search exchange 2014 - larry kim's adwords presentation

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CONFIDENTIAL – DO NOT DISTRIBUTE 1 The Weirdest Intro to PPC Ever! 10+ Years of PPC Experience in Just 50 Minutes Larry Kim, Founder/CTO, WordStream July 28, 2014

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Page 1: Search Exchange 2014 - Larry Kim's AdWords Presentation

CONFIDENTIAL – DO NOT DISTRIBUTE 1

The Weirdest Intro to PPC Ever!

10+ Years of PPC Experience in Just 50 Minutes

The Weirdest Intro to PPC Ever!

10+ Years of PPC Experience in Just 50 Minutes

Larry Kim, Founder/CTO, WordStreamJuly 28, 2014

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Win a $25 Amazon Gift Card!!

• Include the hashtag #searchex and (@larrykim) in your tweets

• Prizes Awarded For Either:–Best Tip–Funniest Tweet

Larry Kim (@larrykim) #searchex

Page 3: Search Exchange 2014 - Larry Kim's AdWords Presentation

About Me

Larry Kim (@larrykim)• Founder & CTO of WordStream

• Commander of the Google AdWords Quality Score Rebellion

• Had a Kid 10 Weeks Ago (#ppckid)

Larry Kim (@larrykim) #searchex

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Today’s Agenda: Weirdest Intro to PPC Ever

1. How AdWords Really Works

2. Winning at AdWords the Weird Way– Tips for Writing Killer Ads / Picking

Keywords– Tips for Writing Amazing Offers– User Context & Mobile Search– Converting Customers with Remarketing– Exciting New Features

Larry Kim (@larrykim) #searchex

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CONFIDENTIAL – DO NOT DISTRIBUTE 5

Pick the Red or Blue Pill

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The Rules of the AdWords Game

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Understanding the AdWords Auction

CONFIDENTIAL – DO NOT DISTRIBUTE 7

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How Quality Score Impacts Ad Position

• AdWords is Like Real Estate: It’s all about Location!

Larry Kim (@larrykim) #searchex

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How is Quality Score

Calculated?

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Google Expects WAY More of Your Ads!

Larry Kim (@larrykim) # searchex

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QS is Based on Your CTR vs. Expected CTR!

Larry Kim (@larryim) #searchex

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What’s an Average Quality Score in 2014?

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Avg. Quality Score Has Been Falling.

• Today, average score is 5/10. Previously was 7/10!

Larry Kim (@larrykim) #searchex

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How Does Quality Score

Impact Cost Per Click?

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How Quality Score Impacts Actual CPC

Larry Kim (@larrykim) #searchex

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CONFIDENTIAL – DO NOT DISTRIBUTE 17

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How Does Quality Score

Impact Impressions?

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Impression Share vs. Quality Score

• AdWords is Like Real Estate: It’s all about Location!

Larry Kim (@larrykim) #wordstream #searchex

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How Does Ad Position Impact

Conversion Rates?

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Do Certain Ad Positions Convert Better??

Larry Kim (@larrykim) #searchex

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Conv. Rate vs. Average Search Position

Larry Kim (@larrykim) #searchex

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How Does Quality Score

Impact Cost Per Action?

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Cost Per Conversion Greatly Impacted by QS

Larry Kim (@larrykim) #searchex

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The Impact of Quality Score on Cost Per Conversion

Larry Kim (@larrykim) #searchex

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But High QS Not Possible In My Industry!

Larry Kim (@larrykim) #searchex

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B2B Industry Quality Scores

Larry Kim (@larrykim) #searchex

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Finance Industry Quality Scores

Larry Kim (@larrykim) #searchex

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Ecommerce Industry Quality Scores

Larry Kim (@larrykim) #wordstream

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But Google Says Don’t Obsess Over QS!

Larry Kim (@larrykim) #searchex

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New Quality Score White Paper

Larry Kim (@larrykim) #wordstream

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“Settling The Quality Score”?

Link To PDF File: http://bit.ly/qs-whitepaper

Larry Kim (@larrykim) #wordstream

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Key Finding #1: They’re Downplaying QS

Quality Score Is a Helpful Diagnostic Tool, Not a Key Performance Indicator

•Why: Your Quality Score is like a warning light in a car’s engine that shows how healthy your ads and keywords are. It’s not meant to be detailed metric that should be the focus of account management

-- Source: New Google White Paper on Quality Score.

Larry Kim (@larrykim) #searchex

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But Wait – What About This?:

QS is important in order for your ads to be successful … QS plays a key role in determining your ad's position and how much you'll pay for a click. In general, the more relevant your ad, the higher your QS – and the higher your QS, the better your position and the less you will have to pay for a click...Being successful with AdWords means getting your products or services in front of the people who are most likely to become your customers and a high Quality Score can help make that happen.

-- Source: What is AdWords Quality Score and Why Does It Matter?" from Google (2011)

Larry Kim (@larrykim) #searchex

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CONFIDENTIAL – DO NOT DISTRIBUTE 35

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Remember: Quality Score Graded on a Curve

Larry Kim (@larryim) #wordstream

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CONFIDENTIAL – DO NOT DISTRIBUTE 37

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“Low CTR” = Losing PPC Strategy

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Quick Recap

1. Below Avg. CTR = Low QS

2. Low CTR ads: Have Lower Ad Positions (Fewer Clicks) Often don’t even get displayed Get penalized w/ up to 400% higher CPCs Have up to 64% higher cost per conversion

Larry Kim (@larrykim) #searchex

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The High CTR Game for AdWords

1. Be Very Picky. Bid on Only the Best Keywords and Get HIGH CTRs.

2. Delete Junk Keywords (Bottom Third of your Account)

Larry Kim (@larrykim) #searchex

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How To WriteInsanely Great PPC Ads

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What’s a Good CTR?

Larry Kim (@larrykim) #searchex

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• Even the “Winner” is a Loser!

CONFIDENTIAL – DO NOT DISTRIBUTE 44

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Your Best Ad Might Be Crap

Larry Kim (@larrykim) #searchex

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How Great Can My CTR Be??

(You’d be surprised)

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Click Through Rate Varies A Lot!!

Larry Kim (@larrykim) #searchex

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Some Ads Do 2x, 3x or 6x Above Avg!?

Larry Kim (@larrykim) #searchex

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Under-Performing vs. Unicorns

Percentile Vs. Expected CTR

Name

Bottom 50% Below Expected CTR

Under-Performing Advertisers

Top 15% 2X Higher Awesome Advertisers

Top 5% 3x Higher Super Awesome Advertisers

Top 1% 6x Higher!! Unicorns

Larry Kim (@larrykim) #searchex

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@larrykim

Ad Unicorns?! (6x Avg. CTR!)

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Ad Text Testing

• Same Story – 20% of Ads Generate 92% of Spend• 20% of Ads Generated 65% of Impressions• But CPA, CTR, and Conversion Rates vary

@larrykim, @perrymarshall

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1. Keywords With High Commercial Intent

Larry Kim (@larrykim) #searchex

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Does Dynamic Keyword Insertion Matter?

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What is Dynamic Keyword Insertion?

Larry Kim (@larrykim) #searchex

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2. Dynamic Keyword Insertion (DKI)

Larry Kim (@larrykim) #searchex

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2. DKI Doesn’t Produce As Many Unicorns

Larry Kim (@larrykim) #searchex

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Do Ad Extensions

Matter?

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What Are “Ad Extensions”?

58Larry Kim (@larrykim) #searchex

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3. Ad Extensions Impact on Click Through Rate

Larry Kim (@larrykim) #searchex

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3. Ad Extensions Impact on Quality Scores

Larry Kim (@larrykim) #searchex

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How To Write “Unicorn” Ads

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4. Most Ads Suck. Create Emotional Ads.

62Larry Kim (@larrykim) #searchex

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Creating “Emotional” Ads

Larry Kim (@larrykim) #searchex

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An Example:

Larry Kim (@larrykim) #searchex

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Versus…

Larry Kim (@larrykim) #searchex

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You Need To Test 100 Ads To Find 1

Unicorn.

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Relative Abundance

Name Percentile Relative Abundance

Vs. Expected CTR

Awesome Ads

Top 15% 1:6.7 2X Higher

Super Awesome Ads

Top 5% 1:20 3x Higher

Unicorns Top 1% 1:100 6x Higher!!

Larry Kim (@larrykim) #searchex

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You’re Not Testing as Many Ads as You Think…

Larry Kim (@larrykim) #searchex

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It’s Not as Hard As You Think

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Most Small Businesses Aren’t That Active

Larry Kim (@larrykim) #searchex

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85% of Impressions are From 5% of Ads

Larry Kim (@larrykim) #searchex

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Converting Clicks Into Leads

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The Great Landing Page Optimization Fairy Tale

• We Changed the: – Font Type– Spacing– Button Color– Image– Etc.

• We got a 5% Increase in Conversions!!*

Larry Kim (@larrykim) #searchex

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Typical Conversion Rate Optimization Test

• PTD- Premature Testing Dilemma (aka “Optimizatitis”)– The Early Lead Disappears!

– We want to believe our hard work paid off but we are often deluding ourselves…

Larry Kim (@larrykim) #searchex

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Conventional Landing Page Optimization is Over-Rated

• Small Changes Result in Small Changes

• The x% Increase you think you got probably isn’t significant!

Larry Kim (@larrykim) #searchex

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Re-Arranging Deck Chairs On the Titanic

Larry Kim (@larrykim) #searchex

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What’s a Good Conversion Rate?

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What’s a Good Conversion Rate?

Larry Kim (@larrykim) #searchex

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Unremarkable vs. Unicorns

Distribution Point Conversion Rate Vs Average Comments

Average 2.35% Unremarkable

Top 25% 5.31% 2x Awesome

Top 10% 11.45% 3-5x Unicorns

Larry Kim (@larrykim) #aearchex

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“top 10% of accounts have a CVR 3x average” rule

Larry Kim (@larrykim) #searchex

Distribution Point

All accounts Ecommerce Legal B2B Finance

Median Conversion Rate

2.35% 1.84% 2.07% 2.23% 5.01%

Top 25% Conversion Rate

5.31% 3.71% 4.12% 4.31% 11.19%

Top 10% Conversion Rate

11.45% 6.25% 6.46% 11.70% 24.48%

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Aim For 2-5x Increases Not 2-5%!

Larry Kim (@larrykim) #searchex

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@larrykim

Landing Page Unicorns?! (+3x Avg. Conversion Rate!)

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What Do Landing Page Unicorns

Look Like?

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1. Change The Offer

Larry Kim (@larrykim) #wordstream

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The New Offer:

CONFIDENTIAL – DO NOT DISTRIBUTE 85

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How to Know if your Offer Stinks

• Average or Below Average Conversion Rates

• Ask Your Customer!

Larry Kim (@larrykim) #searchex

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2. Change The Flow.

Larry Kim (@larrykim) #searchex

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2. New Flow: Registration At End

Larry Kim (@larrykim) #searchex

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Another Example of Changing The Flow

Larry Kim (@larrykim) #searchex

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Changing the Flow: Let Them Choose

Larry Kim (@larrykim) #searchex

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You Need To Try Out 10 Landing Pages To Find 1

Unicorn

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Relative Abundance

Name Percentile Relative Abundance

Vs. Expected Conversion Rate

Awesome Landing Pages

Top 25% 1:4 2x Higher

Unicorns Top 10% 1:10 5x Higher!!

Larry Kim (@larrykim)

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Larry Kim (@larrykim)

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This is the same landing page with different spacing…

Larry Kim (@larrykim) #searchex

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Again,It’s Not as Hard As

You Think

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80% of Traffic Goes to 10% of Landing Pages

Larry Kim (@larrykim) #searchex

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The Bar for Landing Page Excellence is (Very) Low

Larry Kim (@larrykim) #searchex

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You Don’t Need Dozens of Landing Pages…

Larry Kim (@larrykim) #searchex

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But You Don’t Need Dozens of Landing Pages…

Larry Kim (@larrykim) #searchex

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Understanding Mobile PPC

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Larry Kim (@larrykim)Source: BIA/Kelsey

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Larry Kim (@larrykim)

OMG a Call Button!!

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Larry Kim (@larrykim) #searchex

Call Extensions Radically Change The Flow!

Calls to Businesses worth on Average 3x More Than Clicks to Websites!!

4. Captured Lead

2. Calls Business

2. Clicks On Ad

Desktop Search Conversion Funnel

3% Avg. Conversion Rate

Mobile Conversion Funnel

1. Sees Ad 1. Sees Ad

3. Visits Website Landing Page

3. Lead Captured!!

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Larry Kim (@larrykim) #searchex

No, You Don’t Need A Mobile Website!

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Larry Kim (@larrykim) #searchex

Avg. CTR Drops Off VERY Fast on Mobile

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Larry Kim (@larrykim) #searchex

Mobile Impression Share VERY Competitive

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Converting Traffic withRemarketing

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Typical Conversion Rates Are in Single Digits

of people who visit a website leave without completing the actions marketers want them to take

~97%

Your Ad

Your Site

X-

of people abandon their shopping cart without completing a purchase

70%

Larry Kim (@larrykim) #searchex

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How Remarketing Works

Larry Kim (@larrykim) #searchex

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Typical Reach of Remarketing…

1. Reach 2. Frequency 3. DiversityOn various pagesReach more users

Reach them frequently

Of the typical remarketing audience, find

Reach them on between As they visit 20 or more pages on a typical day across

84%…within a month

10-18 days… or more out of the month

5-10 sites… of which all pages and

sites have ad space available to Google Display Network buyers

Larry Kim (@larrykim) #searchex

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Audience Definition Strategy

• Funnel and Product Based List Segmentation

Larry Kim (@larrykim) #searchex

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WordStream’s Remarketing Ads

• Ads that both reinforce your brand while driving to a conversion!

Larry Kim (@larrykim) #searchex

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Impact on Repeat User Rate

• New Visitor Rate Fell From 79.8% to 66.63%

• (Meaning, Visitors are Now Returning)

Larry Kim (@larrykim) #searchex

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Impact on User Engagement

• Time on Site Increased from 1:33 to 4:35 (TRIPLED!!)

Larry Kim (@larrykim) #searchex

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Remarketing = Your Secret Weapon

Larry Kim (@larrykim) #searchex

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+1000 AdWords Updates Per Year

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Gmail Ads

#SEMhacks

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Subject Line & Teaser:

#SEMhacks

Desktop Search Conversion Funnel Mobile Conversion FunnelX-

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Email Ad:

#SEMhacks

Desktop Search Conversion Funnel Mobile Conversion FunnelX-

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YouTube Ads

#SEMhacks

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Example Ads

#SEMhacks

Desktop Search Conversion Funnel Mobile Conversion FunnelX-

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Hundreds of New Features / Year

#SEMhacks

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1. Delete Bottom Third of your Search Marketing Campaigns

2. Redeploy Budget to Remarketing and Other New Features

Crazy PPC Strategy!!

Larry Kim (@larrykim) #searchex

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Summary: Weirdest Intro to PPC Ever

1. Just Say No to Low CTR!

2. Write Insane Ads that Get 3x Avg. CTR

3. Crazy Offers that Get 3x Conversion Rates

4. Use Mobile Search to Triple ROI

5. Convert Customers with Remarketing

Larry Kim (@larrykim) #searchex

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Thank You Search Exchange!

Larry Kim (@larrykim) #searchex

Slides: bit.ly/searchex2014