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intelliAd Slides from the SMX Stockholm 2013
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intelliAd Media GmbH ·∙ Sendlinger Str. 7 ·∙ 80331 Munich ·∙ Germany · www.intelliad.de
October 14, 2013
Bid Management and AdWords Scrip4ng
SMX Stockholm Lisa Audi-‐Bensaid | Senior Business Development Manager
intelliAd Media GmbH ·∙ Sendlinger Str. 7 ·∙ 80331 Munich ·∙ Germany · www.intelliad.de
Bid-Management & Multichannel-Tracking
» A neutral Technology Provider since 2007
» 80 employees
» More than 38,000 managed Google AdWords accounts worldwide
» tracking of more than 250 million clicks and conversions per month
» Research cooperaNon with the Technische Universität München and Yale University, ConnecNcut
» Google AdWords CerNfied Partner, Yahoo and Facebook cerNfied API-‐Partners
About intelliAd
intelliAd Media GmbH ·∙ Sendlinger Str. 7 ·∙ 80331 Munich ·∙ Germany · www.intelliad.de
Agenda
Why Bid-‐Management Systems are useful 1
Bidding Op4ons with AdWords Scrip4ng 2
Bid-‐Management Tools – State of the Art 3
Case Study – LODENFREY 4
intelliAd Media GmbH ·∙ Sendlinger Str. 7 ·∙ 80331 Munich ·∙ Germany · www.intelliad.de
Why Bid-‐Management Systems are useful
intelliAd Media GmbH ·∙ Sendlinger Str. 7 ·∙ 80331 Munich ·∙ Germany · www.intelliad.de
Daily Rou4ne of a PPC Account Manager
20%
20%
20%
10%
25%
5% Finding keywords, creaNng adtexts CompeNtors´ analysis
Campaign structure
SeTng and changing bids
ReporNng
OpNmizaNon
intelliAd Media GmbH ·∙ Sendlinger Str. 7 ·∙ 80331 Munich ·∙ Germany · www.intelliad.de
Why is Hal Varian working for Google?
intelliAd Media GmbH ·∙ Sendlinger Str. 7 ·∙ 80331 Munich ·∙ Germany · www.intelliad.de
Adver4sers‘ ROI vs. Google‘s ROI
PPC-‐Costs
Conv CPO ROI Clicks CIR
Conversions
CPO CIR
Clicks
Client-‐ROI
Max. ROI Google
Max. ROI Client
X
intelliAd Media GmbH ·∙ Sendlinger Str. 7 ·∙ 80331 Munich ·∙ Germany · www.intelliad.de
Sta4c Rules Example: CPO > 50€ → CPC ↓
Dynamic Rules Example: CPO > 50€ → CPC ↓ by 20% on Sundays and by 70% on Wednesdays
Comparison over Time
Example: Clicks in August < Clicks in September → CPC ↑
Bid-‐Management with AdWords Scrip4ng
Constraints
intelliAd Media GmbH ·∙ Sendlinger Str. 7 ·∙ 80331 Munich ·∙ Germany · www.intelliad.de
Knowledge of Java Script?
intelliAd Media GmbH ·∙ Sendlinger Str. 7 ·∙ 80331 Munich ·∙ Germany · www.intelliad.de
Only very few KPIs are available on Keyword Level
intelliAd Media GmbH ·∙ Sendlinger Str. 7 ·∙ 80331 Munich ·∙ Germany · www.intelliad.de
Significance of Keyword Performance (Enhanced Campaigns)
intelliAd Media GmbH ·∙ Sendlinger Str. 7 ·∙ 80331 Munich ·∙ Germany · www.intelliad.de
Last-‐Click Abribu4on?
Chain Start
Chain End
Chain Assists
Model: Last-‐Click-‐Wins
» Conversions are adributed to the last keyword in the user journey
intelliAd Media GmbH ·∙ Sendlinger Str. 7 ·∙ 80331 Munich ·∙ Germany · www.intelliad.de
Rule-‐Based Approach
Changes are made based on strict rules (e.g. max. CPO, CPC, min. PosiNon, Quality Score) Cons: cannot deal with data shortage
Portofolio-‐Based Approach
No rigid boundaries on keyword level, looks at the performance of at a porjolio (e.g. a group of keywords, adgroups or a mix)
Evolu4onary Approach
Self-‐learning system, autodidacNc system that learns from traffic fluctuaNons (weekdays, hours, seasons)
Bid-‐Management Systems – How do they work
intelliAd Media GmbH ·∙ Sendlinger Str. 7 ·∙ 80331 Munich ·∙ Germany · www.intelliad.de
3 Key Strategies for Bid-‐Management
Traffic Performance
Conversion Maximiza4on
Click Maximiza4on ROI Maximiza4on
Number of Clicks CPC CTR
Number of Conversions
CPO CTR & CR
Total Profit ROI/CIR bzw. ROAS
CTR & CR
intelliAd Media GmbH ·∙ Sendlinger Str. 7 ·∙ 80331 Munich ·∙ Germany · www.intelliad.de
Data
How to deal with Data Shortage?
intelliAd Media GmbH ·∙ Sendlinger Str. 7 ·∙ 80331 Munich ·∙ Germany · www.intelliad.de
When should a Keyword be paused?
intelliAd Media GmbH ·∙ Sendlinger Str. 7 ·∙ 80331 Munich ·∙ Germany · www.intelliad.de
Sta4s4cal Evalua4ons
Poisson-‐Model: How to determine bidding cycles
4
Lost your paNence?
Target CPO Time to
pause a keyword
Clicks
Like
lihoo
d of
a C
onve
rsio
n
Poisson Distribution with a CR of 5%
intelliAd Media GmbH ·∙ Sendlinger Str. 7 ·∙ 80331 Munich ·∙ Germany · www.intelliad.de
Data Enrichment – Conversion Funnels
intelliAd Media GmbH ·∙ Sendlinger Str. 7 ·∙ 80331 Munich ·∙ Germany · www.intelliad.de
Mono Abribu4on Models
Chain start
Chain end
Chain âssists
Model: Last-‐Click-‐Wins
Chain start
Chain end
Chain assists
Model: First-‐Click-‐Wins
intelliAd Media GmbH ·∙ Sendlinger Str. 7 ·∙ 80331 Munich ·∙ Germany · www.intelliad.de
Data Enrichment-‐ Abribu4on Models
Model: „Equal Distribu4on“
Model: „Bathtub“
Chain start Chain end Chain assists
intelliAd Media GmbH ·∙ Sendlinger Str. 7 ·∙ 80331 Munich ·∙ Germany · www.intelliad.de
Data Enrichment -‐ User Journey
intelliAd Media GmbH ·∙ Sendlinger Str. 7 ·∙ 80331 Munich ·∙ Germany · www.intelliad.de
Fashion Industry Case Study -‐ LODENFREY
intelliAd Media GmbH ·∙ Sendlinger Str. 7 ·∙ 80331 Munich ·∙ Germany · www.intelliad.de
How did they do it?
• Implemented mulN-‐channel tracking • Introduced a new adribuNon model: „bath tub“
• Included onsite data (bounce rate and Nme on site) into the bid-‐management algorithm
intelliAd Media GmbH ·∙ Sendlinger Str. 7 ·∙ 80331 Munich ·∙ Germany · www.intelliad.de
Wollart Fröhlich
Geschäqsführer / CEO intelliAd Media GmbH Sendlinger Str. 7 80331 München
T +49 (0) 89 -‐ 15 90 490 -‐ 20 E [email protected] W www.intelliad.de
Mischa Rürup
Geschäqsführer / COO intelliAd Media GmbH Sendlinger Str. 7 80331 München
T +49 (0) 89 -‐ 15 90 490 -‐ 21 E [email protected] W www.intelliad.de
Tobias Kiessling
Geschäqsführer / CTO intelliAd Media GmbH Sendlinger Str. 7 80331 München
T +49 (0) 89 -‐ 15 90 490 -‐ 10 E [email protected] W www.intelliad.de
Contact: [email protected]