You are on page 1of 33

Convert The Extra Point

3 Strategies Anyone can use to Measure the Success Beyond The Last Click

@MarkIrvine89 #pubcon
Meet Mark Irvine
Data Scientist at Wordstream in
Boston, MA

Researches industry trends in PPC

Been working Paid Search for 3 Years

Before PPC Life, worked with NESN,


ESPN, & CBS Sports
@MarkIrvine89
@MarkIrvine89 #pubcon
Moneyball Baseball in 2001
The MLB was dominated by teams with
big pockets who focused strongly on
buying players around a small set of
metrics.

The Oakland Athletics GM, Billy Beane,


found himself with a small budget, a
gutted team, and a radical idea.
@MarkIrvine89 #pubcon
A Focus on New Metrics
3 imaginary recruits

Last Seasons Stats Recruit A Recruit B Recruit C

Age 22 25 31
HR 8 8 4
RBI 18 21 12
The focus of most MLB
BA General Managers .313 .291 .222
On Base % .312 .321 .431

The focus of the


Oakland office @MarkIrvine89 #pubcon
The 2002
Oakland As
won as many
games as the
New York
Yankees with
only a third
their budget
Oakland As take 20 game winning streak

@MarkIrvine89 #pubcon
Small advertisers cant afford to compete
by looking at all the same metrics
They need to play smarter.

@MarkIrvine89 #pubcon
New Media Playing With Old Metrics
Case study SMB
Account:

Metric Shopping Specific Product Broader


Keywords Top of the Funnel
Keywords
Click Volume 3,293 5,598 8,905
CTR 1.56% 2.96% 1.02%
CPA $92 Reaction:
Initial $101 $233
Conversion Rate 1.86% 3.05%
Pause /pull back campaign! 0.65%
Conversions 61 170 58

@MarkIrvine89 #pubcon
Campaigns Provide Value Beyond CPA
260
Original Performance
This campaign
produced a lot of
Conversions From All Other Campaigns

240

220
traffic but
200 rarely ever
180 converted.
Original Performance
160

140

120

100
2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000
Clicks in Poor Campaign

@MarkIrvine89 #pubcon
Campaigns Provide Value Beyond CPA
260
So We Pulled Back on the Campaign
Without making
major changes to
Conversions From All Other Campaigns

240

220
any other
200 campaign, we
180
Original Performance
saw conversions
160 Pulling Back on Poor
Performing Campaign
from other
140 campaigns begin
120 to fall off as a
100
2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000
result.
Clicks in Poor Campaign

@MarkIrvine89 #pubcon
Campaigns Provide Value Beyond CPA
In this case, not only did reducing this poor converting
campaign reduce direct conversions. It also:

Reduced the search interest in other campaigns by


10%.
Reduced the conversion rate in other search campaigns
by 26%.
Reduced the conversion rate of all website traffic by
12%.

Total online sales suffered an 18% drop.


@MarkIrvine89 #pubcon
Token Funnel Slide

These searchers

Become prospects

Become customers*! *But not always in


1 click
@MarkIrvine89 #pubcon
Attribution is Critical

89%
Of marketers
believe
attribution is
important.

Source: AdRoll
@MarkIrvine89 #pubcon
But Most Arent Thinking With It

But
66%
of marketers
use a single-
touch
Source: AdRoll attribution
model
@MarkIrvine89 #pubcon
We all say we value attribution,
but we clearly dont know how to.

@MarkIrvine89 #pubcon
Attribution Hat Trick
Todays 3 Goals:
1. Discover Full Funnel Insight with
Conversion Paths
2. Choosing the Right Attribution Model
3. Attributing Online Action to Offline
Marketing
@MarkIrvine89 #pubcon
#1:
Keep your eye on
the ball

Follow Conversion Paths

@MarkIrvine89 #pubcon
Different Campaigns Need to Play Different Positions

Some assist. Some convert.


They create new They work with
opportunities your core audience
with new and bring them
directly to your
audiences and goal.
bring them
closer to your
goal.

@MarkIrvine89 #pubcon
We Need To Use Smarter Metrics

Conversion paths available on the Campaign, Ad Group, Keyword,


& Search Query levels!
@MarkIrvine89 #pubcon
Different Campaigns Need to Play Different Positions

These are your These are your


assisted direct
conversions. conversions
(last click).
They create new
opportunities They work with
with new your core audience
and bring them
audiences and directly to your
bring them goal.
closer to your
goal.
@MarkIrvine89 #pubcon
Valuing Campaigns For What Theyre Worth

Assisted conversions can be integrated into your


decision metrics:

@MarkIrvine89 #pubcon
#2:
Know the Rules of
the Game

Choosing The Right Attribution Model

@MarkIrvine89 #pubcon
Not All Assists Are Worth The Same

Individual assists worth Individual assists


LESS worth MORE

@MarkIrvine89 #pubcon
Not All Assists Are Worth The Same

Individual assists worth Individual assists


LESS worth MORE
Products or services with Products or services with
a short buying cycle a long buying cycle
or low profit margins on advertising. or high profit margins on advertising.

@MarkIrvine89 #pubcon
Google Attribution Models
Model First Click Value Middle Clicks Value Last Click Value

Last Interaction 0% 0% 100%


(Default for Google Analytics)
Last Non-Direct Click 0% 100% (All on the last 0% (If Direct)
non-direct click)
Last AdWords Click 0% 100% (All on the last 0% (If not AdWords)
(Default for AdWords) AdWords click)
First Interaction 100% 0% 0%

Linear Equal Equal Equal

Time Decay Least More Most


Position Based 40% 20% (Split Evenly) 40%

Data Driven Based on source Based on source Based on source


(Available within GA Premium
soon to be rolled out further)

@MarkIrvine89 #pubcon
Position Based
Position based modeling heavily values the first and last
clicks
Ideal when your campaigns are designed to educate about
your product.
Great for when youre trying to create a demand for your
niche.

@MarkIrvine89 #pubcon
Time Decay
Time Decay modeling heavily values the most recent
clicks.
Ideal when your campaigns are designed to differentiate
yourself from competitors.
Great if you have several campaigns targeting the same
users while theyre evaluating their potential purchase.

@MarkIrvine89 #pubcon
Comparing Models

@MarkIrvine89 #pubcon
#3:
Be a Team
Player

Work Other Channels Into Your Model

@MarkIrvine89 #pubcon
We Live in A Multi-Device World

@MarkIrvine89 #pubcon
Offline Media Creates Online Action
Website Visitors Following Regional TV Buy
700%
Share of typical active website users

2:02 6x active 2:29 6x active users


600%
users
500%

400%
2:23 Traffic
300% 10% Elevated. Active Website Visitors

200%
Ad airs.
2:46 Traffic
100% 1:55 - Ad
20% Elevated.
airs
0%

Time

@MarkIrvine89 #pubcon
Think Mobile First

@MarkIrvine89 #pubcon
Were Looking At Multiple Screens At the Same Time!

Mobile users are


3x more likely
to respond to a
commercial

Source: The New Multi-


Screen World Study,
Think With Google, 2012
@MarkIrvine89 #pubcon
Recap
1. Use Conversion Paths & Assisted
Conversion metrics to fully value your
campaigns.
2. Find an Attribution Model that aligns with
your marketing goals
3. Value other channels for their contribution

@MarkIrvine89 #pubcon

You might also like