Day 5 - AdWords Fundamentals

FUNDAMENTALS OF ADWORDS > AD TEXT

FUNDAMENTALS OF ADWORDS > OPTIMIZING ON LOCATION

FUNDAMENTALS OF ADWORDS > BIDDING STRATEGIES

COST-PER-ACQUISITION (CPA)
 A Max CPA bid is the most you are willing to pay for each conversion.
 A Target CPA bid is the average amount you would like to pay for a conversion.
 Actual CPA depends on factors outside Google's control such as changes to your website and Ads, or external

factors such as increased competition.

RECOMMENDED CPA BIDS
 Recommended max CPA bid is directly based on current CPC bids and conversion rates over time.
 You should see more conversions without much change to your existing average CPA If you set your max

CPA bid to the recommended amount,.
 When you start using Conversion Optimizer, you can start with the recommended bid, and adjust as per the

performance

FUNDAMENTALS OF ADWORDS > BIDDING STRATEGIES

HOW RECOMMENDED MAX CPA BID IS DETERMINED

 The recommended max CPA bid is directly based on your current CPC bids and conversion rates over time.
 To get a max CPA bid for each keyword, Conversion Optimizer divides the current maximum CPC bid by the

conversion rate.

Coffee Roasted coffee

Maximum CPA bid US$10.00 US$7.00
(CPC or Conversion rate) (US$1.00 / 10%) (US$1.40 / 20%)

FUNDAMENTALS OF ADWORDS > OPTIMISATION TOOLS

FUNDAMENTALS OF ADWORDS > OPTIMISATION TOOLS

CAMPAIGN BID SIMULATOR
Using the Campaign Bid Simulator, you can model and apply bid changes across your account and view details at the
campaign level.
Benefits:
1. View bid changes in aggregate and model changes
2. Using bid scaling to see what might happen if you increased or decreased all your bids by a specific percentage
3. Model what happens if you changed all your bids in the campaign to a fixed value
4. Download the bid-simulation data at the account or campaign level
5. Download an AdWords Editor-compatible file with bid amounts to which Ad groups and keywords must be set

FUNDAMENTALS OF ADWORDS > OPPORTUNITIES TAB

The Opportunities tab looks for ways to make

reasonable changes that could have an impact
on your account if you choose to accept the
changes.

Start by choosing a goal and the Opportunities

tab runs with your goal, looking over your
historical campaign data, Google search
volume and trends, and your campaign
settings to automatically generate ideas for you
to consider.

FUNDAMENTALS OF ADWORDS > OPPORTUNITIES TAB

The Opportunities tab helps you to:
Make improvements without spending a lot of time and money
Keep your campaigns fresh
See performance estimates based on historical data

FUNDAMENTALS OF ADWORDS > VIDEO
The AdWords Opportunities Tab: Custom tips

FUNDAMENTALS OF ADWORDS > USING CAMPAIGN EXPERIEMENT

At any point, you can end the experiment, cancel the
experimental changes, or enable the experimental

changes for all relevant Ad auctions.
You can view the results on any page you normally use to view

your campaigns and Ads.
You can decide what percentage of your auctions should have this

experimental change.

You can decide what sort of change you want to test

FUNDAMENTALS OF ADWORDS > VIDEO
AdWords Campaign Experiments: Introduction

FUNDAMENTALS OF ADWORDS > USING CAMPAIGN EXPERIEMENT

QUALITY SCORE ADWORDS EDITOR BID MANAGEMENT BID MULTIPLIERS
TOOLS

Campaign experiments  Some aspects of campaign  Not all bid management Advanced Ad scheduling bid
influence Quality Score for any experiments can be tools can be used to work multiplier is applied at the
keywords involved in managed through AdWords with campaign experiments. campaign level, so this
experiments. Editor. multiplier is applied first.
 Making changes to a
 Things one can do are: keyword that has no
Download existing experimental bid and is
experiments, change active in both the control
experimental bids, etc. and experiment groups, will
allow the bids to update
 Things one cannot do are: normally.
Create, pause, or delete a
campaign experiment,  Similarly, making changes to
Display segmented a keyword that is active only
statistics for experiment in either the control or
and control groups. experiment group, will
update the bid normally.

FUNDAMENTALS OF ADWORDS

CASE STUDY

Using Target CPA for Bid
Optimisation

FUNDAMENTALS OF ADWORDS > CASE STUDY

Company: An E-commerce company selling electronic goods through its own E-commerce portal.
Challenge: Margins in electronics are low. On top of that the company is seeing the amount
spend in AdWords spend to convert are no longer profitable on an aggregate basis (all products
combined together).

FUNDAMENTALS OF ADWORDS > APPROACH

1st step was classification of the electronics in terms of break even CPC i.e. Absolute Margin in a item

x Expected Conversion rate

The conversion tracking was set at Conversion Value or cost
This was broken into few tiers and bid adjustments (targeted CPA) were applied with reference to the

CPC to make each campaign profitable like

1st tier: below $50: -30% bid modification (below that it becomes unprofitable)
2nd tier: between $50-110 : -15% bid modification
…and so on

FUNDAMENTALS OF ADWORDS > RESULTS

With bid adjustment, the system automatically reduced most of the unprofitable conversions
It has resulted in 90%+ increase in revenues
It has also resulted in 70%+ Return on Ad Spend
Some of the unprofitable products were taken out either from the online catalogue or they were

taken out of online promotions and got pushed through some channel partners where margins
were not compromised

FUNDAMENTALS OF ADWORDS

ASSIGNMENT

Analysing Your Campaign

FUNDAMENTALS OF ADWORDS > ANALYSING YOUR CAMPAIGN

Look at the following reports after you have run the campaign for a week or so (refer: last

assignment)

Keyword Performance
Geographic Performance
Time Segmentation
Device Types
Search Partners

(you may add other relevant reports)

FUNDAMENTALS OF ADWORDS > ANALYSING YOUR CAMPAIGN

What do you think are the main metrics you should be worried about and why?
Can you segment your traffic depending on the behaviour that you see in these reports?
Can you pick up your winner amongst the segments that you have created?
And the loser?
What should you do next?

Fundamentals of AdWords

CHECK YOUR
UNDERSTANDING

FUNDAMENTALS OF ADWORDS > CHECK YOUR UNDERSTANDING
1. _______________ works by adding a little snippet of HTML code for the advertiser’s webpage.

a. Conversion Tracking
b. Bid Simulator
c. Conversion Optimizer
d. None of the above

Conversion tracking works by putting the HTML code/tag in the advertiser's page

FUNDAMENTALS OF ADWORDS > CHECK YOUR UNDERSTANDING
2. Search term report can do all of the following except

a. Point out to keywords which can be useful but not in your list
b. Calculate the conversion on each keyword
c. Help you weeding out negative keywords
d. Help you select the right match type

It can't give such precise conversion estimates

FUNDAMENTALS OF ADWORDS > CHECK YOUR UNDERSTANDING
3. Auction insight can give you

a. What is the keyword profitability of your competition
b. Your competitor's daily spend
c. Your competitor's ROI
d. Percentage of times you and your competitor overlap in impression

This is true for auction insight. Other data cannot be obtained from this tool.

FUNDAMENTALS OF ADWORDS > CHECK YOUR UNDERSTANDING
4. What metric do you use when you measure brand awareness?

a. Impression
b. CTR
c. Cost per conversion
d. None of the above

Impressions are a way to measure how many people has seen your ad and hence drives brand awareness

FUNDAMENTALS OF ADWORDS > CHECK YOUR UNDERSTANDING

5. In call conversion tracking which tracks call that have been made when a customer clicks your ad
on mobile it can track.

a. Call length
b. Start and End time
c. Caller area code
d. None of the above

It 'call conversion tracking' of these none of these call details can be tracked, it can only track the
number of calls

FUNDAMENTALS OF ADWORDS

SUMMARY

Fundamentals of AdWords

FUNDAMENTALS OF ADWORDS > SUMMARY

Key points discussed today:

o Understanding the reports and using them for

analysis

o Knowing the metrics to measure your success as per

your goals

o Deploying conversion tracking to measure how well

and from where visitors are converting to your
customers

o Using different campaign optimisation techniques

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