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Google Confidential and Proprietary 1 Introduction to AdWords Elyse Guilfoyle AdWords Account Strategist December 6, 2010

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Google Confidential and Proprietary 11

Introduction to AdWords

Elyse GuilfoyleAdWords Account Strategist

December 6, 2010

Google Confidential and Proprietary 2

Agenda

1 Why Search is Exciting

2 Digital Advertising

3 Google AdWords

4 Showing Value from Digital Advertising

Google Confidential and Proprietary

Some History…

Google Confidential and Proprietary

In the Beginning…

Google Confidential and Proprietary

Old Paradigms for Organizing Information…

Card CatalogsCard Catalogs

Business DirectoriesBusiness Directories

Google Confidential and Proprietary

Search Was New…

Search allowed users to define their queries rather than rely on predetermined categories…

Suddenly queries could be unique and infinitely specific.

Octopi Jujitsu

Nihilistic Agorophobia

Vigilantes Jerkiness

Funicular Swizzle

Google Confidential and Proprietary

The Search Advertising Revelation

Google Confidential and Proprietary

The Search Advertising Revolution

Search Advertising Meant:

• Inbound/Pull Marketing: Direct Access to The Easiest Client Targets

• Trackability: Accurate Statistics on Reach & Impact

• Accessibility: A Self-Service Platform Without Financial Barriers to Entry

• Immediate Responsiveness: Immediate Results

Google Confidential and Proprietary

The Inflection Point

Google’s primary innovation in the Search advertising space was the Performance Incentivized Auction

This new model allowed Google to increase revenue while improving efficiency for advertisers…

Google Confidential and Proprietary 10

Search: Where We Are Today

74.2BInternet searches conducted worldwide in June 08; that’s 11.1 searches for every person on Earth, inone month.

If every search were a mile, we’d go to the sun and back nearly 5 times every year.

Sources: comScore qsearch, June 2008, (divided over 30 days for per day value); world population as of July 2008, distance to the sun, Wikipedia.org.

Google Confidential and Proprietary

Digital Advertising

11

1 Why Search is Exciting

2

3 Google AdWords

4 Showing Value from Digital Advertising

Agenda

Google Confidential and Proprietary

While total ad spend is expected to increase 25% in the next five years, the Internet’s share of ad spend will increase by more than 50%

12

Marketers Are Shifting Spend Online

Source: Jupiter, “U.S. Online Advertising Forecast, 2008 to 2013,” June 2008.

Google Confidential and Proprietary 13

Consumers Increasingly Turn to Digital

3%

36%

Source: Yankee Group, "2009 Advertising Forecast Update: Less TV, More Internet," provided to eMarketer, April 14, 2010

Consumers spend 36% of time online – More than with any other media format

Google Confidential and Proprietary 14

1 Why Search is Exciting

2 Digital Advertising

3Google AdWords• AdWords Overview• Building a Campaign

4 Showing Value from Digital Advertising

Agenda

Google Confidential and Proprietary 15

Google Search Makes Finding Information Simple

car insurance

Google Confidential and Proprietary 16

Google’s Paid Search Offering: AdWords

Top sponsored ads: Up to 3 listings

Side sponsored ads: Up to 8 listings

Sponsored “Paid” Advertising• Advertisers can bid on these positions

Google Confidential and Proprietary 17

Pull Marketing: On-Demand at the Moment of Relevance

Push Marketingworks for some things…

Pull Marketing…but there is value inreaching consumerswho seek your message

Commercials

Yellow Pages has known this sincethe 1800s!

Google Confidential and Proprietary 18

What terms should a car insurance provider target?

cheap Geico car insurance SUV insurance

car insurance great rate insurance

good finances

driving safety

cars

Narrow Broader/generic

Enter Google: Keyword Advertising

1. Advertisers select relevant keywords

2. Users search on those keywords

3. Google ranks ads (ad auction)

4. Winning ads appears

5. Marketer only pays when ad is clicked

Google Confidential and Proprietary 19*Marketer is responsible for translating ads into selected languages.

Region City Radius Set borders

Regional and Local Targeting: Sharpen Your Focus

Country, Regional, and City-level Targeting

• Reach customers searching for results in geographic areas you choose

Customized Targeting

• Reach customers searching for results in an area you define

Language Targeting

• Reach users searching in a specific language, wherever they are*

Google Confidential and Proprietary 20

Google’s Paid Search Offering: AdWords

Top sponsored ads: Up to 3 listings

Side sponsored ads: Up to 8 listings

Sponsored “Paid” Advertising• Advertisers can bid on these positions

You can’t pay for a specific placement… so how is ad rank determined?

Google Confidential and Proprietary 21

A Closer Look at the Ad Auction

Ad Position is determined by...

Ad rank… which denotes ad position

=

…but what do advertisers actually pay?

Relevance

Quality Score is determined by a combination of factors, including:

• Click-through-rate on Google.com (clicks divided by impressions)

• Keyword and ad text relevance

• Landing page quality

Quality Score XWillingness to pay

Max CPC is the highest $ amount an advertiser is willing to pay for one click on their ad

Max CPC

Google Confidential and Proprietary22

For Example: Bidding and Paying for Ad Position 1

Improving Quality Score is an effective way to raise ad position, while controlling costs.

AdRank=

0.72

0.65

=

=

QualityScore

ACME is more relevant for users

1.8

1.0

=

=

X MaxCPC

$0.40

$0.65

But John Doe is willing to pay more

X

X …Position 2

…Position 1

ACME wins position 1:Google rewards relevance in combination with the bid, not the bid alone

AdPosition

Google Confidential and Proprietary

Campaign Creation: Keywords

The importance of synonyms and plurals– book ≠ books– novel ≠ book

Not case-sensitive– James Balch = james balch

Misspellings– perscription

The only symbols our system acknowledges– Ampersands (&)– Underscores (_)– Apostrophes (’)– Example: click-through = click through

Google Confidential and Proprietary

Coming up with Keywords

Research your product• Study the landing page:

– Authors: james balch, mark stengler

– Book title: prescription for drug alternatives

– Topics: alternative medicine, nutrition guidance, natural cures

Google Confidential and Proprietary

Coming up with Keywords

Research industry-specific terms, products & brand names

• Multiple terms to define or describe products

• Colloquialisms

• Nicknames

complimentary and alternative medicine, or CAM

complimentary and alternative medicine, or CAM

mind-body

homeopathy

herbal remedies

mind-body

homeopathy

herbal remedies

Google Confidential and Proprietary

Using the Keyword ToolThe Keyword Tool is within the Opportunities Tab of every account. Use the Keyword Tool to:

– Build your initial keyword list by typing in a word, phrase, or URL

– Refine your existing keyword list

– Expand upon your existing keyword list

– Develop negative keywords

– Anticipate traffic and competition on certain terms

Google Confidential and Proprietary

Keyword Relevancy

Irrelevant• tom clancy

Too general• books, health

General• alternative medicine

• natural remedies

More relevant • james balch book

• drug alternatives book

Extremely specific• the prescription for drug alternatives

Google Confidential and Proprietary 28

Creating Ad GroupsOnce you create a campaign in your account, you’ll use ad groups to house the keywords you’ve chosen. Ad groups should be broken out by themes. In this case, you’d have ad groups for:

• author name(s)

• book title

• genre(s) of book

• related subjects of book

Google Confidential and Proprietary 29

Example Ad Groups

Authors

James Balch

james balch books

james balch book

books by james balch

book by james balch

PFDA

Mark Stengler

mark stengler book

mark stengler books

books by mark stengler

book by mark stengler

PFDA

the prescription for drug alternatives

prescription for drug alternatives

prescription for alternatives

drug alternatives book

Book Title

Alternative Medicine Books

alternative medicine book

alternative medicine books

book of alternative medicine

book on alternative medicine

book about alternative health

Natural Remedies

natural herbal remedies

natural home remedies

natural health remedies

natural healing remedies

Book Genre

Relevant Topic

Google Confidential and Proprietary

Ad text is important because it is the only part of the account that is visible to the user

• Inform the user

• Persuade the user

• Compel and entice the user

Relevant, Clear Ad Text

Users Click on Ad

Achieve Desired Action

Writing Ad Text

Google Confidential and Proprietary

• Test multiple ad texts

• Put keywords in headline

• Describe the product

• Use promotional language • Discounts

• Award-winning

• Bestseller

• Use call-to-action phrases• Buy

• Order

• Get

• Use intercapitalization

Writing Ad Text: Best Practices

Google Confidential and Proprietary

Writing Ad Text: Example

‘James Balch’ Ad Group ‘PFDA’ Ad Group

Drug Alternatives BookCheck out Dr. James Balch’s NewestBook on Natural Remedies. Buy Today!www.Wiley.com/DrugAlternativesBook

prescription for drug alternatives

prescriptions for drug alternatives

drug alternatives book

drug alternatives books

prescription book james balch

prescription books james balch

New James Balch BookThe Prescription for Drug Alternatives.Order the Must-Read Health Guide.www.Wiley.com/JamesBalch

books by james balch

book by james balch

james balch book

james balch books

james f balch book

new james balch book

Google Confidential and Proprietary

Choosing the Right Landing Page

Now, let’s look at some examples…

The landing page is essential to the user completing the action you want them to take once they get to your site. The landing page should be:

• Specific to the product

• Contain lots of information

• Depict a clear, easy next step

Google Confidential and Proprietary

First cut: Dropping the user off at a home page

Google Confidential and Proprietary

Better: Take user to search results for ‘james balch’

Google Confidential and Proprietary

Even better: Go to the specific product page

Google Confidential and Proprietary

Best: Show users what to do when they get there

Buy Now

Google Confidential and Proprietary

The one-page cheat sheet

1. Consider which terms users will search for.

2. Keep keywords to 2-4 words.

3. Don’t use too many; 10-15 per ad is about right.Keywords

Ad Text1. Invite the user to do something; be compelling!

2. Be specific.

3. Be transparent about what the user will get.

Landing page

1. Follow through on your ad text’s message.

2. Specific is better than general.

3. Don’t make users work.

Google Confidential and Proprietary 39

1 Why Search is Exciting

2 Digital Advertising

3 Google AdWords

4 Showing Value from Digital Advertising

Agenda

Google Confidential and Proprietary

What do we value?

E-Commerce: Sales Revenue

Lead-Gen: Leads

Publisher: Advertising Revenue

Nonprofit: Donations/Awareness

Google Confidential and Proprietary

Leading Indicators

ClicksClicks

DownloadsDownloads

Video ViewsVideo Views

Map ViewsMap Views

Time On SiteTime On Site

Newsletter Sign UpsNewsletter Sign Ups

Google Confidential and Proprietary

Questions?

4242