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Google and WordStream:
3 Paths F Small Business
          or
PPC Profitability

Larry Kim, WordStream
Howard Tung, Google
July 19, 2012




                           CONFIDENTIAL – DO NOT DISTRIBUTE   1
Today’s Agenda


•   Introductions
•   Key Trends in Online Marketing for 2012 from
•   Trivia & Poll
•   3 Paths for PPC Success
•   Questions & Answers




                                                   2
Take Part in Live Blogging on Twitter / Google+


•   Include the hashtag #3pathsppc in your Google+ status
    updates,Twitter tweets,, etc.




                                                            3
Speaker Introductions

•   Howard Tung
     – 8+ years in Online industry with Google, Microsoft,
       and IGN Entertainment
     – Recently joined Google in early 2010 to focus on
       Strategic Partnerships for Small-Medium
       Business/ Local Channel.
•   Larry Kim
     – Founder, CTO, WordStream, Inc.
     – Been doing PPC & SEO for 10 years
     – 3 years ago, started WordStream
     – Today we’re an industry-leading provider of a PPC
       Management Platform and Keyword Research
       Tools
     – WordStream helps people get their website found
       on the internet!




                                                             4
Let’s learn a little about you….




                         CONFIDENTIAL – DO NOT DISTRIBUTE   5
Poll Question 1: How much time do you spend
doing PPC work every week?

a) I'm supposed to do work in my PPC account every
   week?
b) < 1 hour / week
c) 1-10 hours / week
d) 10-39 hours / week
e) +40 Hours / week - it's my full time job!




                                                     6
Poll Question 2: What's your biggest Time Sink in
PPC Management?

a) PPC Bid Management
b) Reporting & Analysis
c) Ad Text Authoring
d) Keyword Research / Negative Keyword Research
e) Landing page creation / Optimization




                                                    7
Digital Overview
Acceleration of Everything




                             Google Confidential and Proprietary   8
Digital Revolution in Context

        Information           Distribution & Commerce      Communication
          “Read”                       “Buy”                    “Talk”




 Censored By Request


 1994                      1998        2000         2003     2006                  2010
             Internet Users: 77M       400M         500M      1B                   1.9B
                                                               Google Confidential and Proprietary   9
Digital Revolution in Context

        Information           Distribution & Commerce      Communication
          “Read”                       “Buy”                    “Talk”




 Censored By Request


 1994                      1998        2000         2003     2006                  2010
             Internet Users: 77M       400M         500M      1B                   1.9B
                                                               Google Confidential and Proprietary   10
Digital Revolution in Context

        Information           Distribution & Commerce      Communication
          “Read”                       “Buy”                    “Talk”




 Censored By Request


 1994                      1998        2000         2003     2006                  2010
             Internet Users: 77M       400M         500M      1B                   1.9B
                                                               Google Confidential and Proprietary   11
Digital Revolution in Context

        Information           Distribution & Commerce      Communication
          “Read”                       “Buy”                    “Talk”




 Censored By Request


 1994                      1998        2000         2003     2006                  2010
             Internet Users: 77M       400M         500M      1B                   1.9B
                                                               Google Confidential and Proprietary   12
Digital Revolution in Context

        Information           Distribution & Commerce      Communication
          “Read”                       “Buy”                    “Talk”




 Censored By Request


 1994                      1998        2000         2003     2006                  2010
             Internet Users: 77M       400M         500M      1B                   1.9B
                                                               Google Confidential and Proprietary   13
The Four B’s
Addressing the Local Opportunity




                                   Google Confidential and Proprietary   14
Digital Revolution in Context

        Information           Distribution & Commerce      Communication
          “Read”                       “Buy”                    “Talk”




 Censored By Request


 1994                      1998        2000         2003     2006                  2010
             Internet Users: 77M       400M         500M      1B                   1.9B
                                                               Google Confidential and Proprietary   15
Digital Revolution in Context

        Information           Distribution & Commerce      Communication
          “Read”                       “Buy”                    “Talk”




 Censored By Request


 1994                      1998        2000         2003     2006                  2010
             Internet Users: 77M       400M         500M      1B                   1.9B
                                                               Google Confidential and Proprietary   16
Digital Revolution in Context

        Information           Distribution & Commerce      Communication
          “Read”                       “Buy”                    “Talk”




 Censored By Request


 1994                      1998        2000         2003     2006                  2010
             Internet Users: 77M       400M         500M      1B                   1.9B
                                                               Google Confidential and Proprietary   17
Digital Revolution in Context

        Information           Distribution & Commerce      Communication
          “Read”                       “Buy”                    “Talk”




 Censored By Request


 1994                      1998        2000         2003     2006                  2010
             Internet Users: 77M       400M         500M      1B                   1.9B
                                                               Google Confidential and Proprietary   18
Digital Revolution in Context

        Information           Distribution & Commerce      Communication
          “Read”                       “Buy”                    “Talk”




 Censored By Request


 1994                      1998        2000         2003     2006                  2010
             Internet Users: 77M       400M         500M      1B                   1.9B
                                                               Google Confidential and Proprietary   19
Digital Revolution in Context

        Information           Distribution & Commerce      Communication
          “Read”                       “Buy”                    “Talk”




 Censored By Request


 1994                      1998        2000         2003     2006                  2010
             Internet Users: 77M       400M         500M      1B                   1.9B
                                                               Google Confidential and Proprietary   20
Digital Revolution in Context

        Information           Distribution & Commerce      Communication
          “Read”                       “Buy”                    “Talk”




 Censored By Request


 1994                      1998        2000         2003     2006                  2010
             Internet Users: 77M       400M         500M      1B                   1.9B
                                                               Google Confidential and Proprietary   21
Digital Revolution in Context

        Information           Distribution & Commerce      Communication
          “Read”                       “Buy”                    “Talk”




 Censored By Request


 1994                      1998        2000         2003     2006                  2010
             Internet Users: 77M       400M         500M      1B                   1.9B
                                                               Google Confidential and Proprietary   22
Digital Revolution in Context

        Information           Distribution & Commerce      Communication
          “Read”                       “Buy”                    “Talk”




 Censored By Request


 1994                      1998        2000         2003     2006                  2010
             Internet Users: 77M       400M         500M      1B                   1.9B
                                                               Google Confidential and Proprietary   23
Digital Revolution in Context

        Information           Distribution & Commerce      Communication
          “Read”                       “Buy”                    “Talk”




 Censored By Request


 1994                      1998        2000         2003     2006                  2010
             Internet Users: 77M       400M         500M      1B                   1.9B
                                                               Google Confidential and Proprietary   24
Sounds great but
how do I actually
DO this??




     CONFIDENTIAL – DO NOT DISTRIBUTE   25
Do you understand these terms?




                                 CONFIDENTIAL – DO NOT DISTRIBUTE   26
PPC Trivia! 5 Quick Questions about AdWords Accounts



 1. How often do small businesses (spending
 under $5k / month on AdWords) do work in
 their AdWords account?



                Answer:
                • 50% of them don’t even check once per month
                • 25% haven’t done anything in the last 90 days
                • Agencies and advertisers appear to be equally
                  guilty...




                                            CONFIDENTIAL – DO NOT DISTRIBUTE   27
PPC Trivia! (Continued)



 2. What percentage of AdWords
 accounts have used at least 1
 negative keyword in the last 90 days?




                 Answer:
                 • Less than 50%
                 • And 20% of them have yet use a negative
                   keyword… ever…




                                            CONFIDENTIAL – DO NOT DISTRIBUTE   28
PPC Trivia! (Continued)



3. What percentage of AdWords
accounts use Conversion Tracking?




                        Answer:
                        • Less than 50% of advertisers have
                          Conversion Tracking on. That means
                          they don’t know what’s working.




                                            CONFIDENTIAL – DO NOT DISTRIBUTE   29
The Average PPC Account for Small
& Medium-Sized Businesses.




                        CONFIDENTIAL – DO NOT DISTRIBUTE   30
What we know about PPC Failure


       Advertisers get                 Complexity and
         frustrated,                     lack of time
        conclude PPC                   results in poor
        doesn’t work                   understanding
          for them.                       of search.




                            Poor
                    Understanding
                         Yields Poor
                          Results

                                                CONFIDENTIAL – DO NOT DISTRIBUTE   31
Getting your PPC Marketing on the
Right Track

 1.   Identify the potential
 2.   Choose your yard stick
 3.   Take stock of your resources
 4.   Choose one of 3 paths to PPC Success!
Step 1: Identify the potential



  – Is your business a good fit for PPC?
  – Guestimate the potential
  – Figure out an initial budget




                                  CONFIDENTIAL – DO NOT DISTRIBUTE   33
Grade Yourself!          http://www.wordstream.com/google-adwords

•    Baseline your performance
•    A free, instant PPC audit in
     under a minute!
•    Grades your AdWords
     account performance based
     on the 8 PPC metrics that
     really matter
•    Compares how you’re doing
     against other accounts of
     similar size (monthly spend)




    www.wordstream.com/google-adwords

                                                                        34
Step 2: Choose Your Yardstick

                                                               Better
                                                           Accountablity
How will you measure success?                              but Harder to
  – Sales: Return on Ad Spend (e.g. Online                  implement.

    Retail)
  – Leads: Cost per lead
     • Comparing it to the average value of a
       lead
     • Comparing to what you pay for other
       marketing venues
  – Traffic: Driving traffic to your site (or calls             Less
                                                           Accountability
    to your business)                                       but Easier to
                                                             implement.



                                             CONFIDENTIAL – DO NOT DISTRIBUTE   35
Step 3: Define your Resources



What can you devote to your PPC Program?

  – Time
     • How much time can you devote?
  – Budget
     • How much budget do you have?
  – Staff
     • Hire vs. outsource?




                                       CONFIDENTIAL – DO NOT DISTRIBUTE   36
Step 4: Choose a Path

There are really 3 PPC Implementation Paths


                         1. Do it yourself
                         2. Leverage software
                         3. Outsource to an Agency




                                       CONFIDENTIAL – DO NOT DISTRIBUTE   37
Path 1: Do it Yourself


Pros                          Cons
No additional fees for       Time intensive - You have
 software or services          build, manage and optimize
Full control                  your campaigns
                              Easy to make costly mistakes
                              Requires deep
                               understanding of PPC
                               techniques

       Best for PPC professionals with expert
       knowledge and years of experience

                                        CONFIDENTIAL – DO NOT DISTRIBUTE   38
Path 2: Leverage PPC Tools


Pros                         Cons
Improve results             Cost for software
Save time                   You still have build, manage
                              and optimize your
                              campaigns



       Best for those who have PPC experience and
       time or resources to managed program


                                        CONFIDENTIAL – DO NOT DISTRIBUTE   39
40
Path 3: Outsource


Pros                          Cons
Experts To Handle            Not for control-freaks
 Everything                   Not “Free”
Better Results               Finding a partner you can
Peace of Mind                 trust
Quick set up


       Best for those who are new too PPC, time
       constrained or not getting results they want


                                        CONFIDENTIAL – DO NOT DISTRIBUTE   41
Example: PPC Express (From WordStream)




                            CONFIDENTIAL – DO NOT DISTRIBUTE   42
Path to Success

 Identify the potential
 Take stock of your resources
 Choose one of 3 paths to PPC success
  • Do it Yourself (Go it alone)
  • Use Software (WordStream PPC Advisor + Premier Consulting)
  • Outsource (WordStream Services)




                                                                 43
Want Some Help?

If you have a PPC budget of at least $1,500 take
advantage of this free offer:

o A free Path Analysis with one of our Search
  Marketing Experts




                                                   44
Special Offers

If you have a PPC budget of at least $1,500 take
advantage of these free offers:

1. Sign up for WordStream PPC Advisor and get 2
   months of free Premier Consulting.

2. Sign up for PPC Express service and get up to
   $600 of free advertising.




                                                   45
Your Questions


 Start down your ideal path today:
 Baseline your current AdWords account using WordStream’s Free Performance Grader:
      http://www.wordstream.com/google-adwords

 Thank you for attending our webinar!


 Contact us directly:




                                                                                     46

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Google and WordStream: 3 Paths for Small Business PPC Profitability

  • 1. Google and WordStream: 3 Paths F Small Business or PPC Profitability Larry Kim, WordStream Howard Tung, Google July 19, 2012 CONFIDENTIAL – DO NOT DISTRIBUTE 1
  • 2. Today’s Agenda • Introductions • Key Trends in Online Marketing for 2012 from • Trivia & Poll • 3 Paths for PPC Success • Questions & Answers 2
  • 3. Take Part in Live Blogging on Twitter / Google+ • Include the hashtag #3pathsppc in your Google+ status updates,Twitter tweets,, etc. 3
  • 4. Speaker Introductions • Howard Tung – 8+ years in Online industry with Google, Microsoft, and IGN Entertainment – Recently joined Google in early 2010 to focus on Strategic Partnerships for Small-Medium Business/ Local Channel. • Larry Kim – Founder, CTO, WordStream, Inc. – Been doing PPC & SEO for 10 years – 3 years ago, started WordStream – Today we’re an industry-leading provider of a PPC Management Platform and Keyword Research Tools – WordStream helps people get their website found on the internet! 4
  • 5. Let’s learn a little about you…. CONFIDENTIAL – DO NOT DISTRIBUTE 5
  • 6. Poll Question 1: How much time do you spend doing PPC work every week? a) I'm supposed to do work in my PPC account every week? b) < 1 hour / week c) 1-10 hours / week d) 10-39 hours / week e) +40 Hours / week - it's my full time job! 6
  • 7. Poll Question 2: What's your biggest Time Sink in PPC Management? a) PPC Bid Management b) Reporting & Analysis c) Ad Text Authoring d) Keyword Research / Negative Keyword Research e) Landing page creation / Optimization 7
  • 8. Digital Overview Acceleration of Everything Google Confidential and Proprietary 8
  • 9. Digital Revolution in Context Information Distribution & Commerce Communication “Read” “Buy” “Talk” Censored By Request 1994 1998 2000 2003 2006 2010 Internet Users: 77M 400M 500M 1B 1.9B Google Confidential and Proprietary 9
  • 10. Digital Revolution in Context Information Distribution & Commerce Communication “Read” “Buy” “Talk” Censored By Request 1994 1998 2000 2003 2006 2010 Internet Users: 77M 400M 500M 1B 1.9B Google Confidential and Proprietary 10
  • 11. Digital Revolution in Context Information Distribution & Commerce Communication “Read” “Buy” “Talk” Censored By Request 1994 1998 2000 2003 2006 2010 Internet Users: 77M 400M 500M 1B 1.9B Google Confidential and Proprietary 11
  • 12. Digital Revolution in Context Information Distribution & Commerce Communication “Read” “Buy” “Talk” Censored By Request 1994 1998 2000 2003 2006 2010 Internet Users: 77M 400M 500M 1B 1.9B Google Confidential and Proprietary 12
  • 13. Digital Revolution in Context Information Distribution & Commerce Communication “Read” “Buy” “Talk” Censored By Request 1994 1998 2000 2003 2006 2010 Internet Users: 77M 400M 500M 1B 1.9B Google Confidential and Proprietary 13
  • 14. The Four B’s Addressing the Local Opportunity Google Confidential and Proprietary 14
  • 15. Digital Revolution in Context Information Distribution & Commerce Communication “Read” “Buy” “Talk” Censored By Request 1994 1998 2000 2003 2006 2010 Internet Users: 77M 400M 500M 1B 1.9B Google Confidential and Proprietary 15
  • 16. Digital Revolution in Context Information Distribution & Commerce Communication “Read” “Buy” “Talk” Censored By Request 1994 1998 2000 2003 2006 2010 Internet Users: 77M 400M 500M 1B 1.9B Google Confidential and Proprietary 16
  • 17. Digital Revolution in Context Information Distribution & Commerce Communication “Read” “Buy” “Talk” Censored By Request 1994 1998 2000 2003 2006 2010 Internet Users: 77M 400M 500M 1B 1.9B Google Confidential and Proprietary 17
  • 18. Digital Revolution in Context Information Distribution & Commerce Communication “Read” “Buy” “Talk” Censored By Request 1994 1998 2000 2003 2006 2010 Internet Users: 77M 400M 500M 1B 1.9B Google Confidential and Proprietary 18
  • 19. Digital Revolution in Context Information Distribution & Commerce Communication “Read” “Buy” “Talk” Censored By Request 1994 1998 2000 2003 2006 2010 Internet Users: 77M 400M 500M 1B 1.9B Google Confidential and Proprietary 19
  • 20. Digital Revolution in Context Information Distribution & Commerce Communication “Read” “Buy” “Talk” Censored By Request 1994 1998 2000 2003 2006 2010 Internet Users: 77M 400M 500M 1B 1.9B Google Confidential and Proprietary 20
  • 21. Digital Revolution in Context Information Distribution & Commerce Communication “Read” “Buy” “Talk” Censored By Request 1994 1998 2000 2003 2006 2010 Internet Users: 77M 400M 500M 1B 1.9B Google Confidential and Proprietary 21
  • 22. Digital Revolution in Context Information Distribution & Commerce Communication “Read” “Buy” “Talk” Censored By Request 1994 1998 2000 2003 2006 2010 Internet Users: 77M 400M 500M 1B 1.9B Google Confidential and Proprietary 22
  • 23. Digital Revolution in Context Information Distribution & Commerce Communication “Read” “Buy” “Talk” Censored By Request 1994 1998 2000 2003 2006 2010 Internet Users: 77M 400M 500M 1B 1.9B Google Confidential and Proprietary 23
  • 24. Digital Revolution in Context Information Distribution & Commerce Communication “Read” “Buy” “Talk” Censored By Request 1994 1998 2000 2003 2006 2010 Internet Users: 77M 400M 500M 1B 1.9B Google Confidential and Proprietary 24
  • 25. Sounds great but how do I actually DO this?? CONFIDENTIAL – DO NOT DISTRIBUTE 25
  • 26. Do you understand these terms? CONFIDENTIAL – DO NOT DISTRIBUTE 26
  • 27. PPC Trivia! 5 Quick Questions about AdWords Accounts 1. How often do small businesses (spending under $5k / month on AdWords) do work in their AdWords account? Answer: • 50% of them don’t even check once per month • 25% haven’t done anything in the last 90 days • Agencies and advertisers appear to be equally guilty... CONFIDENTIAL – DO NOT DISTRIBUTE 27
  • 28. PPC Trivia! (Continued) 2. What percentage of AdWords accounts have used at least 1 negative keyword in the last 90 days? Answer: • Less than 50% • And 20% of them have yet use a negative keyword… ever… CONFIDENTIAL – DO NOT DISTRIBUTE 28
  • 29. PPC Trivia! (Continued) 3. What percentage of AdWords accounts use Conversion Tracking? Answer: • Less than 50% of advertisers have Conversion Tracking on. That means they don’t know what’s working. CONFIDENTIAL – DO NOT DISTRIBUTE 29
  • 30. The Average PPC Account for Small & Medium-Sized Businesses. CONFIDENTIAL – DO NOT DISTRIBUTE 30
  • 31. What we know about PPC Failure Advertisers get Complexity and frustrated, lack of time conclude PPC results in poor doesn’t work understanding for them. of search. Poor Understanding Yields Poor Results CONFIDENTIAL – DO NOT DISTRIBUTE 31
  • 32. Getting your PPC Marketing on the Right Track 1. Identify the potential 2. Choose your yard stick 3. Take stock of your resources 4. Choose one of 3 paths to PPC Success!
  • 33. Step 1: Identify the potential – Is your business a good fit for PPC? – Guestimate the potential – Figure out an initial budget CONFIDENTIAL – DO NOT DISTRIBUTE 33
  • 34. Grade Yourself! http://www.wordstream.com/google-adwords • Baseline your performance • A free, instant PPC audit in under a minute! • Grades your AdWords account performance based on the 8 PPC metrics that really matter • Compares how you’re doing against other accounts of similar size (monthly spend) www.wordstream.com/google-adwords 34
  • 35. Step 2: Choose Your Yardstick Better Accountablity How will you measure success? but Harder to – Sales: Return on Ad Spend (e.g. Online implement. Retail) – Leads: Cost per lead • Comparing it to the average value of a lead • Comparing to what you pay for other marketing venues – Traffic: Driving traffic to your site (or calls Less Accountability to your business) but Easier to implement. CONFIDENTIAL – DO NOT DISTRIBUTE 35
  • 36. Step 3: Define your Resources What can you devote to your PPC Program? – Time • How much time can you devote? – Budget • How much budget do you have? – Staff • Hire vs. outsource? CONFIDENTIAL – DO NOT DISTRIBUTE 36
  • 37. Step 4: Choose a Path There are really 3 PPC Implementation Paths 1. Do it yourself 2. Leverage software 3. Outsource to an Agency CONFIDENTIAL – DO NOT DISTRIBUTE 37
  • 38. Path 1: Do it Yourself Pros Cons No additional fees for Time intensive - You have software or services build, manage and optimize Full control your campaigns Easy to make costly mistakes Requires deep understanding of PPC techniques Best for PPC professionals with expert knowledge and years of experience CONFIDENTIAL – DO NOT DISTRIBUTE 38
  • 39. Path 2: Leverage PPC Tools Pros Cons Improve results Cost for software Save time You still have build, manage and optimize your campaigns Best for those who have PPC experience and time or resources to managed program CONFIDENTIAL – DO NOT DISTRIBUTE 39
  • 40. 40
  • 41. Path 3: Outsource Pros Cons Experts To Handle Not for control-freaks Everything Not “Free” Better Results Finding a partner you can Peace of Mind trust Quick set up Best for those who are new too PPC, time constrained or not getting results they want CONFIDENTIAL – DO NOT DISTRIBUTE 41
  • 42. Example: PPC Express (From WordStream) CONFIDENTIAL – DO NOT DISTRIBUTE 42
  • 43. Path to Success  Identify the potential  Take stock of your resources  Choose one of 3 paths to PPC success • Do it Yourself (Go it alone) • Use Software (WordStream PPC Advisor + Premier Consulting) • Outsource (WordStream Services) 43
  • 44. Want Some Help? If you have a PPC budget of at least $1,500 take advantage of this free offer: o A free Path Analysis with one of our Search Marketing Experts 44
  • 45. Special Offers If you have a PPC budget of at least $1,500 take advantage of these free offers: 1. Sign up for WordStream PPC Advisor and get 2 months of free Premier Consulting. 2. Sign up for PPC Express service and get up to $600 of free advertising. 45
  • 46. Your Questions Start down your ideal path today: Baseline your current AdWords account using WordStream’s Free Performance Grader: http://www.wordstream.com/google-adwords Thank you for attending our webinar! Contact us directly: 46