9. Microsoft Confidential
Anatomy of a search page:
Query, Search term,
Keywords
Sponsored results
(paid ads)
Organic results
(non-paid listing)
Local listing, free to
businesses that sign up
@jmgagnon
10. On Bing
click-through-rate for
the #1 search result is
9.7%. For the #4 result,
it drops to 1.9%.3
60%
of all organic
clicks go to the
top three organic
search results.2
75%
of users
never scroll
past the first
page of results.1
Why is SEO and SEM such a big deal?
SEO and SEM has one goal: To move websites to the top of the search results page.
1. HubSpot May 2012; 2. Marketingsherpa, February 2007;
3. Slingshot SEO December 2011
Microsoft Confidential
@jmgagnon
12. How much does
Jimmy Choo
pay per click
to run shoe ads
on Bing?
Keyword:
Cost per click: $1-$2
Jimmy Choo Shoes
@jmgagnon
13. Microsoft Confidential
Why: Margins + customers, not clicks
@jmgagnon
Product Revenue
$150 - $400
per month for 6+
$600+
Margin
$400
$100
Of 100 Clicks,
how many Sales
12
1-2 prefer buy in-store
window shoppers
Compare online
and buy
Product
Auto Insurance
Jimmy Choo
14. Microsoft Confidential
Translate business terms into online marketing concept
@jmgagnon
CPA
$400
$100
Conversion Rate
12% or 0.12
1% or 0.01
2% or 0.02
Cost per Click
$48
$1.00
$2.00
Margin
per Sale
Sales per
100 Clicks Pay per Click
Product
Auto Insurance
Jimmy Choo
21. How much money
you make per action
Conversions per click
The most you can
responsibly pay for a click
– and still make money
CPA CVRx = Break-even CPC
Calculate your break-even CPC
@jmgagnon
22. Break-even CPC
= $1
Break-even CPC
Sale price: $35
Cost to London Fog-$10
CPA $25
CPA
X =
For every 100 clicks, the
ad gets 4 conversions.
CVR = 4%
CVR
This is London Fog’s
profit from the sale.
If you pay more than
this per click, you’re
losing money
Break-even CPC makes you smarter with your dollars
@jmgagnon
23. CPA Conversion
Rate
Break-even
CPC
$25 4% $1.00
$25 4.5% $1.12
$25 5% $1.25
Increase conversion rate or CPA (aka margin)
How do we increase our break-even CPC?
x
x
x
=
=
=
@jmgagnon
26. 26
Search Page
Search
1 2Search Box Convert4Landing Page3
From landing
page makes
purchase
From search
page clicks
on ad
From search
box ad shows
on search page
called called called
Click ConversionImpression
Searcher’s Flow
@jmgagnon
27. Search Page
Search
1 2Search Box Convert4Landing Page3
Clicks
Clicks
Conversions
Impressions
How many clicks you get per 100
impressions. Helps indicate the
effectiveness of your ad copy
How many conversions you get per
100 clicks. Helps indicate the
effectiveness of your landing page
=Click thru Rate =Conversion Rate
Impression ConversionClick
Searcher’s Flow
@jmgagnon
29. Initial Research:
“Advertise My Business”
Specific Field:
“Online Marketing Tips”
Add More Refinement:
“Search Marketing”
Specific Brand:
“Advertise on Bing”
How do you search?
@jmgagnon
30. Initial Research:
“Advertise My Business”
Specific Field:
“Online Marketing Tips”
Add More Detail:
“Search Marketing”
Specific Brand:
“Advertise on Bing”
Funnel: Not all keywords alike
Purchase
Interest
@jmgagnon
31. Initial Research:
“advertise business”
Specific Brand:
“Advertise on Bing”
Advertise
Market
Paid Search
Sponsored
Search Marketing
SEM
Bing
Yahoo
Specific Field Name:
“Search Marketing”
Add More Refinement:
“Online Marketing
Tips”
Online
Internet
Pay per click
PPC
adCenter
Account Outline
@jmgagnon
32. 3 Minute Drill
• Write down the most important
services/products that make sense for
you to sell online.
• What are some differences between
you& your competitors? Awards? Family
Business?
• Seasonal Offers or Promotions?
• What are your goals for online? How
much is a lead/sale worth?
• When are your peak times?
32
Keywords
Bid
Ad Copy
@jmgagnon
33. 2 Key Building Blocks
• Keywords. What are your
customers searching?
• Ad Copy. In a few characters, tell
your customers why they should
buy from you and not your
competitors.
33
Seattle Florist
Seattle Florists
Flowers in Seattle
Red Roses
Wedding Florist
Flower Delivery
Floral Arrangements
Seattle Florist
Same day Seattle flower delivery.
Courteous Reliable Family Florist.
www.meritflorist.com
A wizard will help you walkthrough how to set these up. There are tools
for generating keywords. And you may wish to look for ideas from your
competitors for ads.
@jmgagnon
34. Think of Ad Group like a Product, Service
or Brand
• Example: Seattle Florist, Red Roses, Wedding
Florist, Flower Delivery, Nursery/Seed, Floral
Arrangements, Cookie Platters
Good Rule of Thumb
• 10-30 keywords per ad group
• 2-4 Ads per ad group
• Match your ad to what people are searching for
34
Keyword Ad Copy
Keyword
Keyword
Keyword
Ad Copy
Ad Group
Wedding
Florist
Quick
Quote
Seattle
Wedding Florist
Wedding
Flowers
Wedding
Bouquet
Seattle
Bride
Product:
Weddings
AD:
AD:
KW:
KW:
KW:
KW:
Build a Solid Foundation
@jmgagnon
36. 36
Seattle Florist
Same day local flower delivery.
Courteous Reliable Family Florist.
www.meritflorist.com
Test which messages
your customers
respond to most.
A.
Seattle Family Florist
Same Day Seattle Delivery. A Reliable
Family Florist For Mom
www.MeritFlorist.com
B.
7 Clicks/ 100 Impressions
11 Clicks/ 100 Impressions
Test and Repeat
@jmgagnon
37. How do we break down an online program to drive sales?
Visit: www.BoostCTR.com
@jmgagnon
38. How do we break down an online program to drive sales?
AD COPY TESTING FRAMEWORK
@jmgagnon
39. Microsoft Confidential
The framework for ad copy testing
®
Probability of
conversion
Clarity of the
value proposition
(why)
Friction of
elements of
process
Motivation of
the user
(when)
Incentive to
take action
Anxiety about
entering
information
C = 4m + 3v + 2(i-f) -2a
@jmgagnon
40. The framework in action
FOCUS
VALUE PROP
ANXIETY
FRICTION
INCENTIVE
MESSAGING
High Quality, Durable, Best Selling
Low Price Guarantee, Starting at $10, Bargain, Wholesale Pricing
Over 5,000 items, Huge Selection
Since 1984, As Seen on TV, NY Times
No Booking Fees, One-time, No Minimum
Ends by Date, Limited Time
Missing Out, Don’t, Why
Ships Within 1 Day, Inventory Available
Free returns, 30 day returns, no hassle
Within Minutes, Quick & Easy, 3 Steps
Up to 50% off, Save Extra 25%
Free Whitepaper, Buy One Get One
Free Shipping, Free Overnight
TACTICS
Quality
Low Price
Selection
Credibility
No Hidden Fees
Time Limit
Highlight Loss vs. Gain
Quick Turnaround
Return Policy
Ease of Use
Discount
Freebie
Free Shipping
@jmgagnon
Key Takeaway: Consumers more likely to engage and click on mobile ads with multiple extensions vs just one extension. Make your mobile campaigns as rich as possible to ensure maximum consumer engagement
Ad with multiple extensions includes
Location Extension
Call Extension
Merchant Rating
Improving your conversion rate has benefits, but here’s how it can improve your PPC strategy. Let’s say you increase your conversion rate from 5% to 6%. In simple terms, that means for every 100 clicks, you now get 6 customers instead of 5. That’s an extra customer, but for the same spend. Nice.
That means, you’re making more money. Making more money means you can: Pocket the extra cash (more profit), or now, you can increase the amount you pay (bid) for keywords or placements. Turns out there is a very simple equation which can help you determine the maximum you can pay per click and break-even. And a big part of that break-even formula depends on conversion rate.
