ppc bidding:how to get an extra 10% from your account | pete whitmarsh | searchleeds

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PPC BIDDING:HOW TO GET AN EXTRA 10% FROM YOUR ACCOUNT

PETE WHITMARSH

PRIVATE AND CONFIDENTIAL © SEARCH LABORATORY LTD

WHO AM I?

Head of Paid Media

Search Laboratory

7 years’ experience

Maths degree

Pete

Whitmarsh


WHY FOCUS ON BIDDING?

Often overlooked

Hugely important

ANATOMY OF A BID PRICE


BID PRICE

-

1.0

2.0

3.0

4.0

5.0

6.0

£- £0.20 £0.40 £0.60 £0.80 £1.00 £1.20 £1.40 £1.60

Position

BID PRICE VS POSITION

As you bid more, position increases

Positio

n


POSITION VS CLICKS

As position increases, clicks increase

Position

Clic

ks

- 1.0 2.0 3.0 4.0 5.0 6.0


Position

POSITION VS CONVERSION RATE

As position and clicks increase, conversion rate stays the same

1 2 3 4 5 6

Conv R

ate


BID VS PROFIT

Pro

fit

As bid increases, profit increases then decreases

Highest ROAS

Lowest CPA

Highest Volume

Highest Revenue

Highest Profit

Bid


BID VS PROFIT

…but the curve can be many different shapes

Pro

fit

Bid


BID VS PROFIT


Pro

fit

CPA


BID VS PROFIT


Pro

fit

Budget

SETTING TARGETS3 RULES


RULE 1

Targets should be based on BUSINESS LOGIC

Targets derived

from

Average Order Value

Profit Margins

Cancel / Return Rate

Offline Sales

Lifetime Value


RULE 2

Targets should aim for the top of the graph

Regularly change

Understand the curve

Pro

fit

Highest Profit

CPA


RULE 3

Targets should not be hampered by budget

CALCULATING A BID PRICE


CALCULATING A BID PRICE

CPA Target × Conversion Rate = Click Price

Or…

Average Order Value

ROAS Target× Conversion Rate = Click Price


Keyword Clicks ConversionsConversion

rateBid price

Pies 5000 125 2.5% £0.25

Steak and ale pies 210 7 3.3% £0.33

BIDDING EXAMPLE

£10 CPA target

CPA Target × Conversion Rate = Click Price


BIDDING EXAMPLE

Clopper-Pearson method

Keyword Clicks ConversionsConversion

rateBid price

Pies 5000 125 2.5% £0.25


95% confident that the

conversion rate is between

1.35% and 6.75%

95% confident that the

conversion rate is between

2.14% and 2.86%

https://goo.gl/23znKR


BIDDING EXAMPLE

£10 CPA target

Keyword Clicks Conversions Conversion rate Bid price

Pies 5000 125 2.5% £0.25

Steak and ale pies 210 7 3.3% £

Minced beef and onion pies 175 7 4.0% £

Chicken and mushroom pies 120 6 5.0% £

Meat and potato pies 125 9 7.2% £


GROUPING DATA

Group specifics together


Pies 5000 125 2.5% £0.25

Specific pie types 630 29 4.6% £0.46

Steak and ale pies 210 7 3.3% £

Minced beef and onion pies 175 7 4.0% £

Chicken and mushroom pies 120 6 5.0% £

Meat and potato pies 125 9 7.2% £


GROUPING DATA

Group specifics together


Pies 5000 125 2.5% £0.25

Specific pie types 630 29 4.6% £0.46


Minced beef and onion pies 175 7 4.0% £0.46

Chicken and mushroom pies 120 6 5.0% £0.46

Meat and potato pies 125 9 7.2% £0.46

ATTRIBUTION IN ADWORDS


ADWORDS ATTRIBUTION

97% of marketers use last click attribution.

Only 14% of them are satisfied with it.

(Source: Google Internal Data)


ADWORDS ATTRIBUTION – WHY BOTHER?

Better bid optimisation

Huge impact on performance

Easy


HOW DO YOU TRAVEL?

Taxi to station Train to airport Flight Bus to city Walk to hotel


HOW DO YOU TRAVEL?

Taxi to station Train to airport Flight Bus to city Walk to hotel

100% of credit!


WHICH MODEL TO USE?

Last Click First Click

Time Decay Linear Position Based

Data Driven


WHICH MODEL TO USE?

Time Decay Linear Position Based

Safest first

step away

from last click

Fair and even

/ moderately

aggressive

Aggressive /

adds value to

early funnel


ATTRIBUTION

Search 1 Search 2 Search 3

Conversion

“Pies”“Wholesale

Pies”“Pukka Pies”

SUMMARY


SUMMARY

Set sensible targets

Understand statistical significance

Group keywords together when needed

Change from last click attribution

SEARCH LABORATORY LTD.GLOBAL DIGITAL MARKETING EXPERTS

facebook.com/searchlaboratory/

@searchlabs

linkedin.com/company/search-laboratory/

Email: [email protected]

SEARCH LABORATORY LTD.GLOBAL DIGITAL MARKETING EXPERTS

Leeds HQ: +44 113 212 1211

London: +44 207 147 9980

New York: +1 (646) 473-1826

Web: www.searchlaboratory.com

CONTACT DETAILS

https://www.facebook.com/searchlaboratory/

https://twitter.com/searchlabs

https://www.linkedin.com/company/search-laboratory/

mailto:[email protected]

http://www.searchlaboratory.com/

ppc bidding:how to get an extra 10% from your account | pete whitmarsh | searchleeds

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