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Paid Search in a Nutshell

Paid Search in a Nutshell. Users type a query (or query string) into a search engine The resulting search engine results page (SERP) contains both organic ( aka natural) listings and paid ads

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Paid Search in a Nutshell

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  1. Paid Search in a Nutshell • Users type a query (or query string) into a search engine • The resulting search engine results page (SERP) contains both organic (aka natural) listings and paid ads • Organic listings come via algorithmic (mathematical formulas) systems for which you cannot buy inclusion • Paid search ads are triggered from matching keywords in paid search accounts which you can buy in an auction-based model from the engines • Placement and position of ads are determined by both the max bid you’re willing to pay (generally, the more you pay, the higher up on the page and more often your ad will appear) and Quality Score (the engine’s perceived relevance of showing you to that user) • You only pay when a user clicks your ad (thus the term PPC: pay per click) • The user is directed to the landing page of your choice

  2. The 6 stages of a successful AdWords campaign

  3. Ad groups are key to increasing CTR and reducing CPC The foundations of successful ad groups are: • Closely related keywords • Relevant ad copy • Relevant landing page

  4. Example - a poor AdGroup The landing page for the above ad group has the following problems: • Visitor has to search again to find the type of tea they want. • Text on the page does not match the keywords in the ad group. • Ad text doesn’t match the keywords on the page. • This page’s lack of relevance (to the ad group’s keywords) will contribute to the low Quality Score.

  5. Example - a good AdGroup The landing page for the above ad group has the following problems: • Text on page matches ad group’s keywords. • Text on page matches ad text. • Fast to load. • There is a clear call to action.

  6. AdWords System Each time a search is carried out, Google needs to satisfy the following three parties: The User - who wants to be presented with adverts and content closely related to the search term (keyword) they have entered. The Advertiser - who wants to attract users and pay as little as possible for each click on their adverts. Google themselves who want to maximize long term revenue by keeping both the Advertiser and the User happy so they will both continue to use AdWords and other products.

  7. What would Google do? To achieve its goal, Google uses two metrics to determine the rank (Ad Rank) and cost per click (CPC) each advertiser pays for each keyword. They are:

  8. How much an advertiser pays? Advertisers don’t have to pay their maximum CPC bid for each click they receive, they only pay the maximum CPC bid of the advertiser ranking directly below them.

  9. Quality Score • Click-through rate (CTR)is worked out by taking the number of times an advert appears (impressions) and dividing it by the number of times it’s clicked on. A high click-through rate suggests than an advert is relevant to the search term it appears for and should therefore rank well. A poor click-through rate suggests an advert isn’t appealing to users so it should rank lower. • Relevance is determined by how closely an ad’s text relates to the search query. For example, if a user searches for flowers, then a high relevance score would be awarded to an advert that included ‘flowers’ in the title, description and display URL. • The landing pageis the web page that a user is taken to when they click on the advert. It’s important to Google that users are taken to reputable pages that are relevant to the search made. High quality landing pages are relevant, original, easy to navigate with quick load times, no pop-ups and have a privacy policy. By using these three factors as the criteria, Google encourages advertisers to produce ads that are enticing to the user, relevant to the search and lead directly to quality content. Relative importance of different factors used to determine AdWords Quality Score CTR (click-through rate) is the most important factor determining Quality Score. Google sees this as users voting for the best ads with their clicks.

  10. How Google ranks Adverts? • The advert with the highest Ad Rank comes top. • Your ‘Max CPC bid’ for each keyword is the maximum you’re prepared to pay for a click on your ad. • Quality Score (a 1-10 rating with 10 being the best) is Google’s calculation of how relevant your advert and landing page are to the keyword being bid for.

  11. How Google ranks Adverts? • Notice how the highest bidder receives the lowest Ad Rank because their Quality Score is just 1. So low that it doesn’t show at all. • Adverts are ordered by Ad Rank with highest Ad Rank being placed in position 1, the second highest Ad Rank in position 2, etc.

  12. But What about price (CPC)? • Each advertiser’s CPC is the Ad Rank of the advertiser directly below divided by their own Quality Score (plus one cent). That’s: • (Ad Rank of next lowest ranked ad ÷ own Quality Score) + $0.01 = CPC

  13. Conclusion • High Quality Scores mean higher rankings and lower CPCs. • High Quality Scores are achieved with high click-throughs, relevant adverts and landing pages. • And of course, high click-throughs come from relevant (to the keyword being bid on) and compelling adverts. • And if adverts are to be relevant then your ad groups can’t have many keywords in them. • So you must have small ad groups.

  14. Ad Group Structure – Rule of Thumb

  15. Bid Stacking • A bid stack is a sophisticated way of bidding for your keywords that makes your AdWords far more profitable. It ensures you only bid high for keywords you know are worth it and low for those that you can’t be so confident about. • There are two key parts to a bid stack: • you bid on the same keyword with all three match types (broad, phrase and exact). • you bid different amounts for each match type.

  16. Where do you Start? • You always start with goals • Before you start your keyword research, it’s important to be clear about your campaign’s objectives. • You need tactics - a plan of action. For example, flipkart.com plans to sell books directly to its visitors. • PPC can deliver visitors, but what happens then? You might try and make a sale there and then (like flipkart), or recruit email addresses and attempt a sale later; or • just be interested in branding or visits. • A well-proven tactic is to offer PPC visitors something irresistible like a downloadable report or a free trial. With these freebies comes an agreement to receive future emails, perhaps in the form of a newsletter. The newsletter is then used to prove your knowledge, build trust and make a sale.

  17. 7 Common Mistakes that cause New Advertisers to Fail • Not setting & measuring campaign goals • Poor account organization • Focusing on traffic rather than conversions • Ignoring match types • Failing to separate content and search campaigns • Sending all traffic to the homepage • Not testing

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