performance marketing

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LION & LION

October 2014

The Digital Agency

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Overview

Google Search

Google Display

YouTube

- Confidential - 3Source: Lion&Lion

General TermsConcepts to be familiar with

SERP- Search Engine Results Page

SEM – Search Engine Marketing

Root keyword: keyword related to the product or service

Modifiers: these keywords reference an intention, target very specific searches and so provide very relevant ads

Impressions: number of times our ad has appeared in the search results

Average position: position in which our ad comes in the SERP

CPC – Cost Per Click

CTR – Click Through Rate: Clicks / Impressions

Conversion: when someone clicks our ad and then takes an action defined as valuable to your business

CPA – Cost Per Acquisition: amount we are paying or willing to pay for each conversion

Conversion Rate: Conversions / Visits

Bounce Rate: number of times a visitor left your site from the entrance page without interacting with the page

LIS – Lost Impression Share: number of times your ad did not show because the quality or the budget was too low


What is Performance Marketing?

It refers to marketing techniques and campaigns by which the advertiser pays to reach measurable reaction of internet users and increase the chance of a tangible outcome (conversions or transactions)

Pull

• SEM (Google/Yahoo)

Push

• Google Display Network

• Other display networks

• Facebook Classical Ads

• Facebook Promoted Page posts/Sponsored Stories

Retargeting

• Remarketing• Facebook Exchange

(FBX)• Facebook Custom

Audiences• Retargeting platforms

- Confidential - 5Source: Think With Google

Multi-channel analysis provides insight on how and when channels impact purchase decisionsConsumer Journey

Awareness Consideration Intent Decision

Assist Interaction

Last Interaction

Organic

Direct

Thanks to our multidisciplinary team, we are able to run campaigns in all the different channels and hit the targets L'Oréal sets up


Overview

Google Search

Google Display

YouTube

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When people search on Google, it is important that the text in the ad matches the words they searched forChannel Overview – Search

Guidelines we follow when creating ad text:

General: Use the Keyword at least 3 times

Headline: Be specific and attractive to the user

Description Lines: Be the solution to the users’ problems, offer an advantage, or use a Call To Action (CTA)

We customize ad texts, and A-B test ads to optimise results


‘Long tail bidding’ leads to less competition and a lower cost-per-click (CPC)Channel Overview – Search

Monthly Search Volume

Low relevancy

High competition

High relevancy

Low competition

150 +review +women +makeup

1,200 +women +makeup

3,600 +makeupWe go deep into long tail bidding on

keywords that are more specific and relevant


The aim with modifier groups is to capture long tail traffic and match it with precise ads to gain a high ‘Quality Score’Channel Overview – Search

Root Keyword 2Cream

Root Keyword 1Foundation

Root Keyword 3…

Modifier Group 3Buy

Modifier Group 1Review

Modifier Group 5Cost

Modifier Group 4Best

Modifier Group 2Women

Modifier Group X…

Negative Keywords: keywords that prevents your ad from being triggered by a certain word or phrase. It tells Google not to show your ad to anyone who is searching for that

phrase. e.g. house foundations – Negative = “house”

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A. How is an ad’s position (Ad Rank) determined?

Bid: What we say to Google what are we willing to pay as maximum cost per click.

Quality Score: Quality Score is an estimate of the quality of your ads, keywords and landing page. It is a

score from 1 to 10 given by Google to measure ad quality. It depends on CTR, Ad Relevancy and

Landing Page Experience.

Ad Extensions: Additional information we can put in Ads to show to the user, such as an address, phone

number, store rating, or more webpage links.

Source: Insights on the Adwords Auction

The Ad Rank is a value that is used to determine thead position and whether your ads will show at allGoogle’s auction

Ad Rank = Bid X Quality Score X Ad Extensions

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B. This is how it works: 4 advertisers competing for 3 spots


Even if our competitors bid higher than us, we can still win a higher position with highly relevant keywords and adsGoogle’s auction

Advertiser Bid Quality Score Format Impact Ad Rank

A 4 1 No formats 4

B 3 3 Low 9

C 2 6 High 12

D 1 8 Medium 8

Advertiser Bid Quality Score Format Impact Ad Rank

C 2 6 High 12

B 3 3 Low 9

D 1 8 Medium 8

A 4 1 No formats 4

After Google’s Auction

OUT

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C. How much does each advertiser pay?


Advertisers will pay the minimum required to hold their ad position against the advertiser immediately below Google’s auction

Advertiser

Bid Quality ScoreFormat Impact

Ad Rank Actual CPC

C 2 6 High 12 9/6=1.5

B 3 3 Low 9 8/3=2.7

D 1 8 Medium 8 Min price

Actual CPC = Competitor’s Ad Rank / Our Quality Score

If the advertiser immediately below you bids the same and has the same quality score as you (and has equal-performing extensions and ad formats), you would typically need to bid a cent more than your starting bid to rank higher than that advertiser, and maintain your position and ad formats.


Optimisation is key in order to reach the targets set by the client and outperform our competitorsCampaign Optimisation

Budget allocation / Bid

optimisation

Ad rotation (A/B testing)

Search Query reports

Adgroup / KW optimisation

Ad Schedule / Devices

Ad CostClicksImpressions CPCCTR LIS

Visits Bounce Rate RevenueConversion

RateCPA

Time on Site / Page views

Offsite:

Onsite:

An optimisation plan is extremely important since, in the digital scene, the user experience changes regularly and decisions need to be taken fast and accurately in order to hit the targets as soon as possible.

The main KPIs that Lion & Lion use to optimise can be summarised below:


Overview

Google Search

Google Display

YouTube

- Confidential - 15Source: Lion&Lion/ Think With Google

The Google Display Network is the #1 global display ad network, reaching over 90% of internet users worldwideGoogle Display Network Principles

Create a broad type of ads - text, image, call to action, animated and video ads

Place those ads on websites that are relevant to what we are selling (placements)

Show those ads to the people that are likely to be most interested

Advantages of Display Network

- Confidential - 16Source: Google Trends, 2013, Malaysia

GDN features placements, creatives and audience targeting tools to help advertisers connect with their audienceThree things make Display more advanced than Search

According to Lion & Lion’s methodology, starting broad, and testing systematically, allows us to find which ads, placements, target

groups (age / gender), topics, interests, etc are performing better

Targeting

• Contextual: Target specific KWs

• Topics: Target websites

• Interests: Target users

• Managed placements (choose the website)

Creatives

• For image display, the creatives can be different in colour, content, size, text or CTAs

Placements

• For display, there may be 100s or 1000s of sites displaying the ad, depending on your settings

1 2 3


Optimisation on GDN relies principally on excluding those features that aren’t performing as expectedGDN optimisation

2. Isolate performing placements in separate ad groups

Performing placements are placements with a low CPA relative to placements in same adgroup.

Placement 1200 clicks, 3 conv.Placement 2100 clicks, 3 conv.Placement 3200 clicks, 4 conv.

Creative A300 clicks, 6 conv.

Creative B300 clicks, 4 conv.

CPA = $33

CPA = $18

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CPA = $25

AB

AC

AD

DE

E.. ..

..

3. Rotate creatives to continuously improve performance for the given placement

The “winning” ads will be the best, not on aggregate, but for the specific placement.

1. Adgroup optimisation

Analyse the performance of each adgroup, pause the ones which are not working and push the ones that achieve the best results (in terms of CPA principally)


Remarketing allows us to target the most relevant potential leads – people who have already visited your websiteRemarketing Overview

2. Leaves websitewithout signing up. Cookie is dropped

1. Person visits website

4. (Hopefully) Clicks ad and returns to the website

3. The cookie is recognized when the user

visits a 3rd party site

All the possible users online

Users to be targeted with regular display ads

All the users in the re-targeting audience

Remarketing performance

Increase in Conversions Higher CTR

52%51%


Overview

Google Search

Google Display

YouTube

- Confidential -Source:Lion&Lion

TrueView in-stream

• Commonly known as “pre-roll” video ads

• Highly engaging to the audience

TrueView in-search

Works similar as Google Search, where the ads are triggered based on users’ search queries

TrueView in-display

Appears besides a watched video as “recommended”

Demographics

Reach peopleby age

TopicsReach people

based on topics of the

videos

KeywordsReach people

using contextual targeting

InterestsReach people

by their interests

Targeting Options

Ad Format

s

YouTube offers different targeting options and three kinds of video ad formats depending on the goal of the campaignYoutube: Targeting and Ad formats

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Every month, more than one billionunique users visit YouTube

Every day, more than 100m Internet users watch an online video - 40% from mobile

Every minute, users upload more than 100 hours of content to YouTube

Beauty products Smartphones

78%

49%

61%

52%

YouTube influences recent purchases more strongly than

TV

78% of people who recently purchased a beauty product were influenced by YouTubeYoutube: Introduction

Source: A take on 2015 Market Trends-Nielsen


Thank You!

Javier [email protected]

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Questions

1. Name the three factors that influence Quality Score.

CTR, Text of the Ads or the Ad, and the quality / relevancy of the landing page

2. If you have two ads rotating with 3% and 5% CTR respectively, pausing the first ad would have what impact on traffic?

Traffic should increase

3. Your budget of $250 a day goes from generating 38 conversions to only generating 19 conversions. What is the change in CPA?

Increases 100% / doubles

performance marketing

Marketing

ad quality

ad formats

competitors ad

ad extensions

ad texts

ads position ad rank

google confidential

whencreating ad text