the top 10 ppc hacks of all time - larry kim's presentation for state of search 2014 in dallas,...

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The AdWords ad auction is just another algorithm and any computer algo can be cracked. In this session I’ll review my analysis of $10 Billion in paid search spend and precisely explain how AdWords really works, and how to leverage various idiosyncrasies and system loopholes to generate massive profits using a purely white-hat approach. I’ll also cover a half dozen of the most insanely powerful features that are used by less than 3% of advertisers which have demonstrated ability to increase average returns by +2x each.

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The Top 10 PPC Marketing Hacks of All Time!

The Top 10 PPC Marketing Hacks of All Time!Larry Kim, Founder/CTO, WordStreamNov. 17, 2014

About Larry (@larrykim)

1. Founder & CTO of WordStream

2. Commander of the Google AdWords Quality Score Rebellion

3. Had First Kid 6 Months Ago (#ppckid)

Larry Kim (@larrykim) #stateofsearch

Agenda: The Top 5 PPC Hacks of All Time!

You are Engaging in PPC Hacks and are a Traitor …

Larry Kim (@larrykim) #stateofsearch

FYI -- Slides Posted Here:

• http://bit.ly/stateofsearch2014Larry Kim (@larrykim) #stateofsearch

#10. HackingQuality Score in AdWords

Understanding the AdWords Auction

Larry Kim (@larrykim) #stateofsearch

How Quality Score Impacts Ad Position

• AdWords is Like Real Estate: It’s all about Location!

Larry Kim (@larrykim) #stateofsearch

Quality Score Impacts Cost Per Click

Larry Kim (@larrykim) #stateofsearch

Quality Score Impacts Impression Share

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Impression Share 2x More Competitive on Mobile

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Quality Score Impacts Cost Per Conversion

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So.. Get a High Quality Score!

Duh, Awesome!

Larry Kim (@larrykim) #stateofsearch

How is Quality Score

Calculated?!

This is The Expected Click Through Rate Curve…

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Just Beat Account Avg. Expected Click Through Rate!!

Larry Kim (@larrykim) #stateofsearch

Quick Recap So Far …

• Below Avg. CTR = Low QS• Low QS means…

– Less prominent ad positions

– Very low impression share– Huge CPC penalties

(+400% Tax)– High Cost Per Conversion

(+64%)

Larry Kim (@larrykim) #stateofsearch

# 9. Hacking Ad CTRs with “Unicorn Ads”

Google Expects (A Lot) More Of Your Ads

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CONFIDENTIAL – DO NOT DISTRIBUTE 21

Forest vs. Trees

Here’s a Map of the Forrest…

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Donkeys vs. Unicorns

Percentile Vs. Average CTR Designation

Bottom 50% n/a DONKEYS

Top 15% 2x

Top 5% 3x

Top 1% 6x UNICORNS

Larry Kim (@larrykim) #stateofsearch

CONFIDENTIAL – DO NOT DISTRIBUTE 24

Unicorns Ads(6x Avg. CTR - HOW?!)

CONFIDENTIAL – DO NOT DISTRIBUTE 25

Hunting Unicorn Ads

Keywords With High Commercial Intent

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What About Dynamic Keyword Insertion? (DKI)

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DKI Doesn’t Produce as Many Unicorn Ads

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What About Ad Extensions?

Larry Kim (@larrykim) #stateofsearch

How To Write “Unicorn Ads”?

(Top 1%, 6x Average

CTR)

Most Ads (+90%) Suck.

31Larry Kim (@larrykim) #stateofsearch

The Hack: Ads That Trigger Emotions

Larry Kim (@larrykim) #stateofsearch

This Ad Gets 6x Above Avg. CTR

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Because Everyone Else Sucks

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These Emotions Make People Click

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Larry Kim (@larrykim) #stateofsearch

CONFIDENTIAL – DO NOT DISTRIBUTE 37

# 8. Quality Score Sculpting

Crazy Hack To Increase Quality Scores

•Add 10% Branded Terms to Raise Account Average Quality Scores

•Delete the Bottom Third of Your PPC Account and Move the Budget to Remarketing Instead

Larry Kim (@larrykim) #stateofsearch

Example Crap Account

•Mix of above and below average keywords

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Example Crap Account

• Notice how the account has no high QS keywords!

Larry Kim (@larrykim) #stateofsearch

Example Awesome Account

• Mostly above average CTR keywords, some below avg.

Larry Kim (@larrykim) #stateofsearch

Example Awesome Account

• Notice how the account has only high QS keywords!

Larry Kim (@larrykim) #stateofsearch

Example Crap Account

• Notice how the account has no high QS keywords!

Larry Kim (@larrykim) #stateofsearch

Example Crap Account

• Notice how the account has no high QS keywords!

Larry Kim (@larrykim) #stateofsearch

What’s a Good Quality Score These Days?

• Current Average ~5/10

• Previously 7/10

• As average values drift lower, above average QS worth up to 200% more than before!

Larry Kim (@larrykim) #stateofsearch

So What To Do With My Keywords?

• If Your Keyword’s Quality Score is…– 1 to 3: Delete

Immediately– 4 to 6: Fix / Optimize– 7 to 10: Don’t Mess

with Success

Larry Kim (@larrykim) #stateofsearch

CONFIDENTIAL – DO NOT DISTRIBUTE 47

# 7. Remarketing Lists for Search Ads (RLSA) CTR Hack

Remarketing Lists for Search Ads (RLSA)

• Customize Ads To Users Who Previously Visited Your Site

• On Average:– Doubles Click Through

Rates (Raises Quality Score)

– Cuts CPC’s in Half!!

Larry Kim (@larrykim) #stateofsearch

CONFIDENTIAL – DO NOT DISTRIBUTE 49

# 6. Quality Score for Google Display Network = Insanely Low CPC’s

A 0.1% +/- in CTR yields +/- 20% in CPC!

Quality Score Exists on Google Display Network!!

Higher CTR = Lower

CPC

Higher CTR = Lower

CPC

Larry Kim (@larrykim) #stateofsearch

The Hack: Make Display Ads With Very High CTR

Larry Kim (@larrykim) #stateofsearch

About Those “Display Ads”…

• 67.5% of Display Ads are Plain Text Ads!

Larry Kim (@larrykim) #stateofsearch

CTR of “Display Ads” Based on Ad Format

Ad Format on Google Display Network

Click Through Rate

Text ads that are formatted as Images

0.23%

True Image ads 0.31%

Larry Kim (@larrykim) #stateofsearch

Huge Tax on “Text Display Ads” vs. True Image Ads

Google Display Network Ad Format

CPC (USD)

Text $2.31

Custom Image $0.48

Larry Kim (@larrykim) #stateofsearch

1. Push Display Ads To Your Offers

Larry Kim (@larrykim) #stateofsearch

Do a Conversion Path Analysis

Define audience segments using the pages that most often lead to a conversion event

Larry Kim (@larrykim) #stateofsearch

Conversion Rates vs. Ad Impressions

Larry Kim (@larrykim) #stateofsearch

Conversion Rates Double With More Ad Impressions!

2. Push Display Ads to Content

Larry Kim (@larrykim) #stateofsearch

~5% of Blog Content Gets ~50% of Social Shares

Promote These Top 5% of Articles!!!

Larry Kim (@larrykim) #stateofsearch

These Emotions Make People Click on Things

Larry Kim (@larrykim) #stateofsearch

The Hack: Make Display Ads Look More Like Content

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CONFIDENTIAL – DO NOT DISTRIBUTE 62

# 5. Get 3x More Impressions on Google Display Network

14 Display Ad Formats on GDN

• Vertical rectangle: 240 x 400• Mobile leaderboard: 320 x 50• Banner: 468 x 60• Leaderboard: 728 x 90• Square: 250 x 250• Small square: 200 x 200• Large rectangle: 336 x 280• Inline rectangle: 300 x 250• Skyscraper: 120 x 600• Wide skyscraper: 160 x 600• Half-page: 300 x 600• Etc.

Larry Kim (@larrykim) #stateofsearch

Different Ad Formats Don’t Compete With Each Other

Larry Kim (@larrykim) #stateofsearch

Diversify Your Ad Formats = 3x Impressions

Ad Format Share ofImpressions

Leader board (728 x 90) 25.5%Inline rectangle (300 x 250) 25.1%Banner (468 x 60) 12.0%Wide skyscraper (160 x 600) 10.1%Large Rectangle (336 x 280) 8.6%Mobile leaderboard (320 x 50) 7.4%Half-page (300 x 600) 4.3%Square (250 x 250) 2.8%

Larry Kim (@larrykim) #stateofsearch

CONFIDENTIAL – DO NOT DISTRIBUTE 66

# 4. Crazy Mobile Hack to Triple Conversions

Mobile is Very Different…

OMG a Call Button!!

Larry Kim (@larrykim) #stateofsearch

Call Extensions Change Everything!!

Calls to Businesses worth on Average 3x More Than Clicks to Websites!!

4. Captured Lead

2. Calls Business

2. Clicks On Ad

Desktop Search Conversion Funnel

3% Avg. Conversion Rate

Mobile Conversion Funnel

1. Sees Ad 1. Sees Ad

3. Visits Website Landing Page

3. Lead Captured!!

Larry Kim (@larrykim) #stateofsearch

Forget Mobile Sites and Landing Pages!

Larry Kim (@larrykim) #stateofsearch

CONFIDENTIAL – DO NOT DISTRIBUTE 70

# 3. New Gmail Ads!

Larry Kim (@larrykim)Larry Kim (@larrykim) #stateofsearch

Subject Line and Teaser …

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Email Ad!

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The Hack: Target Your Competitor’s Emails

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# 2. New People Based PPC Marketing!

Facebook “People Advertising”

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Twitter, Too!

Larry Kim (@larrykim) #stateofsearch

The Hack: Think of PPC More Like Email Mktg.

Email Marketing

• Limit Number of Blasts To Reduce Unsubscribes

• 0.5-2% Unsubscribes Each Blast

• People Need To Opt Into Your List

• Tons of Unqualified Emails on the List

People Based Marketing

• N/A

• N/A

• N/A

• N/A

Larry Kim (@larrykim) #stateofsearch

# 1. First Mover Advantage

+1000 New Features Every Year!!

Larry Kim (@larrykim) #stateofsearch

TrueView Ads in YouTube!

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+Post Ads for Google+

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My Google+ Story…

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Google+ Visibility Before and After!

AfterBefore

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Summary: The Top 10 AdWords Hacks of All Time!

1. Say No to Low CTR!

2. Unicorn Ads Get +6x Average CTR

3. Delete Crap in Your Account

4. RLSA 2x CTR, 1/2 CPC

5. Quality Score on Google Display Network = Cheap Clicks

6. Hacks to Get More Ad Impressions on GDN

7. Triple Conversion Rate with Mobile

8. Get in People’s Gmail Inboxes!

9. Target Specific People on Facebook and Twitter

10.Always be First Mover!

Larry Kim (@larrykim) #stateofsearch

Flywheel Effect: Paid

Don’t Settle For Average – Be a Unicorn Among a Sea of Donkeys!

Thank You #stateofsearch!

Slides: bit.ly/stateofsearch2014

Larry Kim (@larrykim) #stateofsearch

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