keep your company's ppc spend in check

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How to Recover from the Holidays Faster Than Your Competition

HOSTED BY:

HOSTED BY:

Keep Your Company’s PPC Spend In Check W

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Presenters

• Jeff Allen– President at Hanapin Marketing

– Speaker at Hero Conf 2014

– @JeffAllenUT

• Eric Couch– Senior Account Manager at Hanapin Marketing

– Blogger at PPC Hero

– Speaker at Hero Conf 2014

– @ecouch11

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Join the conversation

• Include the hashtag #thinkppc in your Twitter tweets.• Or use the webinar question box to send us questions.

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Live Poll Question #1

How long have you been in PPC?#thinkppc

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

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How do you manage your account(s)?#thinkppc

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.

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Delineate Budgets

Dedicate Budget to Core & Experimental

Decide what percentage of your total PPC dollars you should spend on existing, core campaigns and what should be allocated to experimental, growth oriented campaigns.

• Risk Adverse: 90% / 10%• Risk Tolerant: 80% / 20%• High Growth: 60% / 40%

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Measure Incremental Sales

Look At New Spend / New Conversions

•Looking at top-line spend and CPA hides really good or really bad spend.

•Looking at incremental spend and conversions allows you to decide if the extra sales or leads are worth the (likely) higher CPA/lowers ROAS.

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Quick Glance Incremental Gains

1. Look at campaign (or ad group) level report with spend and conversions over 3-6 full months.

2. Segment by month and download the report.3. Decide if you should look at first month compared to last

month or average of first three months compared to last month, or average of first three months compared to average of last three months, etc. etc.

4. Subtract recent spend and conversions over control period.

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Making Budget Adjustments on the Fly

Campaign structure is what allows a business to push and pull budgets.

• Top Performer Campaigns• Campaigns by Match Type• Campaigns by Geo (or other factors)• Most Importantly, Try to Leave the Core Alone!

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Does Channel Mix Reduce Red Flags?

Spreading Digital Advertising Dollars Reduces Risk and Google Dependency

• Bing• Facebook• Twitter• LinkedIn• 3rd Party Retargeting• Display Buys

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Questions to Ask re: Spend

1. Is spend justified as a defensive strategy?2. Is current spend level needed in order to maintain

current revenue level?3. What’s the plan for pushing or pulling spend as

needed?

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Project the Impact of Your Spend

Know the projected impact of your spend.

• Are these new campaigns, or existing campaigns?• Which campaigns, engines will see an increase?• What are the projected gains based on my

campaign metrics?

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Case Study #1: Growing Existing Campaigns

Monthly Budget: $7,500

Current Account Ceiling: $16,500 – As determined by Impression Share Lost Due toBudget (via a few tricks you’ll see later).

How does that break down as we increase spend?

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We have three campaigns in which to spend:

Campaign 1: Added $6,600 in spend @ $19.01 CPL.Campaign 2: Added $1,500 in spend @ $22.21 CPL.Campaign 3: Added $1,200 in spend @ $24.23 CPL.

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Here’s how our spend would break down as wegradually increase the budget.

$9,500: 486$11,500: 591$13,500: 696------------------ Here we start shifting spend to the less-efficient campaigns.

$15,500: 795$16,500: 844

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Here, there’s a clear point of diminishing returns.

Sure, you can spend up to $16,500 based on ourexisting campaigns… but should you?

That depends on how comfortable you are withthe loss in efficiency, and how aggressive you arewith experimental spend.

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Planning Ahead for Your Initiatives

Have a plan.

Have a backup plan.

Have a backup plan for your backup plan.

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Case Study #2: Incremental Growth

We hold Quarterly Business Reviews with our clients, where we focus on new account initiatives to work on in the following months.

They contain both optimizations and growth strategies.

Here are the last three.

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Q2 2013 Action Items:

• Remarketing Launch (worked)• Bing Launch (worked)• International target expansion (didn’t work)• Geographic modifier optimization (worked)• Account/campaign restructure – more efficient

budgeting (worked)

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• Remarketing Expansion (didn’t work)• FBX Remarketing (worked, but low volume)• AdWords for Video (worked, but low volume)• Landing Page Tests (really worked)• Product Expansion (didn’t work)• Backend Tracking (absolutely worked)

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• Campaign Budget Increase (worked)• Product Expansion (great volume, poor quality)• Display Keyword Campaign Test (mixed results)• Similar Users Campaign Test (worked)• Google Beta Test (worked, low volume)• Unpausing High-CPA Keyword Test (didn’t work)

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Planned 2014 Initiatives:

• LinkedIn• Facebook PPC• International PPC• Investment in CRO• Affinity Audiences, Other Display Beta Tests

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It’s Not Just About Growth

Account growth is fantastic.

But before you commit more resources, how well are you actually spending your existing budget?

How can you find out?

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One of My Favorite Tricks

Enter Excel Solver.

Download a Share of Voice Report from Bing, and an Impression Share Report from AdWords. Throw the two reports together and use Solver to determine your optimal campaign budgets…

If you aren’t getting the most out of your existing budget, why should you spend more?

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Case Study #3: Excel Solved BudgetsA MIX OF BING AND

GOOGLE CAMPAIGNS

AVERAGE DAILY SPEND ACROSS ALL

CAMPAIGNS

OPTIMAL BUDGET AS FOUND BY EXCEL SOLVER

Source: Sam OwenPPC Hero – “How to Use Excel Solver to Optimize Your Campaign Budgets”http://www.ppchero.com/how-to-use-excel-solver-to-optimize-your-campaign-budgets/

http://www.ppchero.com/how-to-use-excel-solver-to-optimize-your-campaign-budgets/

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Know Your ROI

It doesn’t matter if you’re lead generation or ecommerce, know the ROI for your increased spend. Or really, just your spend in general.

Going beyond raw conversion volume, knowing the actual profit behind each campaign allows you to make better-informed decisions about your money.

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Case Study #4: ROAS Reports

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Measuring the Overall Lift

We’ve already discussed about how to bestjudge your current spend and potential spendby direct results – conversions and profit.

Are there any other ways to gauge the success(or lack thereof) of your newly-budgetedspend?

Try Search Funnels!

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Case Study #5: Search Funnels

It’s no surprise, but generic campaigns have a measureable impact beyond just their direct conversion metrics.

Pausing them, or reducing their spend would indirectly harm our performance elsewhere.

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What is your biggest concern with an increased budget?#thinkppc

a) A lack of communication.b) Poor follow-up on the results of that increased spend.c) Spending without a plan in place.d) Low ROI.

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Need Help?

Would you like help with your PPC accounts and management?

I’m interested in:

o PPC Management: We handle the day-to-day management of your PPC account.

o Account Audit: We review your account for optimizations.o PPC Retainer: We handle only specific needs within your

account.o FREE Solutions Blueprint: We look at your account and

provide analysis and consultation (For accounts with $20K+ in adspend).

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Live Q&A Time!

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Have more questions?

Thank you for attending our webinar! #thinkppc

• Get a free Solutions Blueprint from Hanapin Marketing (for accounts greater than $20K/mo in adspend): http://www.hanapinmarketing.com/solutions-blueprint-sign-up

• Or Contact us Directly:• Webinar Feedback: [email protected]

http://www.hanapinmarketing.com/solutions-blueprint-sign-up

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