e-commerce berlin expo 2017 - 5 ways programmatic will change the paid search industry

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5 WaysProgrammatic WILLCHANGE

THEPAID SEARCHINDUSTRY

www.finch.com

finch.com @bjornespenesfinch.com

THE OPPORTUNITY

Google has

http://www.internetlivestats.com/google-search-statistics/

5 BILLIONSearches per day

finch.com @bjornespenesfinch.com

THE MARKETPLACE

1 POTENTIAL BUYER MANY SELLERS

WHAT PROGRAMMATIC SOLVES

Lack of time and resources

Complexity from Google features

Complexity from too much data

Complexity of execution

Increased competition

#1

Exponential Complexity

finch.com @bjornespenes

#1: EXPONENTIAL COMPLEXITYCLICK VARIATIONS

USER PROFILEKEYWORDS MATCH TYPES DEVICES

MULTIPLIERS

INSTANCES

*Each instance has a unique cost/revenue/profit history

10,000 4 3 5

40,000 120,000 600,000

finch.com @bjornespenes

#1: EXPONENTIAL COMPLEXITY

UNIQUE CLICK PROFILE

CLICK PROFILE

Match typeRevenue history

Cost historyConversion rate

Device typePast site visits

Location

USER DATA

KEYWORDDATA

+ =red shoes

#2

Campaign Structure

finch.com @bjornespenes

DATA ORGANIZATION

Ad groups

Single Keyword

EXACT PHRASE BROAD+ BROAD

#2: Campaign Structure

finch.com @bjornespenes

GRANULAR DATASE

ARCH

CAM

PAIG

N

KEYW

ORD

AD G

ROUP

AD G

ROUP

AD G

ROUP

AD G

ROUP

EXAC

TPH

RASE

BROA

D +

BROA

D

CostConv %Rev HistoryMax CPCBid Modifiers Mobile Re-marketing

$1005.00%

$500.00$5.00

N/A+300% New

Visi

tor

Home P

age

2+ Pa

ges

Prod

uct P

ages

Prod

uct i

n Car

tBe

gan C

heck

out

Repe

at Cl

ients

MAX C

PC

$15Cost

Conv %Rev HistoryMax CPCBid Modifiers Mobile Re-marketing

$1001.00%

$500.00$1.00

N/AN/A New

Visi

tor

Home P

age

2+ Pa

ges

Prod

uct P

ages

Prod

uct i

n Car

tBe

gan C

heck

out

Repe

at Cl

ients

MAX C

PC

$1CostConv %Rev HistoryMax CPCBid Modifiers Mobile Re-marketing

$1003.00%

$500.00$3.00

200%N/A New

Visi

tor

Home P

age

2+ Pa

ges

Prod

uct P

ages

Prod

uct i

n Car

tBe

gan C

heck

out

Repe

at Cl

ients

MAX C

PC

$8CostConv %Rev HistoryMax CPCBid Modifiers Mobile Re-marketing

$100.25%

$500.00$.25

N/A+150% New

Visi

tor

Home P

age

2+ Pa

ges

Prod

uct P

ages

Prod

uct i

n Car

tBe

gan C

heck

out

Repe

at Cl

ients

MAX C

PC

38¢

#2: Campaign Structure

#3

Keyword Management

finch.com @bjornespenes

GROW MARKET REACH #3: Keyword Management

Revenue Keywords Profit

Q1 Q2 Q3 Q4 | Q1 Q2 Q3 Q4 | Q1 Q2 Q3

finch.com @bjornespenes

DYNAMIC SEARCH TERM INSERTION

Converse red shoeswhite shoesred shoesblack shoescomfortable shoesinexpensive shoeshigh top shoes

{KeyWord} list

Great Red ShoesThe Perfect Shoe At the Best Price.Shoes in Every Color - Act Now!allsortsofshoes.com/fakeurl

#3: Keyword Management

finch.com @bjornespenes

XML FEEDS

Product information:All Star high tops Brand: ConversePrice: $35.99Color: redSize: mens 12Materials:

cotton upperleather bottomStyle: Chuck TaylorsModel: All starUse: basketballUPC: 0 12345 67890 1

#3: Keyword Management

red shoes

#4

Quality Score

finch.com @bjornespenes

HOW ADWORDS WORKS

CTRQualityScore

AdRank

#4: Quality Score

finch.com @bjornespenes

IMPACT ON AD RANK

Bid50%

Other<10%

QUALITYSCORE>40%

#4: Quality Score

finch.com @bjornespenes

WHAT IS QUALITY SCORE

Max CPCAd Rank

Quality Score

COSTCPACPV

Two engines at work

#4: Quality Score

finch.com @bjornespenes

GOOGLE WHEEL OF GOODNESS

Each piece is part of a

unique click profile that

is established each time a

prospective customer hits

enter in Google’s search

box.

HIGHERBID HIGHER

POSITION

HIGHERCTR

HIGHERQUALITYSCORE

HIGHER AD RANK

HIGHERCONVERSION

RATE

Google Wheel of Goodness

#4: Quality Score

finch.com @bjornespenes

EXECUTION AT WORK

EXACT PHRASE BROAD+ BROAD

5% 3% 2% 0.25%ConversionRate

THE GOLDEN CLICK!

#4: Quality Score

Ad Group

finch.com @bjornespenes

CASE STUDY: Match Type Strategy

Exact Match Increased 358% YoY

#5

Attribution

finch.com @bjornespenes

WHAT IS ATTRIBUTION #5: Attribution

FEBRUARY

How do you know where to spend money to improve

performance?

Where are you lookingto know how your PPC is performing?

Kim Pratt
how do you know what you're making or what you can spend without accommodating for lags??
Kim Pratt
two months.
Kim Pratt
money in-money out (one month)

finch.com @bjornespenes

AN EXAMPLE

Last clickLast ad click

Cross device

Last ad click

Cross device

Phone calls

Off-line

Last ad click

Cross device

Phone calls

$1,000

$2,000

Attri

bute

d Re

venu

es

$1.00

Max cost per clickbased on 10% cost of

revenue target; 1% conversion rate

$2.00

$1.75

$1.55

$1.35

Max

CPC

GoogleAnalytics

Google AdWords(all-conversions)

#5: Attribution

finch.com @bjornespenes

ATTRIBUTION MODELS #5: Attribution

Last Click First ClickLinear Position-basedTime Decay

Conservative Growth-oriented

WHAT PROGRAMMATIC SOLVES

Lack of time and resources

Complexity from Google features

Complexity from too much data

Complexity of execution

Increased competition

REVIEW

Results

finch.com @bjornespenes

CASE STUDY: Match Type Strategy

Exact Match Increased 358% YoY

finch.com @bjornespenes

CASE STUDY: Average CPC vs. Match Type

finch.com @bjornespenes

CASE STUDY: CPA vs. Match Type

Programmatic Paid Searchwww.finch.com

Best Shopping Performance 2016

Let’s Connect! in/bjornespenes @bjornespenes

Questions?