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Budget and Bidding for Successful ROAS/ROI

Jessica Cates, Account Executive

Hanapin Marketing

A Review of Bidding Options: Adwords

• Three Main Categories of Bidding• Focus on clicks• Focus on conversions• Focus on impressions

A Review of Bidding Options: Adwords

• Focus On Clicks• Manual Bidding• Automatic Bidding• Enhanced CPC Bidding

• With manual bidding• With automatic bidding

A Review of Bidding Options: Adwords

• Focus on conversions (aka Conversion Optimizer• Max CPA Bidding• Target CPA Bidding

Reminder

• Using Conversion Optimizer or Enhanced CPC with the “optimize for clicks” ad rotation?• Google will be switching accounts over with

these settings to the “optimize for conversions” in February 2012.

• They claim to see an average 5% increase in conversions when this change is made.

A Review of Bidding Options: Adwords

• Focus on Impressions• For Display Network only• Pay every time you reach 1,000 impressions vs.

paying per click

A Review of Bidding Options: adCenter

• Implicit Bidding• AKA: Bid inheritance• Setting a broad or phrase bid causes more

restrictive match types to “inherit” the same bid• Competition against yourself

• Explicit Bidding• Exact bid is highest• Broad = 85% of Exact• Phrase = 75% of Exact• May be easier to split keywords into ad groups by

match type with this method.

A Review of Bidding Options: adCenter

Budget the Right Way

• Your budget shouldn’t be an arbitrary number, do the math!• How much do you have to spend (does that

include or not include an agency management fee?)

• How many platforms are you using to advertise on?

• How many campaigns per platform?• How much is your CPC?

Accounts with Budget Constraints

• Areas that are spending without converting or have too high a CPL• Search engines• Keywords• Ad Groups• Campaigns

• Know if your campaign is actually reaching its budget on a daily basis, if so, lower it and estimate your daily savings so you know how far to cutback• (Current daily budget*Days left in the month)-

(New daily budget*days left in the month)

Accounts with Budget Constraints

• Review segments• Display Network vs. Search• Search vs. Search Partners• Mobile vs. Tablets vs. Desktop/Laptop Computers• Time of day, Day of week

• Different Bidding Options

• Spread your budget out evenly throughout the day so you don’t lose potential sales after your budget runs out

Accounts with Large Budgets

• Where are you spending your budget?

• Tailor your ad copy for the audience you’re targeting if you have several audiences

• Be aware of duplicates• More likely to get out of hand in a large account with

different segmentations• You can end up running up your own costs• Test, test, test to make the best decisions• Use negatives to keep your ads from showing based on what

you’re targeting

• Don’t let account structure get out of hand• Segmentation for different products and services• Campaigns based on successful geographical locations• Detailed audience targeting

Bidding

• Bidding Smart• Avoid diminishing returns by not over-bidding• You do not have to be in position 1 to be

successful, instead, focus on page 1 and use the data to find where your successful ROI position is

• Find your account’s “sweet spot”• Understand where your account will trend after

you make the changes by running a projection

Bidding Sweet Spot

• You don’t necessarily need a top spot to have a good ROI or ROAS

• Moving a keyword up in position won’t necessarily increase your performance accordingly, but it will surely spend more

• If a keyword performs better in position 3 than 1, leave it there!

• Competitive landscape surrounding your keyword will make a top spot easy or hard to hold on to

• Automated Rules• AdWords retired position preference this year• Automated rules can increase or decrease your keywords

based on rules that you set

Top 1 vs. Side 1?

• Google is constantly throwing a new wrench in the gears.• Why are these two ads (the ONLY two ads on the

page) at the bottom?• Average position used to be much, much

simpler to calculate• Take some time to actually understand how the

search engines are ranking ads

Bidding Smarter: Google Estimates

• Should I optimize for top positions?• Segment with top v. other and see which

performs best for you• If you should be at the top, look at the

estimated top page bid column in your AdWords interface and adjust accordingly

Back to basics

• Your price per click is determined by your Quality Score• Improve your CTR• Keep everything highly tight-knit and relevant• Send your visitors to the best landing page for

their search• Earn higher positions for lower costs• For more tips, check out our Quality Score Guide

Where Does Your Account Actually Stand?

• ROAS• How much revenue is generated off of every $1 spent

in a marketing channel• Based on revenue• More difficult to measure with a lead gen client• Revenue/Cost• Agencies have more control over generating client

revenue than they do for generating client profit

• ROI• Includes management fees• Based on profit• Profit/Cost

The Return

• Understanding what happens to your leads after you send them to a client is JUST as important as generating them• Is the lead quality bad?• Are the leads closing?• If not, your CPA is actually MUCH higher than

you initially thought

Improving Return

• Look at your CPC month over month – is it rising? Something must change!

• Quality Score, Quality Score, Quality Score!

• Apply negatives the right way• Search queries containing iPhone converted 3

times for a CPL of $700+ in a year = know when to cut it out with broad match negatives

• Big ticket negatives vs 1 impression, random queries

Improving return

• Don’t underestimate landing page testing, but also don’t rock the boat

• Highly relevant text with a clear call-to-action increases the likeliness of a conversion and also helps your QS.

Crystal Anderson

Brad Geddes Andrew Goodman

Nate Jeo Joe Kerschbaum John Lee

Kevin Lee Joanna Lord Melissa Mackey

Elizabeth Marsten

Marc Poirier Lisa Raehsler

Matt Umbro Matt Van Wagner

Marty WeintraubRegister before December 31 to receive an ADDITIONAL $100 discount!

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Q&A

Thank you for submitting your questions! We will answer as many questions as time allows.

Thank you!

If you would like more information, please visit www.HanapinMarketing.com or call

812.330.3134