Download - Core Concepts of Paid Search Marketing
John Gagnon
BLOGGER
FORMER GOOGLE GUY, SEARCH CAMPAIGN MANAGER, DATA ANALYST
SPEAKER
@jmgagnon | @bingads
People Looking for
Products/Services
Business Offering Services
Willing to pay
Right info
Right time
Good exp.
@jmgagnon
Microsoft Confidential
Anatomy of a search page:
Query, Search term, Keywords
Sponsored results (paid ads)
Organic results (non-paid listing)
Local listing, free tobusinesses that sign up
@jmgagnon
On Bingclick-through-rate for the #1 search result is 9.7%. For the #4 result,it drops to 1.9%.3
60%of all organic clicks go to the top three organic search results.2
75%of users never scroll past the first page of results.1
Why is SEO and SEM such a big deal?
SEO and SEM has one goal: To move websites to the top of the search results page.
1. HubSpot May 2012; 2. Marketingsherpa, February 2007;
3. Slingshot SEO December 2011Microsoft Confidential @jmgagnon
How much does Jimmy Choopay per click to run shoe ads on Bing?
Keyword:
Cost per click: $1-$2
Jimmy Choo Shoes
@jmgagnon
Microsoft Confidential
Why: Margins + customers, not clicks
@jmgagnon
Product Revenue
$150 - $400per month for 6+
$600+
Margin
$400
$100
Of 100 Clicks,
how many Sales
12
1-2 prefer buy in-store
window shoppers
Compare online
and buy
Product
Auto Insurance
Jimmy Choo
Microsoft Confidential
Translate business terms into online marketing concept
@jmgagnon
CPA
$400
$100
Conversion Rate
12% or 0.12
1% or 0.012% or 0.02
Cost per Click
$48
$1.00
$2.00
Margin
per Sale
Sales per
100 Clicks Pay per Click
Product
Auto Insurance
Jimmy Choo
How much moneyyou make per action
Conversions per click
The most you can responsibly pay for a click – and still make money
CPA CVRx = Break-even CPC
Calculate your break-even CPC
@jmgagnon
Break-even CPC
= $1
Break-even CPC
Sale price: $35
Cost to London Fog-$10
CPA $25
CPA
X =For every 100 clicks, the ad gets 4 conversions.
CVR = 4%
CVR
This is London Fog’s profit from the sale.
If you pay more than this per click, you’re
losing money
Break-even CPC makes you smarter with your dollars
@jmgagnon
CPA Conversion
Rate
Break-even
CPC
$25 4% $1.00
$25 4.5% $1.12
$25 5% $1.25
Increase conversion rate or CPA (aka margin)
How do we increase our break-even CPC?
x
x
x
=
=
=
@jmgagnon
26
Search Page
Search
1 2Search Box Convert4Landing Page3
From landing
page makes
purchase
From search
page clicks
on ad
From search
box ad shows
on search page
called called called
Click ConversionImpression
Searcher’s Flow
@jmgagnon
Search Page
Search
1 2Search Box Convert4Landing Page3
Clicks
Clicks
Conversions
Impressions
How many clicks you get per 100
impressions. Helps indicate the
effectiveness of your ad copy
How many conversions you get per
100 clicks. Helps indicate the
effectiveness of your landing page
=Click thru Rate =Conversion Rate
Impression ConversionClick
Searcher’s Flow
@jmgagnon
28
Search Page
Search
1 2Search Box Convert4Landing Page3
Step #1 matters. What are they looking for?
@jmgagnon
Initial Research:
“Advertise My Business”
Specific Field:
“Online Marketing Tips”
Add More Refinement:
“Search Marketing”
Specific Brand:
“Advertise on Bing”
How do you search?
@jmgagnon
Initial Research:
“Advertise My Business”
Specific Field:
“Online Marketing Tips”
Add More Detail:
“Search Marketing”
Specific Brand:
“Advertise on Bing”
Funnel: Not all keywords alike
Purchase
Interest
@jmgagnon
Initial Research:
“advertise business”
Specific Brand:
“Advertise on Bing”
Advertise
Market
Paid Search
Sponsored
Search Marketing
SEM
Bing
Yahoo
Specific Field Name:
“Search Marketing”
Add More Refinement:
“Online Marketing
Tips”
Online
Internet
Pay per click
PPC
adCenter
Account Outline
@jmgagnon
3 Minute Drill
• Write down the most important services/products that make sense for
you to sell online.
• What are some differences between you& your competitors? Awards? Family Business?
• Seasonal Offers or Promotions?
• What are your goals for online? How much is a lead/sale worth?
• When are your peak times?
32
Keywords
Bid
Ad Copy
@jmgagnon
2 Key Building Blocks
• Keywords. What are your customers searching?
• Ad Copy. In a few characters, tell your customers why they should buy from you and not your competitors.
33
Seattle Florist
Seattle Florists
Flowers in Seattle
Red Roses
Wedding Florist
Flower Delivery
Floral Arrangements
Seattle Florist
Same day Seattle flower delivery.
Courteous Reliable Family Florist.
www.meritflorist.com
A wizard will help you walkthrough how to set these up. There are tools
for generating keywords. And you may wish to look for ideas from your
competitors for ads.
@jmgagnon
Think of Ad Group like a Product, Service or Brand
• Example: Seattle Florist, Red Roses, Wedding Florist, Flower Delivery, Nursery/Seed, Floral Arrangements, Cookie Platters
Good Rule of Thumb• 10-30 keywords per ad group
• 2-4 Ads per ad group
• Match your ad to what people are searching for
34
Keyword Ad Copy
Keyword
Keyword
Keyword
Ad Copy
Ad Group
Wedding
Florist
Quick
Quote
Seattle
Wedding Florist
Wedding
Flowers
Wedding
Bouquet
Seattle
Bride
Product:
Weddings
AD:
AD:
KW:
KW:
KW:
KW:
Build a Solid Foundation
@jmgagnon
36
Seattle Florist
Same day local flower delivery.
Courteous Reliable Family Florist.
www.meritflorist.comTest which messages
your customers
respond to most.
A.
Seattle Family Florist
Same Day Seattle Delivery. A Reliable
Family Florist For Mom
www.MeritFlorist.com
B.
7 Clicks/ 100 Impressions
11 Clicks/ 100 Impressions
Test and Repeat
@jmgagnon
How do we break down an online program to drive sales?
Visit: www.BoostCTR.com
@jmgagnon
Microsoft Confidential
The framework for ad copy testing
®
Probability of conversion
Clarity of the value proposition
(why)
Friction ofelements of
process
Motivation of the user (when)
Incentive to take action
Anxiety about entering
information
C = 4m + 3v + 2( i-f) -2a
@jmgagnon
The framework in action
FOCUS
VALUE PROP
ANXIETY
FRICTION
INCENTIVE
MESSAGING
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@jmgagnon