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David Rodnitzky, SMASH Summit NYC

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David Rodnitzky's (CEO & Founder @ PPC Associates) presentation at SMASH Summit on 7/26 in NYC

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David Rodnitzky, SMASH Summit NYC

  1. The Good and BadSEM News for StartupsDavid Rodnitzky
  2. The 80/20 Rule for Startups and SEM2
  3. Search Engine Marketing Myths v. Reality Reality Innovative companies are the WORST fit for SEM SEM is highly competitive = hard SEM is efficient = ROI not guaranteed The long tail is . . . DEAD3
  4. Five Reasons You Should Avoid SEM 1. No demand for your product/service 2. Uncompetitive economics 3. Lack of SEM chops 4. Average or bad conversion funnel 5. Uncompetitive offer Note: There will be some good news at the end of the presentation – promise!4
  5. Reason #1: No Demand for Your Product or Service
  6. SEM is the “Database of Intentions”  People search for EXISTING products and services  Search is about fulfillment of demand, not creation6
  7. Innovative Products and Solutions = Bad for SEM  Which keywords would you buy:  In 1997 for Tivo? “VCR Alternative”?  In 2004 for Facebook? “Share with Friends”?  In 2012 for Lytro? “Focus 1000X Camera”?7
  8. Reason #2: Uncompetitive Economics
  9. SEM is an Increasingly “Efficient” Market • The long tail is DEAD = Fewer keywords with more auction participants • SEM is a staple of most established businesses • Auction-based economics favor companies with strongest finances9 Source: http://wallstreetwit.blogspot.com/2008/05/efficient-market- hypothesis.html
  10. Search for “Cloud Computing”10
  11. Search for “low cost cloud computing that runs on multiple servers in linux”11
  12. Search is Popular (Expensive), But Not Cool 2002 2004 2012 Red = Spend Blue = Interest12
  13. Reason #3: A Lack of SEM Chops
  14. The 7 Habits of Highly Effective SEM14 Source: http://ppcassociates.com/7habits-guide.html
  15. Reason #4: An Average or Bad Conversion Funnel
  16. Great SEM without a Great Conversion Funnel16
  17. Reason #5: Lack of a Compelling Offer
  18. “The Competition is a Click Away”18
  19. And Now for Some Good News
  20. Solve All Five Issues = $$$$$ • AdWords is Marketing to hand raisers – it works! • Your competitors may not know their true economics – LTV, ROAS, can give you an advantage • Many (most?) AdWords campaigns are poorly managed = opportunity • You can start with $5! • Iterative testing of conversion funnel is relatively easy (Optimizely, Unbounce, etc) • Offer testing is also easy and most people don’t do it!20
  21. The 7 Habits of Highly Effective SEM (Again)21 Source: http://ppcassociates.com/7habits-guide.html
  22. Keywords vs. Queries - A Crucial Distinction Keyword Queries22
  23. Creating & Analyzing The Beta Campaign Step One: Create the Beta campaign “The Bait”  All keywords should be on broad match modified (+broad +match +modified) Step Two: Run raw search query analysis on Beta campaign Step Three: Identify winning queries and losing queries23
  24. Creating the Alpha Campaign, Refining the Beta Step Four: Create an Alpha campaign. Move winning queries into SKAGs in the Alpha  SKAGs = Single Keyword Ad Groups  Put all Alpha queries on Exact Match  Create targeted ad text and landing pages for each SKAG Step Five: Add all losing queries to the Beta campaign as Negative Exact Match24  -[free dragon tattoo poster]
  25. The Air-Tight Account Secret Step Six: Add all Alpha queries to your Beta campaign as Exact Match Negatives!  This prevents Google from matching a bait keywords to your profitable Alpha query  You control bid, ad text, and landing page for winners! Step Seven: Continue to identify winners and losers in the Beta campaign. Move winners into the Alpha25
  26. Ad Text – The “Gatekeeper” • Call to action • Four human emotions  Fear  Greed  Exclusivity  Vanity • Targeted to specific ad group • Test, test, test – CTR X Conv. Rate26 Source: http://www.amazon.com/Direct-Mail-Copy-That-Sells
  27. Landing Pages – The “Closer” • Clear call to action • Important data above the fold • Establish credibility • Highly targeted to your keyword & ad text • Function over form (limit flash, sound, etc) • Multiple methods of communication • Test, test, test • Quality score: contact us, privacy policy, about us, site map, load time27
  28. Your Next Steps • Ask yourself – are you in the 20%? • Assess your SEM chops or hire an expert • Work tirelessly on your conversion funnel • Start testing SEM - slowly28
  29. Thank You!david@ppcassociates.comwww.ppcassociates.com@rodnitzky