Google Adwords & Paid Search 101 October 7, 2009 Benjamin Rudolph Director of Business Development

1. Google Adwords & Paid Search 101 October 7, 2009 Benjamin Rudolph Director of Business Development

2. Search Discovery Overview • Founded in 2004 by Lee Blankenship – 10 years of agency experience • Interactive ad agency specializing in paid search, SEO, and analytics • 12 full-time employees • 2 offices – Headquarters in Atlanta & satellite West Coast office in Eugene, Oregon • Focused on improving client ROI through performance-based search marketing campaigns • Search Qualified Company

3. Agenda • Paid Search • SEO • Analytics • Bing • What’s Next?

4. Goals

5. Part I: Paid Search

6. Why Paid Search? • User behavior is ahead of marketing spending • SEM is unique because: • It is Measurable – accountable • It is Universal – large reach • It is a Pull tactic – targeted • It generates a high ROI • Insights from SEM can be applied across media platforms

7. Google AdWords Top sponsored ads: Up to 3 listings Side sponsored ads: Up to 8 listings

8. A Closer Look at the Ad Auction Relevance Willingness to Pay Quality Score Max CPC Ad Rank X = • Quality Score is determined by a combination of factors, including: • Click-through-rate on Google.com (clicks divided by impressions) • Keyword and ad text relevance • Landing page quality Max CPC is the highest $ amount an advertiser is willing to pay for one click on their ad

9. Screen Real Estate Distance between top Sponsored link and first Algorithmic result #1 Algorithmic/Natural Search Result

10. Universal Search • Search: “Steve Jobs” • Diversity of related results… all in one place Web results Video results(Steve’s famous Stanford commencement speech) News results (Articles about Steve and Apple) News archives Images

11. Google Checkout

12. Google Shopping

13. Yahoo/PayPal

14. Map Inside Sponsored Link

15. The Wrong Metric • Clickthrough Rate (CTR) can be manipulated • Both high and low can be good, so how can it be a KPI? • CTR = Clicks/Impressions • Cost per Click is irrelevant – how many clicks does it take to get a lead or a sale? • Focus on Cost per Conversion

16. Geo-Targeting

17. Four Types of Keyword Matching Phrase Match Ad appears when keyword phrase is entered, in original order tennis shoes tennis racket & shoes shoes for tennis tennis shoe Exact Match Ad appears when exact search term only is entered tennis shoes tennis shoes tennis shoe Negative Match: Prevents ad from appearing when in combination with a specified word (ex. “red”) tennis shoes tennis sneakers red tennis shoes Broad Match Ad appears when any form of search term, including synonyms, is entered tennis shoe red tennis shoes tennis sneakers shoes for tennis tennis racquets Note: Capitalization and punctuation do not affect keywords, unless you include apostrophe + s, as men’s does not equal men’s, but ladies = ladies’ and guitar-hero = guitar hero. Plurals are considered distinct keywords, though singular and plural forms may both trigger ads if client employs Broad Match.

18. Google Local www.google.com/local/add

19. Google Local Business Ad

20. Part II: SEO

21. SEO Architectural Can the engines access your site content? Reputational Who links to you? Linguistic What keywords do you rank for?

22. Google’s Organic Results • The Search Algorithm has 200+ signals, including: • Synonyms & spelling error models  what you said • Phrase matching models  what you meant • Diacritics & language models  did you use slang or a different language? • Time models  when you said it • PageRank™  what others have said • PageRank™ • The genesis of Google, created by Larry and Sergey (once called “Backrub”) • Considers 500M variables, including “votes”

23. The Google Algorithm $0 450+ 10-20% Google doesn’t accept payment for inclusion in organic search results or for improving site rank …of the web is new each week, when Google updatesthe index New improvements to the algorithm in 2007 Billions of pages added in 2009

24. Case Study

25. New Topic Pages

26. Key Takeaways • SEO is not about rankings, it’s about dollars • Consider Pre-search vs. Post-search behavior • Build and test content-specific pages • Measure the results and make adjustments • *Leverage existing content through analysis of search data (CFO-friendly)

27. Google Website Optimizer • Free Tool from Google • Allows you to test multiple versions of a page • Does not impact SEO • You control what % of traffic goes to each page • It’s easier and cheaper to double your conversion rate instead of doubling traffic

28. Google Website Optimizer Winning Combo Original 1/3 visitors 14% Make Purchase Customers Visit your Website Combo1 1/3 visitors 20% Make Purchase Combo 2 1/3 visitors 2% Make Purchase Customers Convert Test variations of the same page

29. Conversion Rate Remember, it’s easier to double profits by doubling conversion rates than by trying to double traffic – Website Optimizer is designed with this in mind People who arrive on your site = 10,000 People who do not bounce (60%) = 6,000 People who convert (2%) = 120 Value of sale to you = $57 Total Return = $6,840 People who arrive on your site = 10,000 People who do not bounce (65%) = 6,500 People who convert (3%) = 195 Value of sale to you = $57 Total Return = $11,115 That’s a 62.5% increase in revenue from increasing conv. rate 1%

30. Part III: Analytics

31. Google Analytics • Analytics measures all traffic to your website • Google Analytics is free and provides a wealth of information • What is the goal of your website? Have you set up your analytics to track those goals? • More than just traffic – how are people getting to your website and what are they doing there? Who are these people? • What are your customer segments?

32. Analytics • Implementation Verification • Page Gaps • Architectural Barriers • Coding Issues • Tool-Side Improvements • Ensure you can measure the “whats” accurately • Then build segments and visualizations that do some of the heavy lifting on the “why” questions

33. Tie Analytics to PPC & SEO • Which search terms from which engines brought them to which page • Did they use internal search? • What was the bounce rate? • How much time did they spend on the site? • Which pages are valuable? • Can also help integrate offline media campaigns

34. All About Outcomes • Why do you build a website? • I want to get more ______________. • Business objectives • Success metrics • KPIs

35. Competitors • It’s easy to see what competitors are doing – just search for keywords that describe your products and services • Can you find them? Do they outrank you? • What landing pages do they take you to? Do you find that a good user experience? • What are your competitive advantages? Are you touting them on your landing pages?

36. Part IV: Bing Microsoft’s New Search Engine

37. What is Bing? • Microsoft’s New Search Engine • Formerly Windows Live Search • Launched June 3, 2009 • Microsoft is spending $80MM-$100MM to promote the launch via an ad campaign • Attempt to grow market share vs. Google & Yahoo

38. Search Engine Market Share Source: Compete.com

39. Why bother? • Existing business is flat -- $60B in revenue • Search marketing spending will grow 14.9% in 2009 to $12.3 Billion (Source: eMarketer) • Search is the starting place online – Google has used it to launch e-mail, a browser, and just announced an operating system • Extremely efficient advertising tactic • The web is only getting more crowded

40. Search Engine Results Page (S.E.R.P.) Paid Natural

41. Key Takeaways • Keep your focus on Google and Yahoo, which cover over 90% of the search market • Bing is better than its predecessor, Live Search, but it will not replace Google anytime soon • Competition is good for the consumer • The advertising system, Microsoft AdCenter, has not changed • Bing and Decide

42. Part V: What’s Next?

43. Goals • Stand out from the crowd • Focus on the right metrics • Target your audience with local search • Use analytics data to improve user experience • Test and improve site content • Keep an eye on the competition • Take advantage of Google’s free tools

44. Key Takeaways • Focus your PPC campaign • Lead the conversation with the right metrics • Make sure the search engines can find you • Measure, Test, & Improve with Analytics • Distinguish yourself from the competition • Use the free tools that are available

45. Resources • SearchEngineWatch.com • SearchEngineLand.com • SearchEngineJournal.com • www.beussery.com/blog/ • www.youtube.com/user/GoogleBusiness • Conferences: Search Engine Strategies, Search Marketing Expo (SMX)

46. Thank You AMA IOWA And Good Luck! Benjamin RudolphDirector of Business Development(404) 924-7751 benjamin@searchdiscovery.comwww.searchdiscovery.com