Search Marketing. Dealer Days Presented By Andrew Polhemus. SEM Team Lead, Dealer.com. Dealer Days at Google HQ October 4, 2012

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1 Search Marketing Dealer Days 2013 Presented By Andrew Polhemus SEM Team Lead, Dealer.com

2 Agenda KPIs to Watch Ad Copy Testing Bidding on Branded Keywords Ad Extensions The Importance of Strategic Collaboration

3 KPIs to Watch Account Level CLICK THRU RATE (CTR) Total clicks impressions COST PER CLICK (CPC) Spend total clicks The ratio of clicks to impressions Average: 1.5% 2% The average cost paid for a click on an ad Average: $1.60 $1.70 COST PER LEAD (CPL) Total spend total leads The budget spend per total # of phone calls + form submissions Average: $12 $14 CONVERSION RATE (CVR) Total leads total clicks AVERAGE POSITION The budget spend per total # of phone calls + form submissions Average: 13% 14% The average SERP placement for your ads Ideal placement is in 1 4 position

4 KPIs to Watch- Campaign Level Campaign CTR CPC CPL CVR Avg. Pos. Dealer-General New Vehicles Pre-Owned Vehicles

5 Determining what KPIs Are Good For Your Store A host of factors affect the KPIs for your specific store. 1. Strong competition in your market 2. Business objectives 3. Custom campaigns / ad groups

6 Ad Copy Testing

7 Ad Copy Testing Creating Ad Copy 1. Choose the element of the ad you want to test (headline, CTA, etc.) All other elements of the ads will remain identical. Toyota of Boston Shop Our Huge Toyota Inventory Online & Save with our epricing. Toyota of Boston Shop Our Huge Toyota Inventory Online View Current Specials.

8 How Does Ad Copy Testing Work? Ad Rotation 2. Set ads to relate evenly in AdWords By default, AdWords will optimize your ads for clicks and start showing ads with a better CTR more often. For ad copy testing, we need ads to rotate evenly so that we have even sample sizes for our test.

9 How Does Ad Copy Testing Work? Measuring Results 3. Run ads for 3 4 weeks so the sample size can be large enough to establish statistical significance. Free online calculators help determine the winner. EXAMPLE: SplitTester.com

10 How Does Ad Copy Testing Work? Next Steps 4. Once the winner has been determined, the losing ad can be edited to continue testing Toyota of Boston Shop Our Huge Toyota Inventory Online & Save with our epricing. WINNER Toyota of Boston Shop Our Huge Toyota Inventory Online & Save with our epricing. Toyota of Boston Shop Our Huge Toyota Inventory Online & View Current Specials. LOSER Toyota of Boston Shop Our Huge Toyota Inventory Online & View Lease Specials.

11 Ad Copy Testing Which ad has a higher CTR? Ads Toyota Bay Area Huge Toyota Boardwalk Your SF Bay Area Toyota Dealership Toyota Dealer Bay Area Huge Toyota Boardwalk Your SF Bay Area Toyota Dealership

12 Ad Copy Testing Which ad has a higher CTR? Ads Clicks Impressions CTR Toyota Bay Area Huge Toyota Boardwalk Your SF Bay Area Toyota Dealership Toyota Dealer Bay Area Huge Toyota Boardwalk Your SF Bay Area Toyota Dealership , % 118 1, %

13 Ad Copy Testing Which ad has a higher CTR? Ads Toyota Atlanta Your Atlanta Toyota Dealership Shop Us & Get Your Toyota eprice Toyota Atlanta, GA Your Atlanta Toyota Dealership Shop Us & Get Your Toyota eprice

14 Ad Copy Testing Which ad has a higher CTR? Ads Toyota Atlanta Your Atlanta Toyota Dealership Shop Us & Get Your Toyota eprice Toyota Atlanta, GA Your Atlanta Toyota Dealership Shop Us & Get Your Toyota eprice Clicks Impressions CTR 168 1, % 118 1, %

15 Ad Copy Testing Which ad has a higher CTR? Ads Ford Lease Specials Shop Our Ford Lease Deals Online. Hurry, Great Ford Leases End Soon. Ford Lease Deals Shop Our Ford Lease Deals Online. Hurry, Great Ford Leases End Soon.

16 Ad Copy Testing Which ad has a higher CTR? Ads Clicks Impressions CTR Ford Lease Specials Shop Our Ford Lease Deals Online. Hurry, Great Ford Leases End Soon. Ford Lease Deals Shop Our Ford Lease Deals Online. Hurry, Great Ford Leases End Soon % %

17 Bidding on Branded Keywords

18 Bidding on Branded Keywords Why Bid on Branded Keywords if You re Already Showing Up Organically?

19 Bidding on Branded Keywords Showing up in the first spot for both PPC & organic results has a compounded effect on click volume = Clicks Effect of top listings in both PPC & organic: Out of 1000 impressions number of expected clicks to page. SOURCE: Google Clicks TOP PPC LISTING 20 Clicks TOP ORGANIC LISTING TOP LISTING IN BOTH

20 Bidding on Branded Keywords Cost & Quality Score 1. Branded keywords are relevant in nature. This relevancy is rewarded with low click costs for top page position. 2. These individual keyword-level quality scores also factor into accountlevel quality score. 3. High account quality score = lower CPC and higher page position for all keywords in your account over time.

21 Bidding on Branded Keywords Competitors Competitors are allowed to bid on your keyword. Not bidding on your own bran keyword leaves the door open for your competitor to show up on the top of the page for searches.

22 Bidding on Branded Keywords Highlighting Promotions Keep your customers up to date with specials and promotions in your branded ad copy. Integrate messaging with offline marketing. ROI Motors Fall Tent Sale On Now at ROI Motors $199 Leases & 0% APR, Ends 10/31 ROIMotors.com

23 Enhancing Your Ads

24 Google Adwords Ad Extensions Ad Extensions = Increase CTR = Lower CPL Ad Extensions enhance user experience and take up more SERP real estate. link Location Extensions Sitelink Extensions Mobile Call Extensions

25 Google Adwords Ad Extensions Location Extensions Location extensions show when Google determines local search intent. Can show address and phone number or map dropdown. Burlington Motors VT BurlingtonMotorsVT.com Huge Vehicle Inventory in Burlington Drive Your New Car Home Today 1 Howard St., Burlington, VT (888) Directions Burlington Motors VT BurlingtonMotorsVT.com View Our Specials & Get a Quote Now + Show map of 1 Howard St., Burlington, VT

26 Google Adwords Ad Extensions Sitelink Extensions Sitelink extensions link users deeper into your site directly from the ad Burlington Motors VT BurlingtonMotorsVT.com Huge Vehicle Inventory in Burlington. Drive Your New Car Home Today Service Preowned Inventory New Inventory Contact Us

27 Google Adwords Ad Extensions Mobile Extensions Mobile call extensions allow users to call you directly from your ad.

28 Strategic Collaboration Best SEM performance results from close collaboration between client, sales manager, internet managers, service managers. Key Dealership Stakeholders SEM Provider

29 Strategic Collaboration Working with Your SEM Provider Review your goals on a regular basis Sales/branding goals are likely to change monthly or seasonally; it is important to keep your SEM provider up to date Create custom campaigns and ad groups The SEM provider can easily add in customizations for events, models you would like to push, etc., that will instantly start showing up on-line

30 Strategic Collaboration Working with Your SEM Provider YOU know your customers best.

31 Putting It All Together Monitor KPIs to achieve your campaign goals Test ad copy to increase click through rate and decrease cost per click Bid on your brand to keep account quality high Use Ad Extensions to enhance your ads Collaborate with your SEM Provider to maximize your search investment

32 Thank linkedin.company/dealer.com Certification Program

33 Search Part II Advanced Strategies Presented By Brian Jones Senior Search Manager, Search Operations, Dealer.com

34 Agenda Mobile Budget Sweet Spots Integrated Marketing Communication

35 The Evolving Mobile Landscape Mobile Paid Search Growing Faster than Desktop Total Google Mobile Revenues (in billions) 20 $17.4 $ $13.7 $9.9 $5.8 $0.2 $0.8 $ E 2012E 2013E 2014E 2015E 2016E Mobile as Percentage of Current Google Projections % 3% 7% 13% 18% 21% 24% 26% E 2012E 2013E 2014E 2015E 2016E

36 The Evolving Mobile Landscape Top 10 ios Mobile Websites by Active Reach 92% 86% 63% 54% 44% 44% 41% 37% 27% 25% Top 10 Android Mobile Websites by Active Reach 92% 66% 37% 26% 24% 18% 17% 16% 15% 13% SOURCE: State of Mobile Q NIELSEN MEDIA

37 Global Dealer.com AdWords Traffic 85.21% 72.68% % GROWTH % DECLINE 14.79% 27.32% Desktop Usage Mobile & Tablet Usage August 2011 August 2012

38 Global Dealer.com AdWords Traffic CTR by Device CPC by Device 2.39% 4.12% 3.12% $0.83 $0.53 $0.63 COMPUTERS SMARTPHONES TABLETS COMPUTERS SMARTPHONES TABLETS Smartphones outperformed tablets and desktop computers on click through rates. Smartphones outperformed tablets and desktop computers on cost per click.

39 Mobile Best Practices Segment Mobile Specific Campaigns Write Mobile Specific Ad Copy Bid for Top Positions Have a Mobile Site

40 Mobile Best Practices Segmenting mobile allows for independent optimization - bids, keywords, ad copy, targeting, etc. Easily able to gauge performance at campaign level Additional mobile traffic capacity usually demonstrated Monthly Metrics Name Monthly Budget Region Spend Daily Spend % Impression Clicks Leads CTR CPC Conversion Rate CPL Desktop Mobile $5, $3, mi 25 mi $5, $2, % 86.29% 10,291 31, , % 7.83% $0.87 $ % 22.85% $4.95 $4.73 Desktop Mobile $4, $2, Custom Custom $3, $1, % 82.79% 79,276 22, % 7.00% $0.95 $ % 24.82% $5.11 $4.41 Desktop Mobile $2, $ mi Default $2, $ % % 93,624 8, % 7.36% $0.79 $ % 25.37% $4.93 $3.43

41 Mobile Best Practices Target Users with Device Specific Ad Copy When the ad speaks to the user, it becomes more relevant to them Ads Status Clicks Impressions CTR BMW Maryland Your Local MD BMW Dealership Browse Our Mobile Site Now APPROVED 73 1, % Maryland BMW BMW Motors Marlow Heights, MD Browse Our Entire Inventory Online APPROVED %

42 Mobile Best Practices Bid for the top 2 positions

43 Mobile Best Practices If you're investing in a mobile campaign, make sure you have a mobile optimized site to increase conversion.

44 Mobile Best Practices Mobile Specific Campaign Traffic vs. Desktop Higher CTR (Ads are 2/3rds of viewable mobile SERP) Higher CPC (increased competition for 5 ad slots) Higher Conversion (mobile searchers are ready to take action) Lower CPL (higher conversion rate typically offsets the higher CPC enough that the CPL is lower)

45 Finding The Right Budget

46 KPIs to Watch Account Level IMPRESSION SHARE EXACT MATCH IMPRESSION SHARE LOST IMPRESSION SHARE (BUDGET) LOST IMPRESSION SHARE (RANK) Impressions you received divided by the estimated number of impressions you were eligible to receive (share of voice). Only calculated on the exact keywords in your account (no phrase or broad match impressions). Lost impressions specifically due to a low budget. Lost impressions specifically due to a low ad rank (Rank = Bid x Quality Score)

47 Finding Your Sweet Spot Working with Your SEMTeam Determine how much impression share you are missing in your market. Align your budget with your missed opportunity to maximize exposure, traffic and leads. $3,000 Budget 65% Impression share 35% Missed opportunity $3,000 x 0.35 = $1,050 increase = $4,050 Recommended Budget

48 Finding Your Sweet Spot $3,000 budget seeing $12.50 CPL and 240 leads $1,050 increase at $12.50 CPL will return an additional 84 leads Investments will typically yield a consistent rate of return (CPL) until your "sweet spot" is realized.

49 Finding Your Sweet Spot Budget Sweet Spot - point at which any additional investment will yield a lower rate of return (higher CPL). Account needs to be mature and optimized with appropriate geotargeting (3 months minimum) Low hanging fruit captured (100% impression share) It's OK and even recommended that you go past your sweet spot

50 Finding Your Sweet Spot Past your sweet spot = Law of Diminishing Returns As more investment in a particular area is made, overall return on that investment increases at a declining rate, assuming that all variables remain fixed. CPL PROJECTED CPL CURRENT CPL LEAD VOLUME

51 Finding Your Sweet Spot Past your sweet spot = Law of Diminishing Returns As more investment in a particular area is made, overall return on that investment increases at a declining rate, assuming that all variables remain fixed. What is Your Traditional Return? CPL CURRENT CPL PROJECTED CPL Print =? TV =? Radio? Direct Mail? LEAD VOLUME

52 Calculate the profits you are missing out on due to capped budgets. GAINS COSTS Lost Impressions e.g. 1,000,000 Missed Clicks 20,000 Missed Clicks 20,000 Missed Conversions 400 Average CTR X = 2% Average CPC X = $1 Conversion Rate X = 2% Average Order Value X = $500 Missed Clicks 20,000 Spend Required $20,000 Missed Conversions 400 Potential Revenue $200,000 Revenue 200,000 Profit Margin X = 25% Potential Extra Profit $50,000

53 Calculate the profits you are missing out on due to capped budgets. GAINS COSTS Lost Impressions e.g. 1,000,000 Missed Clicks 20,000 Missed Clicks 20,000 Missed Conversions 400 Revenue 200,000 Average CTR X = 2% Average CPC X = $1 Conversion Rate X = 2% Average Order Value X = $500 Profit Margin X = 25% Missed Clicks 20,000 Spend Required $20,000 Missed Conversions 400 =$30,000 Potential Revenue $200,000 extra Potential net Extra Profit profit $50,000

54 Consistent Marketing Messages

55 Integrated Marketing Communication People are increasingly using mobile forms of media simultaneously. Simultaneous Usage of Select Devices According to US Connected Device Users*, Q TV with another device with a smartphone with a PC/laptop 77% 49% 34% PC with another device with a smartphone with a TV 67% 45% 32% Tablet with another device with a TV with a smartphone 75% 44% 35% Smartphone with another device with a TV with a PC/laptop 57% 29% 28% Figures are based on 6,057 smartphone interactions, 3,817 PC/laptop users; *use smartphone, PC, and TV SOURCE: Google and Sterling Brands, The New Multi-Screen World; Understanding Cross-Platform Consumer Behavior* conducted by ipsos, Aug 29, 2012

56 Integrated Marketing Communication Look at some big brands Plug into the savings you deserve with snapshot from Progressive TV Print Radio

57 Integrated Marketing Communication

58 Integrated Marketing Communication Don't leave out digital! When people are exposed to your traditional media marketing, they go online to validate your offers. Keep your brand ad copy updated with those offers to keep your message consistent across all media. This will resonate with potential customers and maximize your marketing impact.

59 Working with an SMB Partner Only 15 Partners Only 3 Automotive Exclusive Includes Exclusive Opportunities & Offers

60 Google Adwords Ad Extensions Communication Extensions (beta) Communications Extensions allow users to submit you their address directly from your ad

61 Putting it All Together Segment mobile campaigns to maximize mobile search Find your budget sweet spot Keep your marketing messages consistent across all media

62 Thank Linkedin.com/in/brianallenjones Certification Program

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