FUNDAMENTALS OF SMART BIDDING, MEASUREMENT, & CREATIVE EXCELLENCE

Good afternoon everyone my name is Heather de sete and I’m the marketing and event coordinator here at NetElixir as always I’m super excited to be here today as we discuss the fundamentals of modern search the fundamentals for today’s presentation are creative excellence automation measurement and targeting your audience as we discussed in yesterday’s presentation a is revolutionising paid search these dynamic changes are impacted in the entire industry and leaving marketers and retailers are adapting to these changes in order to stay competitive net elixir is offering throughout the month a series of webinars and special offers that will help you set current with the development and AI these webinars are all centered around modern search yesterday we introduced AI and audience the recording will be sent out to all registrants this afternoon today we’re going to be covering the fundamentals of smart betting measurement and creative excellence next week not elixir is going to attend the Google marketing live event in San Francisco on May 14th there we will capture new consumer insights and the latest digital marketing products Google is offering on May 17th will be hosting a webinar to share the key points presented at the Google event to end the month of modern search we will be joined by premier partners I’ve been to share with you more insights next we’ll introduce to you our keynote speaker for today’s presentation who is Manish Malhotra’s met elixirs paid media director and he is responsible for driving retail focused paid media strategies spanning search social and marketplaces he has worked with businesses across verticals like apparel beauty home decor automobile consumer electronics and gifting just to name a few but the retail landscape changing massive undergo massive changes across the globe Manish focuses on creating a profit ability based onii-chan no solution that analyzes customer journeys across various buying stages and helps businesses acquire the right customers he also works on generating a real value proposition from various machine learning and AI based solutions in paid media space by leveraging retail insights which we’ll be covering today so for those of you not familiar with net elixir our goal as a company has always been to help retail brands find and acquire new customers we go beyond the data and we see the value of every click and the customer behind that click the idea of humanizing every click is what we believe really separates us from the crowd and it allows our clients to position and target more strategically here our net elixir we are comprised of 130 fanatically analytical global search marketers dedicated to helping retailers find and acquire new customers online since 2004 our data intensive approach and deep retox parties have delivered success for hundreds of brands in a highly competitive marketplace we have built powerful relationships with partners like EPS Google Bing and bright edge and we have connected with over 400 retail clients to help their customers all around the world it is our job to make sure that your brand owns a search bar and we do this by through our services such as paid search organic search paid social web analytics consulting z-ro Amazon ads and e-commerce tech development services as a reminder if you have any questions throughout the webinar please do not hesitate to drop your questions in the chat box we will answer your questions at the end of our presentation so without further ado please welcome Andy Schmo hon thanks Heather right excited to be here in yesterday’s webinar who then goes our founder and CEO shared the whole concept of modern search and how exactly is it sweeping massive changes in the paid search world we have identified four key components like Heather mentioned which are automation measurement creative excellence and targeting in yesterday’s webinar we focused a lot on targeting and some elements within that we’ll start by discussing about automation today and I’m sure anyone who’s in the room today in attending this webinar would have come across these words right smart building smart campaigns over the last few months these have been the focus area for Google Bing Facebook and almost every anodizing platform out there or the last one to two years as we know some more specifics within smart campaigns and smart bidding will try to understand what these concepts me but more importantly the focus in today’s webinar will be to understand how exactly do you execute these how do you adopt these in your respective add accounts the first question that comes to mind is how much is enough right if you are planning to make a switch from manual bidding to smart bidding how do you do that transition do you just flip the search and go from 100% manual bidding to 100% smart building or do you adopt a phased approach by moving certain campaigns out that is what we will try to understand today and we will share with you a six step plan to make this transition and that plan has been developed based on our experience as we tested this out with some of our existing clients before we get into the specifics of the plan we want you to spend a few moments on understanding why smart bidding has become so important its air and machine learning have evolved over the last many years and will continue to do so which is probably the biggest difference between a and a B solution and a manual approach for an AV solution the whole concept of perfection is a moving target every time AI comes close to being perfect it raises its own bar as there is deep learning involved what you see on the screen right now are some of the signals that Google uses to inform it’s smart bidding algorithms the device that the user is using the physical location the user intent actor/actress takes what browser they are on where in the online customer journey are they right now extending all the way to some upcoming features like price competitiveness but will be launched for Google Shopping therein if your price for a particular product is lower than or is competitive enough compared to other players in the market Google will start prioritizing your products on Google Shopping there are some seasonality based metrics coming where and while we do know that you know Google Bing or Facebook understand the usual seasonality in the business if you want to let the system know that you are expecting a surge in traffic for whatever reason you can now include an additional variable to inform a system and help it react better with all these signals I think it’s safe to assume that there is no way that a manual approach can ever track so many different signals at the same time with that let’s look at the six step process that I spoke about and again I want to re-emphasize the fact that this is not based on any assumptions it’s a process that we have tested out with our clients and we’ll also share some success metrics that you are able to drive using this process first and foremost be selective we completely understand that there is a mindset change involved here while a lot of brands have been used to manual bidding for so many years now it’s a big mindset shift to now trust and algorithm to make all those changes for you so you have all the writing to be very selective here and quite frankly we don’t believe and we don’t you know promote the fact that all campaigns need smart bidding there are certain assets there are certain terms there you mean owning the space for a while now and you might be able to get away with the manual bidding at least for now what that also means is there are multiple smart bidding bulls or multiple smart bidding techniques that is Google is supporting at this point you have enhanced CPC you have target rowers target CPA and some other upcoming smart bidding options then see that we can be selective in what campaigns go under smart bidding you should also be selective in terms of what tough smart bidding techniques do you use in the account and this becomes a pretty big challenge and the reason for that is every business has a certain way of measuring success all the paid search advertisers in the room today will know that you might have used row s as a target metric or a success metric some clients use a cost per acquisition as the good for the whole account while that is great to have as a blended goal for the whole account you may be having 100 campaigns 200 campaigns the benefit of using smart bidding is that you can get a lot more specific now and I’ll give you one big example let’s say you have certain products which are at the higher price point and they typically drive fewer orders but when they drive an order the average order value is high and the margins are higher you might also have a lot of products which are accessories or your clearance items which obviously drive a lower average or a value and in some cases a lower majek what that essentially means from a bidding perspective is that you can use target drovers for that first category for the higher priced products where you tell the system that let’s drive more orders but let’s go after customers who are willing to spend that much and still convert whereas for the second category where the number of orders is more important you use a target CPA based smart bidding when the revenue is not that important but whatever amount you are spending to acquire these customers you want to make sure that the conversion rates are strong enough in that CPC as it stands today has become the norm almost every single campaign that you have is recommended to have at least and then CPC as you start off and once the campaign gathers some data and some history on conversions you can then start moving to other forms of smart waiting the moment you make the switch even if it’s a phased approach you have to be cognizant of the fact that the campaigns will start behaving differently traditionally you would have seen that your brand campaigns were driving a lot of campus revenue and orders and you had a higher row is there but the myth the switch to smart bidding you’ll start seeing a shift towards other upper funnel queries and what that means is that you will probably also have a relook at the media plan and the budgets once the data starts flowing in depending on what the goals are be prepared to map the budgets for every campaign that is using smart building one very important thing that we should remember is yai is great machine learning is great it still feeds on all the data that is going into it so if the quality of the data is not good if the signals are corrupted it could mislead the smart building ignore them thank you again one quick example you set up a broad campaign with some above our inquiries let’s say in this case from a paid search perspective let’s assume that you know you had a lot of broad keywords in there and you expect the campaign to convert at a 500 percent target rowers the problem with this is being a broad-based campaign it will essentially go after every single customer online and the signals that it’s getting is pretty broad with that it will probably struggle to drive a very high rowers in this case what you would ideally want to do is if you still want to go after those upper funnel queries maybe try running it as a target and bit campaign so that the campaign only serves ads to a sub-segment of the online users out there what that means is you are lowering the possibility that it’s getting corrupted data and it’s getting data only from a limited set of qualified users in which case even if these are new users the system might still be able to hit whatever row as you asked you know the system to do for you moving on one of the big challenges with smart betting adoption again this is based on what we have heard as feedback from our clients is seasonality and conversion delay while we see that smart beam algorithms have improved over the last few months few years if you think about the surge in traffic that happens from q3 to q0 or some other clients from let’s say the last week of April going into Mother’s Day last week of January going into Valentine’s Day that surge is insane right you are looking at only four hundred five hundred percent increase in traffic patterns it’s quite possible that this marketing algorithm might not be able to react accordingly and this calls for an important manual override that is when you enter such peak seasons you may want to go in and tweak the goals that you have set beforehand be it a target rose or a target CP you might want to make it more realistic knowing the fact that cpc’s will go up while you may have been able to drive a 5x ROI throughout the year you probably might at best get to three point five or four during those peak weeks which is important to factor those external influences in and make tweaks to the campaign finally once you start running these smart billing algorithms you’ll start getting a lot of input on the creative side as well and creative excellence is one of the topics that we will cover today and I’ll go into some more details when we get there but it’s important to note that while focusing on smart betting is great we should not ignore the impact of creators in this whole process moving on an extension of the smart building concept was when Google launched smart campaigns they wanted to take the whole impact of AI and machine learning to the next level by automating everything around a campaign setup and they started testing out smart shopping campaigns and they’re also testing out smart search campaigns in certain markets one common feedback that we have got from clients is how these spot campaigns probably a black box because you set it and you forget it right it’s that’s that seems to be that close do you really have as much control as you want to compare to you know when you were running a manual campaign and you understand that concern it’s a valid concern and it has to be addressed so we are being tested it out on the shopping front what we recommend here is definitely set up multiple smart shopping campaigns do not go for just one big smart shopping campaign which essentially will you know lead to the fact that you push all your product feeds into that one campaign that isn’t leaves you with minimal control on what products are serving to what customer segments and may not be ideal for all brands with multiple smart shopping campaigns you still have a lot more control and you can prioritize these campaigns based on the kind of product categories you have identified different target rowers thresholds that are realistic when smart shoppings have performed really well in the tests that we have done it’s extremely important that the goals that you set are realistic go by the path data it’s okay to challenge the system to probably drive a 10 or a 20 percent increase in the rowers but do not go beyond that because by doing that on one end you are hurting the impact of target rowers methods but you’re also kind of impacting the traffic pattern and the overall new customer acquisition might take a hit while you focus on your key categories also make sure that your low priority products are all grouped together in a catch-all campaign and one very important prerequisite is that if you have been testing regular shopping campaigns in your account make sure that you pause them if you are setting up pins for the smart bidding because typically the way Google works is make sure that if you have any pre-existing regular shopping campaigns they should be paused because Google by default will start prioritizing the smart campaigns and our existing shopping campaigns will see a drop in performance and finally as I said in the previous slide make sure that you move that goals based on seasonality so that the algorithm tends continue driving the right customers to our campaigns these are some quick results again like I said we tested this out and the results were create smart shopping typically a dries around 20% higher revenue or conversion value and smart display which is again an extension of the smart campaigns have typically driven 20% higher conversions at the same cost per order which is great because display campaigns for anyone who’s been in the space for a while but agree that display campaigns are difficult from a conversion perspective and smart display is adding a whole new dimension to the performance side of display campaigns moving on the next topic we want addressed upon today was creative excellence which has two sub segments responsive search ads and responsive displayers creative excellence has also become a very important factor in this whole drive towards AI and the reason for that is while it’s great to look at data and automate probably every part of paid search it’s important to take a step back and understand the fact that in the end of the day we are talking about real customers real human beings it’s easy to ignore all of that and look at all your customers as just mere data points which will lead to sort of a trap where you tend to ignore the human element and that leads us to believe that creative excellence will ultimately become one of the biggest differentiators in your paid search strategy the reason Google came up with the whole concept of responsive search ads was because of this slide that you see here expanded text ads have been around for a while now and all the platforms made a big push moving from their legacy ads to expanded text ads it worked out really well in the beginning the best practice was to have at least three expanded text ads in every ad group it gave you a lot more space on the search engines results page and we could communicate a lot more about the brand interestingly when an analysis was done on the impact of EDS what we happened to see was after three ETS in every ad group if you continue adding more the incremental impact in click-through rate sort of plateaus out and that led to this whole concept of responsive search apps at a very high level responses search ads essentially let you add up to 15 headlines and for description lines into every campaign at the surface it looks as if you’re just adding more characters to the existing ad copy right you have more headlines now we have more description now but what it’s really doing is it’s bridging the gap between creative and context what we mean by that is why we were doing great with having three expanded text ads in every ad group the assumption there was with three ETS you were able to talk to every customer who’s out there if someone is searching for the word flower-delivery and if you have three acts and you campaign you’re assuming that anyone searching for flower delivery anywhere in the world you’re able to talk to them with that three those three apps but the reality is that though they are searching for the same word which is flower delivery all of them could be in different contexts someone may have searched for sympathy flowers before that someone may have searched for birthday frost before that odd birthday gifts as a search term this is where the context becomes important and with responsive search ads by having up to 15 headlines and for description lines Google will be able to understand what this user has been doing online before they did the last search and personalize that copy accordingly if there are customers who respond better to free shipping apps that particular text will be pushed into headline one versus someone else who responds better to a promo ad when headline one might be replaced by the specific promo and free shipping could be pushed down the priority line we are some offices with this number six today and we will be you know sticking to a six step plan even for responsive apps the first step here is to do like a brand study and Auto segment your brand story into 15 headlines and for descriptions assume that you have no promos no promotions running on your website and if you want to talk about your brand through 15 lines as the headline and for script lines what would those be this will be step one once you do that you have the assets ready for launching responses to attacks but make sure that you test our essays for your top traffic generating campaigns and there’s a reason why we say this with responses search acts the reporting will become very complex you know you you may have been used to looking at three ads and all the different data points for three acts in every ad group you are now talking about hundreds of variations and with that it’s important that whatever campaign you tested in has enough fit to support these variations if you happen to push this into a low traffic campaign you will still have hundreds of variations but every ad variation may have two or three clicks and it’s quite obvious that you will not be able to make any conclusive judgement based on that once you run this use that conclusive data to expand into other campaigns one of the big challenges or I think an opportunity that came up with responses so chance was a lot of brands want to make sure that they include one particular thing in the ad copy for every customer who searches for them it may be a key brand attribute it may be a key offer that you have some sites have free shipping all throughout the year so you want to make sure that every ad talks about it Google thankfully has that option where you can pin a certain part of that copy so that every variation will definitely have that one line and everything else in the ad copy will be constantly tested and I said you are now testing hundreds of ad variants it’s no longer three ads per ad group so before you analyze and take any conclusive next steps make sure that you give us give it enough time with expanded text ads data from probably a week or two of testing was good enough assuming that you were spending you know a significant amount on search but with responsive search ads you may have to wait a little longer so that you get conclusive beer down at least the top 20 or 25 ad variations and then understand what are those binning phrases and replicate it into other campaigns one of the biggest questions that was asked after we launched our essays with some of our clients was how do you measure success right it’s obviously a different ad format it gives you a lot more creative freedom but how do you determine if it was a success or not the initial event by the the traditional method where we compared responses or charts and ETS and then it cost almost like a mixed results where certain clients saw better performance from our essays whereas interestingly some clients continued seeing better click-through rates on the expanded tech steps and that is when we understood that there is probably a lot more value beyond that so rather than just comparing our essays to ETS you should ideally measure the overall incrementality by adding RSS into your account we did that for one of our leading clients from the computer manufacturer vertical wherein we identified all the ad groups that draw more than 80 percent of the total traffic and added responsible search ads after a few months of testing the overall incremental impact was significant the ad groups that had RSS and then had 42% lower CPCs and 50% higher return on adspend it was me you it’s useful to measure ad copies by using click-through rates as a benchmark interesting in this case responsive search ads also had an impact on the return on adspend and that can be correlated back to the clips to date leading to more qualified customers thereby leading the better sales and the biggest takeaway from this whole experiment was that the creative excellence code for this account crossed 91% which is way above the industry standard and you’re talking about a brand that spends in millions of dollars every month so every single percentage point movement in click-through rate or CPC is pretty significant here with that we’ll get into the third bucket which is measurement and we have a lot of marketing folks for attending the webinar today then was the last time you walked into a room with a bunch of finance people and you discuss a lot of creative ideas and you walked out winning that argument I’m pretty sure that fella never happened and rightfully so for any business to survive especially in the cutthroat competition competition that we see today it has to at the end of it it has to make commercial sense the numbers have to add up so while creative excellence is great to pursue from a creative perspective automation itself is a great creative strategy to drive more orders coming in at the end of it attribution has to make sense and there has been a lot of hype around non last click attribution over the last so many years it’s almost like that Bermuda Triangle that you get lost every time you fly learning about it the second element that has come out within measurement is something that we call the prominence metric some of you might already be aware of things that the metric called average position will soon be sunset probably around q3 of 2019 and that changes a lot of things in terms of how we have managed paid search every bidding strategy was usually mapped back to the average position that it drove that whole metric is going away and Google is replacing it with certain prominence metrics which are impression share top impression share and absolute top impression share so you will still be able to see where your ads are showing up in sense that you cannot get very specific in the position the biggest impact that we see here is for brands that have other resellers in the market and as a manufacturer you may have had these legal contracts with your partners that you have to stay away from the first position for my branded terms or certain other key keywords this holds shift to prominence metrics they make that pretty complex so it’s time that you know you may have to go through those contracts again and figure out a way in which not knowing the average position as a metric how do you still ensure that your partners continue showing ads on sirs but do not kick you out of that first part having said that we’ll come back to normal a Swick attribution because that is the focus for today’s discussion the evolution to the data driven model which is probably the most popular one in the market today has been a time-consuming process right we have had last fifth model which has only survived a couple of decades now have brands that are used to looking at first lip numbers and then we have certain other non elastic models like time decay a linear model or a position based model while time decay linear and position based all these three models had their advantages over first rate and lastly they were still not perfect perfect in the sense of giving due credit to every touchpoint based on every customers context a position based model assumes that the first and the last leg are most important and everything else gets an equal credit but what if that first click that came in was from a brand new customer new to file customer who was not even considering your brand before this does it make sense to give equal credit to that click and the last leg and let’s assume that the last leg was a cart abandonment email that is where DDA or data-driven attribution comes in we have again started testing this with a lot of our clients in tional back in 2017 we did end up seeing mixed results and eva rasa is very skeptical in recommending this to our clients but as i said in the beginning you have to keep testing to learn more about these new features and we did that and as it stands today we are a lot more confident and comfortable pitching data-driven models to our clients and are actively talking to all our existing clients to make that switch so that we can see some better data points coming in and the reason we are focusing so much on data run attribution it’s a it’s twofold I spoke a lot about smart bidding how is it mean revolutionising the paid search world and why you should be doing it but one of the prerequisites that I did not mention in the beginning is that the success of smart bidding is heavily dependent on non loss click attribution the reason for that is the as I said in the beginning the AI engines can we do as much as the data feeds them so if you have a last week attribution model in place and then you adopt smart bidding it might still end up chasing the higher ROI terms for most of the plants these are branded terms and hence those smart bidding will seem to be working it may not help you from a new customer acquisition perspective that is where step one has to be to switch to non last click attribution preferably data-driven models and then activate smart bidding in google apps this will essentially help you have better decisions being driven by the smart bidding algorithms again based on the feedback that we have got from our clients one of the reasons why clients do not make this switch is that they’ve been used to looking at last week numbers but probably 5 10 or even more than that the reason it is still important as I said is to make sure that smart bidding works while we completely understand that you have a certain reporting model in place so there are there is a mindset issue here so what we are now proposing is continue using your primary analytics platform from a last click model it may be Google Analytics it made the Omni turn or corner tricks let that be lastly for the time being so that your internal reporting’s does not get messed up but at the same time let’s make sure that your google apps platform on any advertising platform that you use switches to smart bidding this is almost the best of both words where in all the AI and the machine learning that you are using continues getting better data whereas your internal reporting still uses the last click attribution coming back to the plan six steps start by comparing last click versus TDA data for every campaign do not stop at the account level because that could be misleading go all the way down to each campaign and depending on the kind of spend and the traffic patterns you may have to look at even from four to twelve weeks to make a conclusive judgment here once you do this based on our experience nine out of ten times you will end up realizing that data our own attribution is actually driving better value for all the paid search campaigns once you determine that go back to the drawing board and reassess what your media plan would have looked like if you did not even have last click in place which essentially means your campaign level budgets will look very different now once you do this switch to DDA within Google Apps retain your current budgets and bits do not make any changes there at least for a top performing assets and let the data flow in and a quick note of caution the moment you make the switch to DDA there may be certain delay in the data coming in so be prepared for that and that is the reason we recommend not making any changes on your for analytics platform because that will still continue tracking everything assets whereas Google Apps will undergo this learning phase where it understands what the DD attribution model looks like once we have the data coming in at just the budgets going back to step 2 so you’re almost going back to what the media plan would have looked like and you are reassessing what some of those upper funnel terms look like just the budgets and also be prepared to see a drop in rowers for some of your previously high-performing campaigns it’s essentially what is happening here is it’s a redistribution of spend it’s a redistribution of conversion and success so overall the paid search program should definitely continue driving similar returns but from a campaign level perspective you might see things moving at all once you do this continue monitoring the variance between the data that you see in Google Apps and compare it to your primed analytics platform interestingly you might see data changing even in your core analytics platforms and that is where we did a very similar approach for a leading kitchenware brand wherein the client was using last week model for more than 10 years and we recommended them to move to the DDA model as I said we did this only in Google ads so their core analytics platform which was Google Analytics continued to be a last click model understandably the upper funnel campaigns started getting better traction and better credit for driving conversions across the board the biggest success that we saw from this whole experiment was that while Google Ads definitely started showing better numbers the last click rowers as reported through Google Analytics went up by 33% which is frankly something that even we did not expect when we went out doing this test because once Google started reallocating the spend across different campaigns the incremental impact was so strong that the overall revenue from the paid search program also went up without a big jump in the overall spend and hence the row is went up by 33% in analytics while it went up by more than 60% in Google Apps and this again is a client was spending in 6 digits every single month so you’re looking at a sizable amount of data point coming in here so that’s one I had to share today about modern search the key elements and what is the recommended approach to go about these three different automation elements a quick recap creative excellence targeting measurement and automation are four buckets that we feel are going to be extremely important in 2019 and beyond when it comes to automation select the right smart bidding technique based on your business goals and specific nuances within each product category on the creative excellence part definitely test out responsive search ads in the top traffic generating campaigns generate qualified data and then understand what the winning phrases were before you move on to other campaigns and the success of smart bidding depends on non-elastic attribution so if you have not made the switch as of today first make the switch to DDA and then adopt smart billing to ensure success alright great job Manish I’m do the time we’re only gonna take one question so our first question comes from Peter Peter would like to know are there any drawbacks to smart betting besides waiting for data to come in great question so the data coming in being delayed is definitely one of the drawbacks but apart from that the biggest I would say it’s a drawback but I would say it’s a challenge and there’s a learning involved is that seasonality seems to be a big challenge with smart bidding so as I said when you enter those peak periods be it around holidays Valentine’s or Mother’s Day make sure that you tweak the goals within your existing smart billing algorithms if you stall we had a 5 rowers look back at last year’s data understand what the medians has been and make sure that you adjust the campaigns a few days in advance so that the system knows that you are now opening of the campaign and you are willing to get those orders and at a lower voice so that the traffic during a holiday season will not be parted okay perfect um as you have learned a is disrupting paid search advertising and you must be prepared to help you prepare metalic star has created a modern search best practices checklist which you can easily download at net elixir comm slash modern search for it stays webinar we would like to offer our listeners a modern search adoption audit since paid search is transforming at an alarming pace and the renewed focus on automation creative excellence measurement and targeting is challenging the way search is managed we can help you navigate this change by analyzing your current adoption rates for these features and recommendations a phase approach to get started for those of you interested please send us an email at insights at net elixir comm to request your modern search adoption audit today and this conclude day two of modern search month we hope you enjoyed it and we found that it useful for resolving your real-world solutions have a great day and we’ll see you back on May 17th to discuss and share as we share the key points presented at the Google live event thank you and have a great day.