Frederick Vallaeys - Will Robots Take Over PPC? What the Future of the Industry Looks Like

Will Robots Take Over PPC?When

About Me@SiliconVallaeys

frederick@optmyzr.com

Agenda: Trends That Will Change PPC

Automation

The On-Demand Economy

Artificial Intelligence

Trend #1 Automation

Making a Case For Automation...

The Case Against Automation...

5Levels of automation for PPC

Level 1 - Monitor and Alert

Alert a human when something may need attention.Try this AW Script: bit.ly/GranularAnomalyDetector

Level 2 - Manage Individual Components

Run automated tasks for each entity, keywords, bids, ads, etc.→ Automated Rules

Level 3 - Manage Multiple Systems To Achieve a Simple Goal

Set a CPA target and automation finds keywords, manages bids and budgets.Try custom AdWords Scripts

The current state of

Bid Management

CPC Bid

A Tale of Two Kinds of Bids

Demographics / RLSA

Geographic

Dayparting

Device

Modifiers

Matrix Bid Management

Locations

Devices

Dayparts

Audiences

1 keyword may have tens of thousands of permutations1000 locations * 3 devices * 6 dayparts * 2 genders * 5 age ranges = 180.000 bids

CPC Bid

How to Do Matrix Bidding

Requires a very fine grained account with lots of duplication

Single Keyword Campaigns (Skamps)

AdWords has a 10.000 campaign limit per account

You can’t do this at scale without automation

Alternatively use Enhanced CPC to get the benefit of real-time auction data

Average Data

A Common Bid Management Mistake Since Enhanced Campaigns Started

Mobile Data

Desktop Data

Tablet Data

vs

How to Manage Bids Correctly With Multiple Devices

Desktop Bid (Your CPC bid)

Mobile Bid Modifier

Anchored Bids Introduce Management Complexity and Dependencies

Desktop Bid

When the bid you are

anchored to changes,

modifiers must also be

adjusted.

Anchored Bids Introduce Management Complexity and Dependencies

Desktop Bid

Mobile Bid Modifiers

Generic Static Bid OR a bid based on all device types

Mobile Bid Modifier

Tablet Bid Modifier

Desktop Bid Modifier

Bidding By Weather

Discovering a Relevant Signal

Predicting Conversion Rates For Shopping Queries

PREDICTIONS

1. Prediction for data: ["big and tall undershirt",0,43,1,"Style Exact","custom0=style exact and product_type_l1=t-shirts and product_type_l2=short sleeve and brand=gildan"] is 0.025902

2. Prediction for data: ["hanes sleevles tees",0,1,1,"Style Color","custom0=style color and product_type_l1=t-shirts"] is -0.0003863. Prediction for data: ["bulk baseball sleeve shirts",0,1,1,"Style","custom0=style and product_type_l1=t-shirts and brand=anvil"] is -

0.0230494. Prediction for data: ["big & tall t shirt green",0,1,1,"Style Exact","custom0=style exact and product_type_l1=t-shirts and

product_type_l2=short sleeve and brand=gildan"] is 0.0666165. Prediction for data: ["navy and gray raglan",0,4,1,"Style Color","custom0=style color and product_type_l1=t-shirts"] is -0.0150156. Prediction for data: ["cuffed long sleeve shirt",0,1,1,"Style Color","custom0=style color and product_type_l1=t-shirts"] is -

0.0492877. Prediction for data: ["big and tall mens shirts sale",1,41,2,"Style Exact","custom0=style exact and product_type_l1=t-shirts and

product_type_l2=short sleeve and brand=gildan"] is 0.2428568. Prediction for data: ["plain tees",0,19,1,"Style Exact","custom0=style exact and product_type_l1=t-shirts and

product_type_l2=short sleeve and brand=gildan"] is 0.0451519. Prediction for data: ["mens fleece quarter zip pullover",0,5,1,"Style Exact","custom0=style exact and product_type_l1=jackets"] is

0.099721http://bit.ly/PredictShoppingQueries

Level 4 - Intelligent Systems Manage Entire Well Defined Accounts

We set parameters for several things and the system manages the account.→ locations, products (i.e. business parameters)→ goals (e.g. ROAS)→ restrictions (e.g. only run on Google Search)

Level 5 - Fully Automated

Connect to your business financials, write a blank check to Google and let their robots handle it.

Some Automation is Too Conservative

Humans Can Learn the Robots’ Techniques

Trend #2The On-Demand Economy

More Freedom and Fewer Responsibilities

Applying Principles From the On-Demand Economy to PPC

Break complex PPC management into small tasks that can be done by a freelancer

30

Keyword Suggestions Example

Store a set of keyword suggestions in Google Sheets where they can be reviewed by a freelancer.

Get Freelance Specialists to Process the Suggested Keywords

Expanded Text Ads How to achieve the results

Google’s case studies show

Ads That Are Optimized Outperform ETAs

“When ETAs do better, they significantly outperform legacy ads. The problem is that advertisers need time to test and tweak their new ads before they will achieve these results.”

- A Google Product Manager

Google pushed back the sunset date for legacy ad creation to January 2017

Analysis #1 and #2

Boxplots and Quartiles

Analysis #1 and #2

Benefits of Using DKI: In Title of Any Type of Text Ad

Does the use of dynamic keyword insertion boost an ad’s performance?

Benefits of Using DKI:In Description of Any Type of Text Ad

Does the use of dynamic keyword insertion boost an ad’s performance?

Benefits of Using DKI:In Expanded Text Ads

Using Path1 and Path2

Does using the URL paths boost performance of ads?

Benefits of Repeating Path Text in Text of ETA

How often are Path1 and Path2 used in Headline1 and Headline2

Do ads perform better when the text from the path also appears elsewhere in the ad?

Does Ad Text Length Matter

AdWords doesn’t always show all the text we submitted in our ads. How does the length of our ad impact performance?

VS.

Impact of Length of Headline 1 vs Headline 2

Mobile Preferred Expanded Ads

Are you upset that mobile preferred ads are not available for Expanded Text Ads?

95%Of mobile preferred ads were different from the standard ad by only a

single word

Run Different Mobile Expanded Ads With Ad Customizers

1. Use the Ad Customizer attribute for “Device preference”:

2. Set up your ad using this new data:

Run Different Mobile Ads withValue Track

Coming Soon! ValueTrack

{ifmobile:say this} {ifnotmobile:say something else}

Already available for use with the final URL

Coming soon to visible parts of the ads

Trend #3Artificial Intelligence

Quality Score - Finding Correlations in CTR

Obvious correlations... Less obvious ones...

In our analysis, 71% of keywords with a change in QS had no change to the First Page Bid Estimate on the same day.

If you use a Google Bid Strategy that depends on ‘first page bid’ or ‘top of page bid’ estimates, be careful!

The Correlation between QS and FPB

• Going from QS 4 to 8 does NOT mean your ad rank doubles

• Hence much of the published data on monetary impact is incorrect…

The Quality Score You See Is Not Linear

If Quality Score Was Linear

Quality Score Is Not Linear

Decrease in CPC for 1 Point QS Gain

Going UP from QS 5 to 6 reduces First Page Bid estimate by 37%

AI Assistants“It’s clear to me that we are moving from a mobile-first to an AI-first world.”

–Sundar Pichai, Google

Alexa and Optmyzr

Thanks@SiliconVallaeys

frederick@optmyzr.com