Advanced Pay Per Click (PPC) Certification Program

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Creating, Launching, and Managing a PPC Account, Part 2 Tutorial

2.3 Analyzing Types of Ad Groups

This is where AdWorks labels can be really useful. So, this is just a campaign that has been put into a pivot table, so we can see our add groups, the value per ad group, our CPC's, our ROI numbers which is average percentage suspend value, clicks, costs, so forth. And when you start looking and this is only a few ad groups. You start looking at hundreds. This becomes very difficult to interpret. So instead of just saying, we have all these ad groups, it's so hard to manage, let's start grouping ad groups together. So, for instance, these top set of ad groups, they have no conversions yet. They're all long-tail words. But they've only made up $315 of spend, of this campaign's $96,000 in spend. So, we need to think about these ad groups, and you can't just ignore long tail forever, but it's not your initial place your going to obsess over, especially just after launch. Now, at the bottom here, we have an ad group that has spent $19,000, it's made $21,000. Now it's got a lot of traffic, and sometimes with paid search that's the hard part is getting good repeatable traffic, this ad group has it. So now if we could just increase that conversion rate a little bit, this will start to become a very profitable ad group. So when we think about where do we start testing landing pages and really look at our ad tests? It's ad groups like this, that a little move of the needle, from a conversion rate standpoint can make a big difference, in how profitable the account is. And then finally, always learn from your account. So this ad group here, it spent $885, it's made $5,000. It's not the most profitable ad group. It's not the highest volume ad group. But what it is, is an outlier in return on ad spent. So, when you look at spend to value for all the ad groups, nobody beats 329%. Except this one. It is significantly higher at 562%. That's an outlier. When you see outliers, you want to look at it. Did you write a different type of ad, for this ad group. Are they different match types? What are the queries being used? What's the landing page for this? Learn from these outliers, especially highly profitable ones, to see how you can apply that information to other ad groups. And finally, we have an ad group that has spent 26,000, it's made 88,000. It is great. Now, you don't have a lot of these, but you know which ones they are. If you were to look at your account only for one minute a day, it would be to make sure that this particular ad group is up and running, the ads are approved, there's no issues. So, we'll have our profit center ad groups that we want to keep a closer eye on. So, we don't just have one ad group, so far. We now have types. We have long tail. We have solid ROI, I'm going to talk about in just a second. We have ad groups with high values, that we want to watch closely. We have ad groups with lots of traffic, but not a lot of conversions we want to test.

2.4 Adjusting AdWords Bids

So when you think about say bidding. Let's say we just want to do a straight ROI bid calculation. So we take our value per click x 0.5. Now the issue with that is ad groups no conversions have to be set at zero. So we may not do straight ROI bidding on all our ad groups. We may give these a little bit of a leash, and say let's let them run for a few weeks or a few months. See if long tail does start to work for us, or if we need to change the way we're doing our ad testing, and these types of ad groups. Now with the really high profit center ad groups, you don't want to just do a straight formula, set a bid and walk away. You want to make sure that if you're changing the bid dramatically, it doesn't affect the ad group too much. So for the vast majority of cases, the conversion rates on an ad doesn't really change by position. Google did a study a few years ago, and found that there was less than a two percent variance in conversion rates for the same ad shown in any position on that page. Essentially meaning if you have a one percent conversion rate in position one, your conversion rate anywhere else on the page to be .98 to 1.02%. Very little variance. Some key words, though, do see variances in conversion rates by position. It's not common, but it does happen. So when the ad group like this, if you're going to triple your bid suddenly based on a formula, that's a big change. You may not triple, you may raise it by you know, 20 or 30%. Give it a couple days. Make sure it works that bid. Raise it slower. Or you might just big jump ahead, make a note that you did that, so and then watch how this ad group reacts to that big change in bid. And then we have these other ad groups that, they're not our highest volume add groups. They're not our most profitable ad groups, they're just good solid add groups. They spend some money, they make some money. So these are those great, straight ROI or ROAS, or CPA bidding add groups to use. Instead of hundreds of ad groups, we have a handful of ad groups. Now, depending on you account size, you may have more or less types. If you have a small account, you may only have three or four types of ad groups. If you have a very large account you may have twenty different types of ad groups. So, you don't have to remember all your different types.

2.5 Ad Group Labels

This is where Adword's labels are really useful. So a label can be applied to an ad group and then, when you want reports, that ad group will show up for that label. So things like HCLC, High Cost Low Conversions, or Medium Cost Medium Conversions, High Cost High Volume. You may have some brand terms, product terms. External brand terms. So consider how you want to analyze ad groups. And the way this is nice is that when you think of the mindset for longtail it's sparse data, it's combining information back to the ad group level, possibly even cross ad groups. That's one type of mindset to work with for long tell ad groups. For really high volume ad groups, we're going to obsess over every character in our ad copy. So there's a different mindset when you're obsessing over a single character over here but maybe not over there. So if you label your ad groups, then you can go into your account and just do a segment and show you the ad groups that fit that segment, so as you work on them, you're working on these different segments individually. Now you can use either labels or even a naming convention off the ad group. So in the ad group we have more stuff-LCLC, low cost low conversion. Or medium cost medium conversion. So we filter off the ad group name in that case. Or we can filter of the label.

2.6 Determining Ad Labels

Now, you can use labels for more than just ad groups. If you're doing a lot of ads, it's really useful to label your ads, based upon their purpose. These are ads that drive newsletter conversions or these are low buy cycle ads. These ads are for branded terms. These ads are for product terms. So, if you think through how you want to examine your ad tests, that will give you an idea of labels to use. Now an ad or an ad group, doesn't matter what kind of level you're applying the label. You can have more than one. So we want to have one ad, that's e-commerce and commercial. Another ad, that's newsletter informational. Another ad that's products and brand, another one that's just straight brain term. And the reason this is useful, is when you get into analyzing the ads. So often again, we go back to pivot tables. We have all of these ads. We don't want to look at every single ad. We want to look at ad, by purpose. When we're examining the data. So in a pivot table, you can filter by a label. So now, all of our ads have a label. We can apply the labels to all of our ads in our ad groups. And then, when we look at our data in Excel, we can just filter and say, if label equals this, then show me the data for analysis purposes. So when you think through how you want to examine your account, could be campaigns, ad groups, ads, so forth. Labels can help you do quick segments to change the view states, you're looking at all the information that's really important to you, at that point in time.

2.7 Conversion Funnels

Now another item you're going to want to keep an eye on is your conversion funnel. If you have more than one page required that a user has to see before they can convert, you have a funnel. And so there's usually a couple of different types of funnels for, say, ecommerce systems. You have one funnel which is looking at the site globally. Here's our homepage, our category pages, our product pages, our shopping carts. So that just says are these users moving through our site in what we think is a logical progression, category, product, shopping cart or are we losing them somewhere? So in that funnel, the individual pages don't matter, it's more about the overall design of the site and how a user flows through it. Home, category, product or if you're in service bases you still have categories and you still have products but they're more service driven but it's still the overall same idea. And then you have step-by-step funnels. These may be multiform fills or they might be a shopping cart or someone viewed your shopping cart, they logged in, they placed an order, they completed an order, and you can see where a user is abandoning it. By looking at your funnels, you can see what ads and keywords users start from, how they're getting to your funnel, and if they're abandoning your funnel. So this gives you a good place for either changing the way the ads are qualifying the experience on the site, or what pages are suddenly using a lot of users that you want to do some landing page testing to get more people from step one to the end of your funnel. Now when you have your site and your company purely online, conversion funnels via analytics are really easy to see. You configure them the analytics, you can see the data. But a lot of companies who are either B2B, offline companies, or long sale cycles still have funnels.

2.8 Long Sales Cycle Conversion Funnels

So a common long sale cycle funnel is you may, by clicks to your site. And step one is your goal was to get someone to download a white paper. And to get your white paper, they have to give you their name and their email address. And then you collect that information and if they download a white paper and give you that data, you send them an invite to a webinar where you are going to walk them through the product or service via a webinar. And then if they watch the webinar you're going to give that information to the sales team and to view the webinar the user also had to give you a phone number. And so now the sales has your name, your phone number, your email, and maybe some other data points. They're going to call you up and say what can we do to sell you this product. And then, from that you'll get some sales that you can use. Now, that's still a funnel, they're just a disparate systems. One's in analytics, one's in you're go to meeting webinar software. Anther one's in your email system. Another one's in your Serra phone system. But you can still use this to build funnels for optimization processes. So let's say you bought a thousand clicks at a dollar per click. So, it's a dollar cost fraction. And from those thousand clicks, you got 250 downloads of your white paper. This means you've got a 25 percent conversion rate from a click and it costs you $4.00 for someone to download a white paper. Then, if they downloaded it, you send out an email saying come attend our webinar, watch this entire product. And so this email went to 250 people and 100 attended. That means you got a 40% conversion rate from the download spot. And it cost you $10 to attend webinar. Now this point in time you could also do because you know how many e-mails you sent and how many people signed up and of course how many people showed. So now what happens if you changed your e-mails calls to actions or your benefit statements on an e-mail. Because if you get more people to attend the webinar and more people finally buy that means that your cost per click can be ways because now you're making more money form the same clip. So with one of your sales funnels often adjusting your click price isn't just about step one. It's about a further down step in the sales process. And then, let's say all 100 people finish watching our webinars, so we hand our sales reps 100 names and they start calling around and they get in touch with 10 people. So that means, if we have a 10% conversion rate from our webinar, we have a $100 cost per phone call contact. From that, maybe we make a sale. And we can use that data to change our CPCs. Now this is the reason you want to look at this data in a funnel because if this were, were my company, I would not care about our CPCs right now. I would look at the data and say, we had someone who downloaded a white paper, so one contact point with us, and they attended a webinar, so second contact point with us. How is it that we only got in touch with 10% of those? Our script is off for our sales reps or our follow-up system. We need to examine the contact process before we obsess over how we're doing our ad test or how we're setting our bids because we have a problem with our funnel. So by looking at your funnels, you can get good ideas which will help you with your account management by getting more sales based upon the traffic you are buying.

2.9 Project Management

Now, when we look at all these things, funnel examination, ad testing, landing page testing, looking at search queries, adding negative keywords, changing our bids, there's a lot to do. So what we're going to look at next is how do we get this in some organizational process so that we can make sure we're getting the most important things done. And then can repeat that process over and over to make sure this account lives and grows and is profitable for us over time. Now the problem with most organizational systems is they sit in to do lists. And to do lists are just big lists of things you need to do. I have things on my to do lists from about eight or nine years ago. They're still not done, they're easy to ignore and your never done with them. Your to do list is never completed. So you never get that sense of satisfaction. A finishing a full list. So often instead it's useful to use project management software or calendar systems for managing accounts. Now when you walk down that path you need to kind a get organized first. So, there's a few questions you have to ask yourself and answer. So number one is "what must you do?" we need to change our bids, we need to change the search bids and our placement bids, and we need to expand our account, add new keywords, look at search queries for negative words. We need to test ads and landing pages and look at the results, design new tasks. We need to create monthly reports, we need data insights and a time based data, and geographic data. Review our goals and so forth. Now, this is different for everybody so you need to make this list for how your account is set up to be run, managed, and improved. So first we have what must we do. Next, we need to talk able how offend do we do it? So twice a week we're going to change our search bids and our placement bids and then every other week we're going to look at our search queries for negatives and test ads and landing pages. Then a monthly basis, we're going to create our reports and add new keywords. On a quarterly basis, we're going to review our geographic data, our time data and our account goals, make sure that we're still on track for how the company is being measured and how they're looking at our department or our PNL statement and how it fits the overall organization. So now we have, what do we have to do? How often do we do it? Next, when do we do it? So, twice a week we're going to change our search bids on Tuesday and Thursday. We'll change our placement bids on Monday and Wednesday every other week were going to examine our search queries for negatives. On even weeks on a Friday. We'll test new ads even weeks on a Wednesday. And then odd weeks on Wednesday we'll test on landing pages. The first Tuesday of each month, we make the monthly reports. The last Tuesday, we make our new keywords and then our quarterly data. So now, we have actual times that we are doing all of this piece of information. And when you're organizing all this, it can be useful to just pop open your calendar. And write this in calendar format so you can make sure no one day is overcrowded with items. Now the real benefit here is that we have a structure of what needs to be done, how often, when it's done. When you come in the office, you can actually finish what you're supposed to in your paid search account that day. With the to do list, you'll start the day with things in your to do list, you'll finish the day with things in your to do list. And you'll never have that true sense of accomplishment of I am done for the day. When you set activities on a daily basis then you can finish things.

2.11 Choosing Project Managment Software

Now, when we look at project management software, every one is different. And there are some systems that you will like that someone else will hate. There are some that someone else will really like and you won't like. So, when you get into it, it's a bit of a personal selection, as well as a feature selection. So some of the main features to look at are things like templates. With a template, you can create to-do lists, milestones, so forth, and then apply that list to a new project. Now this is not that important if you're running your account in-house, because often you'll just have one overall project for your in-house account. If you're an agency and you're running accounts on behalf of others, making these to-do lists of all the stuff we've talked about in this video as templates means you set up a new client. You apply the launch template. You apply the post launch template, the optimization template, add the dates, you're up and running. So it makes it very easy to add a new company to your project management. Now, the real big issue is recurring versus non-recurring tasks. So any traditional project, nothing is recurring. The concept doesn't exist. You always have milestones and due dates, but nothing is truly recurring. What happens is we really want business management software, which is repeat this process on these time frames. Business management software doesn't really exist online in more of an easy to do application system like project management does. So, what a lot of project management software has done is add the ability to set recurring tasks. So if you use a system without recurring tasks, then what happens is you'll make a template, so hopefully you have templates, on a monthly basis, and every single month, re-add that template of things to do. If it supports recurring tasks, you can just set it up, test every new ads on a Tuesday on every other week, and then at that time it pops up that task, you don't have to keep resetting the same task over and over again. And then speed and ease-of-use. So, some software feels like it's in your way, or it's something else to check off and add information to, and if it feels like burdensome it's not going to get used and it won't help you out long term. So you really want something that you feel is so intuitive that it becomes part of your life and makes it easier for you to get all your work done. If you're doing T&M projects, time and material projects, then some systems have third party integration for tracking T&M, or integration tool billing system. And so some have integration, some don't, but by looking through, who needs access to the data? Who's going to keep all the notes? Who wants access to these notes? And, then choosing a calendar or a project management system to manage your account will make it so everything does get done on time, on an on-going basis, and that every day you can actually accomplish your tasks and feel like you finished managing that account for that day.

2.12 Recap

So to recap everything about creating, launching and managing accounts. You know, number one, we need to look at the goals. What are the goals for the account? What's the KPIs or how you're going to be measured internally? Whether it's a third party or your own company. And make sure the goals you're optimizing towards and you're building account for match how you're going to be judged by the company or your boss for how the account performs. Then you want to map out the accounts. So here's our campaigns, here's our ad groups, here's our ad, so this is the initial mapping and research stage. Then we need to create our account. So make our campaigns, our ad groups, our ads, so forth. Then we want to always just double check the settings. Make sure our bids are right, our budgets are right, we didn't miss a decimal point. We're done double checking, now we can launch. Now we have an active account where we're actively advertising for this particular company. So then, post launch the first thing to look at is quality traffic. So what are the search queries, what's the bounce rates? Are we getting clicks? So that would be your CPCs as opposed to your first page bids and top of the page bids. Are we getting good traffic? And then once we have good traffic, then we'll start that initial optimization. And then ongoing you'll create an optimization schedule in your calendar or project management system or whatever software you want so you can monitor the changes how many of what needs to be tested. What needs to be changed. What needs to be accomplished. So that everything is getting done so that post launch, your account is being optimized, is growing, is hitting your goals, and that you are running and managing a profitable paid search account.

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