How to

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How to

• Get more clicks Improve your ROI

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Before we begin

• Please visit our Help centre for future help
• http//searchmarketing.yahoo.com.au/help
• (Help information, Tutorials, FAQsas well as
  this presentation)

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Agenda

• How to work out your ROI?
• Return Getting more clicks
• Investment the 2 Bs bid budget

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How to work out your ROI?
ROI
Return on Investment Profit/costs Measuring
the return you are getting on your CPC (cost per
click) gives you an indication if Yahoo! Search
Marketing is working form you We encourage you
to compare your ROI to other forms of
advertising and even other paid search
providers Independent research places Search
advertising as Number 1 in terms of ROI How to
work out your ROI? Use our online calculator
www.searchmarketing.yahoo.com.au/ROIcalc

• Frost Sullivan, 2007

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How to work out your ROI?
Total monthly clicks from Yahoo! Use the number
of clicks you received last month to calculate
last month's ROI. Or, predict the number of
clicks you will receive month to calculate next
month's potential ROI. Some ways to increase your
number of clicks ad testing, keyword expansion,
increase bid
1.
Estimated average CPC CPC (cost per click) is the
amount you pay Yahoo! for each click users make
on your search listings. Some ways to decrease
your CPC increase your quality index (via ad
testing) so that you are not bidding high to have
a top position
2.
Conversion Rate () Your conversion rate is
the percentage of visitors who come to your site
from Yahoo! who convert into customers.
Conversion rates vary by company, but an average
rate you can use as a test would be 2-3. Enter a
percent number, not a fraction. For instance, for
10 enter 10, not 0.10. Some ways to increase
your conversion rate increase your quality index
(to attract good leads)
3.
1.
2.
3.
4.
Average Profit per Conversion () Profit
refers to the amount of money you earn from a
sale. For example, if you sell a teacup for 10
and it only cost you 7, your profit is 3. You
must supply this number from your own records by
estimating the average amount of profit you make
from each conversion.
4.
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Agenda

• How to work out your ROI?
• Return Getting more clicks
• Investment the 2 Bs bid budget

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Return Getting More Clicks

• There are many strategies to increase your clicks
  however we will talk about two
• 1. Improving your ad quality
• 2. Expand Keywords

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A better ad will get more clicks
Quality Index is a relative measure of your ads
performance
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compare prices at ouronline store.
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Quality Index

• Each ad has a Quality Index displayed as one to
  five bars (1 poor and 5 good)
• The Quality Index tells you how well your ad is
  performing, on average, for all keywords in an ad
  group for which it is displayed relative to other
  ads
• The Quality Index is an aggregate of all your
  keywords in a particular ad group at the time the
  ad is displayed
• Your ads quality impacts how much you need to
  bid and the position in which your ad is
  displayed for a given position ads with higher
  quality may require a lower bid and receive a
  better rank

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Ad Quality

• You should strive to improve the quality of your
  ads because
• They may achieve more clicks at a potentially
  lower costper click and therefore increase ROI
• Higher quality ads are ranked higher and given
  moreprominent positioning
• High ranking ads are usually more relevant which
  resultsin a better user (searcher) experience

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Identifying Your Ads Quality Index
Along with your bid
Your Ads Quality represented by the Quality
Index
Help contribute todetermining Avg. Position
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How to Increase your Ad quality

• Follow simple tips
• 1. Rewrite your ad so that it is clearer and more
  compelling
• 2. Make sure your keywords are relevant to your
  ad text, display and destination URL. For best
  results, include it in the title or description
  of the ad. Use the insert keywords feature (more
  on this soon)
• 3. Use ad testing to test different ads (more on
  this soon)
• 4. If you have keywords that arent performing
  well, move them to another ad group (more on this
  soon)
• 5. If you are the Advanced match type, be sure to
  use the Excluded Words feature to block keywords
  that dont apply to your products or services

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Include Keywords in your Ads

• Customers prefer keywords in both titles and
  description
• Typically, customers have higher likelihood to
  click when keywords areincluded in ads. In fact,
  the perceived quality of the Ad increases by 60
  and the CTR can increase by up to 50
• Use the insert keyword feature to automatically
  insert your keyword in to the ad
• When you use the Insert Keyword feature, be sure
  to also use alternate text.  Alternate text
  allows you to reword your keywords so that they
  fit grammatically and stylistically into your
  title and description.

Wrist Watches
Brand X Watch at Discount Prices Fashionable
wrist watches at low prices. 24/7 customer service
www.example-URL.com
keyword at Discount Prices
Fashionable wrist watches at low prices. 24/7
customer service.
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Return Expand keywords

• Generally, advertisers that are successful have a
  substantial set of keywords what substantial
  means differs by business type
• Some tips to add more keywords
• 1. Review your website (and that of your
  competitors)
• 2. Think about what you want your customers to do
  (like become better informed or make a purchase).
  Have you included keywords that target people
  during each section of the purchase funnel.
• 3. Best advice is to use the Find Keywords tool.
• Adding more keywords is also a good time to
  ensure that keywords are grouped into relevant Ad
  Groups
• The above points are expanded on the next few
  slides

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Use Ad Testing

• Ad Testing
• Put at least 2 ads in an ad group and ourAd
  Optimise feature can automaticallyrotate ads and
  display the ad that attractsthe most traffic to
  your site morefrequently. Allows you to
• Learn which messages receive the highest CTR.
• Test different offers and incentives.

• To create an ad
• Click the Campaigns tab.
• Click a campaign name.
• Click an ad group name.
• Click Create New Ad.

Testing new creative should be a continual
practice to ensure that ads dont go stale!
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1 Review your Web Site

• The best place to look for keyword ideas is your
  own web site.
• Look through all the pages of your site and
  identify the words that are most relevant and
  interesting to your customers.
• Review your offerings and use all of your
  products to generate keywords.
• If you have an internal search function, look at
  the terms that visitors search on within your
  site.
• Check your Web server logs to see what visitors
  to your site are searching for and how they
  navigate around your site
• Web Server logs are files created by a web
  server that record clicks from your web site
  visitors.
• Web servers have different methods for how web
  server logs are set up. Please check with your
  provider to find out how to access your web
  server logs.
• .

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2 Use the Buying Cycle

• You will attract customers to your site who are
  at different stages of the buying cycle.

Create awareness and develop branding e.g. DVD
player Provide information on products/services e
.g. Sony DVD players Convince customer to take
action e.g. Sony DVD SLV-D470H
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3 System Tools for Keyword Expansion
Use the Find Keywords tool in the interface

• Get suggested keywords that relate to the
  products and services you want to advertise.
• Tool suggests keywords based on the seed words
  you enter to describe your products and
  services, the content of a page on your web site
  and words you want included or excluded from our
  suggestions.

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3 System Tools for Keyword Expansion
Use the Choose Keywords tool in the interface

• Enter a word or phrase related to your business
  and the wizard provides suggested keywords along
  with traffic volume related to those keywords.
• Enter your URL and the wizard provides suggested
  keywords based on the content of your web page.

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3 System Tools for Keyword Expansion
To refine the list of keywords, you can specify
words that must or must not be included in each
keyword phrase.

• Remember
• Not all the suggestions provided by the Choose
  Keywords tool will be relevant to your site or
  business.
• Bidding on all of them without refining the list
  may cause poor traffic.
• Choose keywords that are in the mid-range of
  Estimated Monthly Searches.

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Group Keywords into Relevant Ad Groups
Ad groups are the containers for your ads and
keywords. When you create multipleads, they
will be rotated against all the keywords in their
ad group. It is importantthat all the keywords
and ads in an ad group make sense when paired
together. Keywords should be substitutable.
Ad Group 1
Digital Camera Ad Group
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Group Keywords into Relevant Ad Groups - Example
Account Pacific Gold Electric, Inc. Campaign
Residential Electrical Services
Ads
Electrical Contractor- Los AngelesExperienced
and licensed electrical Contractor for Los
Angeles Countywww.pacificgoldelectric.com
CTR 0.4 CPC
1.98 Avg. Position 3.1 Quality Index
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Group Keywords into Relevant Ad Groups - Example
Account Pacific Gold Electric, Inc. Campaign
Residential Electrical Services
Ads
Professional Electrical Services Licensed
contractor providing expert rewiring, panel
upgrade services. www.pacificgoldelectric.com
Display Rate 58.9CTR
0.81CPC
1.24Average Position 4.7Quality Index
Licensed Electrician Call on us for expert
electrical-relatedinstallations and repair.
Display Rate 42.1CTR
0.83CPC
1.51Average Position 3.3Quality Index
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Agenda

• How to work out your ROI?
• Return Getting more clicks
• Investment the 2 Bs bid budget

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What Bids Should I Set?

• How do I know how much to bidon each keyword or
  ad group?
• Your bids should be based on theeconomics of
  your business, yourbusiness objectives and
  theperformance of your site.

• Bid too high and youcan be paying morethan the
  click is worthto your business.
• Bid too low and youmay not get rankedhigh
  enough in search results to receive the number of
  clicksyou need.

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Bidding Calculation Example 1

• Lets say you have a site that sells DVD players.
• Fixed Business Variables
• Bid Calculation
• To break even, the most you can afford to pay for
  a click is 0.50(10 profit / 20 visitors)

Remember that not all keywords and ads convert at
the same rate, so youll want to do calculation
for various keywords
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Bidding Calculation Example 2

• Lets say you have a site that sells DVD players.
• Fixed Business Variables
• Marketing Variables
• Clicks 2,500
• CPC (Cost per Click) 0.40

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Bidding Calculation Example 2

• Lets say you have a site that sells DVD players.

If CPA lt Value of Purchase, you are making money
and may be ableto increase bids to get a higher
position If CPA gt Value of Purchase, you are
losing money and may have toreduce bids
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At the Single Keyword Level
1. These calculations are estimates only and are
not guarantees.
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At the Multiple Keyword Level
Ad Group Bid Apply the ad group bid to the
selected keywords. Keyword Bid Enter a custom
keyword bid for the selectedkeywords to override
the default ad group level bid for the selected
keywords.
Set all selected bids to theirminimums
1. These calculations are estimates only and are
not guarantees.
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At the Ad Group Level

• Allows you to more effectively allocate your
  marketing resources, weigh opportunity costs and
  set campaign expectations.

Based on your selected bid and quality index, our
systemcalculates estimated clicks. Please
remember that this is anestimate only, and not a
guarantee of click volume.
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Identify the Most Effective Keywords
In the Keywords tab of the Ad Groups
page,identify the keywords that most effectively
generateconversions and revenue by
understandingBid, Avg. CPC, and Avg. Position.
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Forecasting Tools

• There are several forecasting tools that are
  useful in helping you determine your bid amount
  on a keyword. You'll find these tools in the "Set
  a Bid" section on each of your Keywords Details
  pages.

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Estimate Data
Monthly Estimate Data The following group of
data calculates your expected futureperformance
based on past performance of your ads.
Bid Range for Top Positions Provides the most
recent bid range that maymake your ad eligible
to be placed in the top position in search
results forthis keyword, or in the lowest
position while still on the first page of
results.A combination of your bid amount and ad
quality is now used to determineyour position in
search results, not just your bid amount.
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Monthly Estimate Data
Average Position The average position (1 being
the highest)in search results that you may be
able to expect to find your ads for thiskeyword,
based on your current bid and historical
performance.
Impressions The number of times that you may be
able toexpect your ad to be displayed in search
results, based onyour current bid and the
historical performance of your adsfor this
keyword.
Clicks The number of clicks you may be able to
expect permonth based on your current bid and
historical performanceof your ads for this
keyword.
Average CPC () The average cost you will pay
for each click,based on your current bid and the
historical performance ofyour ads for this
keyword.
Share of Available Clicks The estimated number
of clicks youmay be able to receive on ads for
this keyword, compared tothe total number of
clicks on that keyword
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Best Practices for Setting Bids

• Set Custom Bids for Your High Volume Keywords
• Managing bids for a large number of keywords can
  be time-consuming. To help save time, consider
  setting custom bids for your highest-volume
  keywords and setting an ad group bid for lower
  volume keywords.
• Check Your Daily Spending Limits
• Ads are displayed until your account or campaign
  daily spending limit is reached. To ensure your
  ads continue being displayed (and do not go
  offline) after youve adjusted or increased your
  bid, you may need to adjust or increase your
  daily spending limits.
• Measure and track your clicks
• Tracking will help you better determine where to
  increase or decreaseyour bids based on ad groups
  or keywords that are driving themost conversions.

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Investment Budget

• Monitor account regularly to determine how much
  of the budget is being spent
• Be aware that there is an account level budget
  and campaign level budget
• Setting a daily budget means your ads will be
  taken offline once you reach the spend limit. If
  you dont want your ads to go offline during the
  course of the day, ensure your performance is not
  limited by your budget
• Keep your bid price in mind when setting your
  budget. If you are going for an aggressive bid
  price, your budget should match that.
• Should base it on ROI compared to other media and
  assign portion of marketing budget. If Search
  Marketing is delivering the best ROI, why not
  assign a larger portion of your budget?

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Summary

• Use our online ROI calculator www.searchmarketing.
  yahoo.com.au/ROIcalc
• Get more clicks by improving your ad quality and
  expanding
• keywords
• Improve your ad quality by using Ad Testing,
  including
• keywords in your ad title and description
• Expand your keywords by considering the purchase
  cycle
• and using The Find Keyword tool
• Group keywords into relevant ad groups
• Think about the profit and ad conversion rate to
  work out
• the optimal bid price
• Monitor your budget to ensure that you are not
  taken offline

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Thank You
Q u e s t i o n s ?
Please contact our Customer Solutions Team
on 1800 007 577 (Australia Toll Free) 800 726
236 (NZ Toll Free) or Email us at
au-customerservice-ysm_at_cc.yahoo-inc.com
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Appendix
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Key Metrics