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The Top 10 PPC Marketing Hacks of All Time! Larry Kim, Founder/CTO, WordStream Nov. 17, 2014

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The AdWords ad auction is just another algorithm and any computer algo can be cracked. In this session I’ll review my analysis of $10 Billion in paid search spend and precisely explain how AdWords really works, and how to leverage various idiosyncrasies and system loopholes to generate massive profits using a purely white-hat approach. I’ll also cover a half dozen of the most insanely powerful features that are used by less than 3% of advertisers which have demonstrated ability to increase average returns by +2x each.

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Page 1: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

The Top 10 PPC Marketing Hacks of All Time!

The Top 10 PPC Marketing Hacks of All Time!Larry Kim, Founder/CTO, WordStreamNov. 17, 2014

Page 2: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

About Larry (@larrykim)

1. Founder & CTO of WordStream

2. Commander of the Google AdWords Quality Score Rebellion

3. Had First Kid 6 Months Ago (#ppckid)

Larry Kim (@larrykim) #stateofsearch

Page 3: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Agenda: The Top 5 PPC Hacks of All Time!

You are Engaging in PPC Hacks and are a Traitor …

Larry Kim (@larrykim) #stateofsearch

Page 4: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

FYI -- Slides Posted Here:

• http://bit.ly/stateofsearch2014Larry Kim (@larrykim) #stateofsearch

Page 5: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

#10. HackingQuality Score in AdWords

Page 6: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Understanding the AdWords Auction

Page 7: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Larry Kim (@larrykim) #stateofsearch

Page 8: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

How Quality Score Impacts Ad Position

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

Larry Kim (@larrykim) #stateofsearch

Page 9: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Quality Score Impacts Cost Per Click

Larry Kim (@larrykim) #stateofsearch

Page 10: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Quality Score Impacts Impression Share

Larry Kim (@larrykim) #stateofsearch

Page 11: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Impression Share 2x More Competitive on Mobile

Larry Kim (@larrykim) #stateofsearch

Page 12: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Quality Score Impacts Cost Per Conversion

Larry Kim (@larrykim) #stateofsearch

Page 13: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

So.. Get a High Quality Score!

Duh, Awesome!

Larry Kim (@larrykim) #stateofsearch

Page 14: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

How is Quality Score

Calculated?!

Page 15: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

This is The Expected Click Through Rate Curve…

Larry Kim (@larrykim) #stateofsearch

Page 16: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Just Beat Account Avg. Expected Click Through Rate!!

Larry Kim (@larrykim) #stateofsearch

Page 17: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX
Page 18: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Quick Recap So Far …

• Below Avg. CTR = Low QS• Low QS means…

– Less prominent ad positions

– Very low impression share– Huge CPC penalties

(+400% Tax)– High Cost Per Conversion

(+64%)

Larry Kim (@larrykim) #stateofsearch

Page 19: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

# 9. Hacking Ad CTRs with “Unicorn Ads”

Page 20: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Google Expects (A Lot) More Of Your Ads

Larry Kim (@larrykim) #stateofsearch

Page 21: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

CONFIDENTIAL – DO NOT DISTRIBUTE 21

Forest vs. Trees

Page 22: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Here’s a Map of the Forrest…

Larry Kim (@larrykim) #stateofsearch

Page 23: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Donkeys vs. Unicorns

Percentile Vs. Average CTR Designation

Bottom 50% n/a DONKEYS

Top 15% 2x

Top 5% 3x

Top 1% 6x UNICORNS

Larry Kim (@larrykim) #stateofsearch

Page 24: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

CONFIDENTIAL – DO NOT DISTRIBUTE 24

Unicorns Ads(6x Avg. CTR - HOW?!)

Page 25: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

CONFIDENTIAL – DO NOT DISTRIBUTE 25

Hunting Unicorn Ads

Page 26: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Keywords With High Commercial Intent

Larry Kim (@larrykim) #stateofsearch

Page 27: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

What About Dynamic Keyword Insertion? (DKI)

Larry Kim (@larrykim) #stateofsearch

Page 28: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

DKI Doesn’t Produce as Many Unicorn Ads

Larry Kim (@larrykim) #stateofsearch

Page 29: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

What About Ad Extensions?

Larry Kim (@larrykim) #stateofsearch

Page 30: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

How To Write “Unicorn Ads”?

(Top 1%, 6x Average

CTR)

Page 31: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Most Ads (+90%) Suck.

31Larry Kim (@larrykim) #stateofsearch

Page 32: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

The Hack: Ads That Trigger Emotions

Larry Kim (@larrykim) #stateofsearch

Page 33: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

This Ad Gets 6x Above Avg. CTR

Larry Kim (@larrykim) #stateofsearch

Page 34: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Because Everyone Else Sucks

Larry Kim (@larrykim) #stateofsearch

Page 35: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

These Emotions Make People Click

Larry Kim (@larrykim) #stateofsearch

Page 36: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Larry Kim (@larrykim) #stateofsearch

Page 37: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

CONFIDENTIAL – DO NOT DISTRIBUTE 37

# 8. Quality Score Sculpting

Page 38: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Crazy Hack To Increase Quality Scores

•Add 10% Branded Terms to Raise Account Average Quality Scores

•Delete the Bottom Third of Your PPC Account and Move the Budget to Remarketing Instead

Larry Kim (@larrykim) #stateofsearch

Page 39: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Example Crap Account

•Mix of above and below average keywords

Larry Kim (@larrykim) #stateofsearch

Page 40: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Example Crap Account

• Notice how the account has no high QS keywords!

Larry Kim (@larrykim) #stateofsearch

Page 41: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Example Awesome Account

• Mostly above average CTR keywords, some below avg.

Larry Kim (@larrykim) #stateofsearch

Page 42: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Example Awesome Account

• Notice how the account has only high QS keywords!

Larry Kim (@larrykim) #stateofsearch

Page 43: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Example Crap Account

• Notice how the account has no high QS keywords!

Larry Kim (@larrykim) #stateofsearch

Page 44: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Example Crap Account

• Notice how the account has no high QS keywords!

Larry Kim (@larrykim) #stateofsearch

Page 45: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

What’s a Good Quality Score These Days?

• Current Average ~5/10

• Previously 7/10

• As average values drift lower, above average QS worth up to 200% more than before!

Larry Kim (@larrykim) #stateofsearch

Page 46: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

So What To Do With My Keywords?

• If Your Keyword’s Quality Score is…– 1 to 3: Delete

Immediately– 4 to 6: Fix / Optimize– 7 to 10: Don’t Mess

with Success

Larry Kim (@larrykim) #stateofsearch

Page 47: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

CONFIDENTIAL – DO NOT DISTRIBUTE 47

# 7. Remarketing Lists for Search Ads (RLSA) CTR Hack

Page 48: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Remarketing Lists for Search Ads (RLSA)

• Customize Ads To Users Who Previously Visited Your Site

• On Average:– Doubles Click Through

Rates (Raises Quality Score)

– Cuts CPC’s in Half!!

Larry Kim (@larrykim) #stateofsearch

Page 49: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

CONFIDENTIAL – DO NOT DISTRIBUTE 49

# 6. Quality Score for Google Display Network = Insanely Low CPC’s

Page 50: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

A 0.1% +/- in CTR yields +/- 20% in CPC!

Quality Score Exists on Google Display Network!!

Higher CTR = Lower

CPC

Higher CTR = Lower

CPC

Larry Kim (@larrykim) #stateofsearch

Page 51: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

The Hack: Make Display Ads With Very High CTR

Larry Kim (@larrykim) #stateofsearch

Page 52: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

About Those “Display Ads”…

• 67.5% of Display Ads are Plain Text Ads!

Larry Kim (@larrykim) #stateofsearch

Page 53: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

CTR of “Display Ads” Based on Ad Format

Ad Format on Google Display Network

Click Through Rate

Text ads that are formatted as Images

0.23%

True Image ads 0.31%

Larry Kim (@larrykim) #stateofsearch

Page 54: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Huge Tax on “Text Display Ads” vs. True Image Ads

Google Display Network Ad Format

CPC (USD)

Text $2.31

Custom Image $0.48

Larry Kim (@larrykim) #stateofsearch

Page 55: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

1. Push Display Ads To Your Offers

Larry Kim (@larrykim) #stateofsearch

Page 56: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Do a Conversion Path Analysis

Define audience segments using the pages that most often lead to a conversion event

Larry Kim (@larrykim) #stateofsearch

Page 57: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Conversion Rates vs. Ad Impressions

Larry Kim (@larrykim) #stateofsearch

Conversion Rates Double With More Ad Impressions!

Page 58: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

2. Push Display Ads to Content

Larry Kim (@larrykim) #stateofsearch

Page 59: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

~5% of Blog Content Gets ~50% of Social Shares

Promote These Top 5% of Articles!!!

Larry Kim (@larrykim) #stateofsearch

Page 60: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

These Emotions Make People Click on Things

Larry Kim (@larrykim) #stateofsearch

Page 61: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

The Hack: Make Display Ads Look More Like Content

Larry Kim (@larrykim) #stateofsearch

Page 62: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

CONFIDENTIAL – DO NOT DISTRIBUTE 62

# 5. Get 3x More Impressions on Google Display Network

Page 63: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

14 Display Ad Formats on GDN

• Vertical rectangle: 240 x 400• Mobile leaderboard: 320 x 50• Banner: 468 x 60• Leaderboard: 728 x 90• Square: 250 x 250• Small square: 200 x 200• Large rectangle: 336 x 280• Inline rectangle: 300 x 250• Skyscraper: 120 x 600• Wide skyscraper: 160 x 600• Half-page: 300 x 600• Etc.

Larry Kim (@larrykim) #stateofsearch

Page 64: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Different Ad Formats Don’t Compete With Each Other

Larry Kim (@larrykim) #stateofsearch

Page 65: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Diversify Your Ad Formats = 3x Impressions

Ad Format Share ofImpressions

Leader board (728 x 90) 25.5%Inline rectangle (300 x 250) 25.1%Banner (468 x 60) 12.0%Wide skyscraper (160 x 600) 10.1%Large Rectangle (336 x 280) 8.6%Mobile leaderboard (320 x 50) 7.4%Half-page (300 x 600) 4.3%Square (250 x 250) 2.8%

Larry Kim (@larrykim) #stateofsearch

Page 66: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

CONFIDENTIAL – DO NOT DISTRIBUTE 66

# 4. Crazy Mobile Hack to Triple Conversions

Page 67: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Mobile is Very Different…

OMG a Call Button!!

Larry Kim (@larrykim) #stateofsearch

Page 68: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Call Extensions Change Everything!!

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!!

Larry Kim (@larrykim) #stateofsearch

Page 69: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Forget Mobile Sites and Landing Pages!

Larry Kim (@larrykim) #stateofsearch

Page 70: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

CONFIDENTIAL – DO NOT DISTRIBUTE 70

# 3. New Gmail Ads!

Page 71: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Larry Kim (@larrykim)Larry Kim (@larrykim) #stateofsearch

Page 72: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Subject Line and Teaser …

Larry Kim (@larrykim) #stateofsearch

Page 73: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Email Ad!

Larry Kim (@larrykim) #stateofsearch

Page 74: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

The Hack: Target Your Competitor’s Emails

Larry Kim (@larrykim) #stateofsearch

Page 75: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

# 2. New People Based PPC Marketing!

Page 76: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Facebook “People Advertising”

Larry Kim (@larrykim) #stateofsearch

Page 77: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Twitter, Too!

Larry Kim (@larrykim) #stateofsearch

Page 78: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

The Hack: Think of PPC More Like Email Mktg.

Email Marketing

• Limit Number of Blasts To Reduce Unsubscribes

• 0.5-2% Unsubscribes Each Blast

• People Need To Opt Into Your List

• Tons of Unqualified Emails on the List

People Based Marketing

• N/A

• N/A

• N/A

• N/A

Larry Kim (@larrykim) #stateofsearch

Page 79: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

# 1. First Mover Advantage

Page 80: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

+1000 New Features Every Year!!

Larry Kim (@larrykim) #stateofsearch

Page 81: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

TrueView Ads in YouTube!

Larry Kim (@larrykim) #stateofsearch

Page 82: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

+Post Ads for Google+

Larry Kim (@larrykim) #stateofsearch

Page 83: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

My Google+ Story…

Larry Kim (@larrykim) #stateofsearch

Page 84: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Google+ Visibility Before and After!

AfterBefore

Larry Kim (@larrykim) #stateofsearch

Page 85: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Summary: The Top 10 AdWords Hacks of All Time!

1. Say No to Low CTR!

2. Unicorn Ads Get +6x Average CTR

3. Delete Crap in Your Account

4. RLSA 2x CTR, 1/2 CPC

5. Quality Score on Google Display Network = Cheap Clicks

6. Hacks to Get More Ad Impressions on GDN

7. Triple Conversion Rate with Mobile

8. Get in People’s Gmail Inboxes!

9. Target Specific People on Facebook and Twitter

10.Always be First Mover!

Larry Kim (@larrykim) #stateofsearch

Page 86: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Flywheel Effect: Paid

Don’t Settle For Average – Be a Unicorn Among a Sea of Donkeys!

Page 87: The Top 10 PPC Hacks of All Time - Larry Kim's Presentation for State of Search 2014 in Dallas, TX

Thank You #stateofsearch!

Slides: bit.ly/stateofsearch2014

Larry Kim (@larrykim) #stateofsearch