www.finch.com

What new feature did AdWords recently rollout for search retargeting?

Hint: It’s a list display has had for awhile

What percent of customers bounce if a site takes more than 3 seconds to load?

How many attribution models does AdWords support?

Disclaimer: Only the models currently available to everyone

www.finch.com

The 5 BiggestMistakes

Poor Metric Measurement

Attribution Mistakes

Letting Google Take Over

Mishandled Remarketing

Dismissing Mobile

Not Tying Overall Business Goals to AdWords Conversions

Mistake #1

Align goals to metrics

More Leads/Sales

vs.

CPCs/Impressions

1. CPA is calculated by dividing the total cost of

conversions by the total number of

conversions.

2. Use only if all costs for products/services are

equal.

CPA: Cost per Acquisition

1. CPV is the total value of your conversions

divided by the total cost for all the ad clicks that

can be tracked.

2. Use when all margins for products/services are

equal.

CPV: Cost per Value

1. Optimizing for what you really want more of:

PROFIT.

2. Use when products/services have variable

information for each.

3. The best way to measure success and growth.

Optimize for Profit

Align What You Measure With Your Goals

The Solution

Not Giving Attribution Any Thought

Mistake #2

WHAT IS ATTRIBUTION?HOW ATTRIBUTION MODELS ARE USUALLY CHOSEN

Eenie-meenie-miny-moe…

WHAT IS ATTRIBUTION?

FEBRUARY

How do you know where to spend money to improve performance?

Where are you lookingto know how your

PPC is performing?

AN EXAMPLE

Last click

Last ad click

Cross device

Last ad click

Cross device

Phone calls

Off-line

Last ad click

Cross device

Phone calls

$1,000

$2,000

Att

rib

ute

d R

even

ues

$1.00

Max cost per clickbased on 10% cost of

revenue target; 1% conversion rate

$2.00$1.75$1.55$1.35

Max

CP

C

GoogleAnalytics

Google AdWords(all-conversions)

ATTRIBUTION MODELS

Last Click First ClickLinear Position-basedTime Decay

LAST CLICK

Direct response companies

Want to know what ‘closes’ the sale

Non-direct last click: Similar to last click, if many users return directly to your site for the conversion; this measures the last actual channel/click for the close.

FIRST CLICK

Which source is generating new prospects.

Useful to determine where to spend more time with branding efforts.

LINEAR

Long sales cycles. What is pushing the user forward?

Before removing a channel; see if it’s contributing.

TIME DECAY

Focused on both awareness and sales.

Helps value the middle clicks pushing a user forward.

POSITION-BASED

Every interaction gets some credit, but we focus more heavily on what brought a customer to your site and what closed them

Personal favorite for the majority of my clients as it’s not to extreme on any front

AN EXAMPLE

Which Model is Right For Me?

Last Click First ClickLinear Position-basedTime Decay

Conservative Growth-oriented

Decide What You’re Trying To Achieve And Choose

Accordingly!

The Solution

Not giving customer value any thought

Mistake #2 (continued)

TODAYDisplay Network Organic Search

Display Network Generic Paid Search

Display Network Display Brand

TOMORROW

FROM CONVERSION TO USER FUNNELS

MOVING TO CUSTOMER VALUE

But when? ;-)

YESTERDAYOrganic Search

Organic Search

How many products?

Lifetime value?

What products?

How frequently?

Cost of acquired customer?

Why is lifetime value so hot?

● Understand each customer’s revenue potential

● Determine more effectively how much can be spent on customer acquisition

● Identify which channels/platforms drive the most valuable customers

CPA LTV ROAS

Arya

Jon

CUSTOMER VALUE

85

150

76%

3500

8400

140%

41x

56x

37%

LTV VS. CPAIS CPA MISLEADING?

LTV PRINCIPLES

Customer Centricity reveals how to increase profits from your best

customers, find more like them, and avoid

over-investing in the rest

Jim Sterne, Founder, Chairman,Web Analytics Association

$

20%

20%80%

80%

LTV PRINCIPLES

PARETO PRINCIPLE

Top 20% of Buyers

Top 10% of Buyers

Top 1% of Buyers

70%

50%

20%

In these ecommerce business examples, top 20% of their customers generate roughly 70% of

their total revenue...

Tota

l Rev

enue

All Buyers

PARETO PRINCIPLEIN PRACTICE

100%

0%0% 10% 20% 30% 40% 50%

LTV PRINCIPLES

THE GROUNDWORK - WHAT IS NEEDED?

LTV PRINCIPLES

Customer

CRM IDClient IDUser ID

Google ID

Lifetime

HistoricalPredictive

Value

E-commerceGoals

RevenueProfit

LTV

The Path to Lifetime Value

Based Targeting and Bidding

Identify

your most valuable

customers

Personalize

content for your customers based on

their LTV - focused on retention, upselling and cross-selling

Bid

customize bidding based off LTV of your customers

Acquire

more high value prospects (new

customers)

MOVING TO CUSTOMER VALUE WITH GOOGLE

SOLUTIONS

Engage

Confidential + ProprietaryConfidential + Proprietary

Using a flexible budget to reach as many profitable customers as possible and data modeling to bid to customer lifetime value, Airbnb successfully connected with 101% more customers in a six-month time frame.”

Why Airbnb Takes a Customer-Centric Approach to AdWords

Letting Google Make Choices For You

Mistake #3

Not Ryder’s choice

Ryder’s choice

Our compromise

GRANULARITY

ACCOUNT STRUCTURE

Ad groups

Single Keyword

EXACT PHRASE BROAD+ BROAD

MATCH TYPE

Ad groups

Single Keyword

EXACT PHRASE BROAD+ BROAD

5% 3% 2% 0.25%Conversion

Rate

THE GOLDEN CLICK!

NOW…

Grow your campaigns efficiently

KEYWORD EXPANSION

Converse red shoeswhite shoesred shoesblack shoescomfortable shoesinexpensive shoeshigh top shoes

{KeyWord} list

Converse red shoes

Add converting search terms to your keywords

MARKET EXPANSION HOW TO

In AdWords, select a campaign

1 Go to the Keywords Tab, click the ‘Search Terms’

MARKET EXPANSION HOW TO

In AdWords, select a campaign

1 Go to the Keywords Tab, click the ‘Search Terms’

2 Add the Conversions Column and sort by it

MARKET EXPANSION HOW TO

In AdWords, select a campaign

1 Go to the Keywords Tab, click the ‘Search Terms’

2 Add the Conversions Column and sort by it

3 Add any search terms that resulted in a conversion as exact match keywords

MARKET EXPANSION HOW TO

In AdWords, select a campaign

1 Go to the Keywords Tab, click the ‘Search Terms’

2 Add the Conversions Column and sort by it

3 Add any search terms that resulted in a conversion as exact match keywords

4 Make new exact match keyword a negative in the ad group it came from

GOOGLE WHEEL OF GOODNESS

HIGHERBID

HIGHERPOSITION

HIGHERCTR

HIGHERQUALITYSCORE

HIGHER AD RANK

HIGHERCONVERSION

RATE

Google Wheel of Goodness

Exact Match

Exact Match produced a

increase!78.2%

Granular Structure & Influence Quality Score

with Exact Match

The Solution

Not Maximizing Remarketing

Mistake #4

DATA ORGANIZATION

Ad groups

Single Keyword

EXACT PHRASE BROAD+ BROAD

Which website visitor is worth the most?

A B C

Now which website visitor is worth the most?

A B C

New visitorReturning with item in cart

Visited within 7 daysPast customer

Returned after 30 days

Conversion Rate Example

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

New Visitor

Home Page

2+ Pages

Product Page

Productin Cart

BeginCheckout

Repeat Clients

Search

Remarketing

Conversions

3 PILLARS FORAUDIENCE SUCCESS

Identify: Find your most valuable online audiences by using client data plus Google insights.

Re-Engage: Convert and retain customers that already know you

Expand: Grow your marketing to reach new customers at all stages in the purchase funnel.

AUDIENCE INSIGHTS REPORT

Interests + Intent

Demo + Device

New Customers to Target Available Reach

Action

Using your remarketing lists, you can determine the audience composition of your users

Increasing customer

retention rates by

just 5% increases profits

by 25% to 95%1

KEEP EXISTING CUSTOMERS AND GAIN NEW ONES

Attracting a new customer

costs five times as much

as keeping an existing

one2

Source: 1 Bain & Co Source: 2 Lee Resources 2010

INCREASING BIDS CAN LOWER CPA, WHILE GROWING CONVERSIONS

Similar Audience

conversions

RLSA conversions

Customer Match

NEW TOTAL

Baseline conversions

Incremental conversions

INCREASING BIDS CAN LOWER CPA, WHILE GROWING CONVERSIONS

Increasing bids for audience lists increases ad rank and grows conversion volume, which can result in a lower CPA

Lists Bid CvR CPA

Baseline

Similar to All Visitors

All Visitors list

All Customer list

Converters list

$1.00

$1.05

$1.10

$1.15

$1.20

1%

1.5%

2%

2.5%

3%

$100

$70

$55

$46

$40

Use The Data & Remarket Wisely

The Solution

Dismissing Mobile

Mistake #5

Photo of car on the side of the highway

HELP!HELP!

Mistake #5Did you know?

66% of the population suffers from Nomophobia

91%Source: Google/Purchased, U.S., “How Brand Experiences Inspire Consumer Action,” U.S.

smartphone owners 18+=2,010, brand experiences=17,726, April 2017.

Source: Google/Purchased, U.S., “How Brand Experiences Inspire Consumer Action,” U.S. smartphone owners 18+=2,010, brand experiences=17,726, April 2017.

70%

Source: Google/lAB “Our Mobile Planet,” May 2013

40%

150But only spends

The average person checks their phone

177minutes on their phonetimes per day

What does this mean for your business?

Develop a strategy specific to mobile.

Be there!

What can you do to succeed in a micro-moment world?

● Mobile only

● We live in a visual world

● Take up majority of the screen

● Be there FIRST

MOBILE PHOTO EXTENSION BETA

Blank space vs. Experiential

GOOGLE PHOTO TIPS

Collage vs. Single

GOOGLE PHOTO TIPS

Mobile Audits

Must Be Present To Win

The Solution

The 5 BiggestMistakes

Poor Metric Measurement

Attribution Mistakes

Letting Google Take Over

Mishandled Remarketing

Dismissing Mobile

SOLVED!

Come talk to us at our booth or at the Opening Party tonight!