Google and WordStream Webinar:
3 Paths For Small Business PPC
Profitability
Howard Tung, Google
Larry Kim, WordStream
May 9, 2012
• Introductions
• Key Trends in Online Marketing for 2012 from
• Trivia & Poll
• 3 Paths for PPC Success
• Questions & Answers
Today’s Agenda
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Take Part in Live Blogging on Twitter / Google+
• Include the hashtag #3pathsppc in your Google+ status updates,Twitter tweets,, etc.
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Speaker Introductions
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• Howard Tung
– 8+ years in Online industry with Google, Microsoft, and IGN Entertainment
– Recently joined Google in early 2010 to focus on Strategic Partnerships for Small-Medium Business/ Local Channel.
• Larry Kim
– Founder, CTO, WordStream, Inc.
– Been doing PPC & SEO for 10 years
– 3 years ago, started WordStream
– Today we’re an industry-leading provider of a PPC Management Platform and Keyword Research Tools
– WordStream helps people get their website found on the internet!
Let’s learn a little about you….
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Quick Poll
How long have you been involved with Search
Marketing?
o Less than 1 year
o 1-3 years
o 3-5 years
o 5+ years
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Quick Poll
How would you describe your Search Marketing
results?
o I’m new to Search Marketing
o Who knows – I don’t measure my results
o Disappointing – I expected so much more from PPC
o Satisfactory – I’m seeing return on my investment into
PPC
o Stellar – PPC is my most successful lead/traffic
generating channel
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Google Confidential and Proprietary
Digital Overview
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Acceleration of Everything
Google Confidential and Proprietary
Digital Revolution in Context
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Information “Read”
Distribution & Commerce
“Buy” Communication
“Talk”
1994 2010 1998 2000 2003 2006
1.9B Internet Users: 77M 400M 500M 1B
Google Confidential and Proprietary
The Connected World
> 2bn people
> 35bn devices
10 Source: “Learn from Google” Atlanta Event, 2011
Google Confidential and Proprietary
Ad spend is following consumers online
Source: eMarketer, March 2011; Share of Avg. Time Spent Per Day with Select Media by U.S. Adults vs. U.S. Ad Spending Share, 2010
11% magazines
43% tv
19% online
17% newspapers
11% radio
5% newspapers
3% magazines
43% tv
25% online
16% radio
0.5% mobile
8% mobile
gap between ad
investments and media
consumption
untapped audience consumers’ media consumption
advertising Investments
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Google Confidential and Proprietary
Source: *Yahoo! and com Score Study Finds Online Consumers Who Pre-Shop on the Web Spend More In-Store. July 2007. **Source: Google
1 in 5 desktop searches are related to location.**
1 in 3 mobile searches are related to location.**
97% online consumers use the web
to research for products.*
There is immense opportunity in Local
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Google Confidential and Proprietary
Healthy Y/Y grow in searches for “Local” verticals
Source: Google Internal Data, YoY is last 90 days 13
Ind
ex
ed
Qu
ery
Gro
wth
Google Confidential and Proprietary
The Four B’s
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Addressing the Local Opportunity
Google Confidential and Proprietary
The Four Be’s
Be Accountable
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Be Relevant Be Found
Be Engaging
> Be Engaging Be Accountable
Google Confidential and Proprietary
Be Found - Search
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• Search: Still the Web’s killer app
• Advertisers’ pay when users click on their ad & visit their page
Google Confidential and Proprietary
Be Found – G+ Pages
in the real world, people interact with businesses every day. google+ brings those rich relationships online.
• Start real conversations
• Inspire your customers to recommend new ones
• Boost the performance of your ads across the web
Google Confidential and Proprietary
Be Relevant - Mobile
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>
• Mobile: bigger than desktop within 3 years
• Mobile searches grew 500% in the last 2 years
• After looking up a local business on a smartphone, 61% of users called and 59% visited
Google Confidential and Proprietary
Time
Tra
ffic
7am
1pm
8pm
11pm PC
Mobile
Mobile allows for constant connectivity
Source: Internal Google Data 2010, typical across different markets
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Google Confidential and Proprietary
Mobile complements desktop
Source: Citi Investment Research and Analysis; iCrossing Mobile U.S. Google Internal Data, 2010
Weekly View
Desktop Searches vs. Mobile Searches
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Google Confidential and Proprietary
Be Engaging - Display
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• Google Display Network reaches over 90% of internet users
• Engaging ad formats – rich media, banner, and video ads
Google Confidential and Proprietary
Search5%
Email & IM20%
Commerce11%
Content38%
Community26%
•Nearly four in 10
Internet users who respond to online
display advertising learn about the
brand/SMB for the first time as a
result of their exposure to such an
ad.
•Nearly four in 10 Internet users eventually perform a
search on the company, product, or
service that is the focus of the online
display ad to which they are
exposed, and then visit the website
from the search results.
Think search + display
Reach customers while they explore their interest
95% of Time Online is Spent Outside of Search
Source: Online Publishing Association and Nielsen//NetRatings, August 2010; iProspect Research 2010
Google Confidential and Proprietary
Be Accountable - Measurement
Measure site performance and ROI
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Google Confidential and Proprietary
The Four Be’s
Be Accountable
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Be Relevant Be Found
Be Engaging
> Be Engaging Be Accountable
CONFIDENTIAL – DO NOT DISTRIBUTE 25
Sounds great but
how do I actually
DO this??
Do you understand these terms?
CONFIDENTIAL – DO NOT DISTRIBUTE 26
PPC Trivia! 5 Quick Questions about AdWords Accounts
1. How often do small businesses (spending
under $5k / month on AdWords) do work in
their AdWords account?
CONFIDENTIAL – DO NOT DISTRIBUTE 27
Answer:
• 50% of them don’t even check once per month
• 25% haven’t done anything in the last 90 days
• Agencies and advertisers appear to be equally
guilty...
PPC Trivia! (Continued)
2. What percentage of AdWords
accounts have used at least 1
negative keyword in the last 90 days?
CONFIDENTIAL – DO NOT DISTRIBUTE 28
Answer:
• Less than 50%
• And 20% of them have yet use a negative
keyword… ever…
PPC Trivia! (Continued)
3. What percentage of AdWords
accounts use Conversion Tracking?
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Answer:
• Less than 50% of advertisers have
Conversion Tracking on. That means
they don’t know what’s working.
CONFIDENTIAL – DO NOT DISTRIBUTE 30
The Average PPC Account for Small
& Medium-Sized Businesses.
Complexity and lack of time
results in poor understanding
of search.
Poor
Understanding
Yields Poor
Results
Advertisers get frustrated,
conclude PPC doesn’t work
for them.
What we know about PPC Failure
CONFIDENTIAL – DO NOT DISTRIBUTE 31
1. Identify the potential
2. Choose your yard stick
3. Take stock of your resources
4. Choose one of 3 paths to PPC Success!
Getting your PPC Marketing on the
Right Track
Step 1: Identify the potential
– Is your business a good fit for PPC?
– Guestimate the potential
– Figure out an initial budget
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• Baseline your performance
• A free, instant PPC audit in under a minute!
• Grades your AdWords account performance based on the 8 PPC metrics that really matter
• Compares how you’re doing against other accounts of similar size (monthly spend)
• http://www.wordstream.com/google-adwords
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Grade Yourself! http://www.wordstream.com/google-adwords
Step 2: Choose Your Yardstick
How will you measure success?
– Sales: Return on Ad Spend (e.g. Online
Retail)
– Leads: Cost per lead
• Comparing it to the average value of a
lead
• Comparing to what you pay for other
marketing venues
– Traffic: Driving traffic to your site (or calls
to your business)
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Better
Accountablity
but Harder to
implement.
Less
Accountability
but Easier to
implement.
Step 3: Define your Resources
What can you devote to your PPC Program?
– Time
• How much time can you devote?
– Budget
• How much budget do you have?
– Staff
• Hire vs. outsource?
CONFIDENTIAL – DO NOT DISTRIBUTE 36
Step 4: Choose a Path
1. Do it yourself
2. Leverage software
3. Outsource to an Agency
CONFIDENTIAL – DO NOT DISTRIBUTE 37
There are really 3 PPC Implementation Paths
Path 1: Do it Yourself
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Pros Cons
No additional fees for software or services
Full control
Time intensive - You have build, manage and optimize your campaigns
Easy to make costly mistakes Requires deep
understanding of PPC techniques
Best for PPC professionals with expert knowledge and years of experience
Path 2: Leverage PPC Tools
CONFIDENTIAL – DO NOT DISTRIBUTE 39
Pros Cons
Improve results Save time
Cost for software You still have build, manage
and optimize your campaigns
Best for those who have PPC experience and time or resources to managed program
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Path 3: Outsource
Pros Cons
Experts To Handle Everything
Better Results Peace of Mind Quick set up
Not for control-freaks Not “Free” Finding a partner you can
trust
CONFIDENTIAL – DO NOT DISTRIBUTE 41
Best for those who are new too PPC, time constrained or not getting results they want
Example: PPC Express (From WordStream)
CONFIDENTIAL – DO NOT DISTRIBUTE 42
Path to Success
Identify the potential
Take stock of your resources
Choose one of 3 paths to PPC success
• Do it Yourself (Go it alone)
• Use Software (WordStream PPC Advisor + Premier Consulting)
• Outsource (WordStream Services)
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Want Some Help?
If you have a PPC budget of at least $1,500 take
advantage of this free offer:
o A free Path Analysis with one of our Search
Marketing Experts
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Special Offers
If you have a PPC budget of at least $1,500 take
advantage of these free offers:
1. Sign up for WordStream PPC Advisor and get 2
months of free Premier Consulting.
2. Sign up for PPC Express service and get up to
$600 of free advertising.
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Your Questions
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Start down your ideal path today: Baseline your current AdWords account using WordStream’s Free Performance Grader:
http://www.wordstream.com/google-adwords
Thank you for attending our webinar!
Contact us directly:
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