Smx West 2014 Session #Smx #24B - Creating, Testing And Optimizing Paid Search Ads Presentation Tips For Creating, Testing And Optimizing Paid Search Ads By Brad Geddes @Bgtheory Of Certified Knowledge

1. Brad Geddes
Founder, Certified Knowledge
Founder, AdAlysis
Author, Advanced Google AdWords
@ bgtheory
@bgTheory
Creating, Optimizing, and
Testing Paid Search Ads
SMX West 2014
CopyrightCertified Knowledge 2014 @ bgtheory

2. Which Ad Is Best?
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Answer: Technically 1, but you don’t have enough data!
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3. Real Answer: It depends by Device
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The Real Answer:
• Ad 1 is Best for Mobile
• Ad 2 Is Best for Desktops
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4. Make Sure You Use Mobile Preferred
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5. Test by ‘Effective Device’
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6. Ensure All You Multi-Device Ad Groups have
Mobile & Desktop Ads in Them
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7. Create multiple ads per ad group
Analyze the data by device
Make the mobile winner mobile preferred
Leave the desktop winner as is
The ‘Cheater’ Method
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8. Which Test is Best?
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9. Impression
Click
 CPC
Impression & Click:
 CTR
Conversions
 Average sale amount
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PPC Metrics For Ad Testing

10. Impression
Click
 CPC
Impression & Click:
 CTR
Conversions
 Average sale amount
Conversion Rate
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11. Impression
Click
 CPC
Impression & Click:
 CTR
Conversions
 Average sale amount
CPA: Cost Per Acquisition
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12. Impression
Click
 CPC
Impression & Click:
 CTR
Conversions
 Average sale amount
ROAS or ROI
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Note: ROAS is a good bid management strategy if you watch the volume.

13. Metrics Should Start at the Impression
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14. Must Accommodate CPCs & Cost
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Take into Account Conversions & Sale Amount

16. Impression
Click
 CPC
Impression & Click:
 CTR
Conversions
 Average sale amount
CPI: Conversion per Impression
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Great for CPA Target Accounts
Not great for accounts with margins and variable sales amounts
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17. Profit Per Impression
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PPI = (Revenue – Cost)/ (Impressions)
If you have margins, hard costs, etc – remove those before calculations.
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18. Don’t Forget Lifetime Value
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If 2 more sales a year at $25 Sale:
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19. Minimum data
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Data after 97 impressions
Ad Impressions Clicks CTR Z-Score Confidence
Control 40 1 2.5% N/A
Ad 2 33 5 15.15% 1.88 97.03%
Ad 3 24 0 0% -1.01 15.57%
Data after 3163 impressions
Ad Impressions Clicks CTR Z-Score Confidence
Control 1023 23 2.25 N/A
Ad 2 993 29 2.92% 0.95 82.9%
Ad 3 1147 56 4.88% 3.35 99.96%

20. Always Use Rotate for Testing
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21. Time
 Minimum: 1 week. Each day has different characteristics. Allow those variances to run
over a week’s time.
 Better: 1 month. Each week has variances (especially pay week). Allow that to play over a
month’s time.
 Ideal: 3 buying cycles (with a minimum of one month)
Traffic
 Minimum 300 clicks per ad.
 Better: 500 clicks per ad
 Ideally: 1000 clicks per ad.
 One needs to allow enough potential conversions per ad (i.e. clicks) to give each ad
adequate time to perform before making decisions.
Conversions:
 Minimum: 7 conversions per ad
 Ideally: 15+ conversions per ad.
Minimum Data Recommendations
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Use Pivot Tables To Test At Ad Line Levels

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AdAlysis Beta: Powerful Ad Testing Made Easy
If Interested – Just let me know:
@bgTheoryBrad@bgTheory.com