The Business of PPC: What’s the True Value?
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Transcript of The Business of PPC: What’s the True Value?
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The Value of Paid Search
April 2014
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 2!
About Dan!
linkedin.com/in/dangolden @thegoldendan
President & Chief Search Ar<st, Co-‐founder at Be Found Online
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 4!
Key Topics!
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The Media Mix Tracking & KPI’s Valuing Mobile 4 Tac<cal Tips 4
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 5!
Digital vs Other Advertising!
2013 Media Spend 2013 Media Spend Growth
Source: hKp://techcrunch.com/2014/01/27/nielsen-‐internet-‐adver<sing-‐grew-‐32-‐in-‐2013-‐but-‐its-‐s<ll-‐only-‐4-‐5-‐of-‐spend-‐vs-‐tv-‐at-‐57-‐6
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 6!
SEM vs Other Digital Media!
Source: Winterberry Group analysis of mul<ple sources. Excludes social display and social search
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 7!
Search Vs. Display!
• Users spend more <me on content related sites
• Ads are visually more appealing • Creates Demand
Display Ads Search Ads
• Users only spend 5% searching, but purchase intent is high
• Ads speak directly to needs • Conversion king • Captures Demand
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 8!
The Big 5 SEM KPI’s!
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 9!
• New Metrics in 2013 – Phone Calls (Set Dura<on) – App Downloads – Es<mated Total Conversions
• Cross-‐Device!
• Newer Metrics (Announced 4/22) – Enhanced App Metrics – Offline Sales/Offline Visitors (Shh… Currently in Alpha)
Tracking is Catching Up!
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 10!
Valuing Mobile !
If you are an ecommerce pure play…. If you have stores or transact offline… keep listening
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 11!
The sales return on search ad spend was significant as well — between two and 14x.
Online Ads Increase Offline Sales!
Source: GoogleThink, Nov. 2013 -‐ hKp://www.thinkwithgoogle.com/ar<cles/proof-‐online-‐ads-‐increase-‐offline-‐sales.html
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 12!
Mobile = Local Search!
62% consumers who search for local business prefer local search results.
86MM mobile phone subscribers access local business informaHon from their phone in the US
4 out of 5 apps used on devices are map centric
Source: comScore, Neustar Localeze and agency 15 Miles, Local Search Study, Dec 2013, 5,000 US adults
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 13!
Mobile search drives buying habits! Nearly 80% of local searches on mobile devices turn into a purchase.
Mobile Drives Action!
Source: comScore, Neustar Localeze and agency 15 Miles, Local Search Study, Dec 2013, 5,000 US adults, Google Mobile
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 14!
Valuing Non-Brand!
Brand + Non-‐Brand = Bigger Piece of the Pie!
Your Share Your CompeHHon
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 15!
Valuing Non-Brand!
Last Click ü Conversion
• In reality, it is ofen more than one search that lead to the final conversion. These non-‐brand searchers deserve credit in assis<ng.
• Typically, the last click gets all the credit—which is misleading and inaccurate
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 16!
Search Attribution Modeling!• Last Click: Gives all credit for the conversion to the last-‐
clicked keyword • First Click: Gives all credit for the conversion to the
first-‐clicked keyword • Linear: Distributes the credit for the conversion equally
across all clicks on the path • Time Decay: Gives more credit to clicks that happened
closer in <me to the conversion • PosiHon-‐based: Gives 40% of credit to both the first-‐
and last-‐clicked keyword, with the remaining 20% spread out across the other clicks on the path
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 17!
Tactical Tip #1: Measure Search Share!• Auc<on Insights = Awesome • Impression Share, Overlap, Top of Page Rate • Make the Case with Search Funnel Data
• Average Impressions before Search
• Reminder/Warning: AI Reports don’t measure missed keyword and targe<ng opportuni<es • Your Keywords • Your Geo-‐Targe<ng
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Tactical Tip #2 – Measure Conquesting!• Measure Impressions/CPM • Dos & Don’ts
• Determine your landing page and watch your bounce rate • Don’t use when it hurts your quality score and drives bids too
high
• Disadvantages outweigh Advantages?
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 19!
Tactical Tip #3 – Offline Testing!• Clients don’t believe all of Google’s Case Studies? • Test For Yourself
• Unique Digital Coupons
• Market-‐Level Tests • On vs Off Markets
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 20!
On a good day, 5% of your paid traffic results in a “conversion” measured by most brands. Here’s how to value that 95% that still matters.
• Step #1 – Assign Multiple KPI’s • Step #2 – Assign Values to Each
KPI • Step #3 – Integrate KPI mix into
Reporting • Step #4 – Act & Optimize to
Blended Conversion Rates • Step #5 – Grow your search
budgets!
Primary ROI Metrics
Cost/Lead
ROAS
ROAS (Last Click)
Addi<onal Leads Metrics
NewsleKer Signups
Phone Calls
Online Chats
Engagement Metrics
Time on Site
Pageviews
Social Ac<ons
Offline Ac<ons
Store Locator
Get Direc<ons
Coupon Pageviews
Search Share
Impression Share
Top of Page Rate
Average Posi<on &
CTR
Tactical Tip #4 – Blended KPIs!
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PROPRIETARY AND CONFIDENTIAL / COPYRIGHT © 2013 BE FOUND ONLINE, LLC! 21!
FREQUENCY!
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SUMMARY!
No silver bullets, but inquisi<ve minds can find silver linings.
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Thank You! Ques<ons?