keep your company's ppc spend in check
DESCRIPTION
Budget, goals, results….as someone responsible for your company’s (or department’s) bottom line, those terms go through your mind constantly. Are we spending too much in that area? How can I increase revenue? Should we be doing something differently? Are we hitting goals? Are we getting the right results? The big question is, what do you do when you see that PPC spend is too high? President of Hanapin Marketing, Jeff Allen, and Senior Account Manager, Eric Couch, tackle that big question with ideas, metrics, and tactics that will help you realign and make sure your PPC spend is worth it in this webinar. Don’t be thrown off when you start seeing those red flags; our digital ad experts can help you stay ahead of the problem! You'll get expert-level PPC tips like: *Metrics to help you decide if your PPC spend is becoming a red flag *Ideas and suggestions on how to realign your PPC spend or determine its worth *Better tracking and reporting strategies to keep your budgets on a short leash *Questions to ask yourself from an executive-level perspective Don't let PPC spend become a red flag for your company!TRANSCRIPT
#thinkppc
How to Recover from the Holidays Faster Than Your Competition
HOSTED BY:
HOSTED BY:
Keep Your Company’s PPC Spend In Check W
#thinkppc
Presenters
• Jeff Allen– President at Hanapin Marketing
– Speaker at Hero Conf 2014
– @JeffAllenUT
• Eric Couch– Senior Account Manager at Hanapin Marketing
– Blogger at PPC Hero
– Speaker at Hero Conf 2014
– @ecouch11
#thinkppc
Join the conversation
• Include the hashtag #thinkppc in your Twitter tweets.• Or use the webinar question box to send us questions.
#thinkppc
Live Poll Question #1
How long have you been in PPC?#thinkppc
A. Less than 1 yearB. 1-3 yearsC. 3-5 yearsD. 5+ years
#thinkppc
Live Poll Question #2
How do you manage your account(s)?#thinkppc
a) I manage it myself.b) I’m part of a team that manages it.c) I outsource my account management.d) I’m rethinking how my account is managed.
#thinkppc
Delineate Budgets
Dedicate Budget to Core & Experimental
Decide what percentage of your total PPC dollars you should spend on existing, core campaigns and what should be allocated to experimental, growth oriented campaigns.
• Risk Adverse: 90% / 10%• Risk Tolerant: 80% / 20%• High Growth: 60% / 40%
#thinkppc
Measure Incremental Sales
Look At New Spend / New Conversions
•Looking at top-line spend and CPA hides really good or really bad spend.
•Looking at incremental spend and conversions allows you to decide if the extra sales or leads are worth the (likely) higher CPA/lowers ROAS.
#thinkppc
Measure Incremental Sales
Quick Glance Incremental Gains
1. Look at campaign (or ad group) level report with spend and conversions over 3-6 full months.
2. Segment by month and download the report.3. Decide if you should look at first month compared to last
month or average of first three months compared to last month, or average of first three months compared to average of last three months, etc. etc.
4. Subtract recent spend and conversions over control period.
#thinkppc
Measure Incremental Sales
#thinkppc
Measure Incremental Sales
#thinkppc
Measure Incremental Sales
#thinkppc
Making Budget Adjustments on the Fly
Campaign structure is what allows a business to push and pull budgets.
• Top Performer Campaigns• Campaigns by Match Type• Campaigns by Geo (or other factors)• Most Importantly, Try to Leave the Core Alone!
#thinkppc
Does Channel Mix Reduce Red Flags?
Spreading Digital Advertising Dollars Reduces Risk and Google Dependency
• Bing• Facebook• Twitter• LinkedIn• 3rd Party Retargeting• Display Buys
#thinkppc
Questions to Ask re: Spend
1. Is spend justified as a defensive strategy?2. Is current spend level needed in order to maintain
current revenue level?3. What’s the plan for pushing or pulling spend as
needed?
#thinkppc
Project the Impact of Your Spend
Know the projected impact of your spend.
• Are these new campaigns, or existing campaigns?• Which campaigns, engines will see an increase?• What are the projected gains based on my
campaign metrics?
#thinkppc
Case Study #1: Growing Existing Campaigns
Monthly Budget: $7,500
Current Account Ceiling: $16,500 – As determined by Impression Share Lost Due toBudget (via a few tricks you’ll see later).
How does that break down as we increase spend?
#thinkppc
Case Study #1: Growing Existing Campaigns
We have three campaigns in which to spend:
Campaign 1: Added $6,600 in spend @ $19.01 CPL.Campaign 2: Added $1,500 in spend @ $22.21 CPL.Campaign 3: Added $1,200 in spend @ $24.23 CPL.
#thinkppc
Case Study #1: Growing Existing Campaigns
Here’s how our spend would break down as wegradually increase the budget.
$9,500: 486$11,500: 591$13,500: 696------------------ Here we start shifting spend to the less-efficient campaigns.
$15,500: 795$16,500: 844
#thinkppc
Case Study #1: Growing Existing Campaigns
Here, there’s a clear point of diminishing returns.
Sure, you can spend up to $16,500 based on ourexisting campaigns… but should you?
That depends on how comfortable you are withthe loss in efficiency, and how aggressive you arewith experimental spend.
#thinkppc
Planning Ahead for Your Initiatives
Have a plan.
Have a backup plan.
Have a backup plan for your backup plan.
#thinkppc
Case Study #2: Incremental Growth
We hold Quarterly Business Reviews with our clients, where we focus on new account initiatives to work on in the following months.
They contain both optimizations and growth strategies.
Here are the last three.
#thinkppc
Case Study #2: Incremental Growth
Q2 2013 Action Items:
• Remarketing Launch (worked)• Bing Launch (worked)• International target expansion (didn’t work)• Geographic modifier optimization (worked)• Account/campaign restructure – more efficient
budgeting (worked)
#thinkppc
Case Study #2: Incremental Growth
Q3 2013 Action Items:
• Remarketing Expansion (didn’t work)• FBX Remarketing (worked, but low volume)• AdWords for Video (worked, but low volume)• Landing Page Tests (really worked)• Product Expansion (didn’t work)• Backend Tracking (absolutely worked)
#thinkppc
Case Study #2: Incremental Growth
Q4 2013 Action Items:
• Campaign Budget Increase (worked)• Product Expansion (great volume, poor quality)• Display Keyword Campaign Test (mixed results)• Similar Users Campaign Test (worked)• Google Beta Test (worked, low volume)• Unpausing High-CPA Keyword Test (didn’t work)
#thinkppc
Case Study #2: Incremental Growth
Planned 2014 Initiatives:
• LinkedIn• Facebook PPC• International PPC• Investment in CRO• Affinity Audiences, Other Display Beta Tests
#thinkppc
It’s Not Just About Growth
Account growth is fantastic.
But before you commit more resources, how well are you actually spending your existing budget?
How can you find out?
#thinkppc
One of My Favorite Tricks
Enter Excel Solver.
Download a Share of Voice Report from Bing, and an Impression Share Report from AdWords. Throw the two reports together and use Solver to determine your optimal campaign budgets…
If you aren’t getting the most out of your existing budget, why should you spend more?
#thinkppc
Case Study #3: Excel Solved BudgetsA MIX OF BING AND
GOOGLE CAMPAIGNS
AVERAGE DAILY SPEND ACROSS ALL
CAMPAIGNS
OPTIMAL BUDGET AS FOUND BY EXCEL SOLVER
Source: Sam OwenPPC Hero – “How to Use Excel Solver to Optimize Your Campaign Budgets”http://www.ppchero.com/how-to-use-excel-solver-to-optimize-your-campaign-budgets/
#thinkppc
Know Your ROI
It doesn’t matter if you’re lead generation or ecommerce, know the ROI for your increased spend. Or really, just your spend in general.
Going beyond raw conversion volume, knowing the actual profit behind each campaign allows you to make better-informed decisions about your money.
#thinkppc
Case Study #4: ROAS Reports
#thinkppc
Measuring the Overall Lift
We’ve already discussed about how to bestjudge your current spend and potential spendby direct results – conversions and profit.
Are there any other ways to gauge the success(or lack thereof) of your newly-budgetedspend?
Try Search Funnels!
#thinkppc
Case Study #5: Search Funnels
It’s no surprise, but generic campaigns have a measureable impact beyond just their direct conversion metrics.
Pausing them, or reducing their spend would indirectly harm our performance elsewhere.
#thinkppc
Live Poll Question #3
What is your biggest concern with an increased budget?#thinkppc
a) A lack of communication.b) Poor follow-up on the results of that increased spend.c) Spending without a plan in place.d) Low ROI.
#thinkppc
Need Help?
Would you like help with your PPC accounts and management?
I’m interested in:
o PPC Management: We handle the day-to-day management of your PPC account.
o Account Audit: We review your account for optimizations.o PPC Retainer: We handle only specific needs within your
account.o FREE Solutions Blueprint: We look at your account and
provide analysis and consultation (For accounts with $20K+ in adspend).
#thinkppc
Live Q&A Time!
#thinkppc
Have more questions?
Thank you for attending our webinar! #thinkppc
• Get a free Solutions Blueprint from Hanapin Marketing (for accounts greater than $20K/mo in adspend): http://www.hanapinmarketing.com/solutions-blueprint-sign-up
• Or Contact us Directly:• Webinar Feedback: [email protected]