Marketing on the Internet

Marketing on the InternetFE257 The Paul Merage School of Business, UC IrvineWorkshop

Saurabh Bhambry - Jan 25, 2013MBA Class of 2013 | sbhambry@uci.edu

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AgendaGoogle AdWords - OverviewGoogle AdWords In actionIn Practice (use cases)Fundamentals Advanced ConceptsGoogle AdWords Hands-on Q & A

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Major Ad networks Google AdWordsMicrosoft Ad CenterYahooFacebook Ads

Sep2012 % Search Share

Source: ComScore.com

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What is AdWords ?Its Googles online advertising platform that can help you drive interested people who are searching on Google for specific information, service or product to your Website.

AdWords is for AdvertisersAdSense is for Publishers

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Google Ad FormatsSearch Ads Display Ads

Its advisable to start with Search AdsText Ads Image AdsVideo Ads

Additional Ad formats: Mobile Ads, Product Listing Ads Form of Display or Image Ads but available in few countries only New feature: Ad extensions

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How Google ADwords works?Product/ServiceShoes for menRunning ShoesMens Formal ShoesWomens Shoes

Keywords

AdvertisementLanding Page

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BenefitsNo Minimum budgetExtremely TargetedHighly Flexible Start & Stop at willCan be measured/monitored

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AdWords In Practice

http://www.youtube.com/watch?v=WqHpm7OLWWY

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Google AdWords - FundamentalsAnatomy of Search Engine Results Page (SERP)

Ads shadedareaText AdsOrganic SearchResult

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Text Ad ComponentsAdvertise with Googleadwords.google.comWant fast results?Create your ad campaign today!HeadlineDisplay URLDescription

Headline Consider including keywords, Cant be more 25 characters long

Display URL Can be different from the destination URL Can be enhanced with website links

Long Display URL Limit of 35 characters

Description Cant be more than 35 characters long

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Ad Positions

Based on Ad Rank in auction

Ad Rank depends on Bid Quality Score

Concept of Ad Auction covered later in the presentation11

Keyword targetingSelecting the right Keywords

#1 Two-three words longStrike the balance between too generic & too specific

#2 Use Negative keywords for improved ROINegative Keywords keywords for which you dont want to show ads

#3 Remember Google assigns ads Quality Scores Low Quality Score may result in poor ad placement and high price

For Now Quality Score basically scores how relevant the Ad is to the user12

Keyword targetingKeywords matching options

Use this match type...With this punctuation...To trigger your ad on...Examplebroad matchnonesynonyms, related searches, and other relevant variationsadopt kittens chicagobroad match modifier+keywordclose variations but not synonyms or related searches+adopt +kittens +chicagophrase match"keyword"a phrase and close variations of that phrase"adopt kittens" chicagoexact match[keyword]an exact term and close variations of that exact term[adopt kittens chicago]negative match-keywordsearches without the term-puppies

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Budgets & BiddingDefine the advertising Goal: ClicksImpression Conversion

Bidding Options:Clicks CPC bidding (Automatic & Manual)Impressions CPM bidding Conversions CPA bidding

CPM bidding is similar to CPC manual bidding . Its only available for the following campaigns: Display Network all features and Display Network Retargeting

CPA bidding is suited for intermediate and advanced AdWords users.Your campaign must meet a few requirements in order to be eligible to use CPA bidding:You have conversion tracking enabled.Your campaign has received at least 15 conversions in the last 30 days. The AdWords system requires this conversion history in order to make accurate predictions about your future conversion rate.Your campaign has been receiving conversions at a similar rate for at least a few days.

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Budgets & BiddingThe concept of Ad Auction

2. Ads are whittled down:The AdWords system finds all ads whose keywords match that phrase "pizza delivery" closely enough.

3. Ads whittled even more:From that set of matching ads, the system ignores any that aren't eligible, like ads that target a different country or are disapproved.

4. Ads are ordered:The remaining ads are shown, ordered on the page based on a combination of bid amount and quality (we call that formula Ad Rank).

5. Ads appear!Joe sees relevant ads appear and orders the pizza of his dreams.

6. Repeat the process:Every time someone hankers for a pizza and does a search, the whole auction process starts again with potentially different results each time, depending on the competition at that moment.

1. The search:Joe searches for "pizza delivery," stomach growling in the background

Images Source: Google AdWords website

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Monitoring AdsWhat to measure ?Impressions, Clicks and Click Through Rate (CTR)

CTR = Clicks/Impressions

CTR > 1% is goodKeep an Eye on Keywords to achieve it.

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Campaign ROIHow to decide which ad campaign is performing better?Measuring ROI = Profit/ Cost

CampaignsImpressionsClicksCTR#1 RunningShoes10,00002502.5%#2 TennisShoes10,0005005%

ConversionsConversion RateCost perConversion104%$ 25306%$ 8.3

Avg. Max CPCCost$ 1$ 250$ 0.5$ 250

Profit perConversionROI$ 50200%$ 10120%

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Google AdWords ToolsKeyword External ToolTool for choosing effective keywords

Traffic Estimator ToolKeyword Analysis Tool

Account management toolshelp you view, edit, and update your account efficiently.Keyword toolsprovide resources for choosing effective keywords.Placement refinement toolsenable you to optimize where your ad appears.Bid and budget management toolshelp you make the most of your advertising budget, either by saving you time or providing insight into what you should bid for your advertising.Ad creation toolsenable you to create customized ads to promote your business.Troubleshooting toolshelp you figure out how to solve issues that come up in your account. For example, using the disapproved ads filter helps you quickly find and update ads that aren't running for policy reasons.

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Setting up an Ad campaignChoosing Ad Campaign type:#1 Choose network on which you want to display the AdSearch & DisplaySearch Only Display Only

# 2 Choose sub-campaign type Search & Display Network Standard & All FeaturesSearch Only Standard, Product Listing Ads, All features Display Only All Features, Mobile Apps, Remarketing

Search and Display NetworksYour ad will show on the Google Search Network, which includes Google Search, Shopping, Maps, and search sites that partner with Google, like AOL, and the Google Display Network, which includes sites and apps that partner with Google as well as Google sites like Gmail, YouTube, Blogger, and Google Finance. This is a good choice if you want your ads to reach the widest set of possible customers.Search Network onlyYour ad will show on Google search sites, including Google Search, Shopping, Maps, Images, and Groups, as well as sites that partner with Google, like AOL.Display Network onlyYour ad will show on Google's network of partner websites, as well as on Google sites like Gmail, YouTube, Blogger, and Google Finance.

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Campaign Structure

Images Source: Google AdWords website

Your adcampaignhas its own budget and settings that determine where your ads appear.Yourad groupcontains a set of similar ads and the words and phrases, known asKeywords, that you want to trigger your ads to show.

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Workshop OverviewHands-On demo :New Campaign set-upAd groups set-upCreating text-adAd approvals Campaign settings

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Thank You

Questions ?

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