Paid Search Marketing

MKT3012/LMK3012: DIGITIAL MARKETING

LECTURE 3
Sections
1. Paid Search Advertising (Lecture 2)
2. Choosing Search Targets (Lecture 2)
3. Writing Ad Copy (Synchronous Online 2)
4. Buying Ad Space (Lecture 3)
5. Analysing Results (Lecture 3)
6. Google Ads Account Structure (Lecture 3)
Paid Search Marketing-III
Reading
Article:
How to Use Google Ads for Your Business
Websites:
Paid search marketing (PPC)
What Is PPC? Learn the Basics of Pay-Per-Click (PPC) Marketing
About your account organization
Organize your account with ad groups
Book:
Chaffey, D. & Ellis-Chadwick, F. (2019). Digital marketing: Strategy implementation
and practice (7th Edition). Harlow, UK: Pearson UK (Chapter 9: pp. 414-419).
Learning Objectives
•Examine the elements of Ad Rank (Bid Amount and Quality Score);

•Examine the results of a search campaign on Google;

•Discuss Google Ads Account Structure.

Section 4: Buying Ad Space
•When a company chooses to advertise on a billboard, it puts a billboard and pays
a set rate per month to keep its ad on that billboard. While that rate could change
at some point the advertiser might go years paying the same price per month for
the same ad to appear on the same billboard.

•With paid search advertising the price paid to advertise on any given keyword is
dynamic—it could change from one minute to the next.

•This topic explains how to buy ad space and how search engines determine
where to show an ad.
Ad Rank
•Search engines sell keyword ad space using an Figure 1: Factors determining Ad Rand
automated auction platform.
•Advertisers place a bid on a keyword (instruct the
search engine the maximum amount they are willing
to pay for a click from a searcher who has searched
for that keyword), and the winning bid gets the best
ad location for searches on that keyword.
•The Ad Rank (advertising position) of each advertiser
is also determined by the ad's Quality Score.
•Determining Ad Rank based on both bid amount and
quality score ensures that search advertisements stay
relevant to searchers, which increases the proportion
of people clicking on the ads.
Example
Advertiser 1: Bids $10 per click for a keyword, but
his ad doesn’t get very many clicks. It is poorly Figure 2: Example in Table
written and every time people click on it, they leave
the page quickly and go back to the Google SERP.
Even though Google might make $10 per click it is
obvious the advertiser’s website does not have what
the user wanted.
Advertiser 2: another advertiser may only be willing
to bid $1, but her ad generates a high CTR and very
few searchers who click her ad return to the Google
SERP.
Advertiser 2 is helping Google achieve its goals of
making money and giving searchers the results they
are looking for.
Activity-1

Click Here to learn more about Ad Ranks.

Quality Scores
•Quality Score is 'a measurement of how relevant your ads, keywords, and landing page are to a person
seeing your ad. Higher Quality scores can lead to lower prices and better ad positions.’
Three criteria affect Quality Scores:
1. Expected CTR. If an ad is well written and seems to generate more clicks compared to the other
advertisers, Google is likely to reward it with a better ad position.
2. Ad relevance. The keywords an advertiser is bidding on should be used in the ad and on the landing
page (the Final URL). This use of keywords shows Google that the ad and website are relevant to
the keyword being searched.
3. Landing page experience. If people click a company's landing page and then quickly return to the
SERP (bounce), the action sends a signal that the landing page did not, in fact, have what the
searcher was looking for.
CPC Bidding
•The maximum CPC bid is the amount the advertiser agrees to pay for a click.
The actual CPC is the amount the advertiser ends up paying when a searcher
clicks on his/her ad. These two amounts are typically different because the actual
CPC is usually lower than the maximum CPC.
•Google explains it this way:
“If the advertiser immediately below you bids US$2.00, and if that advertiser's
ad is the same quality as yours (and has equal-performing extensions and ad
formats), you'd typically need to bid a penny more than US$2.00 to rank higher
than that advertiser and still maintain your position and ad formats. With
Google's paid search ads, that the most you'll pay (about US$2.01), whether
your bid is US$3.00, USS5.00, or more.”
Cost-per-Acquisition Bidding
•Search engines also allow advertisers to pay for each conversion rather than for
each click Under this bidding method. if the advertiser gets 100 clicks and 4
conversions, rather than pay for the 100 clicks, the advertiser only pays for the 4
conversions.
•To use this method of bidding the advertiser must have sufficient history of
conversions (Google recommends at least 30 conversions in the last 30 days),
and conversion tracking must be set up.
Section 5: Analysing Results
Figure 3: Results of a search Campaign on Google

•Impressions. Each appearance of an ad on the SERP counts as an impression, even if the searcher does not
see the ad or click on it.

•Clicks. A click is counted each time a searcher clicks on an ad in the SERP.

•CTR. The click-through rate (CTR) is the percentage of impressions that yield a click. In the above
example, the 60,367 impressions yielded 2,101 clicks for a CTR of 3.48%.

•CPC. The average cost per click (CPC), in concert with the conversion rate, will determine whether the
search ads are profitable. In the above figure, this advertiser paid an average of $.83 per click.
Cost. This advertiser paid an average of $.83 per click for 2,101 clicks, yielding a total
cost of $1,742 for this keyword.
Conversions. Search advertisers should not lose sight of the fact that the purpose of a
campaign is to generate conversions and profits, not just impressions and clicks.
Each keyword an advertiser bids on should produce conversions. Multiply the profit per
sale by the total number of conversions. That number should surpass the total cost to
advertise on that keyword. If not, advertising on that keyword is not profitable. In Figure
3, the advertiser generated 140 conversions. If those 140 conversions generated an
average of $20 profit each, he would have earned $2,800 in profit from $1,742 in ad
spending, making this a profitable campaign.
•Conversion Rate. The conversion rate is the percentage of visitors who convert. In
Figure 3140 of the 2,101 visitors converted, leading to a conversion rate of 6.66%.
•Return on Advertising Spend (ROAS). (Total Profit/Total Ad spend) x 100 = ROAS
◦ Any company doing search engine advertising should monitor its ROAS. If it made
$30,000 in profit selling cars, and it spent $10,000 on ads, the ROAS would be 300%.
(Alternatively, ROAS can be calculated without multiplying by 100, which would
give the number 3, meaning the advertiser earned $3 in profit for every $1 spent on
advertising.)
•Cost per Acquisition (CPA). An acquisition is typically considered a completed sale for
a retail site, or a lead generated for a lead generation site. CPA determines how much it
costs, on average, to reach a site's acquisition goal. It is the total amount of money spent
on advertising divided by the total number of sales completed (or leads generated). If an
advertiser spends $100 and gets 10 sales, its CPA is $10.
 Search Query Reports
During ad campaigns
and keyword bidding,
running a Search Query
Report shows all of the
searches that resulted in
an ad click.

Example: A wedding
videographer in
California ran an ad
campaign and opened
up his ads to Broad
Match to expand his
reach. Figure 4 displays
the Search Query
report.
 Section 6: Google Ads Account
Structure
Advertisers can save time
managing their PPC ads and
improve campaign results by
properly managing their Ads
account organization. Figure
5 illustrates the organization
of a Google Ads account,
including an example format
for each component.
 Account
At the account level,
advertisers add their
credit card information
to pay for all of their
clicks. Their accounts
must be tied to an email
and password created at
ads.google.com. Each
time they log in to their
accounts. they can get a
performance overview
and manage each of
their campaigns as seen
in Figure 6
Campaign
•Campaign. “A component of your account that allows you to focus your advertising on specific products
or services. Each campaign can contain multiple ad groups.”
•An account can have up to 25 campaigns. By clicking into an individual campaign, and then on the
settings tab, advertisers can manage the following campaign settings:
❑Name. Advertisers should choose a name that will help them remember the promotions, keywords, ads,
and landing pages associated with the campaign.
❑Campaign Types: The campaign type advertisers select will determine which campaign settings are
available, and they allow advertisers to choose which of Google 's advertising networks they are trying to
reach: Search network only, Display network only, Search network with display select, Shopping This
campaign type allows an advertiser to separately manage its Google Shopping Ads.
❑Device, Location, and Language Targeting . All of these targeting settings are made at
the campaign level. Therefore. if you want to include Spanish language ads targeted to
Spanish speakers. you need to create a separate campaign. You cannot create a separate
Spanish ad with different language targets within the same campaign as English-targeted
ads.
❑Bid Strategy. Advertisers can choose between automated and manual bid strategies.
Manual bid strategies are straightforward: the advertiser sets a maximum CPC or CPA
bid for each keyword. Automated bid strategies (of which there are many) enable Google
to apply machine learning algorithms to allocate the advertiser's budget to optimize a
particular outcome.
❑Daily Budget. Advertisers can set aside a daily budget for each campaign. Remember
that K an advertiser has three campaigns. each campaign can reach its own daily budget
limit. It is okay if a company's budget is less than its competitors budgets.
❑Ad Extensions: Goggle chooses where and
when to show a company’s ad extensions.
Those adjustments are made at the campaign
level (see Figure 7).
•When an advertiser finds a campaign that
performs well, he can copy the campaign
structure and settings to reuse them for future
campaigns. However, Google does not allow
the advertiser to copy over the ads and
keywords from the previous campaign.
❑Ad Group: “A collection of ads within a
campaign that corresponds to a group of
related keywords.”
•Figure 8 is an example ad group being created
in the Google Ads platform:
•The advertiser selects keywords at the Ad
Group level. If the advertiser employs a
manual CPC strategy he/she can specify the
bid amounts for each keyword. However.
advertisers using automated strategies do not
have to input a bid amount.
❑Keyword: “A specific word, or combination of words, used to target your ads to potential customers. When a user
searches on your keyword, your ad might be shown.”
•As seen in Figure 9 keyword bids, keyword match types, and keyword data can be managed at the campaign and ad-
group levels.
•Once the top performing keywords are determined, separating out those keywords into individual ad groups allows
the advertiser to be even more specific in tailoring his ad, landing page, and bids, and to also more readily monitor
the performance of that keyword.
Thank You