Whether you’re planning your initial PPC budget or evaluating your current spend every day, there are plenty of tips and strategies for spending your PPC dollars more wisely. PPC accounts in all stages could probably use a refresher when it comes to spend planning, overall budgeting, and cost measurement.

1. Presenters:
Larry Kim | Founder, CTO of WordStream
Carrie Albright | Writer and Account Manager at PPC Hero & Hanapin Marketing
Are You Spending Your
PPC Budget Wisely?
Best practices and creative tips for
PPC budget management!
&HOSTED BY:

2. • How much budget do I need to get started in PPC?
• How Impression Share Impacts Budgeting Decisions
• X vs. Y – Things to Consider When Setting Budgets
– High Funnel Keywords vs. Money Keywords vs. Branded Terms
– Search vs. Display
– Bing vs. AdWords
– Mobile vs. Desktop (including tablet)
• How Your PPC Budget impacts your PPC Management
Model
Today’s Agenda
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3. Speaker Introductions
3
• 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
• Carrie Albright
– Account Executive at Hanapin Marketing and
Blogger at PPC Hero
– PPCHero.com is the leading site for PPC
Strategies, News and Information
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4. Take Part in Live Blogging on Twitter / Google+
• Include the hashtag #ppcclinic in your Twitter tweets, Google+
status updates, etc.
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5. Live-Poll Question 1
Question: What’s Your PPC Budget (in USD)?
a) Below $1000 / month
b) Between $1001 – 2500 / month
c) Between $2501- 25,000 / month
d) More than $25,000 / month
e) $0. Not Currently Doing PPC Marketing
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6. Live-Poll Question 2
Question: What most frequently limits your budgets?
a) Budget shared across multiple channels (PPC, SEO, etc)
b) Performance not justifying expansion
c) Nervousness about the effectiveness of expanding
d) Lack of knowledge where to invest next in PPC
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7. 77&
Where to Start?
Leads

8. 88&
Beginning At The Beginning
Questions you’re already asking:
• What can I afford to spend?
• What’s my CPL?
• How do I place value on a “lead?”
Questions to ask yourself:
• How many leads am I expecting to bring in?
• What is my current “conversion rate?”
• How many leads do I need through PPC?
• What can I afford to spend for each lead (CPL)?

9. 99&
Calculations
Daily Budget = $1388
… … and now, Optimization Time!

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What affects how you
value your leads?
• Geography – are your leads more or less
relevant based on location?
• Frequency of interaction – do most leads have
a complicated attribution system?
• Bounce rate/Time on site – what behavior
does your user have post-click?
• Precedence – what have you seen to be
qualified in the past?

11. 1111&
Segmentation
Negatives
Placements
Day parting: time of day & day of week

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Day of Week Segmentation

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Growth Opportunities
AdWords Tools: Estimations!

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It is estimated that doubling our budget, will lead to double our clicks.
Keeping our conversion rate constant, our conversions are expected to
increase by …

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Daily maintenance

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Overarching Strategies
• How can you better define your quality of
leads?
• How can you identify your marginal gain from
each dollar spent?

17. X vs. Y – Key Micro Level Budgeting Issues
17
• High Funnel Keywords vs. Money Keywords vs. Branded Terms
• Search vs. Display
• Bing vs. AdWords
• Mobile vs. Desktop (including tablet)
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1. High Funnel Keywords vs.
Money Keywords vs.
Branded Term Budget

19. The Basic Setup
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20. My Search Campaign Budget Model
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• Branded Searches Raise Account CTR
• High Funnel Keywords = lower QS (higher cost) and push to
informational offers (lower value)
• Low Funnel Keywords = more competition but higher QS and
push to demos (higher value)
20&

21. Raise/Lower Your Allocations if…
High Funnel
Keywords
Lower Funnel
Keywords
Branded Search
Raise if… Lower if… Raise if.. Lower if… Raise if.. Lower if…
You’re doing
lead
generation
You're doing
ecommerce
You're doing
ecommerce
You’re doing
lead
generation
Competitors
are bidding
on your
brand terms
You don’t
have a
brand
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22. 2222&
2. Search vs. Display Budget

23. My Search vs. Display Model
• Warning: this is a bit of an
unusual allocation
• We use remarketing as
Conversion Rate
Optimization to convert
other traffic
• Average display share on
GOOG is only 19.25%
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24. Raise/Lower Your Allocations
Depending on Industry…
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25. Raise/Lower Your Allocations
Depending on Competition…
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26. Don’t Even Bother With Display If..
• You have a small budget (<1k / month)
• Don’t do Managed Placements, Similar
Audiences, Interests (etc.) until you’ve
exhausted Remarketing
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3. Bing/Yahoo vs. AdWords Budget

28. Bing/Yahoo Market Share Statistics for July 2013
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29. Bing/Yahoo Market Share Statistics for July 2013
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• 10.3% of our Client Spend Goes to Bing as of
Last month

30. Raise/Lower Your Allocations if…
Bing/Yahoo Google AdWords
Raise if… Lower if… Raise if.. Lower if…
You’re in an
industry that Bing
does well in (eg:
Travel, Health,
Entertainment,
etc.)
You have a small
budget (<2k)
You have a low
impression share
and your
campaigns are
doing OK
You want to
diversify risk
Google is too
competitive or too
restrictive
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31. 3131&
4. Mobile vs. Desktop

32. Mobile % Changing Rapidly
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33. No Longer an Issue with Enhanced Campaigns
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• Mobile and Desktop run in the same
campaign!

34. Mobile vs. Desktop Now More of a Bidding Issue
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Things To Consider:
• Are you a local business?
• Do you have a call
center?
• Do you sell to higher net
worth demographics?
• What’s the ROI of your
mobile searches?

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5. How Budget Impacts
PPC Management Model

36. Example 1: Lower PPC Budget
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– Assume $2500 / month PPC Spend
– So, $30k / year PPC budget
– Hiring a Dedicated PPC Manager for $60k
/ year would TRIPLE your PPC spend
– Agencies Typically Charge as a Percentage
of Ad Spend (e.g.: 10%) so $250 / month
– No Agency will take on a client for $250 /
month.
– Only options are DIY and Software like
WordStream, etc.

37. Example 2: Higher PPC Budget
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– Assume $50k/ month PPC Spend
– So, $600k / year PPC budget
– Hiring a Dedicated PPC Manager for $60k
/ year would be 10% of PPC budget
– Agencies would also Charge around 10%
of ad spend
– Totally realistic to expect > 10%
improvement

38. WordStream PPC Advisor
SaaS platform connects to
existing AdWords or Bing
accounts
Alert driven. New alerts
generated every week. “Make it
so”
20 minutes a week equals PPC
success!
$299/$499/$999/mo
Premiere Support (monthly
check-ins)
Struggling with PPC? Let our software do all the work!
CONFIDENTIAL – DO NOT DISTRIBUTE 38

39. Free Tools - AdWords Performance Grader
One of a kind, free performance grader
Deep analysis in 8 key performance areas
Compares businesses to industry
benchmarks
Provides actionable recommendations
Biggest Insight: Big opportunities for
improvement
Provide your AdWords credentials
Instant Report Card – On Demand
CONFIDENTIAL – DO NOT DISTRIBUTE 39
See how your account measures up! www.wordstream.com/google-adwords

40. Live-Poll Question 3
Question: Would you like…
a) WordStream: Free Trial of PPC Advisor
b) Hanapin: Free one-on-one account assessment ($20k+ spend)
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"After multiple negative agency experiences,
the team at Hanapin stepped up to the plate
and delivered the level of service and
attention we had been looking for!"
- Stephen Ebbett
Thank you for attending WordStream & Hanapin Marketing’s Webinar on PPC Budgeting.
Don’t forget to sign up for a Free Trial of WordStream:
http://www.wordstream.com/ppc-free-trial
Sign up for a Free Solutions Blueprint from Hanapin Marketing
http://www.hanapinmarketing.com/solutions-blueprint-sign-up
“GASP! My AdWords click through rate is up
486% on the same period last year – mainly
because I’m using @WordStream !”
-George Cole
Larry Kim
lkim@wordstream.com
http://twitter.com/larrykim
Carrie Albright
Carrie.albright@hanapinmarketing.com