in the last 90 days?

CONFIDENTIAL – DO NOT DISTRIBUTE 10

Answer: • Less than 50%• And 20% of them have yet use a negative

keyword… ever…

Page 11: PPC Profitability for Small Business

PPC Trivia! (Continued)

3. What percentage of AdWords accounts use Conversion Tracking?

CONFIDENTIAL – DO NOT DISTRIBUTE 11

Answer: • Less than 50% of advertisers have

Conversion Tracking on. That means they don’t know what’s working.

Page 12: PPC Profitability for Small Business

CONFIDENTIAL – DO NOT DISTRIBUTE 12

The Average PPC Account for Small & Medium-Sized Businesses.

Page 13: PPC Profitability for Small Business

Complexity and lack of time

results in poor understanding

of search.

PoorUnderstanding

Yields PoorResults

Advertisers get frustrated,

conclude PPC doesn’t work

for them.

What we know about PPC Failure

CONFIDENTIAL – DO NOT DISTRIBUTE 13

THEPPC DEATH

SPIRAL

Page 14: PPC Profitability for Small Business

1. Identify the potential

2. Choose your yard stick

3. Take stock of your resources

4. Choose one of 3 paths to PPC Success!

Getting your PPC Marketing on the Right Track

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Step 1: Identify the potential

– Is your business a good fit for PPC?– Guestimate the potential– Figure out an initial budget

CONFIDENTIAL – DO NOT DISTRIBUTE 15

Page 16: PPC Profitability for Small Business

Step 2: Choose Your Yardstick

How will you measure success?– Sales: Return on Ad Spend (e.g. Online

Retail)– Leads: Cost per lead

• Comparing it to the average value of a lead

• Comparing to what you pay for other marketing venues

– Traffic: Driving traffic to your site (or calls to your business)

CONFIDENTIAL – DO NOT DISTRIBUTE 16

Better Accountablity

but Harder to implement.

Less Accountability but Easier to implement.

Page 17: PPC Profitability for Small Business

Step 3: Define your Resources

What can you devote to your PPC Program?

– Time• How much time can you devote?

– Budget• How much budget do you have?

– Staff• Hire vs. outsource?

CONFIDENTIAL – DO NOT DISTRIBUTE 17

Page 18: PPC Profitability for Small Business

Step 4: Choose a Path

1. Do it yourself

2. Leverage software

3. Outsource to an Agency

CONFIDENTIAL – DO NOT DISTRIBUTE 18

There are really 3 PPC Implementation Paths

Page 19: PPC Profitability for Small Business

Path 1: Do it Yourself

CONFIDENTIAL – DO NOT DISTRIBUTE 19

Pros ConsNo additional fees for

software or servicesYou have build, manage and

optimize your campaignsTime intensiveEasy to make costly mistakesRequires deep

understanding of PPC techniques

Best for PPC professionals with expert knowledge and years of experience

Page 20: PPC Profitability for Small Business

Path 2: Leverage PPC Tools

CONFIDENTIAL – DO NOT DISTRIBUTE 20

Pros ConsImprove resultsSave time

Cost for softwareYou still have build, manage

and optimize your campaigns

Best for those who have PPC experience and time or resources to managed program

Page 21: PPC Profitability for Small Business

CONFIDENTIAL – DO NOT DISTRIBUTE 21

Page 22: PPC Profitability for Small Business

Path 3: Outsource

Pros ConsExperts To Handle

EverythingBetter ResultsPeace of MindQuick set up

Not for control-freaksNot “Free”Finding a partner you can

trust

CONFIDENTIAL – DO NOT DISTRIBUTE 22

Best for those who are new too PPC, time constrained or not getting results they want

Page 23: PPC Profitability for Small Business

Example: Traffic Express (From WordStream)

CONFIDENTIAL – DO NOT DISTRIBUTE 23

Page 24: PPC Profitability for Small Business

Path to Success

Identify the potential Take stock of your resources Choose one of 3 paths to PPC success

• Do it Yourself• Use Software• Outsource

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Page 25: PPC Profitability for Small Business

Want Some Help?

Are you interested in…

o A Free Traffic Analysis with one of our Search Marketing Experts

o A free AdWords account performance review with one of our AdWords experts

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Page 26: PPC Profitability for Small Business

Your Questions

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Thank you for attending our webinar!

Get a FREE Traffic Analysis and identify the potential of PPC for your business!

http://www.wordstream.com/traffic-analysis

Evaluate your current AdWords account using WordStream’s Free Performance Grader:

http://www.wordstream.com/google-adwords

Or contact us directly:

[email protected] http://twitter.com/larrykim