Okay, so now we're gonna go, this is a big chapter, right? This is something you will understand to try and get cheap ads. Okay, the ad auction most people who do AdWords don't even understand the ad auction or how it works. So the best, the best way really is to show you this. Okay, we're going to look through a quick video by one of the heads of Google himself. We're going to learn about the quality score.

Okay. The quality score and its impact on the CPC. Some of that's overlooked a lot by PPC managers is the landing pages now, this is because PPC managers don't really have any control over the website themselves. Okay. What this means is they can optimize everything outside of the website. They optimize the campaign.

But actually the landing page is a crucial part of that campaign so often gets overlooked. So if you're doing it yourself and you have control over your website is worth spending time optimizing your landing pages, we'll go through some of those basic principles as well. We'll go through how to optimize the quality score, how to how to how that results in AD discounting, and go through something called enhanced CPC. We'll have another exercise as well on writing your own ads for the products which you've already gathered your keyword data, go through some ad rotation and split testing. I'll show you the basic principles remarketing. and summarize at the end, so look, here is a video.

It's about eight minutes long, but it's probably quite the best way of showing you what it's all about the ad auction Hi, I'm Hal Varian. I'm the chief economist here at Google. Google uses an auction system to rank the ads that appear in the search results page. And to determine the cost for each ad click in this talk, I'll take you through a general overview of how the ad auction works. First and foremost, Google users want ads, they seem to be relevant. They don't want to be bothered with ads that aren't closely related to what they're searching for.

And advertisers want to show relevant ads, so users will actually click on Meantime, Google wants to provide a good experience for users and a good value to advertisers. So they come back and use their services again in the future. Now I'd like to walk you through what a traditional auction looks like. Say we have four advertisers competing for space in the search results page, and each is indicated a different amount they're willing to pay for user to click their hand and visit their website for dollars $3 $2 and $1. I refer to these amounts as the bids. Now in a traditional auction ad positions will be the termined exclusively by bids, the highest bidder, we get the first position, second highest bidder, the second position, and so on.

Google uses a variation of what's called a second price auction. And in a second price auction, the buyer doesn't have to pay their full bid, they only have to pay the amount of the next highest bidder below them. So in this particular case, the first advertiser was bidding for dollars that only have to pay $3, which is the bid of the second highest advertiser. Same thing applies to advertiser two. And to advertiser three. This design allows each advertiser to bid their true maximum willingness to pay per click, they only have to pay just enough to beat the competition.

Now in our Google auction, advertisers only have to pay when you actually receive a click. And the order isn't based just on bids. Why? Because we want to show more useful ads and a higher position on the results page. Because users want to see relevant ads. Advertisers want to present relevant ads to users.

And Google wants both ads kaisers and users to have a good experience. So they come back and continue to use our system. So we consider some other factors in addition to an advertisers bid. The first factor is your expected click through rate. This is our prediction of how often your ad will be clicked on when to show. All across Google, we rely on user feedback to drive decision making, and user click through rates tell us what Google users really respond to.

By allowing users to vote with their clicks we have millions of people are helping us to decide which ads are best for each search query. The next factor is your ads landing page experience. And ad is only useful to users the landing page at Leeds to help them find what they're looking for. highly relevant landing page yields a higher score. What does a high quality landing page look like? Well, should have relevant and original content that helps a user complete the task should be easily navigable.

Be transparent about the nature of your business, how your site interacts with the visitors computer, and how you intend to use visitors per information. Another factor that's involved is ad relevance. Google determines ad relevance by analyzing the language in your ad to determine how it relates to query. This is a way to measure the ads relevance to the user search, and to make sure that only useful ads are shown. It also prevents advertisers from simply paying their way onto search that's unrelated to their product or service. Your expected click through rate, the landing page experience and the ad relevance are all factors that describe the quality of your ad.

We also consider the expected impact of any ad formats that may show with your ad, ad formats or enhancements to search ads, more prominently show users information about your business things like a phone number cycling, so your website's domain and the ad headline. Advertisements with these formats give users more information and more reason to click on an ad. So Google combines your bid with multiple quality factors the click through rate the landing page, the ad relevancy, as well as Expected impact of ad formats to calculate a score for your ad called ad rank. Let's go back to our four sample ad buyers and see how their ad rank compares. Here are four advertisers are bidding for dollars $3 $2 or $1. Their ads had different quality, low, high, high and medium.

They also applied different formats with varying impact. First ad doesn't have any formats enabled, so it has no expected format impact. The second ad is only eligible for one format and has a low expected format impact. And the third is eligible for several extensions, and Garner's a high expected impact for the last ad is medium. So in this example, the first ad has an ad rank five. Next ad has an ad rank of 53rd has an ad rank of 20.

And the last ad has an ad rank of eight. It's this ad rank score that determines ad position the results page. And in addition, only ads was sufficiently high rank appear at all So with this ad with an ad rank of 20, it gets first position even though it has a lower bid. Why? Because of its quality and formats. The second highest ad rank is 15.

So that ad gets positioned to the third highest ad is eight, it lands on position three, the advertiser up here who's bidding for dollars, has such a low quality and format impact that it doesn't get a position the page at all, despite having the highest bid. So now we know how the ads are ranked. But how much do you actually pay for a click, we pay the minimum amount that's necessary to maintain your position and any formats that are shown with your ad. So let's get back to our ad rank table and talk about the advertiser in position one, he's competing with the advertiser position two, so the amount he has to pay is going to be just enough to beat the ad rank of the advertiser in position two. For example, although he bid $2, he could have been as low as say 173 and he would spill about rank the advertising media below him.

So that's what we'll pay for. Click $1 and 73 cents. Similarly, the amount that advertiser in position two has to pay as a minimum needed to beat the ad rank of the advertiser in position three, and so on down the page. So in this example, the top ranked advertiser winds up paying less than what he was actually willing to pay per click. And it's the same for the other advertisers as well. Alright, let's talk about advertisers can influence their cost per click and ranking in the auction.

By improving your quality or adding ad formats, you can potentially improve your ad position, you could also end up paying a lower cost per click. So let's take a look at the advertiser in position to suppose she improves your ad landing page. Now our ad rank goes up to 18. Her position here doesn't change, but what happens to how much he pays per click before even though she bid $3. She only needed to bid say 268 to beat the ad rank of the advertiser may be lower. So that's what she paid $2 and 68 cents but now that you He's improved the quality of your ad, assuming everything else stays the same, she could have been as low as say $2 and 42 cents to beat the advertiser be lower.

So her cost per click goes down to 242. Why? Because the price and advertiser pays is partially based on her ad quality. Now imagine this advertiser wants to move to higher position. So she increases her bid to 350. Now our ad rank goes up to 23.

That's enough to give her a highest ad rank and to move her into position one, and what does she pay the amount that would be just enough to beat the ad rank of 20? below, assuming everything else stays the same, that might be saved $3 and 38 cents in this particular case. So to wrap up, why do we handle ad ranking and pricing this way? Like I said, at the beginning, it all goes back to the ecosystem, Google our users and our advertisers all living. When users see better ads, they're happier, and they're more likely to actually click on those ads and that makes advertisers happier. Which makes Google happy because with happy users and happy advertisers, we get more people using our system.

If you have more questions or want more information, please visit AdWords, Google comm slash support. And thanks for your attention. Hi, I'm Hal Varian. I'm the chief economist. So the key the key point there, right is that you can't buy your way to the top of Google. It all comes down to ads, right?

That's probably dispelling a few few myths really about the way the ad auction works. Okay, you can't buy your way to the top. To the degree you can, but the point is the people paying right the top paying a quarter of the price that somebody else was paying and they still beat their their acquisitions. Yeah. Does everyone is everyone happy with that point? Yeah.

So yeah. outfit, but any quoted for random number is that it Yeah, so the reason why that is is because provided everything else stays the same. So if you got one ad that has the same quality score and the same format impact, okay, then you only need to pay one penny higher than the other competitor to have your ad show higher than theirs. But if they're scoring lower, then didn't say he was going to look, if you're scoring lower than they are in the quality score, then you're going to pay more, disproportionately more. Yeah. No more than a second.

Yeah, provided everything else stays the same. Yeah. So the key thing here is what I'm trying to get across here is that the quality score is very important. Yeah. And the format of your impact, very important. And this can be Yeah.

Going back to 168 you know, shit. We are better, you know. Exactly. Exactly. Exactly. Yeah.

So the salient point here really is that the format matters a lot. And the quality school matters a lot. Most people, as I said, who are, who are new to average don't do anything with the format they don't add the ad extensions on. So it's a very good way at the moment of differentiating yourself. Yeah, so to recap, the average position is determined by the ad rank, which is a composite score made up of the CPC bid, the ad format, and the quality score. The point here is that you can compete with the pockets.

Yeah. If you make quality yet maintain the high quality Apart from the sort of main hard metrics like CPC, average acquisition, profit, that kind of thing, when you're optimizing on a daily basis, creating ads, etc. The thing to focus on, okay, in a large part is the quality score. The landing page experience works into that. Yeah. Yeah.

Did you want to pay $4? I pay more than that. Exactly. So Exactly. It is somewhat irrelevant. When it's actually paid.

You just pay. Exactly. Yeah, you only pay more than this. Correct? Correct. Yeah.

Yeah. Is that what happened was that So now the quality score really is a little bit like SEO right? So the address is a combination of the ad relevance, okay and user experience. Now, it's Google's job to match ads to appropriate correct term search queries, okay. And it does this by assessing the quality score. And among other things, right things like which actually worked into the quality score, things like load loading speed of the landing page.

This is important. So the general rule of thumb there with loading speed is you want it to be less than four seconds. So we've seen that it affects your CPC directly, if and because it affects the CPC. In addition to that, it will affect the number of times your ad shows as well. Because it was impossible to add relevance on ad rank and your acquisition, okay, and it's formed from like a weighted sum of lots and lots of factors. Some of these things are things like your historical CTR, your historical click through rate, which is what Google sees as your expected.

Click through rate. What the guy spoke about in the video, the expected click through rate is is is calculated from your historical click through rates if you've had a campaign running already, and normalized with the click through rate of the whole industry, okay, so it's a bit more sophisticated than just your historical Ctr. The keywords relevance, so it's our group. This is where I spoke about having the key word mentioning the key word in the headlines and in the description. If it detects that the keyword that you're targeting is inside of the description or in the headline you Give you a higher quality score. Now that works into the relevance of the ad sex as well.

Optimized landing page. So with optimized landing pages comes down to user experience. Yeah, this is the user experience, part of the quality score, loading speed, etc. Back in the days, you know, for credit for when Google's algorithm wasn't as sophisticated. It used to be just the click through rate that the quality score was based on. But let's change now, it's way more sophisticated than that the same way the search ranking algorithm in SEO is configured using 200 ranking factors.

Yeah, you don't know all of them. But you know, the, the main ones are, and it's the same thing with here. Google doesn't publish or tell anyone how it actually works out the quality score. People have worked this out by inferring from studies and things okay. At this point, isn't it calculated dynamically every time somebody clicks. Now, what quality score should you aim for if you go into your dashboard, you can add a column.

By default, you won't be there the quality score because Google understands that most people don't even know what it is. So it's trying to give you the minimalist approach. Okay, in terms of managing your AdWords. The thing to do here is a good tip is to go into the main dashboard, go into modify columns, and add the quality score. So you can monitor that on a daily basis for each keyword. And back in the day back in about 10 years ago, the average quality score was five Yeah, people are smarter now the more education about how AdWords works now, and it has risen slightly Okay, so it's a sorry, it's other way around.

Back in the day, it was about seven the at the school and problem was what's happened the quality school what's happened now is So many people are entering the platform quicker than they can be educated and it's dropped, actually the quality, the average quality score today is dropped. So if you can actually aim for a quality score of seven or above, okay, that means you're gonna get ads cheaper than you'll get as a rule of thumb. So you get more discount per click today, okay, with a higher quality score. So here is a little example showing you what your quality score was translate to in real terms in terms of your add discount. So you can see he got quality score of 10 and you're paying half the price for your bid. Yeah, this is has a huge impact on your profitability.

Conversely, of course, if you go down to say, quality score of one you're paying or you never get Get shown Mike because your your max CPC with a trigger by that point and they won't show your ad. So how do you optimize your quality score? Okay, the thing to do here is because the ad relevance is calculated by looking at the keywords in your description in your headlines, and seeing if they match the keywords that you're targeting, if you've got an ad serving 30 or 40 keywords, and you can never have all of those keywords in their head, okay thing to do is have lots and lots of ads for very small groups of keywords. And these keywords should be grouped very closely together. Like for example, red Nike shoes, blue Nike shoes, Nike shoes as a broad match, match, maybe Yeah, maybe no more than three or four keywords.

Okay, ideally, we're gonna go through an example a live example in a minute. And you're gonna see that actually the only targeting one keyword per campaign, which is they got quality scores of 10. And a really good job. The other thing is because the homepage, always new website generally is an overview of your website. It's never really targeted to any specific customer. Yeah.

Or service or product. It's generally a bad idea to direct people to your homepage. Yeah. If you're targeting, say, AdWords training, yeah, and you do SEO, AdWords and Facebook PPC. And that's all shown as a service on your homepage, its ad relevance algorithm isn't going to know isn't gonna work out how it's gonna think it's not that well matched. But if you were selling them to the admin page of your website, then it will think, Okay, this is an AdWords page, and then it will give you a high ad relevant score, and therefore a high quality score.

Yeah. Now, there are caveats there. If you've got a view only selling one product, generally, generally, as a principal, try and avoid sending them directly to your homepage. Now, there's a lot of debate on this. I know in SEO, particularly in Google, having a keyword rich domain, Does everyone understand what I mean when I say a keyword rich domain? Yeah.

So say for example, I'm selling PPC management services. Having a domain like PPC management.co.uk is a keyword rich domain name, right. But in Google, we we've learned through SEO studies that actually it's becoming less and less important. However, I would still say, definitely do be just brace yourself. purposes alone in Bing, I've tested this time and time again, they rank much more quickly. This is slightly aside as an SEO point.

But they rank much more much more quickly in Bing, because of the keyword richness of the domain. And in the beginning, you've got no expected click through rate because you've got no click history. So what Google does is it gives a greater importance to the keyword richness of the domain right at the beginning. So what you'll see here is there's an example earlier, there's a person here who had no clicks on a on an ad for a given keyword, but a quality score was always seven. And the reason for that is because it's detected the keyword in the in the URL in the domain name. So it still helps in the beginning, just to get started.

Eventually, the significance of that will peter out but in the beginning it does help Increase your click through rate. Okay, so historically, as you know, the quality score was only worked out from the click through rates. But it's still a big part of the quality score. So your click through rate is higher, your quality score is higher. And the way to increase your click through rate, we'll go through a few examples is to use called calls to action. A lot of inexperienced users don't have a call to action in the headline, have one in the headline, and in the description.

Avoid broad matching, you got broad matching, you're also targeting keywords that are loosely related to what you're actually targeting. And what that means is the search query will really match the the text on the ad. Again, have a granular campaign lots and lots of campaigns. You can only do this if you have a granular campaign, because you're gonna have one ad serving two or three keywords and other ad serving another two or three keywords etc. etc. This is a trick actually strategy as opposed to Okay, if you've got a very small website, you probably don't need to do this.

But if you're selling hot sauce products most PPC agencies won't do this. But it's definitely definitely worth doing. Because the quality score is so interwoven with the landing page experience. If you can have a different landing page for each ads, and that's the best case scenario, I'll show you what I mean by that in a minute. Improve the page loading speed as the biggest rainfall is four seconds at least. Okay.

So landing page tips, make it easy to read. There's some general principles is all about user experience, large headlines. And the way of course the Google you're probably wondering how Google works. This owl is looking at the header tags in a page. If you go If you are WordPress users, if you've got multiple header tags, they can work against each other. If you go to h1 tag, for example, it's not very good for SEO, and therefore not very good as a landing page for quality school.

Now we're getting into the nitty gritty now. But essentially, it's all about if you have a good landing page, good user experience, you're gonna get a good policy score, and also the scoring it classy, right? Not spammy. How does Google work that out? It works out because it sees that if there are clicks going beyond this, then it means that the landing page is has been useful to the person who clicked on that landing page. inferring that policy pick the quarter that the the landing pages is a good policy one.

Match the ad text, match the ad text on the landing page to the keywords. That's key. So we'll go through an example in a second. And Google's also looking for click throughs beyond the landing page, okay, so if it sees that if it registers that a user went on, click the ad went to the landing page but didn't do anything. Then it thinks work is not quality landing page, right. And the way to mitigate that is by if you've got a contact form, so you're looking for signups trying to do some list building or something, then don't ask for everything.

It's a big put off. Yeah. Just by asking for the phone number results in a 50% drop off. Huge, huge. At the moment, yeah, yeah. Yeah.

Agreed. Agreed. Yes, at the moment, the people are doing mobile campaigns. Yeah. And you're right, absolutely. But then it will probably be Google smart enough to know this and it's a mobile campaign.

Okay. And it will give you the benefit of the doubt. For example, it does that certainly in SEO, if you Have a bounce rate of 50% or above in a desktop device? That's really bad. Yeah. But if that's 50% on a mobile device, it's pretty good.

It's pretty good. Yeah. And email with require phone number. No. required. Yeah.

I was split tested. Right. Okay. I was split tested, set up two landing pages and I should be using lead pages as I think. optimized press or Oh, you just just do website. Yeah.

Okay. So what you might want to do is put an intermediary page there. Yeah, put an intermediary page there like a lead pages thing or, or I use something called Thrive Themes. And that can what you can do there is click the details there and it's acting as a funnel to get to your website. So You actually what you're doing, by doing that I'll show you in a minute is not directing them directly to your website. But what you're doing is directing them to the lead page, and then funneling them to your website.

And then what you can do with lead page, you get two campaigns, one with the lead page field with a phone number one and one with off, and you can see how they perform against each other. Yeah. Exactly. Exactly. Yeah. Yeah.

That's why a lot of pro marketers used an intermediary landing page between the website and the click. Yeah. This is overlooked often but really matters. Yeah. So again, abs is all about incremental gains. Just implement the kind of psychology of buttons.

You know, sometimes a green, a green call to action button is more effective than a yellow one or a red one, depending on which industry you're from. testimonials absolutely a testimonials in a landing page. It's a massive A credibility booster. And therefore the person is more likely to go on to the next. The next page these days it has to be mobile friendly. Could you see in the first chapter that mobile trend was just exploding?

Us trust signals, logos, a big big company clients. Yeah, question. But the question is, would it be worth split testing a lead page asking for information? name and phone number versus name and email? Yes, absolutely. Yeah.

Because you can track phone numbers anyone? Like that's a different thing entirely. Yeah, absolutely. You can split test that. So you can do that through lead pages or equivalent So this is the strategy that a lot of poor marketers use, they create a, an intermediate landing page between the the ad. And the website.

And this is this worked very effectively actually, we'll go through an example of that in a minute. So what you want is one map one landing page for each ad group, because each ad group serves a very close, closely related family of AdWords. Okay, now what you want to do is match those keywords on that landing page for another ad group serving a different sets of keywords, have those keywords on that landing page, but But even then, ultimately what you're doing so you got a campaign, okay, you got multiple ad groups with different sets of keywords. And each one of those clicks, goes to a different landing page. They look very similar, but different, different in the sense that they're using different texts on this Just a subtly different text. And then all of them, in fact, go to the same page on the website.

Yeah. Now you can use things like lead pages for this. You have to buy subscriptions, you know, has unlimited lead pages. If you some of you are into affiliate marketing, you already have experience of that. unbalances another one a little bit more expensive. I use something called Thrive Themes.

It's more WordPress based upon like it. But that's really it. Yeah. So that will give you the best chance of raising your quality score. Let's have a quick look at a decent landing page. Okay, so we're going to click a green call to action button there.

Okay. I think people that are lots of studies on this, and they found that green was quite effectively, again, depends on the industry. Lots of trust signals, lots of logos from reputable companies like eBay. Adobe, a well in sale. He's offering a lead magnet straightaway. And it's not only that it's a list based lead magnet list based lead magnets have been shown and proven to work particularly well.

How much information is he asking for? Just one, just email, nothing else. No excessive info requested, good vibrant green button. Great try signals. Avoid board matching. So ad copy.

Okay, so with the ad copy, here's an example ad. We've already been through the anatomy of an ad before we've got the two headlines to display URL, the description, the site links, the ad extensions, essentially. So you've got the location extension there, so that only you only have access to that once you've registered on Google My Business, Google Places the phone number as well call extension and you get site links. Okay. This ad will probably work quite well would have a good click through rate because there are plenty of opportunities to capture a lead there. Yeah.

The key word so in this case is just the domain name bestbuy.com. But this ad has been triggered. You can tell because of the tree with the keyword Best Buy is probably a navigation word. Yeah. You can see that because the Best Buy has been emboldened. So for ad copy, this is more copywriting now, okay.

You're going to try and do even to try and get people to click on your ad. How do you differentiate yourself from from other ads? We're all marketers. So we know that actually, we shouldn't be talking about our features. We should be listing our benefit. It's instead always use a click call to action.

Okay, this one here, some navigational that to be fair to them, but look, you can see no call to action. What does one in the description pick up in store? A quick little tip if you're doing this is the reason why you should be separating your traffic your campaigns for mobile devices and desktop devices. If you're on a desktop, okay? You could have Call this number or something or you want to direct them to your to your to online site. But if you want to try and get that's not going to be this the optimal way of capturing the lead on a mobile device, the mobile device, you might want to have a call number there with maybe the this is AdWords now but if you had an HTML tag in there to make you click the to ring the number.

The point is you can by saying by separating your campaigns per device, you can change the language in subtle ways to be more directed at a mobile user and a desktop user. And the key thing is to address the search query. Yeah. So if people make sure that there's a there's a logical step there, someone's clicking on something, they see a search query, they're typing in a search query, and make sure that you add serves that search query. It's not a random there's no disconnect there. Make use of all the characters available.

Okay. There's always this is probably a poor. Oh, this is probably a poor example. Because they've only used 12 characters there in the first headline. They've got 30 characters available. Is it possible uses place he could they could have had a call to action there instead with the remaining characters.

So yeah use sitelink extensions. Quick reminder how you get there in your dashboard you guys, click on Add extensions and it will tell you what site x which which ad extensions, which ad extensions you have available to you. On the Best Buy Yeah. You're at bestbuy.com followed by Best Buy trademark it's both because this ad is serving a keyword which is best Why? Yeah. And if you find what happens is if the key word was not found anywhere here.

Then you will see in bold and anyway We know who we're specifying because it's in bold. And we know that that ad was triggered by somebody typing in Best Buy. Or variation or Best Buy or Best Buy or modify or whatever. as well. Yeah, yeah. The registers.

No, no, I was not. And that works, right. Google wouldn't do it. It'll work. If the emboldening thing didn't work. Google wouldn't do it.

It does work improves click through rate. This is a little bit. So in some ways, you would improve your click through rate, but you don't want to do it wastefully. You want to make sure that those leads have a prospect of buying something. If you include your price there, then what that does is it qualifies the clickers before they click on your ad. If you're serving something at a very high price point, you don't want somebody who's only got 20 pounds to spend to click on your ad.

Yeah. Because then they have no, there's no realistic chance that they're gonna buy something. So by clicking or putting your price in the headline, or even your description, what that does is is qualifying the traffic before it's coming in. It's not the best way of improving the click through rate, but it is the best way of increasing the conversion rate of the traffic that is coming in. Yeah. overcoming objections.

So quick example, I suppose, say if I wanted to learn Spanish or selling a course or a language course online, but I've got no time right. So I've busy man, I've got no time I want to learn Spanish. So it has to learn Spanish on on Google. I see your website. The ad comes up and it says something like Learn Spanish. It's not very I'm not gonna respond to that.

But he said learn Spanish in only 10 minutes a day. You're overcoming that opponent that the the the typical objection Yeah. So use think about overcoming the objections in the ad copy something I learned when a copywriting course ages ago headline generator, I would see formula. So you have all the results say one result being say you learn guitar objections, the objection is that I don't have any musical experience. I haven't any instruments. And the timeframe the timeframe is I want to do it in three months.

Yeah. So what you can do is work for your product or service. Think about the audio and the t make a list of the results the list of the possibilities. directions and the list of the timeframe. So here's an example. headline learn guitar in three months, even if you can't play any instruments, learn Spanish in three months, even if you only have 10 minutes to spare a day.

Yeah. People respond way more to these kind of things. You could even be just artsy learn guitar in three months if you haven't got enough space. But you can just mixed up the audio and the T to create all kinds of headlines. The old tablet music, learn guitar in three months. Yeah, a useful way of framing your headlines.

So we talked about making sure that we list benefits and not features Okay, people think more about the benefits to themselves. One way to think about this is if you're if you are divided for next 510 minutes, think about some of the features of the products that you're selling. And this the multiple benefits. And a possible call to action, I think it's worth doing is to five minutes to sit down and actually write out on paper, some of the features that you're the products that you're selling. Okay. We could have a five minute breather.

So a lot of people do is when they first start out in Google AdWords is they have an a campaign, an ad group, and only one ad in the ad group. You might be targeting only a few keywords you think are doing a good job. But actually, if you're not testing the ad, with respect to other ads in the same ad group, then you will never know if you're underperforming. So what you want to do you want to have about three or four ads in each ad group so you want to one camp see going on multiple campaigns if for each campaign you want multiple ad groups. For each ad group you want multiple ads, you want a tree like structure. Now, if you don't do anything, if you just follow Google's lead, it won't tell you but there are other settings inside deep inside with advanced setting in fact, it says it will do it will automatically optimize for click through rates.

You don't want to do this because you don't you don't know if your click through rate is full of your click throughs are a good traffic. So you want to make sure that we set that to rotate evenly. Well first of all, you're gonna get the data you want to find out which clicks are converting which ads are converting. One one ad might have a really good click through rate But now hope of conversion of converting your product. So the thing to do here is, with any given ad group, you want three or four ads rotating evenly in the beginning to get the data. And you want to do this for a couple of weeks, you will find out about at least 50 to 100 clicks on each ad.

Okay, that will give you some idea of statistical significance. And what you do now you just split testing, split testing these ads with respect to each other within the same ad group. And then what you do is once you've got some statistical significance with the data that you've got, you can then see Well look, this this group here is the conversion rate is terrible. Let me switch to this side to this side. And then what you should do it again, make it create variations of the ad that you settled on. And just like with the Unilever example, do you want to change you know, you're gonna change ads every few years?

Once you get once you get data. Once you've done this Yes, we want to do you want to get you to optimize your ads for conversions again, not click through rate. So you're gonna switch from that setting, they're automatically optimized for click through rate and to optimize for conversions. But in order to do this, you have to have conversion tracking enabled. Now I know so many people who've started AdWords campaigns without conversion tracking, and it's just I don't understand it. It's pointless.

You know, where are you getting some conversions? Sure, but you have no way of tracking anything. And if you don't know what clicks are leading to conversions, how can you optimize your campaign? Yeah, you can't. little tip, never edit an ad. Once you've got your clip Don't change the ad, just pause it, it was underperforming and test it against the new one.

Otherwise what will happen is if you edit the ad, it will reset all the data and you lose all the data that you want to compare against. In the beginning, it's not the worst idea in the world to go for an option called accelerated delivery, you find it in one of your options in your in your in your dashboard. This is good if you want to hurry up and quickly get your get your get your clicks. The problem with this is if you budget not very big, all these clicks will come in a very short space of time. And you can't really test that with respect to another schedule that you might have. Okay, so ideally, you want it you want it all to come in naturally, evenly.

But if you're in a bit of a rush if you want to get some data optimized with accelerated delivery is not the worst idea in the world. remarketing is cheap. With Google AdWords, explain that most people do this why the Google Display Network? It's incredibly powerful. It's cheap. It's mostly for the display network.

You can also get searched networking marketing, but it exists but it's done less often. I think you probably have to be a bit more advanced in AdWords start doing the Search Network. Here's an example of what it looks like. So here is so I have visited this website here to Safari pilot a website. And then I go on to another third party website totally unrelated, possibly similarly themed and you'll see ads appearing for that website I just visited everywhere because of the cookies that that website installed on my computer. And these can be a little bit creepy the follow you around for ages Yeah.

The reason why it's so good is because look at the the conversion rate, what is the conversion rate once you start doing remarketing? So if a person has seen your ad six or seven times, they are to two and a half, maybe two and a half times more likely to buy something. Yeah, it's huge. The point is that your conversion rates will increase as people start seeing more your ads again and again and again and again. Eventually, it does get creepy. So what you want to do is enable something called frequency capping, otherwise they'll hate you forever.

The optimal thing to do is enable frequency capping after seven, seven impressions to feature in the the AdWords dashboard So here's a here's a good case study. This is word stream. It's really it's a probably market leader in PPC management software and stuff like that. Look at their, the site visits, okay? They started doing remarketing and it skyrockets, yeah. To have a huge, huge impact on your traffic.

So a couple of tips for remarketing best practice again, always set up a new campaign to this year, don't pollute the results that you've already got. With your existing Search Network campaign. It's generally found that images work best with this sort of thing on Google Display Network image ads, the overperform text ads. I would say getting an outsourcer to do it. If you've never done anything like this before. You need to do Copy and paste some code on the website.

Okay. So this is for the for the cookies, things. So I would say get somebody on Upwork outsource it. You don't wanna get it wrong, they will screw up your conversion tracking or I know that's right. Yes, you can. Yeah, Google will do it for you as well.

In fact, they all sit there. So the advice that Google gives you, when you when you first start a new campaign by a brand new campaign, what will happen is, Google will probably give you a call after about a week to see how it's going. And these are probably third party sales agents who are trying to sell you more services and trying to make sure that you get the best best value out of Google. I had a bit of a horror story with this. What happened was, I was trying to target something, selling something that I didn't know was restricted. And this guy on the phone on Google, he called me and he knew, he knew that it was restricted and he trying to get some commission, I suppose.

He tried to lead me down a little harder. Okay to circumvent the restrictions, and it works great for two weeks, my conversion rate was skyrocketing. It was awesome. Unfortunately, it was restricted products couldn't set it and got blacklisted, right. And it wasn't even my fault. So, yeah, just Google will help you.

But remember they they have an agenda, they want to sell you clicks. And for them any click is money for you. Not every click is worth the same. Speed Be mindful of that. Can we stop speaking they're very helpful with technical stuff if you have a problem with some conversion tracking or remarketing campaigns, pls. And particularly, it can be a little bit tricky to tie in with your with your product fees and your website.

Giving Google a call was not a bad idea. Use frequency capping Okay, so otherwise your people will hate you. With the remarketing you can tailor it to specific audiences very much like Facebook ads. So you've got, you can you can target specific interest groups, you can target specific talks about this already specific YouTube channels, target specific kinds of websites, that sort of thing. You can target genders. Okay, you can target genders you can target ages as well sometimes.

Okay, a quick tip for the genders is that if you are targeting say women or men, you'd have three choices you'd have male or female unknown. The unknown category is quite a bit actually is in proportion to the others. So it's not a bad idea to include the unknown category as well. To serve your ad better Enhanced cost per click right. So Google's really clever, it will look at the analytics of your website, if you've got Google Analytics installed, I think you should do. But even if you have it, it will work out, which clicks, which kind of clicks will end up as a conversion.

Because it's monitoring everything, right? It's monitoring everything. It's going to see if a user typed in a certain type of search query, which is already associated with a high conversion rate on your AdWords dashboard when you had was campaign. So if it knows that this, this user typed in this search query, and then clicks on it, then he's already it's upping the chances of that turning into a conversion. And then it will look at patterns of behavior, it will look at which routes through your website which pages lead to a conversion the most often. And I'm monitoring that for a little while, it would need about 50 clicks minimum to enable This, what it will do, it will dynamically increase your bid for you.

Okay to help your chances of winning the ad auction. And historically, what it used to do is it used to adjust your bid by up to 30%. But it does so in such a way that your average cost per click never reaches your maximum CPC bid, even though your individual cost per click might go beyond your maximum cost per click. The average won't have any impacts and changes recently, it's changed it from 30% to wherever it wants. So you could in theory be paying twice as much as your maximum cost per click. But it's done so in a way that over time, on average, your average cost per click doesn't go up.

Angiomax cost cost per click. Does that make sense? Yeah. So the thing to do here is don't enable automatic bidding. Okay, you're handing over control to Google's good thing to do is to enable enhanced cost per click is generally known to improve your conversion rate. Yes, a Google is doing this by monitoring the history of the pattern of clicks through your website and search terms that led to those clicks.

It can be a little bit startling at first, if you've got a couple of clicks, you know, your maximum, your average CPC for maybe two or three clicks might be way higher than your maximum cost per click and then what's going on here, but actually over time you find that is fine. Your average cost per click should be unaffected. And the reason that you should be aware of it goes beyond 30%. Now. So just to summarize, we have a long chapter but we now understand that the ad position is governed not by your your, your your bid, but by something called the ad rank. Yeah, it does not because he doesn't want people to find their way to the top because that will mean that you can get unrelated ads to the top and it wants to serve its users well.

Aim for quality score of seven as a minimum. Okay. If your quality scores are at a five you know that you will not you're underperforming. general rule don't send people to the homepage. Use different landing pages if possible. Yeah.

Quality Score 10. That's the ad rank. Which is made up of the quality score plus a few other things? Oh, I don't know. I don't know. He doesn't quantify publicly the way SS is the format, or ad extensions, etc.

So yeah, we don't really know about that. Spend some time writing quality ads. Yeah, but not but not use some judgment. Think about it. But the emphasis is on not just trying to think of the perfect headline but trialing and testing others all the time. Rotate evenly the beginning to make sure your ads are seen, fair, the same number of impressions so you can work out the relative click through rates and conversion rates, enhanced CPC is very useful.

Not the worst idea in the world to go for accelerated delivery to get your data very quickly. And absolutely. Once you've done your Search Network campaign. Start working on a remarketing campaign conversion tracking. So there's different kinds of conversions and you can create any kind of conversion you want and register it within Google. Okay.

First of all, we discussed phone call conversions through AdWords. So it will show different phone numbers to different users and track which clicks lead to those phone calls. I think that will be forwarded to you one number. You might simply just want to reach people because you're having a brand awareness campaign, you launching a brand awareness campaign. Just an impression is a conversion for you. Online inquiry He's here online inquiries into your lead page and then filling in the form.

You might register an app download as a conversion, you can also get offline conversions. Yeah. Now if you know, if you haven't enabled phone calls tracking, then if you know you've had a few number of clicks, then you can work out yourself which clicks led to those conversions. And then you can upload them into the Google AdWords interface. Yeah. And then you can work out the analytics through the through the dashboard.

Just a store visit, online store visit might be a conversion for you. Okay, so it's really important. I mean, how many people here have lost average campaigns before and not had conversion tracking enabled? Right. So I you know, I think If I fall into that category in the past where the beginning because I just wanted to get out there really quickly, but it's it's not effective. Okay?

Just take your time and just make sure you've got tracking enabled. And the key thing here is don't screw it up. Don't try and do it yourself if you don't know how to do it, because it's really important. And you can waste months and months of effort. If your results don't make any sense, yeah. They're very basically Well, what you can do to enable conversion tracking is missiles, making a say, for example, the most simplest conversion is an online sale.

Yeah. I mean, online sales takes place people go through page, the billing page, shipping page, and then the credit card information page. And then the thank you page. So you can tell Google to register a conversion if a user lands on the thank you page. Yeah. The thing to Do there is what you can do within Google AdWords, you can copy and paste some Analytics code into spirit, JavaScript, PHP, whatever, you stick it into your thank you page somewhere.

And when that code, when that page loads and that code fires, Google will register that as a conversion thing to do is to copy and paste that into a text file and give it to a developer. Because really, I mean, for the sake of 30 quid, just get it done. Once I get done with somebody who knows what they're doing. It can can't get a bit more sophisticated, you can you can measure double conversions. So for example, if an online click turns into a conversion, but that user came in from the same IP address, and did a conversion again, then the value of that click has doubled, doesn't it? Yeah.

You can, you might even want to, you can go a bit crazy. Don't try and track it over. Thing is, you know, if you've got a limited fund, you've got limited funds, only so much data you can really manage and track and make decisions with. But draw time on a page that how far someone scrolls down, etc. These are all analytics goals, you can do this by Google Analytics, and then track them as conversions in the AdWords interface. So it's worth getting yourself set up with Google Analytics.

So the more data Google AdWords has access to the bell for you, really, who's gonna serve you at the end of the day? Finally, once you have it, enabled, do a test transaction. You might think there's no point but actually, it's just worth it. Because then it's just tennis check, double check and triple check that isn't it. Finally, user development Get properly. If you don't want to do it that way, you can install something called Google Tag Manager.

Anyone here heard of Google Tag Manager where we use it? Yeah. So Google Tag Manager is great. It's a, it's like, what it does is it creates containers on every page of your website. And in those containers, you can put whatever tracking codes you want. You can you can put in Facebook pixels into the Google Tag Manager containers to help you with Google with Facebook ad tracking, Facebook conversions.

Same with being as well you can put Bing in there as well. It's just a way to just manage all your tracking code. One gets through it here obviously, but there's plenty of instructional videos on YouTube show you how to do it's not that complicated. But again, if you have any doubts, just pay someone 50 quid to get on up work. So something else we have talked about, which is the cynical revenue tracking. Yeah.

Now the more data analytic slash AdWords has the better. So if you can upload, there is some way you can do this in the dashboard, you can upload your products prices, you can even upload the profit margin of your products. And what that will do is it will start relaying information back to you about the value of clicks. It's not just the conversion rate, but the actual value of the clicks that led to those conversions as a good way of identifying which products are underperforming. Here's a case study of a company that was didn't have it had conversion tracking enabled, okay. But it didn't have revenue tracking enabled, or profit tracking, just by doing that one small step.

They were able to determine which clicks to put to pay for. What they saw was, they were able to optimize and when a reducing their ad spend 36%, they managed to get an 81% increase in revenue. Yeah, just by having that information, just one small change in the way that they will work. It takes some time, just a couple of hours to actually upload that information into the Google AdWords interface. Okay, so summarize, do a test transaction, track everything, track everything. Don't ever do it with conversions.

Okay. If dwell time is not of relevance to you, you don't need to do it. Of course. Your attention span is limited, right? Get a competent developer to do it. If you don't, if you really want to do it yourself for YouTube, always go ahead but just make sure you Check and triple check it use Google Tag Manager it's really good for conversion tracking.

And if your local business and you're able to to see you know, which clicks or which phone calls lead to conversion, make sure this is actually not it's not uncommon because if you have a phone call tracking, you want to know which phone calls led to a conversion don't Yeah. So if you know which phone which phone calls came from which clicks then you're able to work out which clicks lead to a conversion upload the product values into AdWords to set up revenue tracking. So talks about this a little bit different strategies out there. There's three, two or three main strategies, okay. You might want to might be a big brand lots of money. You might want to run an awareness campaign, and what we care about is number of impressions.

But for most people, Here, you know what smees what you want to do ultimately is maximize your profit directly from AdWords. Now, this is important because actually, you're going to see competitors appearing next to your ads, and your instinct is going to be, I want to compete with that ad, but you're losing sight of your strategy, okay? Your strategy should be about profit. Being an acquisition number one, where you pay more for your clicks, isn't necessarily the best place to be, to have to get more profit. So some of the characteristics behaviors of awareness campaign, generally run by big brand companies, okay with with the big, big budgets, and the focus is on impressions. The they don't really do cost per click with the strategy.

They do something called CPM, it's the cost per thousand impressions and this is a bit of a legacy thing going back to the days of television advertising. How many times was your ad shown? What was the focus? So for generally, for small businesses, what you're really concerned about is profit, right? You don't care how many impressions there were you care about the number of conversions. But the characteristic here is that you have a large but fixed budget to spend.

Welcome to see comm we'll focus mostly on the profit saving strategy. That's the whole the whole course has been mostly about the property strategy. formula and it's number two strategy. They would have been number one, no matter what again, it's not about how many times they were seen, but they want to make sure that they appear higher than their competitors. This is a whole other strategy when you have a large, large budget and this is companies that want to be at the top and if you're a really big company like I don't know, confused, calm or something. You will have your ads appearing hide and say My supermarket, my money supermarket or something like this.

We won't go into that at all really, we're going to be focusing on the whole course has been geared more towards a profit maximizing campaign. And these, the key thing is these, you can't dip in and out from one strategy to another. You want to start with your strategy in mind. Yeah. If you have a profit maximizing campaign, then what were you concerned about is your cost per acquisition? How many what was the costs of your conversions?

And the total amount of profit, the total number of clicks maybe you've got, there's a bit of a trade off there. So yeah, don't try and compete with front runners. You don't have to be at number one to make a profit. Yeah. track you outcomes closely. It sounds to the budget with the profit maximizing campaign.

Really it's variable. Yeah. So long as your ROI is positive and you're able to fulfill orders, logistically, then your budget is unlimited right? And what you want to do you only want to bid on profitable clicks. You don't care about impressions. You don't want to bid on clicks and I'm going to Hong Kong and birds.

And this is a really subtle point here. So basically, well yes, you want to try and maximize your conversion rate. Yeah. However, if it means you can pay a little bit more for your bids, okay. And have more impressions for say a broad match campaign or something. What you can do is have a greater that's essentially an error there.

What that is, is the cost per click, okay? You don't want to minimize necessarily the cost per click. You don't want to minimize the cost per click, what you want to do is you've optimized your conversion rate with some clicks, you've optimized your cost per click is minimal, okay? But you're limited now with traffic because of your ad position. So what can you do to get more conversions? You can pay a little bit more for your clicks.

And what will happen is, if you pay more for your clicks, then your cost per acquisition will go up. your cost per acquisition will go up. Okay, but as a result of that cost raising, you're getting more impressions and you're getting more clicks, and you're getting more conversions. So your overall profit is increasing. So it's not so good. Let's think about it holistically.

Yeah, it's not so good. just focusing on one single metric, you don't want to just simply minimize your cost per click, you want to do it with a view to improve profits, essentially. And that's this is where the revenue tracking comes in handy, because then you can see the direct correlation there on your dashboard. Yeah, so you don't necessarily need to minimize your cost per click. You can pay a little bit more and get a greater number of conversions. And although your average your cost per acquisition is raising, you're maximizing your profit.

So summary of our strategies, yeah. So be mindful of a strategy. Just think about it for a few minutes and pick one mostly I think you're going to fall into the profiteering campaign strategy. Don't try Don't try to compete with your front runners or your brand awareness campaigns if you if you were profiteering if you were profits here. The key thing here is as long as you have a positive ROI, you can scale up. Yeah, don't get so hung up on the conversion rate.

Yeah, I mean, conversion rates great for some keywords. It might be awesome. But you can actually go a little bit more inefficient and raise the number of conversions. Yeah. Focus, of course is on the profit, not the conversion rate, which is only a proxy metric. campaign, campaign management So when you see back when you optimize it on a daily basis, you're managing your campaign, which, which are the metrics that you want to monitor?

I want to track. Okay. Why isn't AdWords working for you? What are the common reasons for why you're not making any profit? We'll have a quick look at the clicks to visits discrepancy. So the real measured metrics, okay?

Four main ones are the number of clicks you get the number of impressions, the cost per click, and the number of conversions. Okay. And using these metrics, you can calculate some other ones that are really useful like the click through rate, okay, which is basically the number of clicks divided by the number of impressions Yeah, or the app, the average cost per click. We should want to get down over time, generally You can use your number of conversions to work out the conversion rate, which you want to improve and optimize. These are the things that you want to you want to track is also some of the advanced metric, which are kind of proxy metrics. Yeah.

So you know that if your quality score was good, then your cost per click is going to be good. So what you focus on, you focus on the quality score. And therefore also by extension, the ad, the ad position, the average ad position. And over time, you'll see that as your quality score improves, your average cost per click will go down, and your average ad position will go up. There are also some other format specific metrics which we won't really go over go into things like if you've got image ads and things like that, So, a good tip here is to add the quality score column into your dashboard. The way to do this as you go into modify columns, rows or columns, first of all, modify columns.

And then you go, click on the ad quality score, and then you, you click on the quality score there. And then you add it, you add it to the the, you add the column to your dashboard. If now on impressions, impressions is the step where when a screen with your ad is seen by a user? Yeah, so when your ad shows up on screen, basically, that's one impression, simply is that the number of times your ad shows basically, on the screen what you're gonna find is that if you're Doing your AdWords, you're seeing the number of clicks and everything, but actually your AdWords, your analytics data, which should also, you know, I invite you guys to get your Google Analytics set up on your websites, you're going to see that there might be a discrepancy. Google Analytics is not perfect. It can't track everything.

Generally though, it's like 90 to 95% accurate, you're going to get some clicks, which are not registered by analytics. Anything more, keep an eye on it. Make sure you do have Google Analytics enabled on your, on your website. So that you can keep a keep an eye on that figure. Sometimes you find, you know, it's not very, there's not a good correlation between the number of visits you've had, and the number of clicks you'll painful. If you find that you're getting there In a 90% discrepancy, then you've got an issue, or what people do to discredit their competitors is they set up like multiple VPN.

And they will do fraudulent clicks on their competitor sites to bring down their their metrics. Can't Stop it. No, you can't stop it. So the thing to do there is you, you haven't you escalate an issue with Google, you do it through your dashboard and get in contact with Google to explain. Yeah, and then they will, they will strip away this. There was no charges clicks, basically.

Yeah. Generally, like automation is not a good thing. If you're starting out actually, it's good to understand the principles at play and forces at work so you can get automatic bid management software. There's quite sophisticated algorithms, looking at all your metrics. And when we do, we will adjust your bids up and down on a daily basis. It can be useful if you've got like about a billion products in your new website.

Yeah. Generally, though, it's a it's kind of dangerous. Yeah. So get get a handle on AdWords before you think about going into bid management software. I don't really do it. To be honest.

I stick with the basics. learn the basics first. Here's an example. Double click by Google. It was a bid management software company bought out by Google a couple of years ago. So somewhere we close the feedback loop every single day.

I know sounds like a lot, but actually just turn it into a ritual. Just 10 minutes a day can save you tons of money, because what you're doing and we're looking for, there's 10 minutes and looking for clinics that aren't converting Through negative keywords, and your identifying negative keywords, don't be so quick to automate. Just do it day by day doesn't take very long, 10 minutes a day. You know, most campaign managers out there won't even log in every week. Customize your dashboard to make it intuitive for you. You can move your columns around to make sure that you know it's fits in with your strategy.

The things that you will attract the metrics that you want to track. Why to customize your dashboard. Keep an eye on your Google Analytics account for fortunately clicks it does happen. It happens to me and escalate issues with Google. If you find that you