Subtitles section Play video
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Hello everybody
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Welcome today's webinar. My name is Kauri Voss. I'm marketing event manager at Logical Position and
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Sitting next to me is Lindsey Stier the general manager at Logical Position
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And in that window over there is Carly Horn and I'll let you two introduce yourselves perfect. Hey everybody
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I'm Lindsey Stier, as Kauri mentioned. I'm the general manager for Logical Position's headquarter office here in Portland, Oregon
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Basically Logical Position is an SEM company. We specialize in search engine optimization,
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PPC management, social, and we particularly have an emphasis with e-commerce websites,
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we're Google premier partner, an elite being elite ads partner, and
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have a lot of different industry partnerships with e-commerce sites to help provide the best results we can for our clients.
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I'm Carly horn. I'm the VP of partnerships for North America for Loyalty Lion.
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I'm in Nashville, Tennessee, and we have our headquarters in London
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And so Loyalty Lion and we provide fast growth ecommerce stores with a fully customizable
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Loyalty program that's designed to increase customer engagement retention and lifetime value
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Great
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So
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Today we're going to go over some best practices. We're gonna turn our webcams off first.
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We're going to
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Go over some best practices to bring in more customers and keep them coming back. We'll go over
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estimating return and AdWords structuring your campaigns with non-brand and brand intent.
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Calculating lifetime value and common issues to avoid in your PPC
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Strategy. And then Carly will walk us through building that customer loyalty
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through post-purchase strategies that move folks from at risk to repeat customers and
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Just as a reminder you all have a little sidebar on your screen
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so if you have any questions, please type it in there and we will address those at the end and
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We will be recording this webinar
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So if you miss anything, don't worry
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We'll be sending out an email with a link to the recording contact info if you need a one-on-one follow-up
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And with that take it away Lindsey
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Perfect. Thanks so much, Kauri
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So, I'm the first thing that I really wanted to address in
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this webinar is just kind of PPC viability for different types of companies.
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I'm sure that some of you all have
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Previously worked with PPC in the past maybe had a negative experience with it or hopefully a positive experience.
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The reason why I'm gonna kind of focus on that in terms of new client acquisition is
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Just like I mentioned we work in SEO we work in web design,
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we work in social, but for clients starting out. We really do use PPC as the starting point.
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The reason being is because it is instantaneous, it's nimble, it's customizable,
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and what we find is that it really is the best way to aggregate data for kind of new advertisers as well as existing advertisers
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So what I wanted to talk about first are kind of three basic things that you really need to know
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about your company and your product in order to be able to
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You know identify PPC's viability. So the first of those is going to be organic conversion rate
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For those of you guys who maybe aren't as familiar about where to find that you can go to google analytics you can go to
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Conversions and go to e-commerce tracking and I hope that you all have that set up
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Then with an e-commerce tracking you can look at the organic conversion rate
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The reason why we kind of like to start with this is that sometimes PPC conversion rates are higher
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Sometimes they're lower but the benefit with the PPC advertising is that we can target specific types of products so often we will see that
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PPC conversion rates are pretty in line with organic if you don't have information on your website's conversion rate
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Maybe you don't have your transaction goals set up. You don't have ecommerce tracking set up
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You can kind of ballpark for the sake of the equations that we're gonna work through
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I'd recommend maybe starting with a ballpark between 1.5% to 2.5%
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Sometimes again, it's much much higher. Sometimes it's much lower
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It just kind of depends the next thing that's important to you know have knowledge of is your average order value
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Again, you can actually find this information in the same place in Google Analytics as you can see on the screenshot
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If you don't have that available in google analytics, either you can Ballpark it as well
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I'm sure you know what sort of price point your products fall into.
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And then the third thing that's really important for estimating your PPC viability is your product margin information
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So, you know usually retailers are going to be somewhere around
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35% maybe less depending on how many times the margin kind of gets stepped on through the supply chain process.
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Manufacturers and brands are typically going to be higher 50% or sometimes even more just depending again on how close you are to the
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You know origination of a product
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So once you have kind of those three different points of information the next place that I always like to go to
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You know kind of help assess viability is going to be the Google Adwords Keyword planner
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Some of you guys might be familiar with this tool
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It's a free tool provided by Google that shows you things like average monthly searches level of competition of PPC
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Advertisers on a particular term as well as estimates on cost per click
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The thing to know is that this is all just kind of information. It's not going to you know necessarily be a hundred percent accurate
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So what I like to have my clients do is you know
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Basically pick out different keywords that are going to be related to product categories. So let's say you're an apparel retailer. Maybe that's something like
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north face jackets
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You know burton hoodies things like that
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And then you can kind of get together just a small list of things that represent your different products and categories
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And then what you want to do is find kind of an average CPC across those different search terms
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Really what this exercises is
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You know figuring out how much traffic you can get to your website
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Within your particular budget if we're talking about e-commerce sites
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We recommend a budget no smaller than a thousand dollars per month for pay-per-click
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If you are in a hyper competitive vertical it's probably going to need to be much more than that
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But if you have your budget and then you can look at your average CPC
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Then we can basically move forward to the next step which is how to calculate the theoretical amount of traffic to your site within PPC
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So again, you've got your monthly budget
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You've got your CPC and what you're going to do is divide the budget by CP
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see and that's going to get you the number of
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Potential site visitors that you can aggregate within that budget. So this is actually a screenshot from a client account
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This was you know, what has happened
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So they spent six thousand seven hundred and fifty three dollars at an average CPC of seventy six cents
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And they were able to bring in eighty nine hundred
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website visitors
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so
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You know look at your budget look at the CPC
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Figure out how many people you can bring to the site within those kind of different constraints
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So once you have the number of theoretical site visitors
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You can drum up through PPC
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then what you want to do is look at that conversion rate to figure out the number of
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Transactions that you can generate through this new acquisition channel. Again, I used a client account as an example
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So we have 8900 site visitors
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they happen to have a conversion rate at 4.46% and
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What that was able to yield was 397
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transactions within their budget with the CPC constraints.
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So this is where again average order value comes into play, if you know how many
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Transactions you're getting to the website and you know what the average order value of those transactions
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Are you can calculate what your gross revenue, you know, theoretically would be running this acquisition channel.
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so
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You know in this example at one hundred and thirty seven dollar AOV for average order value
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That yielded $54,435 in gross
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revenue
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So now there is one more step because as we all know gross revenue does not equal net
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Profit and that's where your margins gonna come into play
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so if we have the revenue that you could theoretically
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Aggregate through the channel and then you know your margin you can multiply those things together to figure out what the net profit would be
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And then you want to minus out the cost of the actual advertising. So in this case the
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Advertiser again was able to aggregate $54,000 in revenue and then we take out
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what they're paying and you know cogs basically and then also
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Subtracting what they paid to acquire that traffic to their website and that resulted in the net profit of $20,736
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So what I would really encourage you all to do is play around with these numbers play around with different budgets play around with different
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conversion rates and really figure out what your worst case scenario is gonna be your best case scenario is going to be and your
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Breakeven and that kind of gives you a nice if you will zone of you know
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Kind of possible profitability that you can then use the strategies and Adwords to orient around
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So
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Lifetime value. Um, the reason I wanted to talk about this Carly is gonna go a lot more in depth into lifetime value
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but the reason why we're talking about it in terms of new acquisition is
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That lifetime value is incredibly important for setting those goals on what you're willing to pay for a new
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client a new client acquisition
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so, um
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Some people a lot of the clients that I have spoken with at least have struggled with where to find information
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about the lifetime value of their clients and I don't think any of these data sources are necessarily a
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Silver bullet about exactly what your lifetime value is
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But some of it common places that we'll look towards to find information on that subject is going to be a client CRM
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So for example Salesforce HubSpot, they do a very good job of being able to run a report on you know
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particular person's lifetime value
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Also your different content management systems have that built in Shopify does a pretty good job
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they have some reports you can run payment processors are also a great place to go because
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You know people are putting in their credit card information and that can also be mapped and then of course loyalty lion
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And other loyalty programs typically provide this information seeing is that's the value that they're bringing to their clients
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So just a kind of quick side note on the equation for lifetime value
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You know what that's going to look like is your average order value X the number of repeat sales
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X your retention and that's going to equal lifetime. So, um, you know,
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You can kind of look at this over different time frames and things like that
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but if you have a really high repeat rate, that can definitely afford more than
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Opportunity to take a loss up front in order to drive higher revenue numbers on the back end
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we actually had a client that we worked with who is in the gift industry if you will so gift baskets things like that and
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Based on their lifetime value it made the most sense for them to lose a substantial amount of money up front on new client acquisition
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Because their lifetime revenue was so high once they got that person in the door
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So it is going to change the orientation of you know
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How you're viewing your account how you're maneuvering your account and your spend between brand and non brand when you have that
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Understanding of what a new client really does mean to you
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So I wanted to talk a little bit about brand and non brand and some of the
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Differences between the two and again how we orient strategy
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Talking specifically about brand. There are typically two schools of thought when it comes to
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PPC branded advertising so that's advertising on your own branded term. So for example logical position
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Advertising on the search term logical position. So one school of thought is don't do it. It's traffic
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You're gonna get organically anyway, why would you pay for that?
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the other school of thought is that you should absolutely do it because there are you know, a lot of kind of intangibles and
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Tangibles that come with it
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We're definitely the latter so we actually do the PPC for the Dallas Cowboys and you know
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We had had some conversations back and forth about if we should or should not run brand
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So what that actually did was it had us?
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we decided to create some blackout tests and some different markets to see what the effect was of when we were running brand versus when
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We were not running brand and in the markets where we weren't running brand we actually saw a 10% drop in revenue
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So that means that that's revenue that obviously was being lost to other competitors or other sources and things of that nature
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so
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um now if we're gonna talk about the differences between running on your brand and your non brand
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Non brand is going to be obviously things that don't include your particular
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Branded terms. So for example if I am an apparel retailer
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It's going to be kind of those new acquisition type searches
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Somebody who's looking for sand North Face down jacket or somebody who's looking for a pair of Nike shoes or whatever. It might be
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Non brand is always going to be
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More costly than brand just because you don't own the terms and they're more competitive
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However, non brand is incredibly profitable because like we mentioned it is typically new client acquisition
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So those are people you can get into the door to continue purchasing your product and nurture over time
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So, generally speaking. You should absolutely be running both
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But if we have clients that are budget constraints
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We will typically opt for brand first to generate the most amount of revenue to then move into the non brand category
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So just a side note on running on brand. This is just an example
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I wanted to show everybody of Hunter boots, you guys may or may not be familiar with them,
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But they are a brand of rain boots.
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They do sell direct through their website and they do run quite a bit of pay-per-click advertising in the non brand arena.
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But this was a search I conducted on their branded term and you'll notice that they're nowhere on the page.
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Zappos is their Moose Jaw Shopbop shoes.com
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So these are you know, four different places that are gonna be getting that revenue that hunter boots is now not getting
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by not employing this strategy.
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Talking about profitable PPC and where to start I already kind of addressed this first point here
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But if I have a client who comes to me and says Lindsey I've been running pay-per-click, it hasn't been working
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You know, what should we do? This is the typical kind of advice that I would give them and that is number one
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Let's start on the Google search Network on your branded terms. So again in that example previously hunter boots was not doing that
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We're gonna start here because it's low-hanging fruit at a very low cost with very high revenue.
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These are people who are already familiar with your brand
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They are actively searching for your brand
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So you should be there as a top option so that they don't go to say Target or some other, you know
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potential retailer.
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The next area that we would focus on after we've
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maximized brand
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Potential is going to be Google Shopping and most of you guys are going to be very familiar with this network as you can see
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over here in this little screenshot
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It's where you have not only the image the add the description of the product
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But you also have the cost.
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So it's a great way to pre-qualify traffic before they ever even click on your ad
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So these typically have really high conversion rates and they're usually a pretty low cost and just kind of a side note
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I'm a fun fact about Google shopping is that eighty percent of the initial product clicks
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actually go in and purchase a different product from the store. And
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That's something that we can actually track because of the way that we set up our shopping accounts
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So it's just a really interesting information to see what gets a lot of click viability. But then what ultimately ends up in that purchase
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So the third area that we would move into
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based again on return numbers is going to be what we call our
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RLSA which stands for remarketing lists for search and shopping ads you can do it for search or for shopping
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A lot of people are familiar with remarketing on the Display Network, which are graphic ads that follow you around two different websites
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What's different about these types of campaigns? Is that in our LSA?
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You can actually target people who have been to your website through the search network or through the Shopping Network. So again if you have
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a handful of people that have abandoned the shopping cart
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Those are people that we can re-engage on these high intent networks to pull back to the website
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We also like to segment out our remarketing into kind of different buckets
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so for instance
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One of those is going to be duration.
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So we can take
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non-converters and we can message them within the first 24 hours in a very specific way and
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That might look a lot different than somebody who say abandon the shopping cart a month ago
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they might require a different type of messaging to re-engage and
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Lastly where we would go would be the non brand Google search