Chapter 6 – Paid Search Marketing

Break

Simulation Outline
Group Project Outline
OLG for this Thursday
 Chapter 6:
Paid Search Marketing
 Chapter Objectives
• Identify the various types of search engine
advertisements and their parts.
• Analyze the effectiveness of an existing search engine
advertising campaign.
• Determine ways to improve an ad’s position without
increasing the bid amount.
• Create a categorized list of keywords on which to
advertise on a search engine.
 Paid Search – Google Ads
What is paid search?

In the vast majority of instances, it refers to

Google Ads
95% of paid search is by Google Ads.

The 5% leftover is by Bing Ads or Yahoo Ads.

 Paid Search – Google Ads
Focus on Google Ads for
the course AND for real life
work experience.

Goal = Optimize paid search

so that marketing
objectives are made at the
lowest possible cost.

Mostly for the action stage

of the funnel
 Google Ads
Google Ads is fundamentally based on 3
things:

Keywords

Cost Per Click

Conversion rate
 Google Ads
Keywords:
A set of words that advertisers create to target ads to
customers.

Search term(s) vs Keyword(s):

What's the difference between a search term and a keyword?

A search term is the exact word or set of words a customer
enters when searching on Google.com or one of
our Search Network sites. A keyword is the word or set
of words that Google advertisers create for a given ad group to
target your ads to customers.
Source: support.google.com
 Google Ads
Cost Per Click:
The cost advertisers pay for each click
searchers click on paid search ads.

Sessions - # of visitors per 30 minute block

Conversions = your objective such as sales,

leads, email-addresses captured, etc.

Conversion Rate = conversions / sessions

 Group Types of Keywords
Broad Match:
Anything remotely related to wakeboards for sale. Many searchers.
Lowest conversion rate.

Modified Broad Match – similar to Broad match, but keywords target

search terms with the “+” sign. Fewer searchers. Higher conversion rate.

Phrase match = keywords target search terms similar to the phrase. Even
fewer searchers. Higher conversion rate than broad and modified.

Exact match = keywords target EXACTLY the search term (also factors in
spelling and plural). Fewest searchers. Highest conversion rate.
 Keyword Selection

wakeboards for sale Broad Match

+wakeboards for +sale

Modified Broad
Match

“wakeboards for sale” Phrase match

[wakeboards for sale]
Exact match
= potential converter

= non-converter
 Ad Copy

Write ad copy based on the following 4 factors:

• Enticing and unique value proposition (UVP)

• Keyword relevance
• Obvious call to action (CTA)
• Ad extensions
A/B Testing Ad Copy
 A/B Testing Ad Copy

Highest conversion rate is the better ad copy. Google Ads would

automatically select and show the ad copy with the highest
conversion rate.

You, as the digital marketer would create the test ad copies and
create the test within Google Ads. That is YOUR job.
Now? Responsive Search Ads
Does all of the testing for you!

About responsive search ads - Google Ads

Help
 Achieving High Ad Rank
Ad Rank –
Your ad’s position on
SERPs.

Bid Amount: Maximum cost per click the advertiser wants to pay.

The final cost per click is usually lower than your “bid amount”.
Google Ads usually optimizes it so the advertiser pays a little less
than the maximum cost per click (bid amount).
 Quality Score
Quality Score is an estimate of the quality of your ads, keywords, and landing pages.
Higher quality ads can lead to lower prices and better ad positions (source: Google).
In other words, you want a HIGH quality score which leads to LOW cost per click and
HIGHER ad positions.
Quality Score is reported on a 10-point scale, and Google reports it as 1/10, 5/10, etc.
A good QS is 8 and a fantastic one is 10. If you have a QS less than 7, you need to
make adjustments!

How do you achieve high Quality Score?

Expected CTR
+
Ad relevance
+
Great landing page experience
 Quality Score
How do you achieve high Quality Score?

Expected CTR. Google wants the CTR to be as high as possible,

because that’s how it earns money, so if we earn a high CTR, we
will be rewarded with better ad placement. We can improve CTR
by writing good ad copy and by continually running A/B tests to
keep improving CTR. Another technique that many search
marketers use is called “bid popping.” At the start of a new
campaign, keep bid amounts higher than you will have them in
steady state. Even though this will cost the advertiser some
money, it will earn a high CTR (because of the high ad rank it
earns), which gives the advertiser a high expected CTR. (This is
slightly controversial. Google claims it adjusts expected CTR
based on the ad rank, but many search marketers don’t believe
the adjustments are sufficient.)
 Quality Score
Ad Relevance. Ad relevance is primarily measured by the
keywords found in the ad. This means that (1) advertisers
should incorporate keywords into the ad copy when possible
and (2) ad groups should be organized around a small number
of keywords (5–10) so that the ad relevance remains as high
as possible for as many keywords as possible.

Landing Page Experience. Employing the principles of good

web design found in Chapter 2 of the text should create a
good landing page experience, which will decrease bounces.
But search marketers should also remember to incorporate
keywords into the landing page and also to create a different
landing page for each ad group to make sure the landing page
matches the searchers’ intent.
 Google Ads Account Structure
Campaign

Ad Group

Keywords

Ad
 Metrics (Important!)
In the real-live marketing world, there are a few
important metrics (or KPIs) that you must know.

Conversion rate – conversions / sessions

AOV – Average order value – the average sale $ per order (or per
cart or per transaction)
ROAS – Return on ad spend – Sales / cost of ad spend

Example: Made $10,000 in sales from spending $2,500 on paid

search. ROAS is 4.0.
 Types of Campaigns
In Paid Search (Google Ads), there are 5 Major types of
campaigns:

Sponsored Search ad
campaigns:

Branded
Non-branded
Remarketing
Shopping

Banner ads or Video ads:

Display
YouTube
 Types of Campaigns
Branded – Sponsored Search Ads
Groups of keywords that has your brand name in it. Ex: Ryders
Eyewear. Ryders. Groups could be broad, modified broad, phrase, or
exact match (check previous slides for definitions).

Expected results:
Best results. Highest ROAS, conversion rate, AOV.

Why Use Branded?

Searchers use search terms that contain your brand name. These are
loyal fans or people that already know about your brand or people
that really, really, really want to buy something from you.
 Types of Campaigns
Non-branded – Sponsored Search Ads
Groups of keywords that has DOES NOT have your brand name. Instead, groups of
keywords are about what your company sells. Ryders Eyewear sells sunglasses. So,
keywords in non-branded campaigns would be: sunglasses, winter eyewear,
protective eyewear, cool shades, cool sunnies, etc. See? No brand name inside the
keywords.

Expected results:
Poor results. Usually meant for prospecting.

Prospecting = targeting for people that might be interested in the

industry/item you sell, but not exactly YOUR specific brand.

Why Use Non-Branded?

There are only a limited number of branded searchers. To diversify,
use non-branded campaigns to find new buyers or new customers.
 Types of Campaigns
Display – Display campaigns (Not sponsored ads)
Targeting keywords that are branded or non-branded.

The key difference is that display campaigns focus on banner ads, not
sponsored search ads. More on display ads in the next chapter.

Expected results:
VERY poor results. Usually meant for branding and generating awareness and
interest in the funnel.

Why Use Display?

CHEAP! Because it is cheap, almost always used for branding and generating
awareness and interest. Never used for generating conversions.
 Types of Campaigns
Shopping – Sponsored Search Ads
Product specific advertising. Ex: You have 1000 items for sale on your ecommerce
website. You use shopping to advertise all 1000 items, item by item.

In shopping, this is almost always automated by Google. You upload a product feed to
Google Ads, and Google Ads does the rest. In some cases, you don’t even need to
upload anything. Google Ads crawls your website and generates shopping ads for you.

Expected results:
Good results. Almost as good as branded
campaigns.

Why Use Shopping?

Great for eCommerce sites that sell products.
Even better for sites that sells MANY
(thousands) of products (as oppose to
hundreds). The more items, the more exposure
your site gets through shopping.
 Types of Campaigns
Remarketing – Sponsored Ads or Display or YouTube or Shopping
Remarketing campaigns are ANY TYPE of campaign that targets searchers that already
visited your site, but exited.

Remarketing’s objective is to make them come back to your site.

Ex: Remarketing sponsored ad campaign targets searchers through sponsored ads.

Remarketing display ad campaigns targets searches through display ads.

Remarketing shopping campaigns targets searches through shopping ads.

Expected results:
Good results. Almost as good as branded campaigns.

Why Use Remarketing?

Searchers that already visited your site has a higher probability of visiting it again and
converting!
 Types of Campaigns
YouTube: Social media chapter.

In chapters 9 or 10
BREAK – 10 minutes
 Optimal Paid Search Rank

CTR: 20% CPC: $10

CTR: 14% CPC: $7

CTR: 10% CPC: $5

CPC: 7% CPC: $4
PROSAD
 Paid Search Math

With a budget of $1,000, an average CPC of

$2.50, how many clicks can the advertiser
receive before their budget is exhausted?
 Paid Search Math

With an unlimited budget, an average CPC of

$1.00, a CTR of 1.8%, and 60,000
impressions, how much will the advertiser
spend?
 Paid Search Math

With an average CPC of $2.00, what is the

conversion rate needed in order to reach a goal
CPA (cost per acquisition) of $10?
In order words - My goal CPA is $10. At a cost per click CPC
of $2, what is the percentage of clicks needed to result in a sale
(conversion)? So, if I spent $10 at a CPC of $2 per click, I would
need ##% conversion rate.
Formula: $2 CPC / $10 CPA = 20% conversion rate.
A CPA of $10 with a CPC of $2 would generate 5 clicks at $2 per
click. Out of those 5 clicks, 20% would generate a sale. This
results in a CPA of $10.
 Paid Search Math
Your average CPC is $0.50, and your conversion rate
is 5%, what is your current CPA? How many
conversions can you get for $3000?
First, calculate your CPA.
Formula = CPC/CPA = Conversion rate
Which can be converted to:
CPC/Conversion rate = CPA  $0.50 / 0.05 = $10
Then, $3,000 budget divided by your CPA = # of
conversions you would get.
 Paid Search Math
Assume you buy women’s skirts at wholesale
for $10, and you resell them online for $50,
and you give away free shipping which costs
$5, and you want to make $20 per dress,
what should your target CPA be?

ANSWER: $50 Retail Price - $10 Wholesale cost - $5 Shipping

cost - $20 Target Margin = whatever is left over to spend on
advertising (paid search)

What is left over to spend on advertising = your CPA

Therefore, $15 ir your target CPA (whatever is left over to
spend on advertising)
 Paid Search Math
Using the above information and answer, with
an average CPC of $3, how many clicks can
you get before you get a sale? What should
be your target conversion rate?

CPA of $15 (from previous answer).

You know CPC is $3.

How many clicks before you get a sale?

What should be your target conversion rate?
 Campaign Settings
Search network only
Google.com (and other international Google sites)

Display network only

Sites outside of Google search. Sites that want to earn
money display ads using Google Ads’ platform. Sites
like Fortune.com or Globalnews.ca etc.

In Google’s words: “A group of more than 2 million

websites, videos, and apps where your ads can
appear. Display Network sites reach over 90%
of Internet users worldwide*. “
 Campaign Settings

Search network with display select (Updated to be

called “Search network with display expansion)

In Google’s words: “your ads are shown selectively on

the Display Network and bidding is automated, helping
you reach people who are most likely to be interested in
the products and services you’re advertising.

Shopping (now called Performance Max) – shopping

campaigns (see previous slides)
 Campaign Settings

• Device
– Desktop
– Tablet
– Mobile
 Campaign Settings

• Location
 Campaign Settings

• Language
 Campaign Settings
Bid strategy for Campaigns
– Manual
– Automatic
– Based on CPA, ROAS, maximize conversions,
maximize conversion value (AOV), or maximize
clicks
– For display and YouTube type campaigns ONLY,
you can automate based on target ad ranking or
target against competitors (if you want to
outrank them or show when their ads are not
showing).
– For display and YouTube ONLY: CPM (cost per
thousand imperssions)
– Flexible – enhanced cost per click = a mixture of
manual bidding and use of automation.
 Campaign Settings

• Daily Budget
 Campaign Settings

• Ad extensions
– Location
 Campaign Settings

• Ad extensions
– Location
– Affiliate location
 Campaign Settings

• Ad extensions
– Location
– Affiliate location
– Callout
 Campaign Settings

• Ad extensions
– Location
– Affiliate location
– Callout
– Call
 Campaign Settings

• Ad extensions
– Location
– Affiliate location
– Callout
– Call
– Message
 Campaign Settings

• Ad extensions
– Location
– Affiliate location
– Callout
– Call
– Message
– Site link
 Campaign Settings
• Ad extensions
– Location
– Affiliate location
– Callout
– Call
– Message
– Sitelink
– Structured snippet
• Available headers: Amenities, Brands, Courses, Degree
programs, Destinations, Featured hotels, Insurance coverage,
Models, Neighborhoods, Service catalog, Shows, Styles, Types
 Campaign Settings

• Ad extensions
– Location
– Affiliate location
– Callout
– Call
– Message
– Sitelink
– Structured snippet
– Price
 Campaign Settings

• Ad extensions
– Location
– Affiliate location
– Callout
– Call
– Message
– Sitelink
– Structured snippet
– Price
– Review
 Campaign Settings
• Ad extensions
– Location
– Affiliate location
– Callout
– Call
– Message
– Sitelink
– Structured snippet
– Price
– Review
– App
Analyzing Keyword Performance
Google Ads Keyword Planner

Choose the Right Keywords with Our Research Tools - Google Ads
MyVega.com paid search ads
Google Ads walkthrough (TBD)
Social Media Simternship
Simulation Outline
Group Project Outline
 Thursday OLG – Due Friday, Feb. 16 at 11:59pm
OLG Exercise. Individual exercise.

Please create a 1-page word document.

Upload on BrightSpace (week 5)

For Google Ads Paid Search, there are many, many features and available options
to use.

Imagine that you are the Paid Search Specialist for the Nike Air Jordan brand.
Your objective is to sell many Air Jordan shoes on Nike.com. What are the top 4
features you might use to accomplish this on Google Ads? For the top 4 features,
please explain why you chose these 4 features.

Guidelines: fewer than 20 sentences total.

 Next Class

• Chapter 7 – Display Ads & Remarketing

• Chapter 8 – Email marketing
• Mid-term outline

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