CONFIDENTIAL – DO NOT DISTRIBUTE 1

Debunking AdWords Myths and Other Dogma

Larry Kim, Founder/CTO, WordStreamJune 12, 2014

@larrykim

In PPC, Low CTR = Low Profits??*

What’s a Low CTR Strategy?

a) “Broader Keywords” – Navigational/Informational/Ambiguous Intent (e.g.: “Web Development”)

b) “Fewer Clicks” – Discouraging people from clicking on ads, or going after lower ad positions

Larry Kim (@larrykim) #wordstream

CONFIDENTIAL – DO NOT DISTRIBUTE 4

Pick the Red or Blue PillWarning: Data Ahead!

Low CTR Used to Generate High Profits!

• Google Has Changed

• Old Strategies Need to be Revisited!

Larry Kim (@larrykim) #wordstream

Google Expects WAY More of Your Ads!

Larry Kim (@larrykim) #wordstream

Quality Score Based on Beating Expected CTR!

Larry Kim (@larrykim) #wordstream

Google Has Changed How Ad Auction Works

• Today, average score is 5/10. Previously was 7/10

Larry Kim (@larrykim) #wordstream

CONFIDENTIAL – DO NOT DISTRIBUTE 9

CONFIDENTIAL – DO NOT DISTRIBUTE 10

Low Quality Score Penalty on CPC is Brutal

Impression Share vs. Quality Score

Larry Kim (@larrykim) #wordstream

But High QS Not Possible In My Industry!

Larry Kim (@larrykim) #wordstream

B2B Industry Quality Scores

Larry Kim (@larrykim) #wordstream

Finance Industry Quality Scores

Larry Kim (@larrykim) #wordstream

Ecommerce Industry Quality Scores

Larry Kim (@larrykim) #wordstream

Why Cost Per Click Matters

Larry Kim (@larrykim) #wordstream

But Position 3 Converts Better for Me!!

Larry Kim (@larrykim) #wordstream

Conv. Rate vs. Average Search Position

Larry Kim (@larrykim) #wordstream

But My High CTR Ads Have High CPAs!

Larry Kim (@larrykim) #wordstream

How Do I Raise My Conversion Rates?!

Larry Kim (@larrykim) #wordstream

@larrykim

Landing Page Unicorns?! (+3x Avg. Conversion Rate!)

1. Change The Offer

Larry Kim (@larrykim) #wordstream

The New Offer:

Larry Kim (@larrykim) #wordstream

Epiphany:Low QS

Keywords Kill Your Account

Example Crap Account

Larry Kim (@larrykim) #wordstream

Larry Kim (@larrykim) #wordstream

OMG – Where Are My High QS Keywords!!

Example Awesome Account

Larry Kim (@larrykim) #wordstream

Even Low CTR Keywords Get High QS!!!

Larry Kim (@larrykim) #wordstream

But I REALLY NEED my Low CTR Keywords!

–Use RLSA!– Informal Google

Analysis of Regular Search Ads vs. RLSA Search Ads:• 2.5x Avg. CTR,• ½ Avg. CPC• ~1.5x higher Quality

Score.

Larry Kim (@larrykim) #wordstream

So How The Heck do I Scale Paid Search?

Larry Kim (@larrykim) #wordstream

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) #wordstream

Average CPA’s for Search & Display, by Industry

Larry Kim (@larrykim) #wordstream

A Quick Note On Averages!

Larry Kim (@larrykim) #wordstream

Summary

• It’s hard to win at AdWords with Below Avg. CTRs

• Look to Display Remarketing to Scale AdWords Campaigns

Larry Kim (@larrykim) #wordstream

THANK YOU SMX!!

Download Slides From Here:

http://bit.ly/just-say-no-to-low-ctr

Let’s Connect! (lkim@wordstream.com)• Linkedin: https://

www.linkedin.com/in/larrykim• Twitter: @larrykim• G+: +larrykim1

Larry Kim (@larrykim) #wordstream