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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:
• 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
22&
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
&
Take Part in Live Blogging on Twitter / Google+
• Include the hashtag #ppcclinic in your Twitter tweets, Google+
status updates, etc.
44&
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
55&
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
66&
77&
Where to Start?
Leads
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)?
99&
Calculations
Daily Budget = $1388
… … and now, Optimization Time!
1010&
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?
1111&
Segmentation
Negatives
Placements
Day parting: time of day & day of week
1212&
Day of Week Segmentation
1313&
Growth Opportunities
AdWords Tools: Estimations!
1414&
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 …
1515&
Daily maintenance
1616&
Overarching Strategies
• How can you better define your quality of
leads?
• How can you identify your marginal gain from
each dollar spent?
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)
17&
1818&
1. High Funnel Keywords vs.
Money Keywords vs.
Branded Term Budget
The Basic Setup
1919&
My Search Campaign Budget Model
20
• 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&
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
2121&
2222&
2. Search vs. Display Budget
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%
2323&
Raise/Lower Your Allocations
Depending on Industry…
2424&
Raise/Lower Your Allocations
Depending on Competition…
2525&
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
2626&
2727&
3. Bing/Yahoo vs. AdWords Budget
Bing/Yahoo Market Share Statistics for July 2013
2828&
Bing/Yahoo Market Share Statistics for July 2013
2929&
• 10.3% of our Client Spend Goes to Bing as of
Last month
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
3030&
3131&
4. Mobile vs. Desktop
Mobile % Changing Rapidly
3232&
No Longer an Issue with Enhanced Campaigns
3333&
• Mobile and Desktop run in the same
campaign!
Mobile vs. Desktop Now More of a Bidding Issue
3434&
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?
3535&
5. How Budget Impacts
PPC Management Model
Example 1: Lower PPC Budget
3636&
– 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.
Example 2: Higher PPC Budget
3737&
– 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
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
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
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)
4040&
4141&
"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

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Are You Spending Your PPC Budget Wisely [Webinar]

  • 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 22&
  • 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 &
  • 4. Take Part in Live Blogging on Twitter / Google+ • Include the hashtag #ppcclinic in your Twitter tweets, Google+ status updates, etc. 44&
  • 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 55&
  • 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 66&
  • 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!
  • 10. 1010& 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?
  • 12. 1212& Day of Week Segmentation
  • 14. 1414& 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 …
  • 16. 1616& 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) 17&
  • 18. 1818& 1. High Funnel Keywords vs. Money Keywords vs. Branded Term Budget
  • 20. My Search Campaign Budget Model 20 • 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 2121&
  • 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% 2323&
  • 25. Raise/Lower Your Allocations Depending on Competition… 2525&
  • 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 2626&
  • 27. 2727& 3. Bing/Yahoo vs. AdWords Budget
  • 28. Bing/Yahoo Market Share Statistics for July 2013 2828&
  • 29. Bing/Yahoo Market Share Statistics for July 2013 2929& • 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 3030&
  • 32. Mobile % Changing Rapidly 3232&
  • 33. No Longer an Issue with Enhanced Campaigns 3333& • Mobile and Desktop run in the same campaign!
  • 34. Mobile vs. Desktop Now More of a Bidding Issue 3434& 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?
  • 35. 3535& 5. How Budget Impacts PPC Management Model
  • 36. Example 1: Lower PPC Budget 3636& – 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 3737& – 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) 4040&
  • 41. 4141& "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