Search Advertising driven by

Machine Learning
Michaela Woloszczak Denis Dautaj
Search Audience & Formats, Search Automation,
Central Europe Central Europe

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1. How Machine Learning can help you

2. Automation framework to success

3. Key takeaways to grow your business

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1. How Machine Learning can help you

2. Automation framework to success

3. Key takeaways to grow your business

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We are going from a
“mobile first world”
to an “AI first world”

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Machine Learning helps us in our private lives already

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Machine Learning helps us in advertising, too

Bidding Targeting Formats Attribution

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Why do we need ML for advertising?

Searches for Visits Researches

singlespeed online bike on bike blogs
bike on mobile store on laptop

Uses voice
Buys
search to Re-visits singlespeed
search for online bike bike at local
unique store store
singlespeed
bikes

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Why do we need ML for advertising?
Operating
Time of System
Week Version

Actual Ad User
Copy Conversion Conversation Cross Device Operating
Value Rate Conversions System

Keyword Audience Ads Location Time Device

Actual
Language
Search RLSA Mobile App
Setting Browser
Query Device Bids
Type
Similar
Audience
Tablet
DFSA Device

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Machine Learning can help us focus on the things where
we can add value
Today Tomorrow

Reporting Reporting
UX
UX

Creatives
(Content)
Creatives Attribution
(Formats) Bidding Bidding
Attribution

Targeting Targeting Measurement

(KWs, Measurement (Conceptual)
Audience)

BCG: Cutting Complexity, Adding Value (2013): we spend 80% of our time on manual, low-value tasks
Bubble size representing the avg. amount of time spent on certain tasks

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1. How Machine Learning can help you

2. Automation framework to success

3. Key takeaways to grow your business

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1 Leverage
Smart Bidding 2 Feed in all
Audience Signals 3 Show most
relevant Creatives

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1 Leverage
Smart Bidding 2 Feed in all
Audience Signals 3 Show most
relevant Creatives

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There are many automated bidding options on the market

AdWords

Automated
DoubleClick
Rule
based
Manual

Other
Tools
Automation

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True auction-time bidding – powered by exclusive signals
User-specific bids Combination
Exclusive signals
through auction-time bidding of signals

Time
OS Browser

Geo Device Language Search Query

BID
Ad Format Search Partners

Remarketing Lists

Only available with

Adwords Smart Bidding
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How do you deal with these signals?
Performance-Difference to avg.
(Conv. Rate)

● User in Berlin -40 %

Geo
● User in Hamburg +60 %

-35 %
● User on Saturday
+45 %
Time
● User on Sunday
Your
-20 %
● User on Smartphone
● User on Desktop
+35 % bids?
Device

-20 %
● User in Berlin, on Saturday, with Android
● User in Berlin, on Saturday, with iPhone +80 %

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 Get the most of your campaigns with query-level bidding

Query*

Keyword buy jeans

jeans jeans

wash jeans

Keywords (Broad, Phrase) Dynamic Search Ads (DSA) Google Shopping

Manual: keyword-level Manual: category-level Manual: product-level

Smart Bidding: query-level Smart Bidding: query-level Smart Bidding: query-level

*Note: 15% of queries on Google are new every day Confidential + Proprietary
AdWords Smart Bidding options, aligned to your goals
Campaign Goal Recommended Strategy

Target Outranking Share

VISIBILITY
No Target Search Page Location
conversion
tracking
WEBSITE CLICK Maximize Clicks

Basic eCPC (semi-automated)

CONVERSIONS / SALES
Advanced tCPA

Excellence $ REVENUE tROAS

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Newest features for even stronger results

Better target More predictive

accuracy signals

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Transparency and control via the shared library
Monitor the performance of
flexible bid strategies key KPIs
and watch how it improves
over time

Understand the strategy status

and potential limitations, then
take action

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 Your road to success with a clean pre/post test
1. Opt-in Target CPA Bid Strategy 2. Pre-Post evaluation
CPA Target = 30-day CPA avg. (Ignore “learning” week and
Minimum 30 conversions most recent week)

Control Period Learning Run Test Conversion Evaluate /

2+ weeks 1+ week 2-4 weeks Delay Adjust
~1 week

Ignore in Check campaign Ignore in

evaluation! status column evaluation!

3. Potential target adjustment

(within +/- 20%)

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Or via A/B testing with Drafts & Experiments

Enter a specific date range

Determine the portion of traffic

you want to go through the
experiment

Assess performance

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Finding suitable campaigns for a test
Recommended Recommended
Campaign Goal
Strategy Conversions*
Target: Outranking Share
VISIBILITY
Search Page Location

WEBSITE CLICK Maximize Clicks

eCPC (semi-automated) -
CONVERSIONS / SALES
tCPA >30

$ REVENUE tROAS >50

* per campaign or portfolio in the last 30 days;

NOTE: Target ROAS requires 15 conversions in past 30 days technically Confidential + Proprietary
We can help you identify campaigns for a tCPA test
We create estimates using your account’s Bid Simulator data.
Bid Simulator looks at the specific auctions your accounts participated in during a
recent past week to estimate these performance gains.
100 +30 +30% +0%
Campaign 1 CURRENT CONVERSIONS SIMULATED CONVERSION SIMULATED CONVERSION SIMULATED CPA CHANGE
UPLIFT UPLIFT %

82 +19 +23% +0%

Campaign 2 CURRENT CONVERSIONS SIMULATED CONVERSION SIMULATED CONVERSION SIMULATED CPA CHANGE
UPLIFT UPLIFT %

... ... ... ... ...

Note: We generate traffic estimates based on historical performance. These are not a guarantee of future performance as the context/competition
etc. will be different from the past. Confidential + Proprietary
1 Leverage
Smart Bidding 2 Feed in all
Audience Signals 3 Show most
relevant Creatives

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Audience is a key signal for Smart Bidding

singlespeed bikes

Time OS Browser

Visited product detail

site 5 days ago
Device Language Search Query
Audience

Geo Ad Format Search Partners

bid down bid up

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The Search Audience suite has grown over the years

Your Data
Remarketing Lists for Search Ads (RLSA) – (2013)

+
Customer Match (2015)
singlespeed bikes

Google Data
Similar Audiences (2017)
Demographics for Search Ads (2016)

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Smart Bidding now uses even richer Audience Signals
Performance-Difference to avg. Your bid?
(Conv. Rate)

● User new to website -20 %

● User on All Visitors list +110 %
Audience List
Membership
New

● User in Shopping Cart 76 days ago -35 %

● User in Shopping Cart 1 day ago +45 %
Visitor Recency

● Men -40 %
Demographics ● Women +40 %

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How to feed in Audience Signals for maximum success

1 2
Target all Apply to
relevant users all search
campaigns
(including DSA &
Shopping)
with bid only &
campaign-level

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Segment Search Audience for success

General Visitors

Category

Product

Cart Abandoner

Buyer

Remarketing Lists for Similar Audience

Search Ads

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How to feed in Audience Signals for maximum success

1 2
Target all Apply to
relevant users all search
campaigns
(including DSA &
Shopping)
with bid only &
campaign-level

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Simplify management with Campaign-Level Audiences
Before After
List 1
AdGroup List 2 AdGroup
List 3
List 1 List 1
Campaign AdGroup List 2 Campaign List 2 AdGroup
List 3 List 3
List 1
AdGroup List 2 AdGroup
List 3

Easier ✔ More data for Reduced

✔ ✔
management better bids criteria limits

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Really using all audience signals for Smart Bidding with
Data-driven Attribution

Data-driven
model

Cross-device ✔ More data for

✔
touch-points smarter bids

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1 Leverage
Smart Bidding 2 Feed in all
Audience Signals 3 Show most
relevant Creatives

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Which one is the best ad?
CTR: 8%
a CR: 5%
CPA: €20

CTR: 10%
b CR: 2%
CPA: €22

CTR: 12%
c CR: 1%
CPA: €40

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Each search has a different context

singlespeed bikes

3pm Android Chrome

Samsung English Hamburg

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Each search has a different context

singlespeed bikes

8pm iOS Safari

iPhone English Munich

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Each search has a different context

singlespeed bikes

8am Apple Safari

Laptop German Berlin

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Leverage Machine Learning to show the best ad
for every query

Ad groups with 3 or more

high-quality ads may receive
up to 15% more clicks*,
compared to ad groups with
only 1 or 2 ads.

*when running on optimized ad rotation

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Personalize ads at scale with IF Functions

singlespeed bikes

Single Speed Bike - Great Range

www.bike-example.com/Sale
{=IF(audience IN (Converters - 540 days), Come
back for 60% off): Free shipping on your first
order}. Next day delivery guaranteed.

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1 Leverage
Smart Bidding 2 Feed in all
Audience Signals 3 Show most
relevant Creatives

Account Set Up

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Simplify your accounts for an AI first world
Manual Bidding Smart Bidding
Example of granular, duplicated campaigns based on Consolidated campaign structure supercharging
matchtype, device, RLSA and DSA for manual bidding. Smart Bidding with broad match types and DSA.
adgroup
Broad Match Campaign adgroup
adgroup
adgroup
matchtype Exact Match Campaign adgroup
adgroup
adgroup
Phrase Match Campaign adgroup
adgroup Campaign Broad match adgroup
adgroup Devices / Audiences / Geo / Time
Mobile Campaign adgroup
adgroup
adgroup
device Desktop Campaign adgroup
adgroup
adgroup Or
Tablet Campaign adgroup
adgroup

adgroup
10 day (RLSA) Campaign adgroup
adgroup Exact match adgroup
adgroup
RLSA 20 day (RLSA) Campaign adgroup Campaign
adgroup
Devices / Audiences / Geo / Time DSA adgroup
adgroup
30 day (RLSA) Campaign adgroup
adgroup

adgroup
DSA Dynamic Search Ads adgroup
adgroup

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And utilize scripts for quick and easy implementation

Link to AdWords scripts library

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1. How Machine Learning can help you

2. Automation framework to success

3. Key takeaways to grow your business

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5 key takeaways to grow your business

01 Automation allows us to shift time to important tasks and grow your business

02 Leverage Smart Bidding to handle infinite data signals for user-specific bids

03 Incorporate audience data everywhere to make Smart Bidding even smarter

04 Automate your creatives for most relevant messaging

05 Simplify your account setup and utilize scripts for more efficient implementation

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Thank you!
Michaela Woloszczak | Denis Dautaj

Slides & Feedback

https://goo.gl/forms/1ariaYsZmQv17X7H3

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APPENDIX

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tCPA worked well for CosmosDirekt
“Durch Smart Bidding sind wir unabhängiger, weil der Automatisierungsgrad gestiegen ist. Wir schaffen
es nun überwiegend Inhouse zu arbeiten und uns auf strategische und taktische Themen zu
konzentrieren, als uns mit operativer Kampagnenarbeit aufzuhalten.”

- Dennis Brill, Online Marketing Manager SEA bei CosmosDirekt

Mobile CPA Share of Mobile Conversions

- 5% budget now 25 % + 100%

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Simplify your Search Audience Strategy for success
Many accounts look like this... This is what an excellent setup looks like
Running separate RLSA campaigns as target & bid Leveraging Search Audience signals in every search
campaign with bid only and at campaign-level

540 day RLSA: All website

10 days Homepage excluded
30 days Homepage excluded
540 day RLSA: Homepage
Original 10 days Cart excluded
Campaign
AdGroup 1 30 days Cart excluded 540 day RLSA: Category
10 days Converter excluded
30 days Converter excluded 540 day RLSA: Product
Campaign
540 day RLSA: Cart
w/ Smart Bidding
10 days Homepage targeted 540 day RLSA: Sale
30 days Homepage targeted
RLSA 10 days Cart targeted Similar Audience: Sale
Campaign AdGroup 1 30 days Cart targeted
10 days Converter targeted Similar Audience: Cart
30 days Converter targeted
Similar Audience: Product

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