John Thyfault will lead a workshop on pay-per-click (PPC) fundamentals. The workshop will cover an introduction to PPC advertising, changes to Google's rules, metrics like cost per click and quality score, keyword matching types, and writing effective PPC ads. Attendees will learn how to structure campaigns, set bids, and optimize ads and keywords to improve performance.

1. Search Engine Marketing Workshops
PPC Fundamentals: Getting Started Strong
September 21, 2016
Direct Marke4ng Associa4on, Northern California
& The Online Marke4ng Ins4tute
1
John Thyfault
VP, Search Engine & Social Media Marke5ng, Beasley Direct Marke5ng, Inc

2. About The Instructor
John Thyfault, VP, Search Engine & Social Media Marketing at Beasley
Direct Marketing
John Thyfault has more than 20 years of marketing, sales and product development
experience. His knowledge of search engine optimization (SEO), pay per click (PPC)
marketing and social media marketing, combined with an in-depth understanding of
customer identification, market analysis and segmentation, allows him to deliver high
returns on client marketing investment.
Prior to working with Beasley Direct, John was Senior Client Services Project Director at
ThirdAge.com, a first wave baby boomer lifestyle and community website. At ThirdAge
he successfully led major client sponsorships for Tylenol, American Century, Intel, IBM,
and Revlon.
John has led workshops for the Silicon Valley American Marketing Association, the
Direct Marketing Association in Northern and Southern California and the Business
Marketing Association. He also teaches Search Engine Marketing at University of
California, Santa Cruz, Extension in Silicon Valley and is currently leading day long
seminars as part of the Online Marketing Summit's 2011 International Tour.
2

3. About Beasley Direct Marketing
Beasley Direct Marketing, Inc. provides copywriting,
design, programming, and consulting services for the
following direct marketing channels:
3
• Search (PPC and SEO)
• Email Crea5ve, Design, Deliverability Audits,
and Broadcast
• Direct mail (with and without PURLs)
• Landing Page Design (with and without PURLs)
• Mobile
• Video
• Social
• Website Design
• Catalog/eCommerce
• Brochure, White Paper, and Guide copy and
design
• List Building and CRM Database Management
• Telemarke5ng
• Transla5on for all of the above
• Execu5ve Dashboard Tracking, Repor5ng, and
Lead Assignment

4. Workshop Overview
• Introduction To PPC Advertising
• Guess What? Google Just Changed The Rules
• The Numbers Game
• Keywords and Bidding
• How The PPC Auction Works and Quality Score
• Keywords, Match Type And Searches In PPC
• Writing PPC Ads That Preform
• Campaign Structure and Types
4

5. 5
Introduc4on To PPC Adver4sing

6. What Is PPC And Who Are The
Players?
• Advertising program where listings are guaranteed to
appear in response to particular search terms:
• Higher ranking are obtained by bidding more, having
better CTR and more relevant landing pages than
other advertisers
• Google AdWords and Bing/MSN are the big players
right now
• There are PPC programs for many different sites/
platforms out their
• Facebook, LinkedIn, Business.com, YP.com, etc.
• AdWords and Bing have display network opportunites
6

7. PPC’s Pros
Pros
• Can be very cost & ROI effective
• Low barriers to entry
• Very trackable for ROI
• Very dynamic, easy to start and stop quickly
• No graphic creative needed
7

8. PPC Cons
Cons
• Bid wars can be fought and lost by both sides
• Increasingly competitive
• It can open your kimono on customer acquisition
costs
• Traffic ends when funds are shut off
8

9. PPC - Where Does It Fit?
9
PPC

10. 10
Organic Results
Sponsored Results
Results With Commercial Intent (Old Style)
10

11. New High Commerical Intent Layout
11
February
19, 2016
Google
Changes
the Rules

12. New High Commerical Intent Layout
12
3-4 ads up top
Shopping Ads
(PLAs) on the
right column
Additional ads
at the bottom
of the page

13. New High Commerical Intent Layout
(bottom)
13
9th organic listing

14. Results Without Commercial Intent
14
Google Knowledge Graph

15. Google Display Network Advertising -
Not Quite Search
• AKA “contextual search”
• Provided to publisher sites like NYTimes.com by
search advertising providers, Google (Adsense) and
Bing (Content Match)
• Click through rates lower, conversion also lower, but
much better than traditional online buys
• Relevancy and Adjacency is the key - User’s will get
used to ignoring
them if they don’t click on them
• Can be targeted using remarketing technology
15

16. Where Your Display Network Ads Appear
• Google AdSense publisher sites, including AdSense
for Domains and AdSense for Errors
• DoubleClick Ad Exchange publisher sites
• Google sites such as Google Finance, Gmail,
Blogger, and YouTube (Google search not included)
16

17. Where Your Display Network Ads Appear
17
10’s of 1,000’s of sites possible
Multiple Devices

18. 18
PPC: The Numbers Game

19. It’s All About The Numbers
•No one number ever exists in a vacuum
•There is a conversion pathway that surrounds every
metric
•Decide what you want the site to accomplish, your
conversion
•Define how the conversion is measured
•Sale, lead form, site registration, catalog request,
time on site, pages visited
•Figure out how much that conversion is worth to you
•Lifetime value, average sale, etc.
19

20. It’s All About The Numbers
• Pay Per Click Programs need to be tracked in order to
be successful
• First step is to define what a conversion is
• Sale, lead form, site registration, catalog request,
time on site, pages visited
• Second step is to figure out how much a conversion is
worth to you
• Lifetime value, average sale, etc
20

21. It’s All About The Numbers
Third Step is to work your way backward to get a number
of visitors needed to meet your conversion goal and an
acceptable cost per click to get those visitors to your site
21

22. It’s All About The Numbers
• Key PPC Metrics
• Cost per Click (CPC)
• Quality Score (QS)
• Click Through Rate (CTR)
• Conversion Rate (CR)
• Conversion Cost
• Cost per Sale (CPS)
• Cost Per Lead (CPL)
• Cost Per Acquisition (CPA)
22

23. Some Basic Formulas
• Cost Per Click = Total cost/number of clicks
• Click Through Rate = Clicks/Impressions
• Conversion Rate = Conversions/Visitors
• 45 conversions on a page visited by 325 users =
13.84% conversion rate
23

24. More Formulas
• Cost Per Acquisition = CPC / conversion rate
• $2 cpc / 8% conversion rate = $25 CPA, i.e. each
sale/acquisition costs $25
• Return on Ad Spend (ROAS) = Total Sales/Total
Cost
• $500,000 is sales / $70,000 in ad spend = 714%
ROAS (This is a gross number)
• $500,000 in gross revenue - $400,000 in cost of
goods sold = $100,000 in net revenue / $70,000
in spend = 1.42% NMROAS
24

25. What’s An Acceptable Cost Per Lead/
Sale and Why Do I Care?
• Starts with question “What is a lead worth to my
company and what is share of that is profit versus costs
of goods?”
• Example: An first quality lead for a software company
on average generates $70 in revenue.
• Of this, $30 dollars is potential profit after COGS
• The company has a profit target of 15%, so
$10.50 of the profit is not usable
• $19.50 is your acceptable cost per lead ($30-
$10.50)
25

26. What’s An Acceptable Cost Per Lead/
Sale and Why Do I Care?
• The $19.50 acceptable cost per sale will tell you how
much your cost per click can be if you know your
conversion percentages.
• The landing page has a 5% conversion rate (1 in 20
visitors converts)
• Acceptable average cost per click
• $19.50 * 5%
• $0.98 CPC
26

27. Setting Up PPC Tracking
• If you’re not tracking, you are wasting time & money
• PPC Tracking Solutions
• Google Analytics
• Marin Software
• Kenshoo
• DoubleClick For Search
• Efficient Frontier
• iCrossing
• Did-it
• Most web analytics packages have PPC modules
27

28. 28
How The PPC Auc4on Works
and
How Quality Score Impacts It

29. The PPC Auction Environment
• The advertisers bids on keywords that the searcher will
use in order in a search in order to get their ads to
appear when the search takes place
• When done properly, this will allow the ads to appear in
front of searchers that are looking for that is relevant to
the ads
• The higher the bid per click, the higher up on the page
the ad will appear, i.e. average position
• It’s like golf, lower numbers are better. 1 is better
than 4
29

30. The PPC Auction Environment
• The advertiser is only charged for actual clicks on ads
• Cost per click is the next advertiser’s bid per click
• The advertiser in position #1 is bidding $4 per click
• The advertiser in position #2 is bidding $3 per click
• Advertiser in #1 only pays $3 per click
• Google rewards keyword/ad combinations that perform,
i.e. have a high CTR - this is known as Quality Score
• Your Quality Score will impact the actual cost per click
and your position on the page
30

31. What Is Quality Score
• A dynamic measure of your keyword’s, ad group’s,
campaign’s performance
• Derived at the keyword level and flows up the
campaign hierarchy
• Scale is from 0-10, with 10 being the ideal
• Designed to measure relevance of keyword and ad to
user’s search
• CTR is the largest component - also
• Ad relevancy
• Landing page relevancy
31

32. Auction Example
Max Bid
32
Price Paid
$4.00
$3.00 $2.00
$1.00
minimum price
$3.00
$2.00
$1.00
Advtr. Position
1
2
3
4
Acme
Baker
Chaz
Dell

33. Quality Score’s Impact Position and
Cost
Max Bid
33
Acme
Baker
Chaz
Dell
Quality Score
$4.00
$3.00 5
9
5
3
$2.00
$1.00
Ad RankAdvtr.
12
15
18
5
New
Position
3
2
1
4

34. How To Determine Cost Per Click
• Cost Per Click is determined by the Ad Rank of the next
slot down divided by your QS and the next highest
bidder’s Quality Score
• Actual CPC for Advertiser in position #1 =
(Advertiser 2’s AR /Advertiser 1’s QS)
34

35. Quality Score’s Impact Position and
Cost
Max Bid
35
Chaz
Baker
Acme
Dell
Quality
Score
$2.00
$3.00 5
3
5
9
$4.00
$1.00
Ad RankAdvtr.
18
15
12
5
Cost Per
Click
15/9=$1.67
12/5=$2.40
5/3=$1.67
Auction Min.

36. Love & Live Your Quality Score
• All things being equal, the higher the advertiser's
Keyword QS is, the higher the ad position will be
• High QS makes your ad dollars more efficient
• If your QS is below 7, improve it or stop it
36

37. Quality Score Religion
• Quality Score is not just a keyword level score
• Your ad group has a QS
• Your campaigns has a QS
• Your account has a QS
• These scores will impact new keywords and ads. They
will affect the ability to get a fair share of impressions
37

38. Quality Score Religion
• Quality Score is not just about keywords
• Your bounce back rate is measured
• The relevancy of your landing page is measured
• Page load speed is measured
• Quality score is also a reflection of your marketplace
• Some markets have lower QS for a majority of
keywords
38

39. 39
Keywords, Match Type And Searches In PPC

40. Keywords and PPC
• Keywords/keyphrases are the language your customers
use to search for you
• They are your primary bidding unit
• They will send strong signals on intent and expectations
• Use keywords as the basis for your ad copy
• Balancing traffic potential versus conversion rates
• Working the tail of the conversion curve
40

41. Where To Find Your Keywords
• Speaking with your current customers!
• Google’s Keyword Planning Tool
• Spyfu.com
• Ubersuggest.com
• WordTracker.com
• KeywordDiscovery.com
• Google Search Suggestions
• Google Trends
41

42. Longer Keyphrases Mean Increased Conversion
%
42

43. Traffic VolumeTraffic Volume
Conversion
Likelihood
Longer Keyphrases Mean Increased
Conversion %
More specific match types follow this same rule
43

44. Match Types
Exercising Fine Control
• Broad
• Modified broad (AdWords Only)
• Phrase
• Exact
• Option to include plurals, mis-spellings and other
close variants for phrase and exact match
• Negative versions
44

45. Match Types
45

46. Match Types
Exercising Fine Control
• Broad match is a great start but don’t set and forget
• Phrase & Exact match should be applied to top
converting keywords
• Look in the keyword details reports to see what new
exact and phrase matches you can discover
• Negative Match is your scalpel for unwanted clicks
46

47. Phrase & Exact Match
Expanded Reach
• On Google, phrase and exact keywords can trigger ads
on close variants:
• Misspellings
• Singular/plural forms
• Stemmings
• Accents
• Abbreviations
47

48. Phrase & Exact Match
Expanded Reach
• Expanded reach Examples
• Mis-spelling
• Waterproof sunblock = waterpoof sunblock
• Plural variations
• Buy bollard covers = buy bollard cover
• Stemming Variations
• Single serve coffee maker = single serving coffee
maker
48

49. Match Types
Exercising Fine Control
49

50. Negative Match
• Negative match is one of your highest efficiency tools
• Can be broad, phrase or exact
• Look for complete mis-matches in your keyword details
report
• Look for user intent and apply it to your ad groups
• Negative Exact match can allow fine control
• Broad match does not expand out the way it does on
positive broad
50

51. The Benefits of Negatives
51
Marin Software Inc., Negative-Keyword Strategies:
Shaping Paid Search Traffic to Drive More Revenue, June 2012

52. 52
Wri4ng PPC Ads That Perform

53. Section Overview
• Understanding PPC ads
• PPC ad components
• Best practices while writing ads
53

54. Core Ideas For Any PPC Ad
Benefits first, features second!
Focus on customer’s needs not just wants
54

55. Components Of A PPC Ad (Expanded)
55
Headline 1 - 30 characters
Headline 2 - 30 characters
Display URL - 2 Fields at 15
characters
(aka vanity url)
Description - 80 characters
Destination URL - 1024
characters
(not shown in this
example)

56. Writing A Good PPC Ad
• Create a compelling call to action and value
propositions to entice users
• Use active tense, avoid the passive
• Don’t use marketing speech – approach your ad like a
conversation
• Focus on the customer’s needs and problems. Offer
your products/services as a specific solution to help the
customer
56

57. Writing a Good PPC Ad
Three elements to a good ppc ad
•Keyword bid upon (drives # of leads)
•Title and description (drives quality of leads)
•Target URL (drives conversions)
57

58. The Language of Your Ads
• Don’t be afraid of using brand names
• Use the language that your target user uses
• Testimonials drive conversions
• Make sure your landing page pays off the promise of
your ad
• Salesforce brand example
58

59. What Drives The Clicks In A PPC
Campaign?
• Appeal to the user
• Exclusivity of the product/service/offer
• The credibility of the facts in the ad
59
Optimizing PPC Ads: Leveraging the full potential of 130 characters by clarifying the value prop. Marketing Experiments Labs,
Dr. Flint McGlaughlin
http://www.marketingexperiments.com/images/multifiles/articulate/webclinic-01-19-11/player.html

60. Which Ad Wins?
60
Optimizing PPC Ads: Leveraging the full potential of 130 characters by clarifying the value prop. Marketing Experiments Labs,
Dr. Flint McGlaughlin
http://www.marketingexperiments.com/images/multifiles/articulate/webclinic-01-19-11/player.html

61. Which Ad Wins?
61
Optimizing PPC Ads: Leveraging the full potential of 130 characters by clarifying the value prop. http://
www.marketingexperiments.com/images/multifiles/articulate/webclinic-01-19-11/player.html

62. 62
Dynamic Keyword Inser4on In PPC Ads

63. Dynamic Keyword Insertion
Google
• Insert the search term (or a broad match variant) into
the ad copy or destination URL dynamically.
• Makes the ad feel more relevant to the searcher based
upon his query
• Increases CTR
• Makes it easy to create multiple unique ads for a large
amount of keywords
• Allows one ad to target a large number of similar
products
63

64. Dynamic Keyword Insertion
Google
• Create Your Ad using the Dynamic Keyword Insertion
(DKI) syntax
• Correct Syntax is: {keyword:Default Text} (no space
between colon and default text
• Character limits can not be exceeded - “{“:“}” and
“keyword:” do not count
• Can go in any line of ad, including the destination URL
64

65. Dynamic Keyword Insertion
Google
Keyword Capitalization: The table below demonstrates how using
variations of the keyword insertion tag will modify keywor
capitalization for your ad text.
65
Keyword Capitalization Example Rule
keyword google ads none
Keyword Google ads Sentence (first letter of first
word)KeyWord Google Ads Initial (first letter of each word)
KEYWord GOOGLE Ads
* Entire first word and
* First letter of each
remaining word
KeyWORD Google ADS
* First letter of first word and
* All letters of each remaining
wordKEYWORD GOOGLE ADS All letters of all words*
* AdWords ads may not include excessive ad text capitalization (i.e., BUY DVD BURNERS HERE). Capitalization
may only be used where the natural spelling of a word requires full capitalization, such as in acronyms, technical
terms, and trademarked terms.

66. 66
Campaign Structures And Types In PPC

67. Campaign Structure
67
http://www.pushon.co.uk/blog/pay-per-click-ppc/focuson-an-introduction-to-pay-per-click-search-advertising/

68. Basic PPC Account Structure
Google AdWords
• Account Level - Billing, Company Info, Contacts, Users
• Campaign Level - Targeting, Networks, Ad Types
• Ad Group Level - More targeting, ad group bids, ad
extensions
• Keywords
• Individual keyword bids and destination URLs
• Match types
• Ads
• Text or graphic components
• Destination URLs
68

69. Types Of Campaigns
• AdWords offers a number of campaign types that can
help you target the right type of ad to the right users
• They can also put the wrong type of ad in front of the
wrong user, so pay attention
• Used properly, they drive good ROI
• Used improperly, they drive budgets into the ground
69

70. Types of Campaigns
& Networks
• Controls where your ad appears and what type of ad
shows
• Search Network
• Display Network & Display Select Network
• Shopping Campaigns
• Remarketing Campaigns
• Remarketing Lists for Search Advertising (RLSA)
• Engagement Campaigns
• Mobile Apps Campaigns
70

71. Search Network Campaigns
• Appear on Google and Google search partner sites
such as ask.com, aol.com, earthlink.com
• Text ads only
• The most effective of the PPC campaign types in many
ways
• Engaged searcher already in the buying funnel
• Easier to get good correlation between searches
and ads
71

72. Google Search Network Properties
• Google Search
• Shopping
• Maps
• Images
• Groups
• Non-Google search sites like AOL
• Default option includes non-Google sites - expands
your reach but is a drag on CTR
72

73. Display Network
• Two types of display campaigns on Google - Display &
Display Network Select
• Display network is supposed to reach 90% of internet
users
• Text, image, rich media, and video ads
• Can appear on up to a million different sites
• Websites that show relevant Google ads
• Videos, Apps, Gmail, YouTube, Blogger, Google
Finance, etc.
73

74. Display Network
• Targeting is based on relevant sites and pages that
match your keywords and ads
• Can be cpc (cost per click) or cpm (cost per thousand
impressions)
• Can also target based on topics, demographic and
psychographics characteristics
• Can target specific sites as well as topics
• Auto and manual selection of sites is available
• Ads appear in front of browsers/readers of other info
• Can increase brand awareness and exposure
74

75. Display Select Network
• A hybrid of search and display targeting
• THIS IS THE DEFAULT SETTING for new campaigns
• Reaches both search/search partners and a smaller,
select group of display sites
• Performance is driven down by display impressions
• Can generate a lot of traffic but tends to be more
focused on awareness than direct response
75

76. Engagement Campaigns
• Consists of highly interactive, rich media ads that
require involvement/engagement to be effective
• Lightbox ads, hover ads, game ads
• Can turn the entire screen into an ad canvas
• Only available on display network sites that support
them
• Can be successful without a click to the site if the
consumer becomes engaged in the experience
76

77. Mobile Apps Campaigns
• Ads that appear within an app on Android or iOS
devices
• Part of the Display and Display Select Networks
• Limited reach right now
• Can target specific apps and/or devices
• App targeted has to support the ads
• Trafficked through AdMob technology
77

78. Session Wrap-up
• Crafting a well written ad takes a good understanding of
its components and how they affect the click and
conversions rates
• Ads must point to a page that delivers on their promise
• Google offers many campaign types in both the search
engine and display networks through the AdWords
interface
• Not all of these are the right one for your product or
campaign
• Use the campaign type to help you target the right
customer
78

79. Wrap Up
• PPC is one of the most effective advertising platforms
• Qualified, self selected traffic
• Controllable costs and very trackable
• Know your targets before you spend your dollars
• The PPC auction is dynamic and rewards relevance
• Your language (keywords) influence the costs and the
quality of your campaigns
• Writing good ads takes practice and testing
• How you structure and target your campaigns impacts
your success
79

80. New Link Building White Paper
A great introductory background
on link building with a series of
good strong tactics to help move
your campaign forward.
80
*PKQJJEEERB&'71&83.(&):R)0@JB10-J1.,4SBD.13.,-J69SH.,4613-S"-7STUVWVXRK3N$

81. Optimize Your Landing Pages
With This Guide
• Optimize your landing pages with this 10-page, hands-
on guide offering tips on:
–Design
–Personalization
–Offers
–Usability
81
hPp://www.BeasleyDirect.com/Landing-Pages-Guide.html

82. Learn How to Optimize Your Emails
Learn how to optimize your emails for
delivery through spam filters and for
consistency across email browsers in
this handy guide. Learn how to:
»Get your email around spam
filters
»Make your email look consistent
across browsers
»Optimize your design for blocked
images and preview panel
82
hPp://www.BeasleyDirect.com/Email-Audit-Guide.html

83. New Guide on
Multichannel Marketing
Hot off the press, this new guide offers tips on how to
save money and optimize effectiveness
83
hPp://www.BeasleyDirect.com/Mul5-Channel-Marke5ng

84. Thank You!!
John Thyfault
https://beasleydirect.com/services/pay-per-click-advertising/
jthyfault@beasleydirect.com
650-323-1881
@JohnThyfault
84