Budget and bidding for roas
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The webinar will begin shortly. Participants are invited to ask questions through the chat during the presentation. Time will be left at the end to answer questions. The presentation will review bidding options for Google Adwords including focusing on clicks, conversions, and impressions. It will also discuss budgeting strategies such as for accounts with constraints or large budgets. Tips will be provided for bidding smarter including finding the sweet spot and understanding top positions versus side positions. The importance of return on ad spend and ROI will be emphasized.
Budget and bidding for roas
- 1. Thank you for joining us! The webinar will begin in just a few minutes! Feel free to chat questions to the meeting Organizer throughout the webinar. We will leave time at the end to answer as many questions as possible.
- 2. Budget and Bidding for Successful ROAS/ROI Jessica Cates, Account Executive Hanapin Marketing
- 3. A Review of Bidding Options: Adwords • Three Main Categories of Bidding • Focus on clicks • Focus on conversions • Focus on impressions
- 4. A Review of Bidding Options: Adwords • Focus On Clicks • Manual Bidding • Automatic Bidding • Enhanced CPC Bidding • With manual bidding • With automatic bidding
- 5. A Review of Bidding Options: Adwords • Focus on conversions (aka Conversion Optimizer • Max CPA Bidding • Target CPA Bidding
- 6. Reminder • Using Conversion Optimizer or Enhanced CPC with the “optimize for clicks” ad rotation? • Google will be switching accounts over with these settings to the “optimize for conversions” in February 2012. • They claim to see an average 5% increase in conversions when this change is made.
- 7. A Review of Bidding Options: Adwords • Focus on Impressions • For Display Network only • Pay every time you reach 1,000 impressions vs. paying per click
- 8. A Review of Bidding Options: adCenter • Implicit Bidding • AKA: Bid inheritance • Setting a broad or phrase bid causes more restrictive match types to “inherit” the same bid • Competition against yourself • Explicit Bidding • Exact bid is highest • Broad = 85% of Exact • Phrase = 75% of Exact • May be easier to split keywords into ad groups by match type with this method.
- 9. A Review of Bidding Options: adCenter
- 10. Budget the Right Way • Your budget shouldn’t be an arbitrary number, do the math! • How much do you have to spend (does that include or not include an agency management fee?) • How many platforms are you using to advertise on? • How many campaigns per platform? • How much is your CPC?
- 11. Accounts with Budget Constraints • Areas that are spending without converting or have too high a CPL • Search engines • Keywords • Ad Groups • Campaigns • Know if your campaign is actually reaching its budget on a daily basis, if so, lower it and estimate your daily savings so you know how far to cutback • (Current daily budget*Days left in the month)-(New daily budget*days left in the month)
- 12. Accounts with Budget Constraints • Review segments • Display Network vs. Search • Search vs. Search Partners • Mobile vs. Tablets vs. Desktop/Laptop Computers • Time of day, Day of week • Different Bidding Options • Spread your budget out evenly throughout the day so you don’t lose potential sales after your budget runs out
- 13. Accounts with Large Budgets • Where are you spending your budget? • Tailor your ad copy for the audience you’re targeting if you have several audiences • Be aware of duplicates • More likely to get out of hand in a large account with different segmentations • You can end up running up your own costs • Test, test, test to make the best decisions • Use negatives to keep your ads from showing based on what you’re targeting • Don’t let account structure get out of hand • Segmentation for different products and services • Campaigns based on successful geographical locations • Detailed audience targeting
- 14. Bidding • Bidding Smart • Avoid diminishing returns by not over-bidding • You do not have to be in position 1 to be successful, instead, focus on page 1 and use the data to find where your successful ROI position is • Find your account’s “sweet spot” • Understand where your account will trend after you make the changes by running a projection
- 15. Bidding Sweet Spot • You don’t necessarily need a top spot to have a good ROI or ROAS • Moving a keyword up in position won’t necessarily increase your performance accordingly, but it will surely spend more • If a keyword performs better in position 3 than 1, leave it there! • Competitive landscape surrounding your keyword will make a top spot easy or hard to hold on to • Automated Rules • AdWords retired position preference this year • Automated rules can increase or decrease your keywords based on rules that you set
- 16. Top 1 vs. Side 1? • Google is constantly throwing a new wrench in the gears. • Why are these two ads (the ONLY two ads on the page) at the bottom? • Average position used to be much, much simpler to calculate • Take some time to actually understand how the search engines are ranking ads
- 17. Bidding Smarter: Google Estimates • Should I optimize for top positions? • Segment with top v. other and see which performs best for you • If you should be at the top, look at the estimated top page bid column in your AdWords interface and adjust accordingly
- 18. Back to basics • Your price per click is determined by your Quality Score • Improve your CTR • Keep everything highly tight-knit and relevant • Send your visitors to the best landing page for their search • Earn higher positions for lower costs • For more tips, check out our Quality Score Guide
- 19. Where Does Your Account Actually Stand? • ROAS • How much revenue is generated off of every $1 spent in a marketing channel • Based on revenue • More difficult to measure with a lead gen client • Revenue/Cost • Agencies have more control over generating client revenue than they do for generating client profit • ROI • Includes management fees • Based on profit • Profit/Cost
- 20. The Return • Understanding what happens to your leads after you send them to a client is JUST as important as generating them • Is the lead quality bad? • Are the leads closing? • If not, your CPA is actually MUCH higher than you initially thought
- 21. Improving Return • Look at your CPC month over month – is it rising? Something must change! • Quality Score, Quality Score, Quality Score! • Apply negatives the right way • Search queries containing iPhone converted 3 times for a CPL of $700+ in a year = know when to cut it out with broad match negatives • Big ticket negatives vs 1 impression, random queries
- 22. Improving return • Don’t underestimate landing page testing, but also don’t rock the boat • Highly relevant text with a clear call-to-action increases the likeliness of a conversion and also helps your QS.
- 23. Crystal Anderson Brad Geddes Andrew Goodman Nate Jeo Joe Kerschbaum John Lee Kevin Lee Joanna Lord Melissa Mackey ElizabethMarsten Marc Poirier Lisa Raehsler Matt Umbro Matt Van Wagner Marty Weintraub Register before December 31 to receive an ADDITIONAL $100 discount! Use Coupon Code: jingle Visit www.HeroConf.com for more information!
- 24. Q&A Thank you for submitting your questions! We will answer as many questions as time allows.
- 25. Thank you! If you would like more information, please visit www.HanapinMarketing.com or call 812.330.3134