Showing posts with label ppc tips. Show all posts
Showing posts with label ppc tips. Show all posts

Friday, June 11, 2010

Introducing The All-Important Quality Score

Throughout this column, the phrase “Quality Score” has popped up on different occasions. Understanding Quality Score is fundamental for successful paid search campaigns, but can be a difficult concept for beginners to understand. So the time has come to cover this topic so you can use Quality Score to your advantage and not fall into its traps.

The early days before Quality Score

In the beginning of paid search, auctions existed in a purely capitalistic marketplace where the advertiser who was willing to pay the most for a keyword was awarded first place, the second highest-paying advertiser’s ads were second, and so forth.

It was an easy system to understand and it made sense. However, the ad space became a bit muddled. Advertisers with deep pockets literally took over the search engine results pages on keywords that weren’t necessarily related to their business. For example, a global soft drink company could start to take over terms such as rock and roll, skateboards, or even Britney Spears. These advertisers mostly weren’t trying to cause chaos—they were just trying to reach their target demographic. But in doing so, the sponsored search results for some keywords could potentially contain no results directly related to what a searcher was looking for.

The engines realized that this could be a problem. Google has long maintained that the best thing for its business is to keep results as relevant as possible—including paid listings. To improve the relevance of paid search ads, Google created the Quality Score. Microsoft and Yahoo soon followed with their own systems to improve relevance of ads.

So what is Quality Score?

Simply put, Quality Score is a numeric grade from one to ten (ten being best) assigned to each of your keyword/ad/landing page combinations. The score is updated frequently, calculated at each time your keyword is searched on to account for changes to your terms and creatives. So what’s the value of a high Quality Score? If your keyword is deemed highly relevant, Google will lower your cost-per-click and rank your ad higher than other competitors even if they’re bidding more for those terms. On the flip side, a keyword with a low Quality Score may mean you have to bid a premium price to even appear on a search result page.

How is Quality Score calculated?

We don’t know exactly what goes into the Quality Score black box but we do know that high click-thru-rates (CTRs) are a big piece of the pie. The engines probably correlate high number of clicks as “virtual votes” by past users for the advertiser and figure a good CTR means a relevant keyword.

Google does offer some insight into how Quality Score is calculated in the AdWords help area:

While we continue to refine our Quality Score formulas for Google and the Search Network, the core components remain more or less the same:

  • The historical clickthrough rate (CTR) of the keyword and the matched ad on Google; note that CTR on the Google Network only ever impacts Quality Score on the Google Network — not on Google
  • Your account history, which is measured by the CTR of all the ads and keywords in your account
  • The historical CTR of the display URLs in the ad group
  • The quality of your landing page
  • The relevance of the keyword to the ads in its ad group
  • The relevance of the keyword and the matched ad to the search query
  • Your account’s performance in the geographical region where the ad will be shown
  • Other relevance factors

Note that there are slight variations to the Quality Score formula when it affects ad position and first page bid:

  • For calculating a keyword-targeted ad’s position, landing page quality is not a factor. Also, when calculating ad position on a Search Network placement, Quality Score considers the CTR on that particular placement in addition to CTR on Google.
  • For calculating first page bid, Quality Score doesn’t consider the matched ad or search query, since this estimate appears as a metric in your account and doesn’t vary per search query.

What do you really need to know about Quality Score?

You’ll have plenty of time to test various tactics to improve Quality Score once the campaign starts, so don’t waste too much time worrying about it right now. The one thing you do need to take into account though is to make sure you keep your ad groups tightly focused. Because click-thru-rate is the biggest weighting factor to Quality Score, you’ll want to make sure that your ads are highly relevant to the keywords in each group so that you get the best CTR as possible. In my experience, as long as you’re getting a good percentage of clicks to impressions, the engines will consider your terms relevant enough to gain fairly high scores. After that, there are just a few things to keep in mind such as ensuring that your landing pages are loading at a good speed and you have some of your ad group’s keywords in your ad text. You do those things right and your Quality Score should be just fine.

Overall, my best advice is to not obsess over Quality Score. There are a couple hundred other factors to PPC success that are just as important. The important thing now is to just make sure you understand the concept fully and do some extra research if you feel you still need some clarification.

The premise that ad popularity and a high quality score leads to improved search advertising results may or may not be true….especially for B2B advertisers. I urge business marketers to challenge this assumption and understand the relationship between PPC quality score and ROI-based results.

Quality Score algorithms

In simple terms, ad position is primarily determined by how much an advertiser is willing to pay for each click (i.e. your bid) and the popularity, orclick-through-rate (CTR), associated with your ad. Relevancy also plays a role… and very poor landing pages can lead to penalties.

More information can be found here on Google Quality Score, and Yahoo Quality Index. Details aside, Quality Score causes most advertisers to try and maximize response, or click-through-rate.

Note: Not surprisingly, this methodology also increases the click charges that go into the pockets of search networks!

Tips on PPC targeting

All advertisers should be deploying these PPC best practices to accurately target your audience:

  • Select very specific keywords and long tail keyword phrases
  • Utilize keyword match-types
  • Deploy negative keywords
  • Test geo-targeted ads (even for national brands)
  • Implement day-parting

This week’s question: ”What have you heard about Quality Score?”

Friday, May 7, 2010

PPC Magic: 3 Steps To Turning Hundreds Of Keywords Into Millions

Basically, the long tail approach dictates that we not only use high-search volume, general terms, but also load up our accounts with many, many niche terms—the theory being that these tail terms are cheaper due to less competition and also more relevant so they drive higher engagement with users.

I’ve seen campaigns with a few hundred terms perform very well. I’ve also seen campaigns with millions of terms perform poorly. Remember, we test everything in search engine marketing! So, other than the actual logistics of managing a huge list, there really isn’t any drawback to adding and testing many keywords if you think they even have the slightest chance of providing value to your advertiser. I’m going to go out on a limb here and say that for beginners to PPC, try to limit your lists to 10,000 to 20,000 max.

The key is using modifiers

So, how do we take the hundreds of terms we uncovered during our research and turn them into tens of thousands (and maybe even millions) of long tail terms? The secret is with modifiers. For example, if you’re selling used cars, you may take a core term like used car and add buying modifiers so now you have purchase used car, buy used car, shop for used car, etc. As search marketers looking for tail terms, we may combine our core words with multiple modifier lists. For example, if we matched up every term with the dealer’s car brands, we wouldn’t have just purchase used car, but alsopurchase used Saturn, purchase used Ford, purchase used Toyota etc.

Each advertiser will have their own set of modifiers that make sense. However, some common modifier directions include:

Buying cycle. Used for awareness/interest terms, modifiers such as info onor research could be used. For users further down the funnel, buy, shop, purchase and so on also make sense.

Adjectives. If you’re selling broadband service, then description words likefast, speedy, and quick could be important. For banks, it might be performance words such as high yield or safety-conscious words like insured.

Geographical. Lists of cities, towns, states, DMAs, metro areas, etc. If the advertiser is a U.S. based national brand, you may almost always use states and top DMAs as modifiers. Certainly car insurance Omaha should be treated differently than car insurance New York City. Similar geographical modifiers can be used elsewhere in the world.

Here are three steps to using modifiers to build giant keyword lists.

Step #1 – Identify your core terms. If you’ve been through all of the research ideas in this column, you will have already compiled a pretty comprehensive list of keywords from keyword tools, competitor research, and so on. So, you should be able to look through all of the terms and quickly pull out a high level list of core terms. If you’re an online retailer, maybe those core terms are your main categories. Or, if you’re a service company, you will probably have a handful of terms that are used most when people search for your company.

As an example, I’ll use a clothing retailer based in the western region of the U.S. Here is their core term list. Make sure to include plurals and any very common misspellings in the core list.

  • T-shirt
  • T-shirts
  • Jeans
  • Shirt
  • Shirts
  • Dress
  • Dresses

Step #2 – Generate your modifier lists. 5 lists that come to mind for this retailer are:

Sizes: Small, Medium, Large, XL, XXL
Color: Red, Blue, Green, Yellow, Brown, White, Black, Orange
Purchase terms: Buy, Shop, Browse, Purchase, Deal, Cheap, Inexpensive,
Qualifiers: Brand name, Designer, Name Brand, Quality, Chic
Western States: California, Arizona, New Mexico, Nevada, Oregon, Washington, Colorado, Montana

Step #3 – Generate permutations. You can use a permutation tool such as Keyword Lizard or Keyword Combinations to input your various lists. You’re always going to want to use your core terms in combination with modifiers where it makes sense. Here’s a screenshot from the free Keyword Combination tool:

Suddenly, you have tail term lists with designer jeans California, small blue shirt, and inexpensive XL t-shirts. In fact, from your seven core terms and five simple modifier lists, you can easily generate over 200,000 keywords.

Okay, here’s where the magic happens. Check the math: 7 Core Terms X 5 sizes X 8 colors X 7 purchase words X 5 qualifiers X 8 States = 78,400 variations of your core words.

Abracadabra!

Actually, you have more than that. There are keywords that won’t contain every list. So you really add one more modifier per list that is a “blank space”. Once you do that, you get 186,624. Wow! In fact, if you were to add just one more keyword to one of those lists, the total available permutations would be 207,360! You won’t use all of those keywords, especially if you cap them at 3-4 words per keyword phrase. However, chances are you’ll be using many more modifier lists and core terms so the list could grow to millions very easily. Ultimately, you certainly will have plenty of great tail terms to test.

And, if you do it right, you can easily segment the keywords into groups and campaigns. For this example, there could be a “sizes campaign” or a “states campaign.” That way you can address similar words with the most relevant ad text and landing pages. Next week, we’ll dive deeper into campaign and ad group segmentation.