the business of ppc: what’s the true value?
DESCRIPTION
Learn the best way to fully value your PPC efforts and how to leverage that value to drive important business decisions, using creative techniques to identify and demonstrate worth.TRANSCRIPT
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The Value of Paid Search
April 2014
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 2!
About Dan!
linkedin.com/in/dangolden @thegoldendan
President & Chief Search Ar<st, Co-‐founder at Be Found Online
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 4!
Key Topics!
1
2
3
The Media Mix Tracking & KPI’s Valuing Mobile 4 Tac<cal Tips 4
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 5!
Digital vs Other Advertising!
2013 Media Spend 2013 Media Spend Growth
Source: hKp://techcrunch.com/2014/01/27/nielsen-‐internet-‐adver<sing-‐grew-‐32-‐in-‐2013-‐but-‐its-‐s<ll-‐only-‐4-‐5-‐of-‐spend-‐vs-‐tv-‐at-‐57-‐6
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 6!
SEM vs Other Digital Media!
Source: Winterberry Group analysis of mul<ple sources. Excludes social display and social search
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 7!
Search Vs. Display!
• Users spend more <me on content related sites
• Ads are visually more appealing • Creates Demand
Display Ads Search Ads
• Users only spend 5% searching, but purchase intent is high
• Ads speak directly to needs • Conversion king • Captures Demand
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 8!
The Big 5 SEM KPI’s!
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 9!
• New Metrics in 2013 – Phone Calls (Set Dura<on) – App Downloads – Es<mated Total Conversions
• Cross-‐Device!
• Newer Metrics (Announced 4/22) – Enhanced App Metrics – Offline Sales/Offline Visitors (Shh… Currently in Alpha)
Tracking is Catching Up!
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 10!
Valuing Mobile !
If you are an ecommerce pure play…. If you have stores or transact offline… keep listening
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 11!
The sales return on search ad spend was significant as well — between two and 14x.
Online Ads Increase Offline Sales!
Source: GoogleThink, Nov. 2013 -‐ hKp://www.thinkwithgoogle.com/ar<cles/proof-‐online-‐ads-‐increase-‐offline-‐sales.html
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 12!
Mobile = Local Search!
62% consumers who search for local business prefer local search results.
86MM mobile phone subscribers access local business informaHon from their phone in the US
4 out of 5 apps used on devices are map centric
Source: comScore, Neustar Localeze and agency 15 Miles, Local Search Study, Dec 2013, 5,000 US adults
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 13!
Mobile search drives buying habits! Nearly 80% of local searches on mobile devices turn into a purchase.
Mobile Drives Action!
Source: comScore, Neustar Localeze and agency 15 Miles, Local Search Study, Dec 2013, 5,000 US adults, Google Mobile
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 14!
Valuing Non-Brand!
Brand + Non-‐Brand = Bigger Piece of the Pie!
Your Share Your CompeHHon
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 15!
Valuing Non-Brand!
Last Click ü Conversion
• In reality, it is ofen more than one search that lead to the final conversion. These non-‐brand searchers deserve credit in assis<ng.
• Typically, the last click gets all the credit—which is misleading and inaccurate
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 16!
Search Attribution Modeling!• Last Click: Gives all credit for the conversion to the last-‐
clicked keyword • First Click: Gives all credit for the conversion to the
first-‐clicked keyword • Linear: Distributes the credit for the conversion equally
across all clicks on the path • Time Decay: Gives more credit to clicks that happened
closer in <me to the conversion • PosiHon-‐based: Gives 40% of credit to both the first-‐
and last-‐clicked keyword, with the remaining 20% spread out across the other clicks on the path
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 17!
Tactical Tip #1: Measure Search Share!• Auc<on Insights = Awesome • Impression Share, Overlap, Top of Page Rate • Make the Case with Search Funnel Data
• Average Impressions before Search
• Reminder/Warning: AI Reports don’t measure missed keyword and targe<ng opportuni<es • Your Keywords • Your Geo-‐Targe<ng
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Tactical Tip #2 – Measure Conquesting!• Measure Impressions/CPM • Dos & Don’ts
• Determine your landing page and watch your bounce rate • Don’t use when it hurts your quality score and drives bids too
high
• Disadvantages outweigh Advantages?
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 19!
Tactical Tip #3 – Offline Testing!• Clients don’t believe all of Google’s Case Studies? • Test For Yourself
• Unique Digital Coupons
• Market-‐Level Tests • On vs Off Markets
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 20!
On a good day, 5% of your paid traffic results in a “conversion” measured by most brands. Here’s how to value that 95% that still matters.
• Step #1 – Assign Multiple KPI’s • Step #2 – Assign Values to Each
KPI • Step #3 – Integrate KPI mix into
Reporting • Step #4 – Act & Optimize to
Blended Conversion Rates • Step #5 – Grow your search
budgets!
Primary ROI Metrics
Cost/Lead
ROAS
ROAS (Last Click)
Addi<onal Leads Metrics
NewsleKer Signups
Phone Calls
Online Chats
Engagement Metrics
Time on Site
Pageviews
Social Ac<ons
Offline Ac<ons
Store Locator
Get Direc<ons
Coupon Pageviews
Search Share
Impression Share
Top of Page Rate
Average Posi<on &
CTR
Tactical Tip #4 – Blended KPIs!
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 21!
FREQUENCY!
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 22!
SUMMARY!
No silver bullets, but inquisi<ve minds can find silver linings.
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Thank You! Ques<ons?