Webinar: A Case for Automated Bid & Budget Management

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A CASE FOR AUTOMATED BID & BUDGET MANAGEMENT

Click to edit Master text stylesWEBINAR housekeeping

• The webinar is recorded and will be made available by email

• The slides will also be available by email

• Q&A session at the end of the webinar

• Use the Chat box to submit your questions at any time


How long have you been in PPC?

A. Less than 1 yearB. 1-3 yearsC. 3-5 yearsD. 5+ years

POLL QUESTION #1


How do you manage your account(s)?

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.

POLL QUESTION #2

Click to edit Master text stylesSPEAKERS

Marc Poirier

– EVP & Co-Founder of Acquisio.

– 17 Years Experience in Digital Marketing.

– Master Fisherman.

Jeff Baum

– Senior Account Manager at Hanapin Marketing

– Blogger at PPC Hero

– @jeffbaum71


• 2000-2003: Overture and the transparent marketplace was at the origin of the practice of bid management in paid search

• Google changed the game with an opaque auction, and the old bid management solutions became less and less important as Google became more dominant

• Many service companies built in-house solutions and marketed themselves as technology / algorithm players

• Around 2007/2008, several bid management tech companies launched products in market to support Google AdWords bid management

• Each player has their own approach, based on rules and algorithms, that run once per day at most.

• In 2013 Acquisio released BBM and set a new standard for bid management.

Quick history of bid management


BBM works to maximize your clicks or conversions while reducing your costs and optimizing your PPC budget

– Increase clicks or conversions– Suppress CPC or CPA – Manage budgets with pinpoint accuracy (<1%)

Providing increased return for the same budget ( before BBM) equals increased profits.

What Does BBM Do?


For fixed monthly budget, maximize either clicks or conversions with constraints on:

•Maximum CPA•Maximum CPC•Average position

Varying the following:•Max CPC bid (ad group)•Daily budget

Constantly searching for Optimal solution to this problem

How Does BBM Do It?


Near Real-Time Bid and Budget Management.

Our Algorithms Run Every 30 Minutes, Intelligently Sharing Budgets Across Campaigns while Adjusting Bids Automatically.

• Suppress CPC (also CPA, Avg. Pos. or ROAS)• Maximize Click Volume (also conversions or revenue)• Spend Maximum Budget Effectively

•Take advantage of clustering of keywords in ad groups•We run 48 sets of experiments per day, instead of one•Uses AdWords Conversion Tracking tags•No need to change account structure or add tags

How is it different?

WHY DOES THIS MATTER?

Google Display Network ad engine

Tsunami Effect

Google Display Network conversion engine

AdMetrica captures surges of conversions (and plummeting CPA’s) accompanying sudden spikes in Google’s general search traffic volume.

AdMetrica GDN CPA

Google Search Vol.

AdMetrica GDN Conv #

Aug 1

201

1

Aug 1

5 20

11

Aug 6

201

1

Aug 1

8 20

11

Sep 4

201

1

1,000

0

2,000

3,000

4,000

5,000

8,000

7,000

6,000

Sep 5

201

1

Aug 2

201

1

Aug 3

201

1Aug

5 2

011

Aug 4

201

1Aug

7 2

011

Aug 8

201

1

Aug 9

201

1

Aug 1

0 20

11

Aug 11

201

1

Aug 1

2 20

11

Aug 1

3 20

11

Aug 1

4 20

11Aug

16

2011

Aug 1

7 20

11

Aug 2

2 20

11

Aug 1

9 20

11

Aug 2

0 20

11

Aug 2

1 20

11Aug

23

2011

Aug 2

4 20

11

Aug 2

5 20

11

Aug 2

6 20

11

Aug 2

7 20

11

Aug 2

8 20

11

Aug 2

9 20

11

Aug 3

0 20

11

Aug 3

1 20

11

Sep 1

201

1

Sep 2

201

1

Sep 3

201

1

Google Search*(sweepstakes)

Conversions (sweepstakes)

$3.25

$3.00

$2.50

$2.75

$2.25

$2.00

$1.75

$1.50

$1.25

CPA(sweepstakes)

* Source: Google Trends

Google Search Activity

CONTROL SPEND AND BUDGETSMAXIMIZE CLICKS AND CONVERSIONSSLASH CPC AND CPA

HOW MUCH DOES THIS IMPROVE PERFORMANCE?


Women’s Athletic Apparel

Background – Clicks and Price

Our client is working with a tight marketing budget in the competitive retail advertising space. Getting share of voice while not over-paying clicks is a major challenge.

BBM Start Date: March 23, 2013 Report End Date: May 27, 2013

CPC Reduced 3x Clicks Increased 4x

Budget Target Error: -2.5%

Success Story 1


Auto Parts Dealer

Background – Scale

In a sector where multiple campaigns are common due to a high number of SKUs, managing budgets at scale is very difficult.

BBM Start Date: February 19, 2013 Report End Date: May 27, 2013

CPC Reduced 3.3x Clicks Increased 2.9x

Budget Target Error: 1.03%

Success Story 2


Home Builder

Background – Budget Constraints

Our client significantly boasted very stable and seemingly good PPC results when compared to peers.

BBM Start Date: May 7, 2013 Report End Date: May 27, 2013

CPC Reduced 2x Clicks Increased 3.5x

Budget Target Error: - 0.87%

Success Story 3

HOW ACCURATE IS BUDGET MANAGEMENT?

Click to edit Master text stylesBefore BBM

$155,729 Budget$133,022.64 Spent$22,706.36 Unspent14.6% Gap85.4% Attainment

SPEND85.4%

Click to edit Master text stylesAfter BBM

$155,729 Budget$133,022.64 Spent$22,706.36 Unspent14.6% Gap85.4% Attainment

$130,870.00 Budget$130,673.27 Spent$196.73 Unspent0.2% Gap99.8% Attainment

SPEND99.8%


Enhanced Campaigns: BBM is currently running across dozens of accounts testing new algorithms to manage bid modifiers

Product Listing Ads: BBM is in BETA with several clients testing its impact on the performance of PLAs, at this time, it appears as though BBM is at its very best in the context of PLAs

GDN and MGDN Ads: BBM generates great results with GDN and MGDN campaigns, AdMetrica supports more sophisticated optimization for certain types of advertisers.

Three Stage Conversions: Our answer to low flow problem, 3 stage conversions first get the ads to display more frequently, then optimizes bids and budgets towards ads that are yielding click flow, to finally optimize towards conversions and CPA.

Recent Innovations


• You provide• Groups of campaigns• Associated Budgets• Target CPA (or other metric)• Your MCC info and permission to activate algorithms.

• We offer• A 1:1 conversation with one of our SMEs to discuss exactly

what the algorithms will and will not do.• Monitoring and communication of results throughout the

early phase.

How to Start?


• BBM Summary• Near real-time optimization cycle means better spend control• Decreases CPC / CPA, often by 50% or more.• Increases clicks and conversions, often by 100% or more• Greatly improves budget management accuracy• Helps agencies spend all of the clients’ budgets, all the while

improving results dramatically, leading to increased agency revenue and greater client satisfaction

• Works for individual accounts• Impressive results for agencies and Google Channel Partners

with dozens, hundreds or thousands of accounts to manage• Works well for Enhanced Campaigns, PLAs, GDN/MGDN and

low flow campaigns.

Acquisio – BBM


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What Is Your Bidding Strategy?

A. I Do All My Bidding Manually

B. I Use Google’s Automated Bidding Tools

C. I Use a 3rd Party Bidding Platform

D. Bidding Intimidates Me. I Only Employ Ad Group Bids

POLL QUESTION #3


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CASE STUDY

For Profit School 45 Locations 15 States


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Budget & KPI Guidelines: - $300K-$400K monthly spend - $200 per lead Initial Strategy: - Aggressive bidding: Bid #1 position using Adwords bid rules - Push volume through keyword expansion & search remarketing - Pause non converting ad groups & keywords - If necessary, go over CPL target to push volume

Revised Strategy: - CPL targets by program - Adhere strictly to target CPL - Reduce volatility of program and campus CPL’s between campuses - Bid lower positions: Will leads at lower positions more likely convert to enrollments & starts?

CASE STUDY


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– Avg CPC’s decreased 12.8% per click– Clicks increased 30%

CASE STUDY


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– Conversions increased 450%– CPL decreased 81%

CASE STUDY


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• Integrating BBM into Account

- Priority focus on locations in most need of CPL optimization

- Limited optimization of those locations to study effect of BBM on performance

- Once positive improvement was confirmed, rolled out 10 more locations

CASE STUDY


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• How We Can Use BBM More Effectively Going Forward

- Use BBM to manage multiple CPL targets within a campus location

- Understanding avg. position ‘sweet spot’ & using BBM to target

- Making sure budgets are optimized to spend at times most likely to convert

CASE STUDY


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Offer - would you be interested in:

A. FREE Solutions Blueprint from Hanapin Marketing

B. FREE Demo of the Acquisio Platform

C. More information on BBM

POLL QUESTION #4

Click to edit Master text stylesLIVE Q&A

Webinar: A Case for Automated Bid & Budget Management

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Transcript of Webinar: A Case for Automated Bid & Budget Management