500startups mexico #500strong
TRANSCRIPT
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1twitter @meetsamir
@500 Mexico City, Feb 12th
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2twitter @meetsamir
The Growth Master
• Founder, CEO of DoRevolution and Growth
Mentor at 500Startups, Optimized $1B+ in Ads.
• Founder of SearchForce and pioneer to apply
Wall Street Analytics and Quantitative Trading
Techniques to Advertising for Portfolio
Optimization. Raised $10M+ in financing,
developed a Cross-Channel Optimization SaaS
Platform Based and took the company to
profitability.
• MBA in Brand Marketing from Cornell's Johnson
School of Business.
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3twitter @meetsamir
Dave McClure Startup
Ecosystem
3
• 1,000 Bootstrap Startups ($0-10K)
• = 1,000 Parents/Garages/Basements @ $0-500/mo food+rent
• 300 Accelerator Startups ($10-100K)
• = 10-20 Accelerators @ $1-5M/yr, 20-50 co’s/yr
• 100 Seed-Stage Startups ($100K-$1M)
• = 5-10 Micro-VC Funds @ $10-30M/yr, 10-20 co’s/yr
• 30 Series A/B Startups ($1-10M)
• = 3-5 Early-Stage Funds @ $25-100M/yr, 5-10 co’s/yr
• 10 Later-Stage Companies ($10-100M)
• = 2-3 Later-Stage Funds @ $50-250M/yr, 3-5 co’s/yr
• 1-3 Mature Company IPOs ($100M+)
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4twitter @meetsamir
Growth Trumps all Metrics
4
• High growth companies return 5X more to
share holders
• Growth predicts long-term success
• SuperGrowers (growth rate >60%) when
reached $100M were 8X more likely to
reach $1B than ones <20% growth rate
• Growth matters more than margin or cost
structure. Increases in revenue growth rates
drive 2X as much market cap gains
- McKinsey & Company
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5twitter @meetsamir
Action for You
Grow Fast
or
Die Slow
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6twitter @meetsamir
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7twitter @meetsamir
Reach by Network
• Google Search -100 billion global web searches
per month. 71% of search market share
• Google Display – Over 1 billion monthly users, 6
billion ad impressions per month
• AdWords for Video – Over 1 billion unique users
per month on YouTube alone
• AdCenter – 29% search market share
• Facebook – 1.28 billion active users
• Twitter – 645 registered users
• Linkedin – 300 million users
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8twitter @meetsamir
Platforms 2.0Search, Social, Mobile,
Video, Messaging
$100M+ Users Available
~ Dave McClure
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9twitter @meetsamir
Hyper Inflation & Irrational
Bidders
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10twitter @meetsamir
Unprecedented Complexity
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11twitter @meetsamir
But Growth is Hard
• Rapid Evolution of
Markets
• Speed & Machines
• Lots of Money at Stake
• Increasing precision
brings complexity
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12twitter @meetsamir
Easy to Lose Money
It’s Complex.
Figure out the Gap in your skillset.
Pre-mature conclusions
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13twitter @meetsamir
Precision Marketing
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14twitter @meetsamir
Where to Start?• If you’re trying to drive sales, have a limited budget,
and need your advertising investment to deliver a
specific return, or at least be directly profitable, start
with the Search Network only.
• If you’re trying to drive sales but you feel you’ve
exhausted the Search market and still have additional
budget to spend, expand to Google Display Network
(GDN ) & Adwords for Video (AFV) targeting.
• If you’re trying to drive sales plus expand awareness
and grow your brand, go with all three.
• If you have a product or service that’s not well known,
and users aren’t likely to search for it directly, or it’s
value is hard to explain in a text ad, stick with GDN and
AFV targeting. (Video can be particularly useful here!)
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15twitter @meetsamir
Actions• Grow Fast or Die Slow
• Markets are hyper-competitive and inflated
• Companies are using Artificial Intelligence,
Math and Stats to gain competitive
advantage
• Companies are hiring the best and brightest
minds and paying billions for them. It’s the
TEAM stupid.
• Easy to spend money, hard to make money
• Bottom-line : Pay attention OR you will end
up in the dead pool.
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16twitter @meetsamir
How to Build an Adwords Growth
Engine
• Scalable
• Repeatab
le
• Predictab
le
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18twitter @meetsamir
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21twitter @meetsamir
8 Qualities of World Class Growth
Teams• Possess Data-Driven Thinking
• Rapid Learners of Dynamically Changing
Marketing Channels and Growth Platforms
• Understand Growth Process
• Are Highly Product-Savvy
• Have a Hustle Mindset
• Possess a Cross-Disciplinary Skillset
• Connect Marketing to Product Development
• Possess Technical Acumen
• Hiring connections
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22twitter @meetsamir
Hack 41-46 Cultivate Skills
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23twitter @meetsamir
Action for You
Reflect on your current
know-how
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25twitter @meetsamir
Process
• KPI’s
• Growthaly
tics
• Kaizen
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26twitter @meetsamir
Website.com
Emails &
widgets
Campaigns,
Contests
Biz DevAds, Lead Gen,
Subscriptions, etc
Homepage /
Landing Page
Product
Features
1. ACQUISITION
SEOSEM
Apps &
Widgets
Affiliates
PR Biz
Dev
Campaigns,
Contests
Direct, Tel,
TV
Social
NetworksBlogs
Domains
Emails &
Alerts
Blogs,
Content
System Events &
Time-based Features
~ Dave McClure
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~ Brian Balfour
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30twitter @meetsamir
Action
Establish
Clear,
Quantifiable
Goals.
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31twitter @meetsamir
Customer Lifecycle
• Acquisition: users come to the site from various channels
• Activation: users enjoy 1st visit: "happy" user experience
• Retention: users come back, visit site multiple times
• Referral: users like product enough to refer others
• Revenue: users conduct some monetization behavior
AARRR!
~ Dave McClure, 500Startups
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32twitter @meetsamir
Action
Think
Lifecycle.
Customer
Journeys.
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33twitter @meetsamir
Steps to Build an Adwords Account
• Expertise to manage Adwords
• Define your Audience
• Budgeting
• Keyword Research
• Writing Ads
• Building out the Account Structure
• 5 Pillars of Optimization
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34twitter @meetsamir
Experiment
• Objective
• Hypothesis
• Design
• Resource Estimation
• Results
• Findings
• Action Items
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Running Growth Experiments
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37twitter @meetsamir
Action
You must breathe
Continuous Improvement
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38twitter @meetsamirEstablish Objectives and Key
Results (OKRs)
• Set your objective based on what’s going to
have the greatest impact on your business
right away
• Establish a timeline for testing
• Set multiple Key Results (KRs) based on
level of difficulty:
KR 1 – 90% chance of success. You did a good job.
KR 2 – 50% chance of success. You did a great job.
KR 3 – 10% chance of success. You hit it out of the park!
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39twitter @meetsamir
Example -- Growth via Adwords:
Goal: Lower their CPA for accredited investor signups via AdWords without a significant drop in conversion volume.
1. Focus on Search Network to drive lower CPA
2. Set timeline for 60 days
3. Three Key Results will be attempted:
• KR1 -- (90% change of success): Raise conversion volume by 10% by focusing on strategic bid modifications RLSA audience lists.
• KR2 – (50% chance of success): Lower CPA by 20% by limiting the keywords they buy to high performing terms only, and setting location bid modifications by income-tier.
• KR3 – (10% chance of success): Lower CPA by 20% and raise conversion volume by 10% by combining these two strategies.
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40twitter @meetsamir
Action
Establish
OKR’S for
everyone on
the team.
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Account Structure Pillar
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Keywords Pillar
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Keywords Pillar
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Keywords Pillar
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Keyword Pillar
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Landing Page Pillar
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Ad Copy Pillar
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Analytics Pillar
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50twitter @meetsamir
Core Concept : Relevance
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Core Concept : Bounce Rate
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Quality Score Calculations
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Quality Score Calculations
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54twitter @meetsamir
Core Concept : Quality Score
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Tests
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56twitter @meetsamir
10 PPC Optimization Tips
• Search Query Report
• Keyword Match Types
• Cross Pollinations: SEO and SEM
• Ad Copy Testing
• Segmented Reporting for Day Parting
• Using Ad Extensions
• Budget Adjustments
• Competitive Terms
• Campaign Structure
• Device Based Bidding
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57twitter @meetsamir
AD EXTENSIONS
SELLER RATINGS
SITELINKS CALL EXT.
LOCATION EXT.
GOOGLE+
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Accelerating
Growth via
Mobile
Advertising
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61twitter @meetsamir
Tell them before you tell them
• Mobile Multiple Touch Points
• Calls
• Apps
• Cross Device
• Mcommerce & Mobile Sites
• In store
• 4 Tips: Optimizing Mobile PPC
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63twitter @meetsamir
Calls
• This may sound obvious but let's not forget
smartphones facilitate an action that is native
to the device itself: phone calls. Customers
sometimes prefer to purchase by phone.
• how a spontaneous party was made possible
with purchases made via phone calls.
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64twitter @meetsamir
Apps
• Mobile App Economy is 29.5B Gartner, 50B
downloaded, 1M apps, 190 Countries
• Apps are a great way to enrich your
relationship with your customers. App
downloads and transactions that happen
within your apps are two important sources of
value from mobile.
• When consumers download your app, it
creates new opportunities for conversions.
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65twitter @meetsamir
Open An Existing App
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App Downloads
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67twitter @meetsamir
New App Ads
• New Installations: Mobile App promotions
across search, display and YouTube.
• Extract and suggest keywords based on Google
Play and Google Seach
• Target Customers based on apps they use,
frequency of use and in-app purchase history
• Reengagement: Ads that redirect inside of
apps already installed, Deep Linking
• Conversion Measurement: Installation,
Reengagement & In-App Purchases
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68twitter @meetsamir
Mcommerce & Mobile Sites
• A mobile-friendly site is the cornerstone of
any mobile strategy and makes it easier for
your customers to purchase directly from
their smartphones.
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69twitter @meetsamir
4 Mobile PPC Optimization Tips
• Mobile Bid Adjustments : Need to get on top positions because of form factor, bid higher for location based targeting.
• Mobile Preferred Ads : Separate mobile/desktop, Call directly or provide a promotion based on time. Different URL for mobile.
• Call Extensions: Ad scheduling based on call center, Your own number or Google’s forwarding number
• On Site Call Conversions: Track calls from phone number embedded on website when users need to reach more before they buy
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Hack # 87
Adwords is a every changing Beast. Tame it with Process.
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BuiltWith
DoubleClick, Twitter Ads, AdRoll, RocketFuel, MailChimp, AppNexus, GA, CloudFront etc
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SpyFu
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Moat
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Moz Links Explorer
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KeywordTool.io
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77twitter @meetsamir
Exit Intent Technology
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Samir [email protected]
President & CEO,
DoRevolution
Growth Mentor
@500Startups
Connect on Linkedin
Twitter@MeetSamir