CONFIDENTIAL – DO NOT DISTRIBUTE 1
Debunking AdWords Myths
and Other Dogma
Larry Kim, Founder/CTO, WordStream
June 12, 2014
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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 5
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 10
CONFIDENTIAL – DO NOT DISTRIBUTE 11
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! ([email protected])
• Linkedin:
https://www.linkedin.com/in/larrykim
• Twitter: @larrykim
• G+: +larrykim1
Larry Kim (@larrykim) #wordstream
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