Google AdWords Post Campaign Report

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Customer ID: 703-895-5918 Executive Summary Campaign Overview | We established two strategic goals for our AdWords campaign created for Shoeture, a company specializing in high quality metal lacelocks and pins to accessorize sneakers. The first goal was to increase awareness throughout Shoetures target market by running ads on sites in the Display network that targeted sneakerheads. The second goal was to increase sales through ads on the Search network. To measure success, we included the following metric goals: 1) achieve a CTR of at least 1%, 2) allocate the budget to maintain a CPC of $0.08, 3) reach a total of 100,000 impressions, 4) increase site views by 30%, and 5) increase sales by 10%. Key Results | Not all goals were achieved. The Display campaign metrics resulted in 15 clicks and 57,949 Impressions. We made two ad groups within our Search campaign. The Products ad group achieved 1,136 clicks, 49,900 impressions, a CTR of 2.28%, and an average CPC of $0.15. The How-To Videos ad group attained 96 clicks, 4,085 impressions, an average CTR of 2.35%, and an average CPC of $0.14. We reached our impressions, clicks, and CTR goals but did not meet our CPC goal. We increased website views by 100%, but the sales objective was not met as there was no significant change in sales during this time period. However, it should be noted that we did not install any conversion tracker on the website. Conclusion | The Display campaign was not a cost effective way of converting impressions to clicks. This proved to be 28.4 times as expensive to obtain a click than through Search. Our Search campaign did not receive views as quickly as Display, but those views were much more likely to be clicked. Through regular monitoring, we identified successful keywords and optimized the ads. The entire campaign more than doubled the average visits to the website; however, sales did not improve. Future Online Marketing Recommendations | Create distinct landing pages on the website specific to products and sales promotions. Use image ads on Googles display network to build awareness. Use narrow targeting and long-tail keywords to capture customers. Use conversion/tracking codes to continue to optimize AdWords campaigns.

Industry Component Campaign Overview | Strategic Goals We had two key goals for the Shoeture AdWords account. The first was to raise awareness of Shoetures products by attracting potential consumers and establishing a relationship based on their interests and lifestyle. To achieve this, Metric Goals CTR CPC Impressions Daily Budget Search 1% $0.08 50,000 $3.57 Display 1% $0.08 50,000 $8.33 we emphasized impressions over CTR and created a Display network ad group. We also opted to use ad rotation rather than optimization to support our focus on impressions. The second goal was to increase sales by encouraging customers

to view the Shoeture website and make a purchase. To achieve this we created a campaign to run on the Search network. We used product-specific keywords prominent among consumers in the sneakerhead sub-culture and offered promotions on the website. Finally, since CTR was of greater significance for this goal, we utilized the optimization ad serving option. To attain the primary goal of raising awareness, we allocated 70% of our budget to the Display network ads and 30% to the Search network ads. Operational details | Our campaign ran from April 2 to April 23. We spent all $250 of the budget. We created two campaigns, one for Display and one for Search. The Search campaign consisted of two ad groups, How-to Videos and Products. We used the budget evenly over the course of the campaign, with the exception of the start of the campaign when an initial budget boost would help to generate data. In the second phase we distributed our budget evenly over the remainder of the time. For each of the three weeks we spent $101, $80, and $69 respectively. The daily budget for Search fluctuated between $8 for the first week, $11 for the second week, and $9 for the final week. The fluctuation of the budget was due in part to the deletion of the Display campaign and the reallocation of funds on April 9. Display originally had a budget of $8. For the Display ads we utilized the bidding setting option, which focused on impressions, manual maximum CPM bidding, and ad scheduling to show ads all days and hours with ad rotation optimized for clicks. For Search we focused on clicks with automatic bidding, no CPC bid limit, ad scheduling to show ads all days and hours, and optimization for clicks. Initially we logged on every day to monitor the progress; however, this did not provide enough time for data to be generated following the changes. Thereafter, we monitored the account on every third day. This


held true except when our Search clicks dropped dramatically and the changes had to be made to improve them. Our campaign was geo-targeted within the United States. We also stated that we would focus more specifically on urban cities because of the fashion/trend-driven nature of the product. In addition, we used the Search Term Report feature, the Opportunities tab, and the Keyword Tool to identify new keywords and negative keywords. Evolution of Your Campaign Strategy | Ads in the Display campaign were set to optimize for clicks. Each ad received 1-4 clicks and were rotated evenly. On April 4, after viewing automatic placements selected by Google, we switched to managing our own placements because, although they were relevant based on Googles algorithms, they were neither specific nor credible enough for our niche audience. The change from broad to specific reach reduced our average CPM of $1.39 to $1.00 and increased impressions from approximately 6,000 to 7,000. The Display ads were initially designed to be broad to build awareness; however, we later began using productspecific ads because the managed placements were already directed to long-tail customers who might already be familiar with similar products. After one week of running the Display campaign, we had already passed our goal of 50,000 impressions, and it became evident that we were unlikely to meet our goal of 4,000 clicks. We paused the Display campaign for the remainder of the challenge due to underperformance. We reallocated the budget to the Search campaign. Product-specific ads were used for the Search campaign because we thought that there might be enough long-tail customers be searching for our products. On April 6, we created ads about accessorizing popular sneakers likely to be searched rather than the products themselves. This led to an ad with the highest CTR (4.77%). We used the high-performing ads as a basis for optimizing new ads and included the highest performing keywords in all ads. On April 9, since we paused the Display campaign, we changed our account structure, which led to the creation of another community-based long-tail How-to Video ad group. The landing page of this ad group showed how the accessories are installed on sneakers, and this ad group obtained a higher CTR of 2.35% than the Products ad group, which obtained a CTR of 2.28%. On April 16, we excluded Alaska and Hawaii from our locations because they are culturally distant to mainstream US culture. Further, we narrowed down the geo-targeting further to specific cities and states. However, the campaign impressions, clicks, and CTR significantly dropped April 16. Thus, the original geo-targeting option was reinstated and then expanded to selected international markets. Many changes took place on April 16 not limited to the geo-targeting and we were


unable to recover from the resulting downward performance until the last day when we exhausted our entire budget to create a spike in last-minute clicks. Key Results | The AdWords campaign produced mixed results as sales figures showed no correlation to clicks and impressions, which only met some pre-established objectives of the campaign. Table 3.1 below summarizes the key results across the Search and Display campaigns. Our Display campaign resulted in 15 clicks, 57,949 Impressions, a CTR of 0.03%, and an average CPC of $4.26 but the small amount of clicks did not warrant the amount of budget it was utilizing. We met our impressions goal but did not meet our clicks goal. Our Search campaign was more successful than the Display campaign. Specifically, for the Search campaign, we wanted to achieve 50,000 impressions, 400 clicks, a CPC of $0.08, and CTR of 1%. Our Search network exceeded expectations and resulted in 1,232 clicks, 53,985 impressions, a CTR of more than 2.2%, and an average CPC of $0.15. With the increased campaign performance we allocated a larger percent of the budget to the Search campaign, allowing the campaign to maintain a high CTR. Table 3.1 shows how our CTR increased as our average CPC decreased. In the second week, Search CTR drastically increased from 0.84% to 4.21%. This increase was a result of account restructuring actions, such as the addition of successful keywords, deletion of underperforming keywords and ads, and creation of ad copy using keywords with high CTRs. Specifically, there were two ad groups within our Search campaign: Products and How-to Videos. Products garnered 1,136 clicks, 49,900 impressions, an average CTR of 2.28%, and an average CPC of $0.15 while How-to Videos gained 96 clicks, 4,085 impressions, an average CTR of 2.35%, and an average CPC of $0.14. Table: 3.1 Week Totals Campaign Week Clicks Imp. CTR Avg. 1 2 1 2 3* ** 11 4 185 527 520 50845 7104 22010 12507 19468 0.02% 0.06% 0.84% 4.21% 2.67% CPC Avg. 5.2 1.7 0.24 0.14 0.13 1 1 5.9 4.7 5.0 Pos.

Display: Homepage

Search: How-to Videos & Products


*Week 3 Search is skewed due to losing statistics caused by editing best performing ad **Week 3 Display is N/A because it was canceled during the second week Overall, keywords had a CTR between 4% and 10%, which generally resulted in a higher average position and lower CPC. We attracted a large volume of highly targeted searches, producing a high CTR. Table 3.2 below summarizes the performance indicators for successful keyword phrases. Ad Group Table 3.2 Search How-to video Search Products Keyword customize sneakers customize your sneakers customize sneakers custom sneakers Clicks 79 6 629 281 Imp. 1,387 195 7,492 5,985 CTR 5.70% 3.08% 8.40% 4.70% Avg. CPC 0.14 0.14 0.13 0.16 Avg. Pos. 3.6 4.5 3.6 4.4

As depicted in Chart 1, our efforts to optimize our campaign resulted in a steady increase in CTR throughout the campaign while decreasing the average CPC numbers. However, sales did not correlate with the results, as the client obtained the usual few sales during the course of the campaign. The only notable difference was the increase in traffic to the website (average hits per week more than doubled) totaling 724. There was a discrepancy between our recorded clicks and the website hits due to factors, such as traffic filtered out for specific profiles, destination URLs of the ads not having the correct tracking code installed, or users disabling JavaScript or cookies. Chart 1 Note: Week 3 CTR is skewed due to user error of deleting the stats of the best performing ad


Future Recommendations | We recommend the following course of actions: Create distinct landing pages on the website specific to products and sales promotions It is unlikely that long-tail ads with specific products and sales promotions will be effective if they do not lead to a page that reflects those products. Viewers will leave the landing page instantly if it looks overwhelming, irrelevant, and misleading. Additionally, it will keep the Quality Score around its current low score of 2. The webmaster simply did not have the time or technological structure to create such pages. Use image ads on Googles display network to build awareness Fashion products and trends are driven not only by the brand but also by role models and opinion leaders wearing the product. Thus, we feel it is important to create image ads rather than text ads. Viewers will quickly know whether or not they are interested in the product, and this will reduce unnecessary and costly clicks that are unlikely to lead to sales. We did not create such ads because they would not be counted toward Googles Online Marketing Challenge. Use narrow targeting and long-tail keywords to capture customers Although image ads on the display network may help in building brand and product category awareness, our data suggests that those within the sneaker community are more likely to search for Shoetures products through the search network. Since Shoeture lacks the marketing budget, we recommend that they use very narrow geo-targeting, ad serving, long-tail keywords, etc. Three weeks did not give us enough time to experiment with a rotation of such long-tail strategies, thus we could not determine what would be most effective for creating conversions. Use conversion/tracking codes to continue to optimize AdWords campaigns Lastly, by tracking when and where the sales come from, geo-targeting, ad serving, long-tail keywords, etc. can be narrowed down further, increasing campaign efficiency and costeffectiveness. Niche fashion products are typically concentrated within segments of similar lifestyles, behavior, and geographic regions because of the inherent community-driven nature of trends. Again, due to time and technological constraints, we were unable to use conversion/tracking codes.


Learning Component Learning Objectives and Outcomes | Our team had two goals: first was to acquire the skills to run an AdWords campaign through the Google interface and utilize many of the tools it provides. The second goal was to achieve a high CTR for our ads with those tools to create a cost-effective campaign that would increase brand awareness. Through hands-on experimentation, we were able to learn from our mistakes and successes. We achieved a high CTR and a high number of impressions. The Google Challenge objectives followed right along with our learning objectives. We learned how to organize an account structure with campaigns, ad groups, and ads. We learned how to select when and where we would run the ads with geographical targeting and scheduling. We learned how to identify top keywords and build new ads while incorporating successful keywords into top performing ads. We expected to have more success on the display network but got better results on the search network. We learned that Google AdWords is an effective tool to increase traffic to a website and that with careful optimization and monitoring, the campaign can be implemented at a relatively nominal cost. Group Dynamics | In the beginning, our group struggled with deciding on what direction to take with the campaign, but we resolved the issue by brainstorming as a team until we came to an agreement on the strategy. When everybody has access to the account through their home computer, e...