80/20: Work Less, Make More In AdWords [Webinar]

CONFIDENTIAL – DO NOT DISTRIBUTE 1

Larry Kim, Founder/CTO, WordStream

Perry Marshall, Founder, PerryMarshall.com

December 10, 2013

Today’s Agenda

How The 80/20 Principal Works

and Why

Applying the lessons of 80/20 to

AdWords Campaign Management

Q & A

@larrykim, @perrymarshall

Speaker Introductions

• Perry Marshall

– Author of the most popular AdWords book in the world.

– #1 author and world’s most-quoted consultant on Google Advertising

– Published thousands of articles on sales, marketing and technology

• Larry Kim

– Founder, CTO, WordStream, Inc.

– Been doing PPC & SEO for 10 Years!

– Provider of 20 Minute PPC Work Week and AdWords Grader

– #1 PPC Expert According to PPC Hero!


Take Part in Live Blogging on Twitter / Google+

Include the hashtag #perrymarshall in your Twitter tweets, Google+ status updates, etc.


Let’s learn a little about you….


Live-Poll Question

How Long Have You Been Using AdWords?

a) Less Than 1 Year

b) 1-2 Years

c) 3-5 Years

d) Over 5 Years


Live-Poll Question

Besides PPC, what other types of marketing channels do

you utilize? (select all that apply)

a) SEO

b) Email

c) Affiliate Marketing

d) Social Media

e) Mobile


80/20:

THEE #1 Principle of

Sales, Marketing &

Business Perry Marshall, Author of

Ultimate Guide to Google AdWords

Ultimate Guide to Facebook Advertising

80/20 Sales & Marketing

Page 14... my mind set on

fire!

Epiphany

Social

Experiment

How accurately does

80/20 predict stuff?

SWA & Fortune 500

Forbes 400

Population of Cities in

USA

Donations to a

Church

Dairy Output of

Wisconsin Counties

How You Find

Superstars

Flickr/gregp

c Flickr/matthewstraubmull

er

30

Customers

Even my tiny business

matched the pattern!

• 1 $10,000 Client

• 10 $1,000 buyers

• 1,000 Leads

• 10,000 Visitors

A Very Strange Day

Epiphany #1:

Everybody’s Counting

The Wrong Stuff.

Science

Test

Science Ability

=“Horsepower

”

“What’s AVERAGE”

is the WRONG

question.

• The RIGHT question is: “Who are the

superstars? And how super are they?!”

The Principle of the

$2,700 Espresso

Machine

• For every 10,000

$1.40 cups of coffee,

you will sell one

$2,700 espresso

Machine!

My Life of Misery

Flickr/tim g photography

Suddenly, everything

changed!

Company I Worked For

Sold for $18 Million

Now I knew how to

rack the shotgun!

• When you know how to get customers,

you never go hungry

80/20 in Google

AdWords

$10, $100, $1,000

or $10,000 Per Hour?

Even a

$20/hour

person

makes

$1,000/hour

at least 1

minute per

day! flickr/kheel_center_corne

ll

www.sell8020.com

• 80/20 Sales &

Marketing

• $7

http://www.sell8020.com/

Applying the 80/20 Principal to AdWords Campaign Management


What to Focus On in AdWords?

• Top 4 campaigns (19%) = 78.8% of Spend

• Top 1 campaign (4.7%) = 31% of Spend


Where do conversions come from?

• 68.4% of conversions from 19% of campaigns

• 21.5% of conversions from 4.7% of campaigns

• Not the same as the high spending campaigns


Takeaways – Where to Optimize

• Focus on Big Spending Campaigns with worst

average CPA’s.


Typical Campaign Spend Distribution

• 86% of spend came from 20% of keywords

• 92.2% of conversions came from 20% of keywords

• Again different keywords had wildly different performance


Takeaways – Keyword Expansion

• Test out many keywords since many get very little

volume

• Watch high spending keywords closely, keep

winners, delete losers

• Delete keyword clutter


Ad Text Testing

• Same Story – 20% of Ads Generate 92% of Spend

• 20% of Ads Generated 65% of Impressions

• But CPA, CTR, and Conversion Rates vary


Takeaways – Ad Testing

• Prioritize ads with the most impressions with below

average conversion or CTR metrics

• Periodically delete and replace the “worst ad” with a

new ad!

• Or … Write 50 Ads, one will be a winner!


Landing Page Optimization

• 20% of Ad Groups are 85.6% of the clicks

• CPA, CPC, CTR all over the place


Takeaways – Landing Page Optimization

• Not every ad group requires dedicated Landing

Page

• Prioritize high traffic Ad Groups (without dedicated

landing pages) with below-average CPA or

Conversion Rates

• Or… a few number of Landing Pages better be

Amazing, the rest can be “Good Enough”


80/20 Rule for PPC Management Effort


What Does it All Mean?

• 80/20 Applies to AdWords Campaign Management

– Millions of possible things to do

– Some generate huge impact, others are negligible

• How You Spend Your Time Matters

– Keyword Expansion

– Keyword Deletion

– Ad Text Optimization

– Landing Page Optimization

– Etc.

Grade Your Quality Score with The AdWords Grader!

• A free, instant PPC audit in under a minute!

• Grades your AdWords account performance based on the 8 PPC metrics that really matter

• Compares how you’re doing against other accounts of similar size (monthly spend)

www.wordstream.com/google-adwords


http://www.wordstream.com/google-adwords

• We find all the low hanging

fruit in your account

• You just review / approve the

findings.

• Quick. Easy. Powerful.

• 20 Minutes a Week can

improve your ROI on

AdWords by 20% or more!™

WordStream’s

20 Minute PPC Work Week

www.wordstream.com/ppc-free-trial


New: Leads & Landing Page Management Software

www.wordstream.com/ppc-free-trial

@larrykim

Special Offers! Would you like…

a) A FREE live demo of WordStream PPC Advisor

including a PPC audit from a certified AdWords

Expert

b) Nothing at the moment


Your Questions

Thank you for attending

WordStream & Perry Marshall’s webinar!

Benchmark your AdWords account today!

http://www.wordstream.com/google-adwords

Get Perry’s 80/20 book for 1 penny!

http://www.sell8020.com

Or contact us directly:

Larry Kim Perry Marshall

[email protected] [email protected]

http://twitter.com/larrykim http://twitter.com/perrymarshall


mailto:[email protected]

mailto:[email protected]

http://twitter.com/larrykim

http://twitter.com/perrymarshall

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80/20: Work Less, Make More In AdWords [Webinar]