500Startups Mexico #500Strong

1twitter @meetsamir

@500 Mexico City, Feb 12th

2twitter @meetsamir

The Growth Master

• Founder, CEO of DoRevolution and Growth

Mentor at 500Startups, Optimized $1B+ in Ads.

• Founder of SearchForce and pioneer to apply

Wall Street Analytics and Quantitative Trading

Techniques to Advertising for Portfolio

Optimization. Raised $10M+ in financing,

developed a Cross-Channel Optimization SaaS

Platform Based and took the company to

profitability.

• MBA in Brand Marketing from Cornell's Johnson

School of Business.

3twitter @meetsamir

Dave McClure Startup

Ecosystem

3

• 1,000 Bootstrap Startups ($0-10K)

• = 1,000 Parents/Garages/Basements @ $0-500/mo food+rent

• 300 Accelerator Startups ($10-100K)

• = 10-20 Accelerators @ $1-5M/yr, 20-50 co’s/yr

• 100 Seed-Stage Startups ($100K-$1M)

• = 5-10 Micro-VC Funds @ $10-30M/yr, 10-20 co’s/yr

• 30 Series A/B Startups ($1-10M)

• = 3-5 Early-Stage Funds @ $25-100M/yr, 5-10 co’s/yr

• 10 Later-Stage Companies ($10-100M)

• = 2-3 Later-Stage Funds @ $50-250M/yr, 3-5 co’s/yr

• 1-3 Mature Company IPOs ($100M+)

4twitter @meetsamir

Growth Trumps all Metrics

4

• High growth companies return 5X more to

share holders

• Growth predicts long-term success

• SuperGrowers (growth rate >60%) when

reached $100M were 8X more likely to

reach $1B than ones <20% growth rate

• Growth matters more than margin or cost

structure. Increases in revenue growth rates

drive 2X as much market cap gains

- McKinsey & Company

5twitter @meetsamir

Action for You

Grow Fast

or

Die Slow

6twitter @meetsamir

7twitter @meetsamir

Reach by Network

• Google Search -100 billion global web searches

per month. 71% of search market share

• Google Display – Over 1 billion monthly users, 6

billion ad impressions per month

• AdWords for Video – Over 1 billion unique users

per month on YouTube alone

• AdCenter – 29% search market share

• Facebook – 1.28 billion active users

• Twitter – 645 registered users

• Linkedin – 300 million users

8twitter @meetsamir

Platforms 2.0Search, Social, Mobile,

Video, Messaging

$100M+ Users Available

~ Dave McClure

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Hyper Inflation & Irrational

Bidders

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Unprecedented Complexity


But Growth is Hard

• Rapid Evolution of

Markets

• Speed & Machines

• Lots of Money at Stake

• Increasing precision

brings complexity


Easy to Lose Money

It’s Complex.

Figure out the Gap in your skillset.

Pre-mature conclusions


Precision Marketing


Where to Start?• If you’re trying to drive sales, have a limited budget,

and need your advertising investment to deliver a

specific return, or at least be directly profitable, start

with the Search Network only.

• If you’re trying to drive sales but you feel you’ve

exhausted the Search market and still have additional

budget to spend, expand to Google Display Network

(GDN ) & Adwords for Video (AFV) targeting.

• If you’re trying to drive sales plus expand awareness

and grow your brand, go with all three.

• If you have a product or service that’s not well known,

and users aren’t likely to search for it directly, or it’s

value is hard to explain in a text ad, stick with GDN and

AFV targeting. (Video can be particularly useful here!)


Actions• Grow Fast or Die Slow

• Markets are hyper-competitive and inflated

• Companies are using Artificial Intelligence,

Math and Stats to gain competitive

advantage

• Companies are hiring the best and brightest

minds and paying billions for them. It’s the

TEAM stupid.

• Easy to spend money, hard to make money

• Bottom-line : Pay attention OR you will end

up in the dead pool.


How to Build an Adwords Growth

Engine

• Scalable

• Repeatab

le

• Predictab

le


8 Qualities of World Class Growth

Teams• Possess Data-Driven Thinking

• Rapid Learners of Dynamically Changing

Marketing Channels and Growth Platforms

• Understand Growth Process

• Are Highly Product-Savvy

• Have a Hustle Mindset

• Possess a Cross-Disciplinary Skillset

• Connect Marketing to Product Development

• Possess Technical Acumen

• Hiring connections


Hack 41-46 Cultivate Skills


Action for You

Reflect on your current

know-how


Process

• KPI’s

• Growthaly

tics

• Kaizen


Website.com

Emails &

widgets

Campaigns,

Contests

Biz DevAds, Lead Gen,

Subscriptions, etc

Homepage /

Landing Page

Product

Features

1. ACQUISITION

SEOSEM

Apps &

Widgets

Affiliates

Email

PR Biz

Dev

Campaigns,

Contests

Direct, Tel,

TV

Social

NetworksBlogs

Domains

Emails &

Alerts

Blogs,

Content

System Events &

Time-based Features

~ Dave McClure


~ Brian Balfour


Action

Establish

Clear,

Quantifiable

Goals.


Customer Lifecycle

• Acquisition: users come to the site from various channels

• Activation: users enjoy 1st visit: "happy" user experience

• Retention: users come back, visit site multiple times

• Referral: users like product enough to refer others

• Revenue: users conduct some monetization behavior

AARRR!

~ Dave McClure, 500Startups


Action

Think

Lifecycle.

Customer

Journeys.


Steps to Build an Adwords Account

• Expertise to manage Adwords

• Define your Audience

• Budgeting

• Keyword Research

• Writing Ads

• Building out the Account Structure

• 5 Pillars of Optimization


Experiment

• Objective

• Hypothesis

• Design

• Resource Estimation

• Results

• Findings

• Action Items


Running Growth Experiments


Action

You must breathe

Continuous Improvement

38twitter @meetsamirEstablish Objectives and Key

Results (OKRs)

• Set your objective based on what’s going to

have the greatest impact on your business

right away

• Establish a timeline for testing

• Set multiple Key Results (KRs) based on

level of difficulty:

KR 1 – 90% chance of success. You did a good job.

KR 2 – 50% chance of success. You did a great job.

KR 3 – 10% chance of success. You hit it out of the park!


Example -- Growth via Adwords:

Goal: Lower their CPA for accredited investor signups via AdWords without a significant drop in conversion volume.

1. Focus on Search Network to drive lower CPA

2. Set timeline for 60 days

3. Three Key Results will be attempted:

• KR1 -- (90% change of success): Raise conversion volume by 10% by focusing on strategic bid modifications RLSA audience lists.

• KR2 – (50% chance of success): Lower CPA by 20% by limiting the keywords they buy to high performing terms only, and setting location bid modifications by income-tier.

• KR3 – (10% chance of success): Lower CPA by 20% and raise conversion volume by 10% by combining these two strategies.


Action

Establish

OKR’S for

everyone on

the team.


Account Structure Pillar


Keywords Pillar


Keyword Pillar


Landing Page Pillar


Ad Copy Pillar


Analytics Pillar


Core Concept : Relevance


Core Concept : Bounce Rate


Quality Score Calculations


Core Concept : Quality Score


Tests


10 PPC Optimization Tips

• Search Query Report

• Keyword Match Types

• Cross Pollinations: SEO and SEM

• Ad Copy Testing

• Segmented Reporting for Day Parting

• Using Ad Extensions

• Budget Adjustments

• Competitive Terms

• Campaign Structure

• Device Based Bidding


AD EXTENSIONS

SELLER RATINGS

SITELINKS CALL EXT.

LOCATION EXT.

GOOGLE+


Accelerating

Growth via

Mobile

Advertising


Tell them before you tell them

• Mobile Multiple Touch Points

• Calls

• Apps

• Cross Device

• Mcommerce & Mobile Sites

• In store

• 4 Tips: Optimizing Mobile PPC


Calls

• This may sound obvious but let's not forget

smartphones facilitate an action that is native

to the device itself: phone calls. Customers

sometimes prefer to purchase by phone.

• how a spontaneous party was made possible

with purchases made via phone calls.


Apps

• Mobile App Economy is 29.5B Gartner, 50B

downloaded, 1M apps, 190 Countries

• Apps are a great way to enrich your

relationship with your customers. App

downloads and transactions that happen

within your apps are two important sources of

value from mobile.

• When consumers download your app, it

creates new opportunities for conversions.


Open An Existing App


App Downloads


New App Ads

• New Installations: Mobile App promotions

across search, display and YouTube.

• Extract and suggest keywords based on Google

Play and Google Seach

• Target Customers based on apps they use,

frequency of use and in-app purchase history

• Reengagement: Ads that redirect inside of

apps already installed, Deep Linking

• Conversion Measurement: Installation,

Reengagement & In-App Purchases


Mcommerce & Mobile Sites

• A mobile-friendly site is the cornerstone of

any mobile strategy and makes it easier for

your customers to purchase directly from

their smartphones.


4 Mobile PPC Optimization Tips

• Mobile Bid Adjustments : Need to get on top positions because of form factor, bid higher for location based targeting.

• Mobile Preferred Ads : Separate mobile/desktop, Call directly or provide a promotion based on time. Different URL for mobile.

• Call Extensions: Ad scheduling based on call center, Your own number or Google’s forwarding number

• On Site Call Conversions: Track calls from phone number embedded on website when users need to reach more before they buy


Hack # 87

Adwords is a every changing Beast. Tame it with Process.


BuiltWith

DoubleClick, Twitter Ads, AdRoll, RocketFuel, MailChimp, AppNexus, GA, CloudFront etc


SpyFu


Moat


Moz Links Explorer


KeywordTool.io


Exit Intent Technology


Samir [email protected]

President & CEO,

DoRevolution

Growth Mentor

@500Startups

Connect on Linkedin

Twitter@MeetSamir

mailto:www.linkedin.com/in/growthmaster/

500Startups Mexico #500Strong

Marketing

Transcript of 500Startups Mexico #500Strong