Eythor Westman Director of Paid Search Search Engine Optimization Inc.

1. Eythor Westman Director of Paid Search Search Engine Optimization Inc. Pay Per Click Advertising March 2013

2. Pay Per Click Advertising Table of Contents • Introduction • What Is PPC? • History • Benefits • PPC vs. SEO 2. Campaign Settings • Networks • Devices • Locations • Bidding • Delivery • Scheduling 3. . Keywords • Intent • Match Types • Quality Score 4. Account Organization • Intent • Match Types • Quality Score • 5. Display Targeting • 6. Ads • Text Ads • Ad Extensions • Image Ads • 7. Analysis & Optimization • Metrics • Bid Optimization

3. Introduction What Is PPC • Who knows what PPC is? • Who has tried PPC Advertising?

4. Introduction What Is PPC Pay per click (PPC), also known as paid search, is a model where advertisers place bids to serve ads on search engine results or web sites. Advertisers only pay when a viewer is interested enough to click the ad and learn more.

5. Introduction History of PPC • Limited launch in 1998 by Overture • Later became Yahoo • First pay per click model • Google Adwords launched in 2000 • Initially Cost per thousand impressions (CPM) • Moved to pay-per-click auction model in 2002 • MSN adCenter launched in 2006 • Now Bing Ads • Yahoo partnered with Bing in April 2012 called “Search Alliance” • Unified advertising platform supported by Bing (Microsoft) • Google & Bing are now the dominant players • Google: 67% US market share • Bing + Yahoo: 28.6% US market share

6. Introduction Benefits • Extremely targeted • Pinpoint customers as they explicitly state their demands • Measurable • Know exactly where every dollar was spent and what it generated • Limited barriers to market for all types of businesses • No minimum deposit, clicks can cost as little as $0.10 each • Control messaging • Quickly change ads to reflect change in price, inventory or offer • Testing environment • Discover which keywords to prioritize for organic optimization • Identify marketing language that can be utilized in other channels

7. Introduction PPC vs. SEO • Set-up time and costs • Days vs. Months • Immediate Visibility • Agility • Less initial cost • Long term value • PPC constant short-term cost • Risk • Effectiveness of PPC can be evaluated as money is invested • Predictable costs/Stable results • Pay-Per-Performance • Measurability • Immediate tracking and evaluation • No analytics necessary

8. Campaign Settings Networks • Search • Google Search • Google.com • Google Partner Network • Ask.com • Bing/Yahoo Properties • Bing.com, Yahoo.com • Bing/Yahoo Properties • InfoSpace.com • Display • Google Display Network (GDN) • About.com, NYTimes.com, LiveStrong.com, eHow.com

9. Campaign Settings Devices • Desktops • Typically performs well for all businesses • Includes desktops and laptops • Tablets • Highest Conversion rate among all devices • Mobile Devices With Full Browsers • Good for some businesses (ex: local or call based) • Poor performance for some industries such as eCommerce or B2B • Many advertisers bid down mobile and some exclude it entirely • Recommended to maintain some presence since many consumers begin their research on mobile and later complete the transaction on a tablet or desktop

10. Campaign Settings Locations • Country • US • State • California • Nielsen DMA Region • Greater San Diego • City • City of San Diego • Radius • 5 miles around UCSD • Zip Code • 92009

11. Campaign Settings Bidding • Manual Maximum CPC • Set your maximum willingness to pay for a click. • Best for setting individual bids based on performance • Automatic Bidding • Let Google maximize clicks within your budget • No control over individual bids, only daily budget • Not recommended for most situations • Enhanced CPC • Raises your bid for clicks that seem more likely to lead to a conversion • May increase or decrease max CPC by up to 30 percent • Works with third party bidding or rules based bidding • Recommended for all advertisers • CPA Bids • Set you maximum willingness to pay for a conversion and let Google automatically adjust bids based on historical patterns • Requires statistically significant conversion volume • May perform better than manual or rules based bidding • Best for campaigns with broad targeting

12. Campaign Settings Scheduling • Start & End Date • Useful if the campaign is for a special promotion that expires at a specific time • Hour of Day & Day of Week Scheduling • Decrease bids at certain hours or go offline completely • Useful if staff are not available to take calls overnight

13. Exercise Campaign Settings • Define the campaign settings for a hypothetical business • Will you target search, display or both? • Will You target mobile devices? • What will your location settings be? • What type of bidding will you use? • Will you add bid adjustments for hour of day or day of week? If so, how much?

14. Keywords Intent • Informational • What are drones? • Navigational • Wikipedia.com • Transactional • Buy k2 snowboard • What Types Of Keywords are Best for PPC? • Transactional • 3+ Terms in Length

15. Keywords Match Type • Broad • Red Shoes • Will encompass any search string related to “red shoes” • Search: crimson shoes, red sandals, red slippers, shoes • Modified Broad • +Red +Shoes • Will encompass any search string including “red shoes” in any order • Search: Who would ever wear shoes that are red? • Phrase • “Red Shoes” • Will include search results that keep “red shoes” together • Search: New red shoes • Exact • [Red Shoes] • Will include search results that are only “red shoes” • Search: Red shoes • Negative • -velcro • Will not return results that include that term • Search: Velcro red shoes

16. Keywords Quality Score • Historical CTR • How often the keyword led to clicks on your ad • Higher CTR indicates better relevancy leading to improved QS • Keyword/search relevance • How relevant is your keyword is to what a customer searches for • Keyword/ad relevance • How relevant your keyword is to your ads • What Types Of Keywords are Good for PPC? • Transactional • 3+ Terms in Length

17. Exercise Keywords • Develop a list of keywords for your hypothetical business • Utilize the Google keyword tool • https://adwords.google.com/select/KeywordToolExternal • Decide on 20 targeted keywords • Come up with at least one negative keyword • What match Types will you use?

18. Account Organization Campaigns • Segment Search vs. Display • Segment search and display into separate campaigns • Segment Locations – Especially Countries • Most important if targeting countries with multiple languages • Useful for targeting different time zones if you require ads to go offline at a certain time of day • Segment Product or Service Lines • If you provide SEO & PPC services they should be in separate campaigns • Not critical, but very useful for maintenance and measuring performance • Segment Top Performers • High Volume and high value targeting can be segmented into a separate campaign in order to closely monitor and manage

19. Account Organization Ad Groups • A collection of ad groups form a campaign • Each Ad Group should contain closely related keywords • 10-30 keywords per ad group is a best practice • Each Ad Group should contain ads that speak directly to those keywords • Every keyword in the ad group should share a common term in the ad

20. Exercise Organization • Create the Ad Group Structure For Your Keywords • Group the keywords from the last exercise • Develop at least two distinct ad groups

21. Display Targeting • Contextual • Matches ads to relevant sites using keywords or topics • Google analyzes the content of each webpage to determine it’s central theme, which is then matched to your ad based on keywords or topics • Behavioral • Matches ads to users based on prior browsing history • Remarketing – targeting prior visitors to the advertiser website • Interests – categorization of users based on types of sites previously visited • Placements • The website or webpage targeted • Managed Placements – advertiser has specified targeting • Automatic Placements – the result of contextual targeting

22. Ads Text Ads • An eligible format for both search and Google Display • Highlight what makes your business, product or offer unique • Free Shipping, Best Service, Large Inventory • Include prices, promotions, and exclusives • Now Only $19.95 Through 4/7. • Tell your customers what they can do • “Call Today!”, “Get a Free Quote!” • Include at least one of your keyword terms in your ad text • Every term in your ad that matches a user search will be bolded • Match your ad to your landing page • Don’t send all traffic to your home page • Create 2-3 ads per ad group • Experiment and make incremental improvements over time

23. Ads Text Ads • Text Ad Components • Headline – 25 Characters • Description – Two lines of 35 characters each • Display URL – 35 Characters Which Ad Would You Click On?

24. Ads Ad Extensions • Sitelinks • Display additional links within your site • Location Extensions • Display your local business information • Call Extensions • Display your phone number • Social Extensions • Social Extensions • Show ads with your Google+ page endorsements • Seller ratings • Display customer-submitted ratings information

25. Exercise Ads • Create Ads For Your Ad Groups • Write at least one text ad for each ad group developed in the last exercise

26. Ads Image Ads • Display Network Only • Static, Animated or Flash • Include multiple sizes • 728 x 90 (Leaderboard) • 300 x 250 (Medium Rectangle) • 160 x 160 (Wide Skyscraper) • Display Ad Builder • Free tool to build your own ads • http://www.google.com/ads/displaynetwork/build-your-ads/display-ad-builder.html

27. Analysis & Optimization Metrics • Impressions • The number of times an ad was served to a user • Clicks • The number of times a user clicked after viewing the impression • Click Through Rate (CTR) • Clicks/Impressions • Cost Per Click (CPC) • The actual amount that was paid for a click • Impression Share • The percentage of times your ads were shown out of the times it was eligible to be shown • Conversion • An action taken by a user that is desired by an advertiser such as a sale • Cost Per Conversion • Important metric for tracking performance: Cost/Conversions • Also known as Cost Per Action or CPA • Return on Ad Spend (ROAS) • Measure of performance: (Revenue/Cost) x 100

28. Analysis & Optimization Bid Optimization • Rules Based Bidding • Free • More Control • Time Consuming • Complex & Confusing • If cost/conv. > goal & avg. pos. < X, then decrease Y% • If cost/conv. < goal & avg. pos. > X, then increase Y% • Algorithmic Bidding • Expensive • Requires significant conversion volume • Marin Software • Wordstream

29. Exercise Optimization • Develop a Bid Rule • Define the CPA goal. Ex: $30/sale • Define how you will raise and lower bids when: • Cost/Conv. is higher than goal • Cost/Conv. is lower than goal