persuasion and internet advertising
TRANSCRIPT
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Persuasion and Internet Advertising
David Rodnitzky – Founder and CEO
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3Q Digital Overview
Types of Online Advertising
Influencing Behavior Online
Tools to Measure Behavior
Deep Dive – Alpha Beta Process
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About 3Q Digital
• Founded 2008 as PPC Associates in a coffee shop
• Offices in San Mateo, Chicago, San Diego, & San Francisco
• 80 employees
• 80 clients
• 95% annual growth rate since inception without sales!
• $220M+ annual media spend under management
• Our Core Principles:“Don’t work with jerks”Over-communicate, over-deliverBe proactive, not reactiveOptimize long-term relationships, not short-term profit
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We Provide Integrated Online Marketing
SEM
Social
Display Mobile
SEO
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3Q Digital Overview
Types of Online Advertising
Influencing Behavior Online
Tools to Measure Behavior
Deep Dive – Alpha Beta Process
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Branding
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Demand Generation - Display
Key Metrics• Click-through rate• View-through
conversions• Click-through
conversions
• Goal is “Distraction”• Good resource:
moat.com
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Demand Generation - Display
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Demand Generation - Social
Key Metrics• Likes/follows• Virality coefficient• ROI?
• Goal is “Interaction”• Good resource:
optimalsocial.com/portfolios
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Demand Generation - Social
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Demand Generation - Video
Key Metrics• Views• Clicks• ROI?
• Goal is “Engagement”
• Good resource: http://www.adweek.com/videowatch
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Demand Generation – Native Advertising
Key Metrics• Clicks• CPC• ROI?
• Goal is “Clicks and Confusion?”
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Demand Fulfillment – Search Engine Marketing
Key Metrics• Conversion Rate• ROI or ROAS
• Goal is Profit!• Resource:
SpyFu.com or SEMRush.com
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Demand Fulfillment – Search Engine Optimization
Key Metrics• Conversion Rate• ROI or ROAS
• Goal is Clicks and Profit
• Resource: moz.com
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Demand Fulfillment – Affiliate Marketing/Lead Gen
Key Metrics• Revenue Per Click• Earnings per
Thousand Impressions (eCPM)
• Goal is Profit• Resource: cj.com,
affiliatesummit.com, leadscon.com
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Demand Fulfillment – Retargeting
Key Metrics• Conversion Rate• Attributed Revenue
• Goal is to Close Incomplete Funnels
• Resource: adroll.com, adexchanger.com
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3Q Digital Overview
Types of Online Advertising
Influencing Online Behavior
Tools to Measure Behavior
Deep Dive – Alpha Beta Process
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Overview – 7 Habits of Highly Effective Online Marketing
Key Persuasion Influencers
• Ad Text• Landing Pages• Targeting
• Source: http://3qdigital.com/how-we-think/#whitepapers
Bid Management
Ad Text Optimization
Keyword Selection
Landing Page
Optimization
Channel Selection
Account Structure
Targeting
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Ad Text• Call to action (What do you want them to do?)
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Ad Text• Four human emotions
–Fear–Greed–Exclusivity–Vanity
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Ad Text• Ad Text Should Target the Query – Answer a Question
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Ad Text• Test, test, test – CTR X
Conv. Rate
Source: http://www.amazon.com/Direct-Mail-Copy-That-Sells
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Landing Pages – Call to Action• Strong Call-to-Action
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Landing Pages – Benefits Not Features
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Landing Pages – Important Stuff Above the Fold
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Landing Pages – Less is More
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Landing Pages – Escalation of Commitment
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Landing Pages – Credibility Matters
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Landing Pages – Avoid Distraction & Anxiety
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Case Study – WrinkleCream.pro
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Regressive Data Analysis – Day Parting
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Regressive Data Analysis – Geography
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Regressive Data Analysis – Device/Carrier
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Regressive Data Analysis – Psycho/Demographics
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Regressive Data Analysis – Placement
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Regressive Data Analysis – Query
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3Q Digital Overview
Types of Online Advertising
Influencing Online Behavior
Tools to Measure Behavior
Deep Dive – Alpha Beta Process
We Use Attribution to Go Beyond the Last Click
Attribution Includes Offline Influencers Like TV
Dynamic Retargeting campaign
CSE
Runs search comparing
phones and buys product
Clicks on ad because
friend likes brand
Searches for brand after
TV commercial and again following
retargeting ad
First sees TV commercial
TV Display Search Social
Lifetime
Value
Landing Page Testing
Ad Text Testing - BoostCTR
Demographics Analysis
Media Planning
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3Q Digital Overview
Types of Online Advertising
Influencing Online Behavior
Tools to Measure Behavior
Deep Dive – Alpha Beta Process
Improper keyword selection and match type costs advertisers millions annually
Account structure mistakes also results in unnecessary cost
The Alpha-Beta process and structure will help you identify and optimize winners and exclude losers = more profit!
Executive Summary
A keyword is a word or a phrase that a marketer buys on Google
A query is a word or phrase that a user types into Google
Google matches keywords to relevant queries
Keywords vs. Queries – A Crucial Distinction
Keyword
Query
Query
Query
Query
Query
Query
Keywords vs. Queries - A Crucial Distinction
Queries
Keyword
A Quick Way to Measure Query Quality
The Lin-Rodnitzky Ratio (L-R Ratio) is the ratio of total query CPA divided by converting query CPA
Use the “Filter” functionality to find all queries with at least one conversion
Divide the total CPA by the filtered CPA to get your score
A good score is generally between 1.5 to 2.0
Important Point #1Google will match your keywords to a lot of irrelevant queries if you give them the latitude to do so.
This results in profit to Google and cost to you!
Match Type – Broad Match• Match type allows marketers to control how
aggressively Google matches keywords to queries– Broad Match: Dragon Tattoo Poster
• Dragon Picture• Tattoo You• Fantasy Island
– Broad match gives Google almost total discretion
Match Type – Broad Match Modified
• Match type allows marketers to control how aggressively Google matches keywords to queries– Broad Match Modified: +Dragon +Tattoo
+Poster• Used Poster of Dragon and Tattoo• Sell Dragon Tattoo Poster
– Broad match modified prevents synonyms
Match Type – Phrase Match• Match type allows marketers to control how
aggressively Google matches keywords to queries– Phrase Match: “Dragon Tattoo Poster”
• Buy Dragon Tattoo Poster• Dragon Tattoo Poster in Spanish
– Phrase match requires a complete phrase
Match Type – Exact Match• Match type allows marketers to control how
aggressively Google matches keywords to queries– Exact Match: [Dragon Tattoo Poster]
• Dragon Tattoo Poster– Exact match will only show the exact phrase
Match Type – Negative Match
• Match type allows marketers to control how aggressively Google matches keywords to queries– Negative Match: -Picture
• Dragon Tattoo Poster is Ugly• Fantasy Island Tattoo Guy
– Negative Match excludes any word or phrase
Important Point #2• We recommend using:
– Broad match modified to discover new and profitable queries
– Exact match to isolate your top performing queries and bid accordingly
– Negative match to exclude unprofitable queries– Broad match and phrase match rarely, if at all
• BUT WAIT – YOU NEED TO UNDERSTAND ACCOUNT HIERARCHY FIRST!!!!
Basic Account Hierarchy• Account = Billing, Time Zone,
Login Info• Campaign = Networks, Devices,
Geography, Day-Parting• Keywords, Ad Text
When Account hierarchy & Queries Collide
• When two or more keywords in an account match the same query, Google must choose which keyword to enter the auction– Keyword #1: +Dragon
+Poster– Keyword #2: +Dragon
+Tattoo– Query: Dragon Tattoo
Poster
Which keyword will Google
choose?
Google’s Official Policy
Source: http://adwords.google.com/support/aw/bin/answer.py?hl=en&answer=66292
Google’s Actual Policy• We have observed
numerous occasions where Google does not follow its own policy for matching keywords to queries
• Translation: to truly control keyword to query matching, you need to create iron-clad account structure
Example of where it costs you money to have Bad structure Exact match keyword with targeted ad copy and
landing page is bumped by broad match with generic copy and LP
Negative keyword you added to one campaign is not included in another campaign – keyword gets served
Same keyword with same match type in different campaigns but with different bids – most expensive keyword shown
Account structure mistakes are sometimes caused by user error and sometimes caused by Google algorithmic errors/decisions
Important Point #3
• Failure to carefully plan out your account structure will cost you profit – I guarantee it
A Beta campaign is designed to quickly identify profitable search queries and eliminate unprofitable ones
An Alpha campaign is designed to isolate profitable queries into ad groups with targeted ad text and landing pages
The overall objective is to take 100% control of your keywords and queries!
The 30,000 Foot View of Alpha Beta
• Step One: Create the Beta campaign “The Bait”– All keywords should be on
broad match modified (+broad +match +modified)
• Step Two: Run raw search query analysis on Beta campaign
• Step Three: Identify winning queries and losing queries
Creating & Analyzing The Beta Campaign
• Step Four: Create an Alpha campaign. Move winning queries into SKAGs in the Alpha– SKAGs = Single Keyword Ad
Groups– Put all Alpha queries on Exact
Match– Create targeted ad text and
landing pages for each SKAG• Step Five: Add all losing queries
to the Beta campaign as Negative Exact Match– -[free dragon tattoo poster]
Creating the Alpha Campaign, Refining the Beta
• Step Six: Add all Alpha queries to your Beta campaign as Exact Match Negatives!– This prevents Google from
matching a bait keywords to your profitable Alpha query
– You control bid, ad text, and landing page for winners!
• Step Seven: Continue to identify winners and losers in the Beta campaign. Move winners into the Alpha
The Air-Tight Account Secret
L-R Score – Before & After Alpha-Beta Structure• Before: 1.4 (June 2011)
• After: 1.84 (August 2011)
• Before: 2.93 (November 2010)
• After: 2.11 (March 2011)
A Virtuous Cycle
Create Beta Test
Keywords
Identify Winner and
Loser Queries
Move Winners to SKAGs in
Alpha
Add Losers *and* Winners as Negatives in
Beta
Identity New Test
Keywords
Queries are the lifeblood of AdWords campaigns, not keywords
Match type is a limiter on Google’s discretion to expand your spend
Beta campaigns use broad match modified to test Google’s algo; Alpha campaigns use exact match to lock-in profit
Use the Lin-Rodnitzky Ratio to measure account health
Summary