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From the SMX East 2014 Conference in New York City, NY. SESSION: Creating, Testing & Optimizing Paid Search Ads. PRESENTATION: Creating an Ad Testing Framework - Given by Brad Geddes, @bgTheory, Founder - Certified Knowledge. #SMX #22B
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Brad Geddes Founder, Certified Knowledge Founder, AdAlysis Author, Advanced Google AdWords
@bgTheory
Creating an Ad Testing Framework SMX East
@bgTheory COPYRIGHT CERTIFIED KNOWLEDGE 2014
Creating an Ad Testing Framework
The Brainstorm
@bgTheory COPYRIGHT CERTIFIED KNOWLEDGE 2014
@bgTheory COPYRIGHT CERTIFIED KNOWLEDGE 2014 3
Research Your Initial Ad Ideas
Ad Ideas Inspirations • Social mentions • Customer support inquiries • Your forums • Company reviews • Competitive research • Brainstorming • Previous Marketing Efforts • Customer onboarding interview • Search query data • Etc…
• Are consumers price sensitive? (discounts, prices in ads)
• Does Location matter? (use geographies in ads)
• Does shipping matter? (Free or Rush shipping)
• Is selection important? (large, exclusive, variety, etc)
• How much does quality matter? (cheap, luxury)
• What’s your best CTA? (Call, Shop, Find, Discover, etc)
• Should your display URL be products, geo, CTAs, or something else?
• Do we need to pre-qualify clicks? (b2b vs b2c)
• etc…
@bgTheory Copyright Certified Knowledge 2014 4
Ask The Big Questions First
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(Optional) Put This Data Into A Spreadsheet
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Do a Keyword Density Analysis Note: This can be used for discovering new keywords
• Your brand
• 3rd party brands
• Products
• Informational
• Long tail
• By buying cycle entrance
• Etc…
@bgTheory Copyright Certified Knowledge 2014 7
Determine How You Want to Segment Ad Tests
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If on Mobile: Segment Ideas by Device
Mobile CTR Desktop CTR
Call Us 11.2% (includes calls) 5.2%
Contact Us 4.1% 6.9%
Example.com/Things 4.2% 5.3%
M.example.com/things (or example.com/mobile)
8.2% N/A
Find the Nearest Store 7.6% 4.5%
Shop Now 2.1% 5.8%
Creating an Ad Testing Framework
Start With Multi-Ad Group Testing
@bgTheory COPYRIGHT CERTIFIED KNOWLEDGE 2014
• Examples: GEO vs Non-GEO headlines Call us vs Learn More CTAs Brand vs Non-Brand Headlines
@bgTheory COPYRIGHT CERTIFIED KNOWLEDGE 2014
List Out Your Ad Tests
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@bgTheory COPYRIGHT CERTIFIED KNOWLEDGE 2014
Multi-Ad Group Testing Setup Ad Group D2
1 Shop Now!
1 Free Shipping!
1 Price $
2 Shop Now!
2 Free Shipping!
2 Price $
3 Shop Now!
3 Free Shipping!
3 Price $
Etc… Etc…
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(Optional) Label Ads for Easy Filtering
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Use Pivot Tables or Software to Analyze the Data
• Don’t use brand names in non-branded ad groups
• GEOs increase CPI; break out campaigns by GEO
• Call Us works best on a mobile device
• Learn more works best on a desktop device
• Etc…
@bgTheory Copyright Certified Knowledge 2014 14
You Now Have Answers to Big Questions
• If you have more big questions to answer; do more rounds of multi-ad group testing
• If not; then move to A/B testing Easiest to start with your top ad groups (by impressions)
@bgTheory COPYRIGHT CERTIFIED KNOWLEDGE 2014 15
Next Steps
Creating an Ad Testing Framework
Ad Rotation & Minimum Data
@bgTheory COPYRIGHT CERTIFIED KNOWLEDGE 2014
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Minimum Viable Data
Data after 97 impressions
Ad Impressions Clicks CTR Z-Score Confidence
Control 40 1 2.5% N/A
Ad 2 33 5 15.15% 1.88 97.03%
Ad 3 24 0 0% -1.01 15.57%
Data after 3163 impressions
Ad Impressions Clicks CTR Z-Score Confidence
Control 1023 23 2.25 N/A
Ad 2 993 29 2.92% 0.95 82.9%
Ad 3 1147 56 4.88% 3.35 99.96%
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Always Use Rotate for Testing
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What You Expect To See
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If Optimize for Conversions is On – Which Ad Should Show the Most?
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Examples Weren’t Easy To Find: But There Were Many More Examples Than I Expected to Find
Creating an Ad Testing Framework
Choosing Winning Metrics
@bgTheory COPYRIGHT CERTIFIED KNOWLEDGE 2014
• CTR (click through rate)
• Conversion rate
• CPA (cost per action)
• CPI (conversion per impression)
• ROAS (return on ad spend)
You don’t have to only use one metric!
@bgTheory COPYRIGHT CERTIFIED KNOWLEDGE 2014 23
Ad Testing Metrics
• I want the most leads regardless of incremental costs B2B long sales cycles Telephone staff
• I want the most leads under a specific average CPA Ecommerce with large variations in revenue by sale
• I want the most leads possible, but no lead should be over $Y Affiliates Lead gen with tight revenue focus
• I want Y leads a month at the cheapest CPA Local business that can only handle a certain amount of leads a month
@bgTheory COPYRIGHT CERTIFIED KNOWLEDGE 2014 24
Lead Gen Types
• The Top CPI as is Always the Winner
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I want the most leads regardless of incremental costs
1. Eliminate ads above target CPA
2. Pick the highest CPI ad
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I want the most leads under a specific average CPA
• For Each Keyword: 1. Eliminate ads above target CPA 2. Pick the highest CPI ad
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I want the most leads possible, but no lead should be over $Y
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I want Y leads a month at the cheapest CPA 1. Extrapolate data as if each ad received 100% of the
impressions
2. Find ad with lowest CPA that can reach Y leads/month
• Start with a big brainstorm / research session to gather ad ideas
• Determine your ad testing segments
• Ask the ‘big questions’ first through multi-ad group testing
• Use that data to create rules around ad creation
• Move to A/B testing on your top ad groups
• Determine how you are going to pick winning ads
• Repeat forever
@bgTheory COPYRIGHT CERTIFIED KNOWLEDGE 2014 29
Recap
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• S
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