Google Is Listening: Enhancing the Enhanced Campaign

By Kye Mou April 11th, 2013

On Tuesday Google announced that advertisers will soon be able to set mobile bid adjustments at the ad group level, in addition to the campaign level, for enhanced campaigns. This comes on the heels of Google’s release of two new ValueTrack parameters: {ifmobile:[value]} and {ifnotmobile:[value]}. Google also indicated July 22, 2013 as the start of the migration deadline, when AdWords will begin automatically upgrading legacy campaigns to enhanced campaigns.

These recent announcements shouldn’t come as a surprise to search marketers. Google has historically made adjustments to new AdWords features as market demands became more evident. (A recent example is last year’s update to the campaign ad rotation settings.) Sophisticated search marketers have been asking for additional enhanced campaign features to provide additional control and transparency for optimizing their paid search programs. Today, we’ll review the two recently announced enhancements to enhanced campaigns and discuss their importance to search marketers who operate in a multi-device world.

Ad Group Mobile Bid Adjustment

Before this Announcement: A mobile bid adjustment could only be set at the campaign level, which allows advertisers to boost desktop keyword bids for searches on mobile devices by -100% to 300% across the entire campaign.

The Ask from Marketers: Search marketers are used to granularity. From management to reporting to optimization, sophisticated marketers often desire to operate at the most granular levels possible, which often means making decisions down at the keyword level. The reason is that clicks, cost, conversions, and revenue data are all attributed at the keyword level; and in order to optimize bids and maximize performance, keyword-level bids needed to be calculated and applied individually.

The Updated Approach: Google will now allow advertisers to set a mobile bid adjustment at the ad group level. Once implemented, the same boost range, from -100% to 300%, can be applied to all desktop keyword bids within a given ad group for searches made on mobile devices. The campaign level mobile bid adjustment will be ignored if an ad group level bid adjustment has been set.

What It Means: The enhancement to allow group-level mobile bid adjustments provides search marketers with additional control over their enhanced campaigns and mobile performance. For advertisers that follow account best practices, where ad groups contain a small set of like or similar performing keywords, this enhancement should meet the requirements for most paid search programs. Although some search marketers may long for keyword-level mobile bid adjustments, keep in mind that the goal of enhanced campaigns is to simplify the way advertisers manage their paid search campaigns across device, location, and time of day. Group-level adjustments appear to be a reasonable and effective compromise.

{ifmobile} and {ifnotmobile} ValueTrack Parameter

Before this Announcement: Search marketers could only leverage one landing page across all devices rather than have the ability to direct users to optimized landing pages based on device. The other option was to remove keyword level destination URLs in favor of creative level URLs.

The Ask from Marketers: Screen sizes and user behavior varies significantly between desktop and mobile devices. Presenting users with a device-specific landing page is critical to improving the user experience and maximizing paid search performance. Consequently, advertisers wanted the ability to define two destination URLs at the keyword level in order to present the most relevant content and optimal experience based on the device the user is searching on.

The Updated Approach: The {ifmobile} and {ifnotmobile} ValueTrack parameters will enable search marketers to direct users to device-specific landing pages at the keyword level. Additionally, these new parameters enable the measurement of the effectiveness of campaigns by device for advertisers who are unable to leverage the {device} ValueTrack parameter.

What It Means: The ability to assign a device-specific landing page falls directly in line with Google’s approach to a multi-device world—helping advertisers reach consumers with the right ad experience based on device, location, and time of day. As users move across device, this enhancement will enable search marketers to remain relevant and engaging.

Google Is Listening

Clearly, Google is open to enhancing enhanced campaigns based on industry feedback. However, I wouldn’t expect any further changes to be announced ahead of the migration deadline as advertisers nail down their migration plans and establish revised best practices before heading into the holiday season. In order for enhanced campaigns to be a win-win-win solution (for Google, the consumer, and the advertiser), Google will need to continue collecting and applying market feedback, especially once all advertisers have migrated over to enhanced campaigns.

Google’s New “Enhanced Campaigns”: What It Means for Search Marketers

By Kye Mou February 7th, 2013

Yesterday Google announced the rollout of enhanced campaigns, a major AdWords product release that attempts to simplify the management of campaigns across devices. With enhanced campaigns, search marketers will be able to target consumers based on device, location, and time of day through a single campaign. However, for search marketers that currently leverage separate desktop, tablet, and mobile campaigns, Google’s enhanced campaigns will remove some of the control and transparency we’re used to having. Additional details on enhanced campaigns can be found here.

What Does This Mean? To understand the implications of Google’s enhanced campaigns, let’s review the benefits and concerns.

Benefits

• Mobile preferred creative: Search marketers will now be able to create mobile preferred ad creative that are delivered to users based on their device or when they’re searching.
• Consolidated and simplified bid management: Search marketers can now leverage bid adjustments to manage bids across devices, locations, time of day, and more from within a single campaign.

• Enhanced ad extensions management: Search marketers can now assign ad extensions at the ad group level and display ads across devices with the appropriate ad creative, sitelink, app, or extension, without having to manage multiple campaigns for every combination of device, location, and time of day. Furthermore, ad extensions can now be scheduled to turn on and off, such as during times when phone operators are unavailable.
• Advanced sitelinks management: Search marketers can now report on the performance metrics for individual ad sitelinks and monitor their approval status.
• New conversion types: Search marketers will now have the ability to track and report on calls and app downloads, enabling the optimization of campaigns based on these conversion types.

Concerns

• Device specific budgets: In combing all devices into a single campaign, budgets will also be combined, eliminating the ability for search marketers to set separate, device-optimized budgets across desktop-, tablet-, and mobile-only campaigns.
• Mobile-only campaigns: Without the ability to opt out of desktop/tablet device targeting, search marketers will no longer be able to leverage mobile-only campaigns. This may significantly impact advertisers, like mobile app and gaming companies, who only wish to advertise on mobile devices.
• Tablet specific optimization strategies: With tablet device targeting now combined with desktop, search marketers who have specific tablet strategies in place will lose that functionality.
• Bidding on mobile keywords: Since mobile bids are boosted by a percentage of desktop/tablet bids at the campaign level, search marketers can no longer calculate individual mobile keyword bids based on performance. Furthermore, bidding to a preferred position for specific mobile keywords to combat the limited SERP real estate on mobile devices is no longer possible.
• Bid multipliers: The requirement to layer bid multipliers based on device, location, and time of day introduces significant complexities for calculating optimal keyword bids. Furthermore, since bid adjustments are applied at the campaign level, separate time of day multipliers can’t be set for separate locations. For example: +20% for New York and +50% on Saturdays, and -20% for Chicago and -50% on Saturdays.
• Targeting mobile operating systems: Search marketers can no longer target campaigns to a specific mobile device or device operating system (i.e. iPhone, HTC, iOS, Android).

Google plans to roll out enhanced campaigns across advertisers over the next few weeks. As a result, advertisers may not have immediate access to this feature within their accounts. By mid-2013, all campaigns are expected to have been transitioned to enhanced campaigns.

Tester Beware, Google To Tweak Ad Rotation Settings

By Kye Mou May 1st, 2012

Yesterday Google announced a significant tweak to their “rotate evenly” creative rotation setting. Today, campaigns that are set to “rotate evenly” will have their creative rotated evenly for an indefinite amount of time. Starting next week, campaigns using this setting will only rotate creative evenly for 30 days after the last creative was enabled or edited. After the 30-day period, creative will automatically optimize for clicks (one of the three existing ad rotation settings). Keep in mind that the campaign will remain labeled “rotate evenly” even after the rotation period has ended for any or all of the groups within that campaign.

Though this tweak is said to provide users with more relevant ads and help advertisers achieve better performance, it forces search marketers to be more in-tune with their ongoing creative tests. When testing, hone in on creative that deliver statistically significant results for your business, whether that’s clicks or conversions. Focus on high traffic groups to reach significance within the 30-day rotation period. Once significance is reached, pause “losing” creative and test new iterations of the “winning” creative. This resets Google’s 30-day clock and preserves the continuity of your creative test.

Creative testing tools, like Marin’s AB Testing solution, automatically reveal “winning” and “losing” creative once statistical significance has been reached. This logic, coupled with a best practice focus on testing creative in top traffic groups, should make the new 30-day rotation period a reasonable time frame for testing. As a best practice, take note of start dates when engaging in creative testing. Marin users should continue leveraging Dimensions as part of their creative testing workflow. These tags will help alert you when a test is nearing the end of its 30-day rotation period.

Mind the Gaps, Maintain Parity: An Introduction to Publisher and Match Type Keyword Parity

By Kye Mou April 25th, 2012

In a post late last year, we briefly explored the importance of match type parity—expanding broad match keywords to phrase and exact match—to not only improve keyword efficiency, but lower CPCs. Today, we’ll broaden our discussion to review additional strategies for maintaining keyword parity across match types and publishers. This post will help identify where potential keyword gaps reside and provide the necessary tools for filling them.

What’s Great for Google is Good for Bing

As campaigns mature, keywords evolve from experiments to proven revenue drivers. These proven revenue drivers often perform similarly across publishers. If a newly added Google keyword achieved 100 clicks with a 5% conversion rate at a 200% ROI over the last two weeks, it makes sense to test the same keyword on Bing. Unfortunately, many advertisers fail to maintain keyword parity across publishers, even when the failure to do so can result in missed revenue opportunities.

Identifying where these keyword gaps reside can prove to be a daunting task. To promote engine parity, implement tracking when engaging in keyword expansion. (Third-party solutions, like Marin Software, can help track and report on these changes at scale.) Take detailed notes on where, when and why these keywords were added to the account. These notes are not only essential to analyzing performance, but are critical when copying top performing keywords across publishers. To retroactively assess parity, download a sorted keyword performance report and apply an Excel vlookup to compare publisher keyword sets. Take note of where the gaps are for top performing keywords.

Bring the Whole Family

Copying exact and phrase match keywords to broad match type is a simple strategy for reaching a larger audience and discovering additional keyword opportunities. However, an increase in traffic doesn’t always correspond to an increase in performance. When introducing broad match keywords, be relentless in your efforts to find appropriate negative keywords.

Driving improvements in keyword efficiency often requires the use of phrase and exact match keywords. Expanding broad match keywords to phrase and exact allows for effective segmentation of keyword traffic and performance metrics. A keyword on broad match only captures the traffic for its phrase and exact match counterparts. Consequently, the clicks and conversions are aggregated to a single keyword. With the same keyword on broad, phrase and exact match, clicks and conversions can be segmented based on match type and precise optimization strategies can be implemented for each keyword.

But Remember to Silo

Consider the following dilemma. A keyword running on Google across all three match types has a broad match bid that exceeds the phrase and exact match bids. As a result, the broad match keyword cannibalizes traffic that should otherwise be captured by the phrase or exact match keywords. To effectively expand keywords from broad to phrase to exact match types, and segment performance based on match type, you must implement match type silos.

Match type silos not only promote match type parity but, with appropriate negative keywords, guarantee proper query-to-keyword matching. (For more on match type silos, read our whitepaper on managing negative keywords.)

Be mindful of publisher and match type gaps. Once these keyword gaps have been filled, remember to optimize. Researching negative keywords, setting appropriate keyword bids and generating relevant ad creative are just a few tasks to keep in mind. Implement these strategies and share your results with us.

Google Tweaks Phrase and Exact Match Keyword Behavior

By Kye Mou April 18th, 2012

Yesterday, Google announced changes to the way phrase and exact match type keywords will behave in AdWords. Traditionally, advertisers have had to compile large keyword lists to account for misspellings, plurals and other keyword variations. Starting mid-May, AdWords’ phrase and exact match keywords will begin matching close variants, including:

• Misspellings (“waterproof sunblock” will match “waterpoof sunblock”)
• Singular/plural forms (“bollard cover” will match “bollard covers”)
• Acronyms (“MLB” will match “Major League Baseball”)
• Stemmings (“single serving coffee” will match “single serve coffee”)
• Abbreviations (“st.” will match “street”)
• Accents (“cliché” will match “cliche”)

This level of matching is already baked into Google’s organic algorithm, but the impact it will have on search advertisers has yet to be seen. Initial Google testing yielded a 3% increase in clicks, with comparable CPCs, however those who don’t want the potential for more clicks have the option to opt out.

Click here for more information on this upcoming change.

Compelling Trends from Marin’s 2012 Q1 Report

By Kye Mou April 13th, 2012

Marin is proud to announce the release of our 2012 Q1 online advertising report. This report, which identifies significant year-over-year paid search trends, was compiled using data from over 1,500 advertisers and agencies who invest over $3.5 billion annually in online advertising through Marin.

At a glance, our study revealed an increase in click-through-rate (CTR), with cost-per-click (CPC) remained relatively steady. More specifically, we found a significant increase in CTR and a drop in CPC on Google. Some of our key findings include:

• 46% increase in Google click volume
• 14% increase in CTR on Google
• 4% increase in the share of clicks coming from Exact match

So what does all this mean? The increase in CTR coupled with a 12% lower CPC points to Marin users increasing their efficiency on Google. This finding is further validated by the increased usage of exact and phrase match type keywords, as users continue to identify and fill gaps using Marin’s keyword expansion tools.

Device targeting, specifically smart phones and tablets, continues to soar in popularity. Increases in click volume give evidence of the growth in consumer adoption. With smart phones and tablets showing higher CTRs and lower CPCs compared to desktops, mobile search should continue to be top of mind for advertisers.

Want to see other Q1 industry trends from 2012 with our recommendations? Download the full report here.

People Love to Search on their Smartphones and Tablets

By Matt Lawson March 30th, 2012

We love our mobile devices, and according to our recent study of mobile paid search, we love searching on them. In looking across our client base the trend was unanimous, mobile search is up, way up.

In the U.S., we saw ad clicks from mobile devices increase 132% during 2011, and by the end of this year mobile will comprise 25% of all paid search clicks. Similarly, in the UK mobile ended the year with 15% of all clicks in the UK. And, even though it’s not as significant a percentage, mobile clicks in the Eurozone more than doubled in 2011.

Things get even more interesting for marketers when looking at the differences between smartphones, tablets, and desktops. Generally (UK was the sole exception), smartphones carry higher CTRs and lower CPCs, but the lowest conversion rates. Tablets beat desktops in CTR and CPC, come close to trumping desktops in conversion rate, and edge all devices out in cost per conversion.

So, what’s this all mean?

Mobile devices are not only changing the way consumers search and shop, but how marketers advertise. The immediate response by advertisers is to devote more budget to mobile search (we project ad budgets will fall just a bit short of click volume in 2012). However, down the road as savvy marketers adapt to mobile search scenarios, click to call, location-based promos, and integration with social will all become common place. Furthermore, attribution becomes a much larger issue, particularly in a scenario where a mobile search directly leads to an in-store sale. Who gets the credit?

How do you foresee search marketing changing with the increased adoption and use of smartphones and tablets?

Bullish on Google?

By Gagan Kanwar January 20th, 2012

Yesterday, Google released its earnings for the fourth quarter of 2011. On the whole, it was a strong quarter for the digital advertising giant. But Wall Street reacted in a way that seems counterintuitive. Since the earnings’ call, $18 billion has evaporated from Google’s market cap as share prices fell ~8%. So, what’s happening here? Is there really cause for concern? Or are Wall Street’s concerns overblown?

To get a more complete picture, let’s look at the relevant pieces of Google’s business and performance.

The Big Picture

Google’s revenue for the fourth quarter was $10.6 billion, representing a year-over-year (y/y) top line growth of 25%, and marking their first $10 billion plus quarter. Though I usually don’t wax poetic over corporate financials, there is something strongly significant and symbolic about having hit the rarefied $10 billion quarter club. Way to go, Googlers!

Google’s Core Search Business

Click Volume – Paid clicks were up 34% annually (y/y), implying more users are more engaged with Google.

CPC – Cost per Click declined 8% on a y/y basis, implying customers are getting more volume (clicks) for their advertising spend. This dynamic is important to keep in mind as cheaper clicks are better for advertisers, and assuming click quality doesn’t decline, will lead to increased investment in Google.

Wall Street’s Reaction

There’s probably more to dissect in these earnings, but this is probably a good place to pause and examine Wall Street’s reaction.

To put it plainly, Wall Street didn’t like any of the above. Shares plummeted ~8%. The big issue for Wall Street (based on the nature and frequency of analyst questions) was around the decline in Google’s average cost per click.

But this shouldn’t really be a factor because the marginal cost of a click (for Google) is zero. And assuming that click volumes are rising faster than changes in the cost per click, which they are in this case, Google’s top line revenue shouldn’t really see an impact.Net net, if cheaper clicks brings more advertisers on-board, than Google will more than make up on volume.

To be fair, I’m not looking at the slowdown in Europe or issues around currency (F/X) hedging in this blog post. (I’m also not looking at the positive impacts of mobile, social and display) But, those issues are a) extrinsic and b) volatile, and in retrospect, Wall Street may have over-reacted to Google’s numbers.

Google AdWords Algorithm Update and Your Quality Score

By Matt Lawson November 7th, 2011

About a month ago, Google announced the global roll-out of an update to the AdWords algorithm that increases the value of landing page relevancy and quality when determining Quality Score. Google predicted with these changes, some campaigns would see variations in keyword Quality Scores and ad positions, but most would not see a significant change in overall performance. At Marin, we decided to investigate.

We sampled a population of 240 accounts across our Marin Enterprise client base that had limited average bid movements, consistent keyword counts, and consistently received greater than 1,000 impressions per day. For these 240 accounts, we examined the daily impression-weighted Quality Score at the publisher account level.

From the sample accounts, we observed 12 accounts with an increase in Quality Score greater than 0.25.

When taking a closer look at two of these accounts, we see the spike in Quality Score occurred on 10/2/2011 – 10/4/2011. Furthermore, there was little change to Click-Through Rates during this time, which suggests that the increase in Quality Score was related to the quality of their landing page.

We also identified 15 accounts that had a week-over-week drop in Quality Score of 0.25 or more.

After further investigation into four of these accounts, we see the drop in Quality Score took place between 10/2/2011 – 10/4/2011, with minimal change in Click-Through Rates, indicating these accounts had landing pages that Google deemed to be less relevant, adversely impacting quality.

What our investigation and findings suggest:

• The updated AdWords algorithm has had limited impact on Quality Scores.
• Only about 11.25% of Google Accounts saw their Quality Score change by more than 0.25 as a result of the algorithm change.
• If you did see a decrease in Quality Score during the 10/2/2011 – 10/4/2011 timeframe, with little or no change to Click-Through Rates, consider improving your landing pages to account for this change in Google’s algorithm.

Bolster Your Mobile Advertising

By Matt Lawson September 9th, 2011

Google recently projected 44% of searches for last minute gifts this holiday season will be from mobile devices. We do realize summer just ended and it may be a tad early for some to be thinking about the holidays; however, the stat did get us thinking about best practices when running successful mobile advertising campaigns. Here are three things we’ve noticed that you may want to consider:

1)      Position More Important – A smaller screen equates to less ad real-estate on mobile devices. Typically only 1 or 2 paid search ads appear at the top of a mobile search. Consequently, it’s important to closely monitor the position of your mobile ads and adjust accordingly.

2)      Tailor Mobile Ad Content – Although tempting, copying existing creative over to mobile campaigns tends not to work as well. We’ve seen short and sweet works the best with mobile ads creative. Certainly leverage all the characters you can, but be conscious about clarity so mobile users on the go accurately know what they’re in for.

3)      Focus on Local Results – Often when searching on mobile devices users are trying to find an answer to an immediate concern whether it’s directions, nearest restaurant, or nearest store that sells a particular item. Advertisers that focus on taking advantage of locality tend to see better results. Local offers and coupons, particularly in-store coupons, within mobile ads improve click-through rates and conversions.

What have you found to work when running mobile ads?