Google Position Preference is Dead…Long Live Position Preference

On April 4th, 2011, Google announced they are retiring the Position Preference Bidding option in May 2011. If you want to emulate the Position Preference option, you can set up two rules (per campaign, adgroup, or KW, depending on your needs) to control the bidding. The downside is that the bidding adjustments are done at most 1 time per day (but see below) and managing the rules in AdWords is a little clunky.

KeyRelevance’s Recommendations:

  1. Use CPA Bidding instead, if that is an option.
  2. Make small adjustments (e.g. 5-10%, $0.05 – $0.10)
  3. Make sure to set upper and lower limits to bound the changes that can be made Continue reading

Sites in adCenter Search Network are High Caliber

As interest in Bing continues, and with the pending launch of the Microsoft/Yahoo paid search partnership, advertising in Microsoft adCenter PPC is becoming more viable. One concern is that adCenter does not allow one to opt-in/opt-out of their Search Network Partners. Here is a breakdown of the big three and their options for Ad Placement. On all three ad platforms, advertising on the Search or Content Network is optional on a campaign-by-campaign basis. Once you decide to use a given network, however, the details begin to vary:
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Yahoo’s Ad Delivery Report Helps Tune PPC Campaigns

On 10 Sept 2009, Yahoo launched a new PPC Traffic Quality report that will be a real boon to PPC advertisers wanting to track the effectiveness of their campaigns across the Yahoo Search network. Yahoo provides PPC ads along side search results for both Yahoo properties and other sites that show Yahoo search results (called the Yahoo Search Network, or Search Partners). Since Yahoo does not allow advertisers to opt out of their search network, tracking performance is of paramount importance to making the campaigns successful. The new Ad Delivery Report will Continue reading

Key Relevance Review of Google Automatic Match – Measuring the Cost of Skipping Keyword Research

by Jim Gilbert and Mike Churchill of Key Relevance

Automatic Match is Google’s new feature that allows AdWords managers to receive clicks in their PPC campaigns without the need to select specific keywords. According to Google:

 

Automatic matching

Automatic matching is an optional feature that helps your ads reach targeted traffic missed by your keyword lists. It works by analyzing the content of the landing pages, ads, and keywords in your ad group and shows your ads on search queries relevant to this information.

The automatic matching system continually monitors your ad performance and aims to show your ads only on queries that yield a comparable or better cost-per-click (CPC) than that of your current traffic. Automatic matching will only use your unspent budget and will never deliver more traffic than your budget allows for.

 

In two previous posts, Jim took a somewhat negative shot at Google’s “Automatic Match” feature, with little to go on but past experience with “new features”.

 

Well, we’re back and have the results of our real-life testing of this new feature.

After a fairly lengthy process of testing “Automatic Match”, we can now report these facts — Facts at the time of this writing, but Google can always change at any moment without warning or notice.

Facts:

  1. The following statement is still true, so be on the lookout for when Google rolls “Automatic Match” out to your account!
    Quote from an Official Google email dated 23May2008: “The feature will be enabled by default..” – see Automatic Match to be Default
  2. Automatic Match does not start spending immediately… once activated, it takes up to a couple weeks for it to learn what it thinks it should do. So, don’t get complacent if it does don’t start spending on Day One — KEEP TABS — it could take off like a rocket at any time.
  3. Google’s “Automatic Match” IS greedier than expanded broad match! See our original post at: More Greedy than Expanded Broad Match
  4. Still true (if you notice when it shows up): But there is GOOD news — you can OPT out!

    Look for this in your Campaign Settings:


  5. Automatic Match is especially invasive in adgroups that have relatively few keywords.
  6. You can “negate” bad impressions and clicks with negative keywords — if you keep very, very close tabs on them. We use the PPCProbe keyword tool to allow us real-time tracking of the search phrases.

NOW, some actual results:

The Scenario:
One adgroup with 1 PHRASE match keyword, residing in a campaign enabled for automatic match.

The Results:

  • Adgroup spend increased 600%! That’s right… 600%!

While the increase in spend in and of itself is not a bad thing (assuming that’s why we were using Automatic Match in the first place), there is a problem with ther results of our test: spending more money is a good thing only if it is bringing targeted traffic to the site. One of the shortcomings of using Automatic Match is that you don’t get to see the search terms that the searchers are using in the Campaign/AdGroups management screen. We used PPCProbe to allow us to gain the insight into the actual search terms that Automatic Match was matching to in real time.

  • 88% of all clicks were from “Automatic Match”. Only 12% were from the actual phrase match keyword. The CPC of the Automatic Match keywords was a little cheaper than the CPC of the actual phrase in the account, but…
  • The majority (4 out of 5) of “Automatic Match” clicks came from keywords I consider to be not relevant. As we shall see, this makes the Effective CPC much worse in our case.

We ran our test with a single phrase match term in the AdGroup: “wedding table decorations”. Of the clicks collected during our test, clicks for the phrases in the AdGroup broke down as follows:

 

Category Example Percentage of Clicks
Actual Phrase from AdGroup
(non-Auto Match – Very Relevant Hits)
“wedding table decorations” 11.9%
Automatic Match (Relevant Hits) “weddiing table decor”
“decorations for wedding tables”
“wedding cake table decorations”
“wedding table ideas”
7.5%
Automatic Match (Non-Relevant/Close Hits) “table settings”
“party table numbers”
“table numbers for weddings”
9.0%
Automatic Match (Non-Relevant Hits) Chocolate “Hersheys”
“chocolate wedding favors”
“chocolate lollipops”
10.4%
Automatic Match (Non-Relevant Hits) Flowers “wedding flowers”
“wedding florists”
“wedding lily flowers”
47.8%
Automatic Match (Non-Relevant Hits) Wedding Gowns “discount wedding gowns”
“discount wedding dresses”
3.0%
Other (Non-Relevant Hits)   10.4%

 

As result, if we consider the Actual Phrases, the Automatch Hits, and the Near Misses (to give the benefit of the doubt – it is just a computer making these KW decisions and we are being lazy by using Automatic Match in the first place), you can see that only 28.4% of the ad spend generated relevant traffic to the site. This effectively made the CPC of the KW buys in this AdGroup 3.5 times more expensive with Automatic Match turned on compared to manually selecting keywords because of the ad spend wasted on the mis-targeted Keyword clicks.

So, where are these mismatched keywords coming from? Are chocolates, flowers and wedding gowns featured on the landing page for the AdGroup? The short answer is “No”. The word “flower” is mentioned once in the plain text of the page, the words “hershey” and “chocolate” appear in the sidebar navigation that points to other pages of the site, and the words “gown” and “dress” are not on the page at all. None of these off-target keywords appeared in the AdWords Ad Copy or anywhere else in the AdGroup. A new AdGroup was created for this test, so no deleted words were previously in the AdGroup. From this we conclude that Automatic Match seems to be using a variation of the Expanded Broad Match algorithm.

Recommendations

  • Turn Automatic Matching off until you understand the ramifications of what it will do to your ad spend, traffic, and conversions.
  • If you should decide to use it, watch it closely, and track the actual phrases that are being used to drive traffic to the site.
  • Be prepared for nothing to happen on the Automatic Match lines of your AdGroups immediately – Automatic Match takes some time to “kick in”.
  • Compute an “effective CPC” [total $$ / (total clicks - off-target Automatch clicks)] for the AdGroup. Once you discount the off-target traffic you will be better able to determine the real cost of using Automatic Matching in your ad campaign.

Pay Per Click

Google Announces AdWords Enhancements – Real Time Quality Score Calcs and No More Minimum Bid

By Mike Churchill and Jim Gilbert

Google announced some upcoming AdWords changes that affect the way that they handle the Quality Score calculations. These changes have been made to improve the accuracy of the Quality Score calculations and to improve the usability of the AdWords accounts. They were announced on 21 August 2008, and will initially be rolled out to a few PPC customers for feedback, with the rollout to the full AdWords client base occurring over the next two months.

There are four enhancements announced:

Quality Score Timeliness

Google will now be calculating the Quality Score for your ad each time it matches a search query. In the past, the Quality Score was only recalculated periodically, which could cause some lag in the improvement to Quality Score once the problems were corrected. By calculating the Quality Score “on-the-fly” your ads will be more likely to display when relevant (and less likely to display when not).

“Minimum Bid” to be Retired (but not really)

The Minimum Bid calculation was added to Google AdWords about three years ago (July 2005), and has been the bane of many PPC advertisers. We believe that the Minimum Bid calculation was a work-saving measure that allowed Google to limit the number of phrases to be considered for a particular search query and provide better speed-of-service to the searcher. As a result, though, many phases would be turned off, and an inattentive PPC manager could be caught unawares. Users of the Google API and the offline AdWords Editor will still see the Minimum Bid field until these tools are updated, so while they no longer show in the Google GUI, they are still being calculated (based on the new Quality Score calculations).

As a part of the real-time Quality Score improvements, in the GUI, the Minimum Bid metric is being replaced with….
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Yahoo Conversion Problem?

by Jim Gilbert

If you have advertised on Yahoo’s Panama for any length of time or managed multiple accounts there, you may have seen (in many account cases) a deterioration in conversion performance in search.

We are talking search here — not the content network.

I just finished investigating this issue on several accounts today and found a very interesting fact:

Of all the clicks coming from these accounts on Yahoo Panama, only 33.7% were actually from Yahoo — the rest (66.3%) were from Yahoo’s Search Network!

So Yahoo’s search network delivers more traffic than Yahoo search? Yep, in many cases this appears to be an absolute fact.

“So who cares”, you say?

You should! Yahoo’s search network (and Google’s for that matter) is not chunked full of brand name properties to put it politely — to be a bit rude many are “scummy”. So, conversion performance from Yahoo is 66.3% search network which just DOES NOT convert as well as search.

Google’s Automatic Match to Become Default!

by Jim Gilbert

WELL… YOU HEARD IT HERE FIRST and WE WARNED YOU!

Quote from an Official Google email dated 23May2008:
“The feature will be enabled by default, although it
won’t begin to affect your accounts until June 3, 2008.”


 

See our original article at:
googles-automatic-match-more-greedy-than-expanded-broad-match

 
If you need the quick summary and don’t have time to read our original article, here you go:

  • If your Adwords keywords (Exact, Phrase and Broad match types — including expanded broad match) don’t make your ads show… Automatic Match Will!

Call me somewhat of a cynic, but I have a very tough time relating this to “producing better relevance”. I have personally seen what broad match (with expanded broad match) can do when it gets out of control and have found ways to prevent the excessive spend from occurring. Thank goodness…

But there is GOOD news — you can OPT out!

Google's Automatic Match

 

For the moment the Beta description is still available (Automatic Match Beta),

 
BUT
 
Try using the AdWords help function (while logged in) searching for “Automatic Match” and you get this:
Your search — “automatic match” — did not match any answers in the AdWords Help Center.

 

Why is it hidden? Go Figure!

 

 

Google Says Users Won’t be able to Tell Paid Ads from Natural

by Jim Gilbert

By Scott Morrison, Of DOW JONES NEWSWIRES reports a top Google executive (Tim Armstrong, Google’s North American president for advertising and commerce.) of saying:

“Speaking at the Bear Stearns Media Conference in Palm Beach, Fla., Armstrong said Google’s advertising platform will evolve over time so that it won’t distinguish between search and display ads.”

Anyone care to comment on what the heck that means?

Google’s Automatic Match – More Greedy than Expanded Broad Match

by Jim Gilbert

WELL… YOU HEARD IT HERE FIRST and WE WARNED YOU!
Quote from an Official Google email dated 23May2008:

“The feature will be enabled by default, although it
won’t begin to affect your accounts until June 3, 2008.”

UPDATE! 23May2008 — Automatic Match to be the DEFAULT! see the full update at: Automatic Match to be Default

Google Automatic Match Beta

So far this “Automatic Match” option is only a beta and accessible by invitation only. BUT, If this monster goes live and removes our ability to “opt out” (like in Expanded Broad Match), something very, very ugly may happen:

  •   No matter how large your budgets, they WILL be spent — every penny (and dollar)!

I was going to let you read the Beta help file, but it disappeared… IT’S BACK, but you will have to be logged into an AdWords account to get to it: Automatic Match

Summarizing:

Just build your campaigns and they will come. Heck, you no longer even have to offer any keywords — Google will look at your ad and your site and make sure your ads show for any search query that even “smells” relevant.

 

Did Google’s revenue drop in January scare them that badly?

 
 

Pay Per Click

Expanded Broad Match and The Google 1-2 Punch

By Mike Churchill
(Special thanks to my colleagues Jim Gilbert and Liana Evans in researching this article).

There has been a lot of discussion on Google’s recent changes to the way that they handle expanded broad match (at WebMasterWorld , High Rankings Forum and other places).

We have come across a different issue that relates to the investigation of expanded broad match, and has wider-reaching repercussions for your PPC campaigns, as well as understanding oddities in interpreting Analytics. We have been seeing this issue for the last month or so (since Aug-Sep 2007), and according to the Google engineers with which I have discussed this: “the search results […] are the result intended behavior. When determining which ads to show on a Google search result page, the AdWords system evaluates the user’s previous search query as well as the current search query.”

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