Published on January 23, 2014
Larry Kim, Founder/CTO, WordStream CONFIDENTIAL – DO NOT DISTRIBUTE 1
Today’s Agenda • What’s a good Click-Through Rate? • Why does CTR matter? • Review: The Top 1% of PPC Ads • What makes them tick? • How can I replicate them? • What does it all mean? Larry Kim (@larrykim) #wordstream
Speaker Introductions • 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! Larry Kim (@larrykim) #wordstream
Take Part in Live Blogging on Twitter / Google+ Include the hashtag #wordstream in your Twitter tweets, Google+ status updates, etc. Larry Kim (@larrykim) #wordstream
Let’s learn a little about you…. Larry Kim (@larrykim) #wordstream
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 Larry Kim (@larrykim) #wordstream
Most of the Ad Testing Stuff You Read is CR*P Your Doing PPC Wrong • Platitudes • Bad Advice • Dumb Examples CONFIDENTIAL – DO NOT DISTRIBUTE 7
The Ad Testing “Experts” Are All Wrong
Warning: Lots of Data Ahead!
Epiphany #1: An Example A/B Ad Test
Live Poll Question: Which Ad Wins? a) Ad A – 32,423 Impressions – 453 clicks (1.4% CTR) – Average Position: 2.8 b) Ad B – 36,223 Impressions – 760 clicks (2.1% CTR) – Average Position: 3.0 Assumptions: • Both ads were running during the same time period (last 7 days), ads “rotating” evenly on the Google Search Network. Larry Kim (@larrykim) #wordstream
Trick Question! Both Ads Suck. • Neither ad is worth declaring a “Winner”. • Not even the 2.1% CTR in the 3.0 Avg. Position. • Why? Larry Kim (@larrykim) #wordstream
What’s a Good CTR? Larry Kim (@larrykim) #wordstream
Survey Methodology Larry Kim (@larrykim) #wordstream
• Even the “Winner” is a Loser! Forest vs. Trees CONFIDENTIAL – DO NOT DISTRIBUTE 15
Even the “Winning” Ad is a Loser! Larry Kim (@larrykim) #wordstream
Epiphany #2: What’s a Good CTR?
What’s a Good Search CTR? (Account Avg. CTR’s) Larry Kim (@larrykim) #wordstream
But… Lots of Variance! Larry Kim (@larrykim) #wordstream
Winners vs. Losers Larry Kim (@larrykim) #wordstream
Junky vs. Unicorns Percentile Vs. Expected CTR Name Bottom 50% Top 15% Below Expected CTR 2X Higher “Junky Advertisers” Awesome Advertisers Top 5% 3x Higher Top 1% 6x Higher!! Super Awesome Advertisers Unicorns Larry Kim (@larrykim) #wordstream
Unicorns?! (6x Avg. CTR!) @larrykim
What Unicorns (Top 1%) Look Like Larry Kim (@larrykim) #wordstream
Epiphany #3: Why Unicorns Matter (How AdWords Works)
How Quality Score Impacts Ad Position Larry Kim (@larrykim) #wordstream
How Quality Score Impacts Actual CPC Larry Kim (@larrykim) #wordstream
What’s an Average Quality Score? Around 5.1/10 Larry Kim (@larrykim) #wordstream
CONFIDENTIAL – DO NOT DISTRIBUTE 29
Cost Per Conversion is Largely Based on QS Larry Kim (@larrykim) #wordstream
The Impact of Quality Score on Cost Per Conversion Larry Kim (@larrykim) #wordstream
Epiphany #4: How is Quality Score Really Calculated?
How is QS Really Calculated? Mostly CTR. Larry Kim (@larrykim) #wordstream
Relationship Between CTR and QS? Larry Kim (@larrykim) #wordstream
Epiphany #5: It’s All Relative
What’s an Expected (or Average) CTR? Larry Kim (@larrykim) #wordstream
QS Based on Your CTR vs. Expected CTR! Larry Kim (@larrykim) #wordstream
Epiphany #6 Quality Score Cracked. Now What About Those Unicorns?
Ad Text Testing Hunting Unicorns • 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
1. Keywords With High Commercial Intent Larry Kim (@larrykim) #wordstream
2. Dynamic Keyword Insertion (DKI) Larry Kim (@larrykim) #wordstream
2. DKI Doesn’t Produce As Many Unicorns Larry Kim (@larrykim) #wordstream
3. Ad Extensions Impact on Quality Scores Larry Kim (@larrykim) #wordstream
3. Ad Extensions Impact on Click Through Rate Larry Kim (@larrykim) #wordstream
Epiphany #7 How To Write “Unicorn” Ads
4. Most Ads Suck. Create Emotional Ads. 47
Creating “Emotional” Ads
Example Larry Kim (@larrykim)
Versus… Larry Kim (@larrykim)
Epiphany #8 A Few Notes on Effort…
Relative Abundance Name Percentile Relative Abundance Vs. Expected CTR Awesome Ads Super Awesome Ads Unicorns Top 15% 1:6.7 2X Higher Top 5% 1:20 3x Higher Top 1% 1:100 6x Higher!! Larry Kim (@larrykim)
Epiphany #9 You Need To Test 100 Ads To Find 1 Unicorn
You’re Not Testing as Many Ads as You Think… Larry Kim (@larrykim)
Most Small Businesses are Lazy… Larry Kim (@larrykim)
Epiphany #10 It’s Not as Hard As You Think
85% of Impressions are From 5% of Ads Larry Kim (@larrykim)
Epiphany #11 A Note on Mobile Ads
Calls are Worth Way More Than Clicks • The calls from mobile traffic converted at a 3x higher rate than clicks to a website • Mobile Ad Testing should be based on call rate, not CTR or Conversion Rates Larry Kim (@larrykim)
Epiphany #12 What Does It All Mean? How to Scale Your PPC
A Quick Recap 1. Above Average CTR Keyword/Ads = Great Success. 2. Below Average CTR Keyword/Ads = Train Wreck 3. So … Delete the bottom third of your account and re-deploy that spend to remarketing Larry Kim (@larrykim)
Average CPC’s by Industry and Network Larry Kim (@larrykim)
Average Conversion Rates by Industry Larry Kim (@larrykim)
Average CPA’s for Search & Display, by Industry Larry Kim (@larrykim)
Summary / Key Takeaways: • What’s a Good CTR? • How is Quality Score Calculated and Why Does it Matter in Theory? • Review: Unicorn account vs. Junk Account • What Makes a Unicorn Tick – 5 Common Ingredients and Workflow To Create Them • What Does it all Mean: How to Modify your PPC strategy for best results. Larry Kim (@larrykim)
Special Thanks • Perry Marshall (@perrymarshall) – 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
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 Larry Kim (@larrykim)
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 Larry Kim (@larrykim)
New: Leads & Landing Page Management Software www.wordstream.com/ppc-free-trial @larrykim
Special Offers! Would you like… a) A FREE live demo of WordStream PPC Advisor b) Get a 1-on-1 AdWords Grader walk-through with a PPC expert c) Nothing at the moment Larry Kim (@larrykim)
Your Questions Thank you for attending WordStream’s webinar! Benchmark your AdWords account today! http://www.wordstream.com/google-adwords Or contact us directly: Larry Kim firstname.lastname@example.org http://twitter.com/larrykim Larry Kim (@larrykim)
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