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Just Say No to Low CTR

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Larry Kim's SMX Advanced 2014 Presentation on Debunking AdWords Myths and Other Dogma (or, why you should say no to low CTR).

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Just Say No to Low CTR

  1. 1. CONFIDENTIAL – DO NOT DISTRIBUTE 1 Debunking AdWords Myths and Other Dogma Larry Kim, Founder/CTO, WordStream June 12, 2014 @larrykim
  2. 2. What’s a Low CTR Strategy? a) “Broader Keywords” – Navigational/Informational/ Ambiguous Intent (e.g.: “Web Development”) b) “Fewer Clicks” – Discouraging people from clicking on ads, or going after lower ad positions Larry Kim (@larrykim) #wordstream
  3. 3. CONFIDENTIAL – DO NOT DISTRIBUTE 4 Pick the Red or Blue Pill Warning: Data Ahead!
  4. 4. Low CTR Used to Generate High Profits! • Google Has Changed • Old Strategies Need to be Revisited! Larry Kim (@larrykim) #wordstream
  5. 5. Google Expects WAY More of Your Ads! Larry Kim (@larrykim) #wordstream
  6. 6. Quality Score Based on Beating Expected CTR! Larry Kim (@larrykim) #wordstream
  7. 7. Google Has Changed How Ad Auction Works • Today, average score is 5/10. Previously was 7/10 Larry Kim (@larrykim) #wordstream
  9. 9. CONFIDENTIAL – DO NOT DISTRIBUTE 10 Low Quality Score Penalty on CPC is Brutal
  10. 10. Impression Share vs. Quality Score Larry Kim (@larrykim) #wordstream
  11. 11. But High QS Not Possible In My Industry! Larry Kim (@larrykim) #wordstream
  12. 12. B2B Industry Quality Scores Larry Kim (@larrykim) #wordstream
  13. 13. Finance Industry Quality Scores Larry Kim (@larrykim) #wordstream
  14. 14. Ecommerce Industry Quality Scores Larry Kim (@larrykim) #wordstream
  15. 15. Why Cost Per Click Matters Larry Kim (@larrykim) #wordstream
  16. 16. But Position 3 Converts Better for Me!! Larry Kim (@larrykim) #wordstream
  17. 17. Conv. Rate vs. Average Search Position Larry Kim (@larrykim) #wordstream
  18. 18. But My High CTR Ads Have High CPAs! Larry Kim (@larrykim) #wordstream
  19. 19. How Do I Raise My Conversion Rates?! Larry Kim (@larrykim) #wordstream
  20. 20. @larrykim Landing Page Unicorns?! (+3x Avg. Conversion Rate!)
  21. 21. 1. Change The Offer Larry Kim (@larrykim) #wordstream
  22. 22. The New Offer: Larry Kim (@larrykim) #wordstream
  23. 23. Epiphany: Low QS Keywords Kill Your Account
  24. 24. Example Crap Account Larry Kim (@larrykim) #wordstream
  25. 25. Larry Kim (@larrykim) #wordstream OMG – Where Are My High QS Keywords!!
  26. 26. Example Awesome Account Larry Kim (@larrykim) #wordstream
  27. 27. Even Low CTR Keywords Get High QS!!! Larry Kim (@larrykim) #wordstream
  28. 28. But I REALLY NEED my Low CTR Keywords! –Use RLSA! –Informal Google Analysis of Regular Search Ads vs. RLSA Search Ads: • 2.5x Avg. CTR, • ½ Avg. CPC • ~1.5x higher Quality Score. Larry Kim (@larrykim) #wordstream
  29. 29. So How The Heck do I Scale Paid Search? Larry Kim (@larrykim) #wordstream
  30. 30. Quick Recap 1. Above Average CTR Keyword/Ads = Great Success. 2. Below Average CTR Keyword/Ads = Train Wreck 3. So … Delete the bottom third of your account and re-deploy that spend to remarketing Larry Kim (@larrykim) #wordstream
  31. 31. Average CPA’s for Search & Display, by Industry Larry Kim (@larrykim) #wordstream
  32. 32. A Quick Note On Averages! Larry Kim (@larrykim) #wordstream
  33. 33. Summary • It’s hard to win at AdWords with Below Avg. CTRs • Look to Display Remarketing to Scale AdWords Campaigns Larry Kim (@larrykim) #wordstream
  34. 34. THANK YOU SMX!! Download Slides From Here: http://bit.ly/just-say-no-to-low-ctr Let’s Connect! (lkim@wordstream.com) • Linkedin: https://www.linkedin.com/in/larrykim • Twitter: @larrykim • G+: +larrykim1 Larry Kim (@larrykim) #wordstream