How to make your PPC campaigns more efficient using targeted segmentation

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    12-Apr-2017

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Using Targeted SegmentationHow to Make Your PPC Campaigns More Efficient

Agenda

Optimise Bids Through Segmentation

Differentiated Estimates of Sales Results

Split Match Types & Ads

Time of DayRegionsSemantic ClustersWeekdays

Optimise Bids via Segmentation

The electronics retail segment registers high performance levels at the beginning of the week in particular.

From Monday to Wednesday, conversion rates are above average by up to 19%.

Keywords bids are often only based on the weekly average.Differentiate Conversion Rates by WeekdaysMoTueWeThuFriSatSun

Scheduling bids by weekdays results in higher keyword positions from Monday to Wednesday. The number of clicks increases on days that register high conversion rates, while the cost-turnover ratio remains constant.Scheduling Boosts Revenues by 8%Revenues Change in revenuesMoTueWeThuFriSatSun

By using the dimensions tab, you can evaluate the segments Day of the week, Hour of the day, Regions etc.AdWords: Dimensions Tab

Conversion Rates and Time of DayIn this B2B example, conversion rates peak before lunch time.

Apparently, investment decisions are rarely made after 4pm.

Other examples: In the context of B2C retail, conversion rates peak after 4pm and during lunch time.

+ 5% Sales, Cost-Turnover Ratio UnchangedThe more conversion rates fluctuate during high-traffic hours, the higher your profits will be.

If your cost-turnover ratio is allowed to increase slightly, you will find that scheduling is more effective in generating sales than having your ads placed at generally higher positions.

Change in sales

Combining Weekday and Time of DayOn average, conversion rates decline rapidly after 4pm. The only exception is Tuesday.

Combining Weekday and Time of Day will allow you to take these exceptions into account.MonTueWedThuFriSatSun0 to 40.6%0.7%0.7%0.7%0.7%0.6%0.5%4 to 82.1%1.9%1.7%1.9%2.1%0.8%0.7%8 to 122.2%2.1%2.2%2.1%1.9%1.1%1.0%12 to 161.8%1.9%1.9%1.7%1.2%1.2%1.2%16 to 201.1%1.5%1.1%1.0%0.9%0.9%0.9%20 to 240.9%0.8%0.9%0.7%0.7%0.7%0.8%

Combine Segments in AdWords1. Select segment in the dimensions tab

2. Select segment in the download interface.

How many dimensions should be combined?At some point, your data volume will be too small. The first step away from using average values will have the greatest impact.

Based on Analytics / AdWords reports

Proactively create segments by purchasing power

By branch network

Best Practice for low-data segments:Form regional clusters: Top vs. Rest

Adjust Your Bids by Region

Value per Visitor in AnalyticsPurchasing Power in Germany (GfK)

Further Segmentation (Based on Data Available)Conversion rates of fashion retail industry 100% = averageDifferentiating your bids by region will enable you to generate a sales increase of 20% while your cost-turnover ratio remains unchanged.Saxony-AnhaltNRWHesseBavaria

Maximum: Differentiate by Regions

CoatsSell better in New Hampshire

CR totalShortsCoatsNew Hampshire2.3%1.4%2.6%Georgia1.8%1.5%0.8%

Use different regional bid modifiers forevery product categoryShortsSell better in Georgia

Use Semantic Keyword Characteristics[BRAND] [DISCOUNT] vs. [BRAND] [BUY] adidas cheaper vs. adidas shoplipsy wholesale vs. buy lipsy Clustering keyword performance by characteristics such as:Brand, categoryPurchase-signal wordsColour, target groupwill help you place your bids more quickly and accurately.

Example: bargain hunters

Result: Bargain Hunters Are Unprofitable[BRAND] [DISCOUNT] vs. [BRAND] [BUY]

70%

75%Small shopping cart valuesLow margin per purchase

58%Low conversion rates

72%Low rate of new customersKeywords which still have low click rates, but which fall into the category described above, should be proactively priced down.

CPOROICLV

Evaluate your sales results discriminatinglyAccurate evaluation of successCost-Turnoverratio

Which keyword is worth more?

Ray Ban Aviator EUR 130.49

Ray Ban Sunglasses

Daily Lenses 30 PieceDaily Lenses SetEUR 24.99

Identical in terms of CPO

Ray Ban AviatorEUR 130.49

Daily Lenses SHEUR 24.99

CPO:EUR 15Bid: EUR 0.40CPO: EUR15Bid: EUR 0.40

If you set a CPO target value on the account level, all purchases will be valued the same, even if customers shopping cart values differ.

Cost-Turnover Ratio Accounts for Revenue Levels

Ray Ban AviatorEUR 130.49

Daily Lenses SHEUR 24.99

Cost-turnover ratio: 11%Bid: EUR 0.70

Cost-turnover ratio: 60%Bid: EUR 0.10

In terms of cost-turnover ratio, the contact lenses are of less interest to advertisers, and the bid is lowered.

Cost-turnover ratio = CPO / Shopping cart value

Daily Lenses Generate Higher % Profit Margin

Ray Ban AviatorEUR 130.49Margin: 20%Daily Lenses SHEUR 24.99Margin: 60%

ROI:74%Bid: EUR 0.70

ROI:0%Bid: EUR 0.30

The daily lenses as a private label generate a higher percentage profit margin. The ROI takes short-term profitability into account .

ROI = ( Shopping cart * Margin / CPO ) 1

Follow-up Purchases of Contact Lenses Boost CLV

Ray Ban AviatorEUR 130.49

Daily Lenses SHEUR 24.99

CLV: EUR11Bid: EUR 0.52

CLV: EUR30Bid: EUR 0.60

In contrast to the sunglasses, the contact lenses generate follow-up purchases. These future margins lead to higher bids today.

CLV = Customer Lifetime Value. Long-term profit.

Ich bin von einer Neukundenquote von 50% ausgegangen und von 2 Folgebestellungen je Neukunde.21

Bid Overview

Ray Ban AviatorEUR 130.49

Daily Lenses SHEUR 24.99

CPO: EUR15Bid: EUR 0.40KUR: 11%Bid: EUR 0.70ROI:74%Bid: EUR 0.52

CLV: EUR11Bid: EUR 0.52

CPO: EUR15Bid: EUR 0.40KUR:60%Bid: EUR 0.10ROI:0%Bid: EUR 0.30

CLV: EUR30Bid: EUR 0.60

The CLV model will increase the bids that generate high numbers of valuable new customers on the condition that you track margins and new customers.

Segmenting keywords leads to improved conversion rates

Test ad texts separately for brands and ad group

Segment Match Types and Ads

AdWords Basics: Segmented Search QueriesEnter the search query of a broad match as a keyword:Differentiated bids, better ads

Broad match performance

TVTVLCDTVLEDTV2%1%0.5%0%10,000Clicks per month4,0008,00010,000Clicks per monthSearch query performanceONE average bid

Increase in Average Conversion RateMore traffic for high-conversion keywordsbecause of:Good search queries will receive more traffic 0.5%2%1%0%

TVCR

LCDTV

LEDTVBetter ads due to separate keywords

1. Higher bids2. Ad quality3. Quality scorePotential:50% increase in sales due to better ads alone

Testing Ad Texts for BrandsSloganAdidasLipsyD&GAggregateSales argument++-+Best argumentFree shipping24 hour deliveryNoneFree shippingCall-to-action++-+Best call-to-actionUse CodeShop-ShopWide selection++++

What works best as a slogan in the aggregate may not necessarily work best for individual brands!

Careful when Aggregating Ads!The same applies when working with ad groups:

Results may be distorted in the aggregate and may not accurately represent individual results.TotalClicksImpressionsCTRFree delivery5494471545460.8%50% discount2708725843001.0%

AdGr 1ClicksImpressionsCTRFree Delivery132781802387.4%50% discount34493154161.1%

AdGr 2ClicksImpressionsCTRFree Delivery1638312402313%50% discount1935819281010%

AdGr 3ClicksImpressionsCTRFree delivery2528368502850.4%50% discount428020760740.2%

Other Important SegmentsPLA targets: all products brands products

Remarketing groups, depending on website performance

Mobile vs. Desktop

Best PracticesSegment keywordscontinuously

Optimise adscontinuously

Bid modifier on campaign levelonce a monthWeekdays, time of dayRegionalMobile vs. Desktop

The first step away from using average values will have the greatest impact. Depending on the data available , it may be useful to segment further.

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