Sharing enhanced campaigns stories to help you prepare for the July 22 auto-upgrade

In today’s world of constant connectivity, people are switching between multiple devices throughout the day. This multi-screen reality creates new opportunities for marketers to reach customers across devices anytime, anywhere. In February, we launched AdWords enhanced campaigns to help advertisers capture these new opportunities and manage their ad campaigns more effectively.

With less than a month until the auto-upgrade on July 22, advertisers have already upgraded more than 4.5 million campaigns. We realize that the upgrade takes some work, so we appreciate the effort that many of you have put into the process. Many industry leaders and advertisers have shared their progress, results and stories with us.  Here are just a few examples:

• M&M’S - Working with its agency partner, The DuMont Project, M&M’S brand MY M&M’S reported very strong results after upgrading to enhanced campaigns, including a 41% increase in conversion rates, 22% increase in revenue, and 31% boost in ROI for search campaigns. Across search and display, MY M&M’S reported a 15% boost in ROI. They initially thought that combining desktop and tablets into one category might negatively impact sales. But, they very quickly realized that the combination actually led to a higher ROI. The company also reduced the number of campaigns they managed from over 100 to 50 - saving five hours a week on campaign management.
• Colombo & Hurd - This small Florida-based law firm worked with its search software and agency partner, WordStream, to upgrade its campaigns. The two teams completed the upgrade - including a full update of Colombo & Hurd’s mobile, location, and time bidding strategies - in less than 30 minutes. Since upgrading to enhanced campaigns, Colombo & Hurd reported that mobile click-through rates rose by 53%, CPCs fell by 13%, and mobile conversion rates increased by three times.
• American Apparel - The retailer needed an easier, better way to reach customers wherever they are, whenever they’re searching for American Apparel items or stores. With enhanced campaigns, they used the proximity bidding feature and set mobile bid adjustments at 100% for a certain radius around their stores. Since upgrading, they’ve seen impressive results, with mobile conversions growing 2X and aggregate click-through-rate increasing by 7%. They’ve also found value in new features that are part of enhanced campaigns like upgraded sitelinks and sitelink reporting.
• Third party ad platforms - Many search engine marketing platforms and agencies have integrated with enhanced campaigns to help their clients take advantage of the powerful new features. One provider recently published a detailed guide to help advertisers with the upgrade, and shared the positive progress it was seeing across clients. They noted: “We’ve seen positive results from advertisers that have opted to migrate early. Recently, a large financial services company successfully migrated to enhanced campaigns on [our] platform and optimized to increase leads by 64% while lowering their CPL by 37% across a significant portion of their campaigns.” They also observed that in the first month after upgrading, CPCs dropped by 2%, while clicks increased by 6%.

Since the earliest days of the rollout, dozens of search marketing companies have offered advertisers advice on transitioning to enhanced campaigns. Some advice (like the help provided by many of the companies above) has been extremely valuable, while some has been more speculative. Every advertiser is different, so the important thing is to review your own metrics and iterate based on your business goals. No two accounts are alike, so it’s important to get started to see how enhanced campaigns can best work for you. The key benefits that we’ve consistently heard from industry leaders and advertisers are:

1. Better decision making made possible through improved reporting by device and location, as well as more detailed reporting on ad extension performance.
2. Time savings by reducing the number of campaigns required to manage varying user contexts.
3. Improved campaign management through features such as bid adjustments, device-specific formats and flexible bid strategies. 
4. New ways to align with your business goals and operations with the ability to schedule the specific dates, days of the week, or times of day for your extensions and sitelinks, at either the ad group or campaign levels.
5. Better ways to engage with mobile consumers using mobile-preferred creative and sitelinks, as well as proximity bidding to reach people who are nearby and on the go.

You can read about enhanced campaigns best practices and other advertiser stories on the enhanced campaigns website.

We’re learning from your feedback as we continue to improve AdWords for this new world of constant connectivity. It’s more important than ever for every business to reach customers across devices in a relevant way, and we’re hard at work building new features and improvements to help you do that successfully with AdWords.

Posted by Sridhar Ramaswamy, Senior Vice President, Ads and Commerce

Get a Head Start with Enhanced Campaigns: Why to Upgrade Now

Enhanced campaigns offer an array of new features to drive better performance and efficiency. With more than three million campaigns already upgraded, we’ve heard many great examples of advertisers finding new pockets of revenue and reaching new customers with enhanced campaigns – all while saving time. As the the auto-upgrade approaches on July 22, we’re introducing some new features in the Upgrade Center today to make the process of upgrading even easier. Upgrade today to start realizing the benefits right away.

5 reasons to upgrade now
By upgrading now and becoming a pro with the new features before the auto-upgrade, you can get a head start on driving better performance – and a jump start on the competition. Here are some of our advertisers’ top reasons for upgrading:

• Discover local opportunities: Use the location bid adjustment to easily and effectively engage with users based on location and proximity. This allows you to find and optimize for pockets of revenue you may not have even known existed.
  
  After upgrading to enhanced campaigns and leveraging geo bid adjustments, Peter Hughes, Manager of SEM at Constant Contact stated, “Suddenly, we realized that California has a great cluster of small and medium sized businesses.  Cool - we’ve already geo-targeted that.  But guess what?  Who knew that North Dakota had such a great ROI.  In the old, legacy world, I never would have figured it out because it did not fit into my selective scaling model.”


• Expose the true power of mobile: Implement a mobile bid adjustment to make sure you’re driving the right value for on-the-go consumers while gaining better insight into the results mobile can drive for you.
  
  American Apparel upgraded early to reach customers across all screens. They started by setting mobile bid adjustments at 100% and saw impressive results.  Since the upgrade, mobile conversions have grown 2X and aggregate click-through-rate has increased 7%.  Sean Singleton, Marketing Manager, stated, “We are going from trial to fine-tuning the way we execute our multi-device marketing strategy.  With enhanced campaigns, it’s very easy to test and iterate so we are quickly establishing internal best practices in terms of how to best run enhanced campaigns.”


• Drive more leads through calls: Use call extensions and measure calls as conversions to drive cost-efficient leads while providing a better ad experience for your customers.
  
  Woodbridge, a financial investment firm, took advantage of upgraded call extensions and new reporting features, increasing the volume of calls from smartphones from 20% to 57%, with overall smartphone leads almost doubling.  In addition, conversion rates from both desktop and mobile devices increased by 6%.


• Reach new audiences on the Google Display Network with powerful bidding:  Drive impression share to a specific audience using custom display bids across characteristics like demographics, interest categories or topics.
  
  Stathis Konstantinidis, who runs Global Marketing at Westwing, said, “With the upgrade to enhanced campaigns we have greater insight into how our converting audience looks on adgroup level. This is very important to us as we have quite a distinct idea of our target group. We can use this information in order to push the impression share of our ads within the converting audience and decrease the impressions within the less performing audience for driving conversions & decreasing the CPLs.”


• Manage campaigns in less time: Dive into enhanced campaigns to see how the powerful features work together to streamline your workflow and get you to happy hour sooner.
  
  Dutch shoe retailer, Schuurman Schoenen, reduced its total number of campaigns by 60% and dramatically cut its marketing team’s workload.  “I used to spend twice as much time to maintain and fine-tune campaigns,” says Kayo Klein Obbink, Schuurman Schoenen’s online marketer.

Improvements to the upgrade center
In April, we announced the enhanced campaigns upgrade center to help you transition from legacy campaigns to enhanced campaigns. We’re introducing some additional features, rolling out over the next week, that will make upgrading even easier and give you greater control over the merging process:

• Increased flexibility when copying keywords: When merging campaigns, have increased control over how keywords are copied (or not copied) from the mobile to the desktop campaign.
• Automatic labelling of newly copied keywords: When keywords, ads, or ad groups are copied or merged, they will be labelled as having been modified by the upgrade center.
• Uninterrupted keyword level tracking: When you have two matching campaigns with different mobile and desktop keyword-level destination URLs, they will be merged automatically. The mobile URL will show on mobile phones and the desktop URL will show on non-mobile.
• ... and coming soon: Bulk upload functionality: Ad extensions and ad groups will soon be exportable to AdWords Editor.

We hope that the Upgrade Center and other resources we’ve shared will give you the tools you need to ease the transition to enhanced campaigns.

Don’t wait to upgrade
We will begin automatically upgrading all legacy campaigns on July 22nd, 2013.  Please continue to share your feedback with us as you are going through the upgrade process.

Posted by Andy Miller, Head of Mobile Search Solutions

Succeeding with enhanced campaigns

About two months ago, we launched enhanced campaigns to help you more simply and smartly manage your campaigns in today’s multi-device world. Recently we’ve been hearing some great stories about ways that advertisers have improved their performance and saved time with enhanced campaigns. While every advertiser’s business and potential gains may be unique, here are a few examples that highlight actual strategies and results achieved so far with enhanced campaigns.

e-Travel has improved CTR and conversion rate with context-optimized ads, mobile app downloads, and upgraded sitelinks.

e-Travel is one of the leading online travel agents in Greece, Cyprus and Russia, and has presence in other markets in Europe, the Middle East and North Africa. After upgrading to enhanced campaigns, Managing Director Nikos Goulis reported, “We can now show our ads according to people's context like location or time of day [... and] count app downloads as conversions in AdWords reports, which is very important for us because so many of our new customer leads come from our mobile app. These features along with the upgraded sitelinks helped us boost clickthrough rate by 43% and conversion rate by 32%."

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American Apparel has doubled its volume of phone leads with enhanced campaigns, improving return on ad spend.

American Apparel, a multi-channel fashion retailer, upgraded all its campaigns to take advantage of new features like upgraded call extensions and sitelinks. By extending call extensions across all device types, and counting calls over 10 seconds in duration as a conversion, American Apparel has seen their conversion volume from phone calls double. Return on spend has improved significantly.

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A luxury online shopping brand has grown sales by 20% by tapping into secondary markets, thanks to the ease of optimizing bids in multiple locations in a single enhanced campaign.

A luxury online shopping destination had been focusing its search engine marketing efforts on optimizing bids in location-specific campaigns aimed at primary markets like New York City and Los Angeles. Since upgrading to enhanced campaigns, the company started using location bid adjustments to test and expand its AdWords presence in new geographies, including affluent areas of Delaware, South Carolina, and New Mexico. Already, the company has grown total conversion volume by 20% while achieving target return on ad spend.

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Hotwire’s SEM analysts are saving 5-10 hours per week with more efficient campaign management.

Hotwire.com, a leading discount travel website upgraded all of their paid search accounts to Enhanced Campaigns, both domestic and international, within the first month. Clay Schulenburg, Director of Search Engine Marketing at Hotwire shared that upgrading to Enhanced Campaigns really helped his team manage AdWords more efficiently because all the key adjustments for location, time of day and device are now managed in a single campaign: “Time saved per SEM analyst is somewhere in the range of 5 – 10 hours per work week that can now be reallocated to either new strategic SEM initiatives or more granular account/campaign optimizations.”

Get started in 3 steps
If you’re among the 95% of advertisers whose legacy campaigns currently run across all device types, you can upgrade in just three steps to take advantage of enhanced campaigns:

1. Click the “Get started” button when you log into the AdWords interface
2. Select a mobile bid adjustment
3. Click “Complete upgrade”

Here's a short video illustration.

If you have questions about upgrading to enhanced campaigns, please contact AdWords support, ask for advice from your fellow advertisers in our AdWords community, or check out our comprehensive upgrade guide (.pdf download).

Share your results and feedback
Once you’ve started using enhanced campaigns, please let us know about your results and any suggested improvements using our feedback form.

Posted by Surojit Chatterjee, Group Product Manager

Understanding the full value of mobile: adidas and RadioShack drive in-store traffic with mobile

We live in a multi-screen world where people are constantly connected and moving seamlessly across devices. Not only do mobile devices keep us connected anytime and anywhere, but they play an increasingly important role in shopping, both online and offline. With mobile, consumers no longer just take linear paths to purchase that begin and end on the same device. Instead, there are a range of customer journeys - like starting on a smartphone and ultimately buying in-store, continuing on a different device, or making a phone call.

This era of mobility is bridging the digital and physical worlds, so marketers need to fully understand mobile’s impact both online and offline, and evaluate how each of these actions applies to their business. Here’s a look at two brands who’ve invested in understanding the full value of their mobile efforts:

adidas
Being locally relevant is key for any brick and mortar business, and adidas worked with its agency iProspect to leverage mobile’s power to reach local customers. They recognized that in order to build an effective mobile presence, they had to pivot their thinking to understand how mobile drives value beyond mobile commerce, particularly in-store sales. “If we look at a 1:1 response or 1:1 measurement of what our media budget is driving on a mobile site, we're missing a big part of that picture. As performance marketers, a lot of the times we look at direct responses, and what mobile is requiring us to do is redefining direct response," says Kerri Smith, head of mobility at iProspect.

adidas and iProspect partnered to estimate the value of each store locator click on their mobile website. Based on internal benchmarks, iProspect theorized that 1 out of every 5 people who visited the mobile site store locator page went into an adidas store. In-store conversion data from adidas indicated that around 13% of shoppers who go into stores completed a purchase, and that their average order value is $71. Since an active search usually demonstrates stronger intent to purchase, iProspect applied a 20% conversion rate and an $80 average order value. As a result, they determined that 4% of the people who clicked on a store locator translated into an actual sale for adidas, meaning that each store locator click is worth $3.20.

To put that in perspective, for a hypothetical mobile investment of $1 million, in-store sales from store locator clicks was an extra $1.58 million beyond direct mobile purchases. [Download the full case study here]

RadioShack
To fully understand how mobile drives in-store sales, RadioShack collaborated with its agency Mindshare to redefine mobile success: “User behavior is much different on smartphone compared to the desktop experience. It became obvious that to be successful, we had to measure mobile performance by focusing on different criteria,” says Lisa Little, Search Marketing Manager at RadioShack.

RadioShack worked with Mindshare to understand how mobile impacted foot traffic into stores. Using mobile search ads to promote their mobile site, they found that 36% of the clicks were going to the store locator page. Based on internal studies, the teams estimated that 40-60% of people who used the store locator on a mobile device visited a store. RadioShack’s internal analytics team also determined that approximately 85% of customers who visited the store as a result of the store locator made a purchase in store. [Download the full case study here]

A holistic view of the mobile customer
This new model can help marketers better understand the return on investment they’re getting from their mobile efforts. Both companies also found mobile success because they developed a holistic view of their mobile customers and created strong synergies across all marketing channels. For example, RadioShack’s social, email, digital, video and search marketing teams work collectively to create the best user experience possible for mobile customers. Little says, “This allows us to better understand the behavioral path of our customers, from the initial research phase through the final purchase stage including all the marketing they were exposed to along the way. To be successful, you have to adopt this holistic vision of the mobile user behavior.”

Posted by: Julie Pottier, Product Marketing Manager, Mobile Ads

lastminute.com Finds That Traditional Conversion Tracking Significantly Undervalues Non-brand Search

Understanding the true impact of advertising

Advertisers have a fundamental need to understand the effectiveness of their advertising. Unfortunately, determining the true impact of advertising on consumer behavior is deceptively difficult. This difficulty in measurement is especially applicable to advertising on non-brand (i.e. generic) search terms, where ROI may be driven indirectly over multiple interactions that include downstream brand search activities. Advertising effectiveness is often estimated using standard tracking processes that rely upon ‘Last Click’ attribution. However, ‘Last Click’ based tracking can significantly underestimate the true value of non-brand search advertising. This fact was recently demonstrated by lastminute.com, a leading travel brand, using a randomized experiment - the most rigorous method of measurement.

Experimental Approach

lastminute.com recently conducted an online geo-experiment to measure the effectiveness of their non-brand search advertising on Google AdWords.  The study included offline and online conversions.  The analysis used a mathematical model to account for seasonality and city-level differences in sales.  Cities were randomly assigned to either a test or a control group. The test group received non-brand search advertising during the 12 week test period, while the control group did not receive such advertising during the same period. The benefit of this approach is that it allows statements to be made regarding the causal relationship between non-brand search advertising and the volume of conversions - the real impact of the marketing spend.

Full lastminute.com case study

Findings

The results of the experiment indicate that the overall effectiveness of the non-brand search advertising is 43% greater¹  than the estimate generated by lastminute.com’s standard online tracking system.

The true impact of the non-brand search advertising is significantly larger than the ‘Last Click’ estimate because it accounts for

1. upper funnel changes in user behavior that are not visible to a ‘Last Click’ tracking system, and
2. the impact of non-brand search on sales from online and offline channels.

This improved understanding of the true value of non-brand search advertising has given lastminute.com the opportunity to revise their marketing strategy and make better budgeting decisions.

How can you benefit?

As proven by this study, ‘Last Click’ measurement can significantly understate the true effectiveness of search advertising. Advertisers should look to assess the performance of non-brand terms using additional metrics beyond ‘Last Click’ conversions. For example, advertisers should review the new first click conversions and assist metrics available in AdWords and Google Analytics. Ideally, advertisers will design and carry out experiments of their own to understand how non-brand search works to drive sales.

Read more on AdWords Search Funnels
Read more on Google Analytics Multi Channel Funnels

Anish Acharya, Industry Analyst, Google; Stefan F. Schnabl, Product Manager, Google; Gabriel Hughes, Head of Attribution, Google; and Jon Vaver, Senior Quantitative Analyst, Google contributed to this report.

¹ This result has a 95% Bayesian confidence interval of [1.17, 1.66].

Posted by Jeremy Tully, Inside AdWords Crew

Modcloth and Inflection Drive Performance with Next-Gen Keyword Contextual Targeting

Advertisers use contextual targeting on the Google Display Network to reach new customers as they browse content related to their products and services. In March we launched Next-Gen Keyword Contextual Targeting, which enabled our display advertisers to manage their contextual campaigns with the same level of precision and granularity as search. In a few short months we’ve been delighted to see how it’s translated into real results for our customers, and today we’d like to shine a light on two specific examples.

Modcloth, an online retailer selling vintage inspired clothing, had been using contextual targeting on the Google Display Network as a way to scale their message across a wide variety of sites. Their challenge was figuring out which keywords were triggering which conversions across their multiple product lines. With keyword level reporting and optimization levers, Theresa Rockovich, Modcloth’s SEM Manager, was excited to finally put her SEM skills to work. “Before the ability to target and bid on keywords, we were barely making these campaigns profitable. Now that we’ve been able to adjust our bids and see which keywords are driving performance, margins are the healthiest they’ve ever been.” In nine weeks, their keyword-level optimizations helped turn three unprofitable contextual campaigns into some of their highest performers. Their jewelry lines saw a 460% increase in click-through-rates and their dresses campaign saw a 700% increase in ROI.

Andrew Wong, Marketing Director at Inflection, similarly took a search-focused approach to managing their contextual campaigns. “We took the shell of our search campaigns and copied them onto the Google Display Network” and created specific page URLs for each product line. After a few weeks of generating traffic, they turned on the Display Campaign Optimizer – the Google Display Network’s auto-optimization tool that automatically manages targeting and bidding – and the results were phenomenal. With the help of DCO, they increased conversions by 480% at a cost-per-action 10% lower than the rest of their display campaigns.

Keyword level targeting is one of the many reasons why our Display Campaign Optimizer  has improved in both accuracy and efficiency the past year. We've seen advertisers are usually able to reach their target cost-per-acquisition (CPA) in about two weeks, versus the two months it often took before these changes. Coupled with new bidding capabilities, such as real-time bidding, MaxCPC and Enhanced CPC, DCO is now available to use on ‘hybrid’ search and display campaigns.

And it gets even better

In addition to keyword targeting, bidding and reporting, today we’re announcing  new keyword status messages to assist advertisers troubleshoot for more effective and consistent keyword matching and delivery. Now you’ll know if a keyword is pointing to a suspended site, has been disapproved, or if it matches too few pages (Few Page Matches). We’ve also added a notification that alerts users with display-only campaigns when a Display Network bid - which overrides keyword bids when ads are shown on the Google Display Network - is in place. We recommend removing the Display Network Bid in display-only campaigns to take advantage of keyword level bidding. Click here to learn how.

Learn More

We look forward to seeing even more success stories as we continue to roll out these new features! To learn more about how to implement these strategies into your display campaigns, download the Google Display Network Guide here!

Posted by Katie Hamilton, Product Marketing Manager Google Display Network

App promoters: Are you prepared for a surge in downloads this holiday season?

With 29% of shoppers planning to purchase smartphones this holiday season, there’s no doubt that some of the shiniest new mobile devices will be wrapped up under the tree this Christmas. Little time will be wasted before happy new smartphone and tablet owners begin searching for the best apps to fill these new devices. So it’s no surprise that according to Google Trends, during the week following Christmas last year, searches for “best tablet apps” rose by more than 70%, while searches for “free phone apps” jumped by about 37%. The holidays are prime time for app promotion, so it’s important for marketers to make sure their app stands out from the crowd.

Maximizing reach with search and display ads
Whether you have a shopping companion app, a banking app, or a mobile gaming app, it’s important to reach the right audience to drive downloads and increase awareness. Many marketers have made mobile work for them by using search and display strategies together to raise interest and drive downloads of their app.

TripIt, a mobile travel organizer, used click-to-download ads on Google Search and the Google Display Network to promote their app to business travelers on the road. By creating and optimizing display ads within other apps, TripIt increased downloads by more than 75% and slashed cost-per-download by more than 96%. According to Rhonda Hanson, senior director of search marketing, promoting their app with mobile ads allowed TripIt to, “redirect the dollars we've saved on app promotion to improving our app and providing a better trip-organizer service to our business travelers.” Download the full case study here.

Maximizing ROI with Conversion Optimizer
Savvy advertisers also know they can take app promotion to the next level with optimization tools. Leading mobile game developer GREE promoted their apps to gamers using Google Search click-to-download ads along with image and text ads on the Google Display Network. To make sure they were getting the best return on investment for their in-app display ads, they used Conversion Optimizer for apps to reach their cost-per-download targets. This automated campaign optimization helped them improve app download rates by 150%, decrease cost-per-download by 52% and improve click-through rates by 49%. Download the full case study here.

If you haven’t already created your holiday app strategy, it’s not too late. Here are some things you can do to win across search and display:

1. Make sure you’re reaching people when they search for apps like yours and help them easily download your app with click-to-download ads and mobile app extensions
2. Reach relevant users within over 300,000 premium apps on the Google Display Network with image and text ads
3. Track downloads on Android and iOS with AdWords conversion tracking and optimize ROI with the automated bidding feature, the Conversion Optimizer for apps
4. Measure in-app user activity with Mobile App Analytics in order to optimize
5. Increase app promotion campaign budgets for the holidays to account for additional ad clicks

For more on how you can drive cost-effective app downloads with Google AdWords, check out this recorded Learn with Google webinar.

Posted by Jessica Sapick, Product Marketing Manager, Mobile Ads

The key to success on the Google Display Network

Small businesses are realizing that they can go beyond search ads with the Google Display Network, reaching new customers and leads with engaging and relevant messages. In the past year alone, the number of small businesses running ads on the Google Display Network has almost doubled, and this growth trend is just beginning!

To help propel other small businesses to win the moments that matter with display, we decided to learn more from our customers, highlight their success, and share the strategies they’ve employed to achieve successful display campaigns.

Making display work for you
The key to being successful on the Google Display Network is understanding the mix of targeting types you should use to achieve your marketing objective. While there is no one-size-fits-all strategy, we know there are recurring themes among businesses who have set up successful display campaigns.

We found three small businesses that are great illustrations of these different approaches to display: Julian Bakery, Legacy Learning Systems, and Bedder Way.

Let’s take a closer look at their successful display network strategies:

• Drive sales online and in stores – Since ramping up their GDN campaign to drive online and offline sales, Julian Bakery has grown from 40 distributors and 100 customers to 1000 distributors and 300,000 customers nationwide.
• Control and understand every dollar you spend – Legacy Learning System achieves, on average, 1M impressions per day on the Google Display Network and 150 online sales per month by maximizing their ad performance using conversion tracking data.
• Harness the power of an image – Bedder Way has increased their display network conversions by 50% and decreased their cost per conversion by 25%, by using image ads on the display network to visually showcase their murphy beds.

To help inspire you, we’ve compiled these companies’ strategies into three short videos and downloadable guides on our revamped Google Display Network website. The videos provide an overview of each company’s strategy and the PDFs act as a guide to help you follow their lead, developing your own successful campaigns on the GDN.

Take a look, browse the site, and try out the Google Display Network for yourself!

Posted by Brad Bender, Director, Product Management - Google Display Network

Perspective on Dynamic Search Ads - Guest Q & A with RKG

Since introducing Dynamic Search Ads in beta in October, we’ve seen questions from around the web asking about real-world performance and recommendations for implementation. Today we’re grateful to share the perspectives of Matt Mierzewski and Jen Syverud at RKG, an online marketing services firm with B2B and B2C clients ranging from startups to the Fortune 500 (details about RKG below).

Here’s a short video followed by Q&A. RKG has further offered to answer any other questions you might have about their experience with Dynamic Search Ads over on their blog.

Q. What’s your strategy for using Dynamic Search Ads with your clients today?

We think of Dynamic Search Ads as an advertiser-specific broad match type. Here, instead of allowing Google to match searches related to your keywords, you're allowing them to match searches related to your website.

For advertisers without automated pay-per-click inventory-based management solutions, Dynamic Search Ads can help identify products that are new or re-emerging. The system is tremendous in keeping up with changes to inventory in real time. For example, a product line may have been suspended for years, but quietly (without the search marketing team's knowledge) appears back on the website. In this case, keywords for the product line would still be paused until the marketing team is made aware, but Dynamic Search Ads are able to catch the change immediately, create ads, and generate orders. As another example, for advertisers frequently offering clearance products, Dynamic Search Ads are similarly able to offer ads while these limited quantity items are in-stock. In both examples, Dynamic Search Ads act as a safety net for advertisers wishing to advertise on dynamic products and/or inventories.

Q. What were your main concerns with Dynamic Search Ads and how have you addressed them?

One initial concern was that Dynamic Search Ads would cannibalize existing traffic, siphoning it away from active keyword campaigns. What we found was that the vast majority of Dynamic Search Ads traffic was complementary to our campaigns. Another concern was that we would have little to no control over what keywords Google was able to match on. However, Google has provided a great deal of controls within the Dynamic Search Ads product to ensure that the matching queries are relevant to the advertiser.

Q. What does your typical implementation of Dynamic Search Ads look like?

Implementation strategies will vary. In general, however, it is wise to consider pages that the advertiser wishes to exclude, as well as any known keyword negatives within the accounts, and add those from day one. From there, segmenting pages into campaigns or ad groups based on product margin, conversion rates, and so forth will allow for custom max CPC bids and maximum ROI.

Q. What best practices would you suggest for using Dynamic Search Ads?

Through restrictive targeting, exclusions and negatives, tight budgets and close monitoring, Dynamic Search Ads can be made very low risk and the results you see should be encouraging. For conservative advertisers, start by targeting only product level pages in your best converting categories.

A higher-level strategy is to add a site-wide target at a conservative bid with appropriate exclusions, and then layer on additional, more finely targeted ad groups and copy with bids corresponding to their expected performance. This approach is similar to the best practices for running Product Listing Ads and ensures wide coverage, but with a preference towards better quality traffic.

Use the power-tools that Google has made available in both targeting specific pages, while excluding other pages and search queries.

Q. How is Dynamic Search Ads doing with respect to matching relevant queries and landing pages?

With Dynamic Search Ads we can see every search that triggers a dynamic ad, the headline generated, the landing page selected, and, of course, performance stats. The searches that we’ve seen targeted are absolutely relevant to the website content -- it’s the only place Google is able to generate its targeting information from. If the system is matching to any query that the advertiser does not care to be matched on to meet their performance goals, it is very easy to restrict that traffic by URL or Keyword level negatives.

Q. What kind of results are you seeing with Dynamic Search Ads across your clients? Which is it working best for?

We’ve seen Dynamic Search Ads incremental sales impact range from 0.5% to 12%, so it’s important to note that individual account results may vary. The product is compatible with our tracking and reporting systems which makes it easy to measure performance and do head-to-head comparisons with our existing keyword-based campaigns.

Dynamic Search Ads work best for advertisers that have an extensive product offering and well developed web pages for Google to index and match relevant content to.

Q. What do you focus on when optimizing Dynamic Search Ads?

Like other AdWords campaigns, proper campaign management and optimizations are a necessity. Just like broad match, the Dynamic Search Ads product is most successful with carefully selected negative keywords, pages and categories of the website that do not perform optimally, and/or are not goal-oriented. Also similar to broad match, advertisers should monitor queries that produce conversions, and add them back as keywords to other AdWords campaigns.

Q. To what degree do you think Dynamic Search Ads are cannibalizing organic search traffic?

We haven’t seen evidence of cannibalization. But we’ll continue to evaluate performance and, if needed, make adjustments.

Q. Would you recommend Dynamic Search Ads for novice-to-intermediate or intermediate-to-advanced advertisers?

RKG would recommend Dynamic Search Ads for intermediate-to-advanced advertisers. Because it necessitates ongoing management, and is best utilized as a complement to robust keyword campaigns, it’s not likely to be a good fit for novice advertisers. Additionally, as previously mentioned, the richer the site content, number of pages, and breadth of product offering, the more fruitful Dynamic Search Ads will be. Naturally, these characteristics lend themselves to more established and sophisticated campaigns and advertisers.

About RKG

Founded in 2003, RKG is a data-driven digital agency that combines savvy marketers with sophisticated technology to deliver unrivaled results for over 180 clients in paid search marketing, search engine optimization, multichannel attribution management, display advertising and comparison shopping management. Long recognized as the thought leader in search marketing, RKG clients range from start-ups to the Fortune-500, and include both B2C and B2B direct marketers in retail, travel, finance and education. RKG is an independent, privately held agency with offices in Charlottesville, VA, Bend, OR and Boston, MA.

Posted by Katie Miller, Inside AdWords crew

A look at how display builds brands for marketers today

Last week, we shared examples of how direct response marketers are driving strong results with display advertising. But you’ve heard it before -- beyond driving immediate clicks and conversions, display builds brands. And as digital budgets accelerate, for an increasingly growing number of brands, display advertising has become an important part of their strategy. In fact, in the recently conducted Advertiser Intelligence Reports study, by Advertiser Perceptions, advertisers are planning on spending more digital display dollars in the next 12 months for brand goals than direct response.1

So this week, we’re turning our attention to pioneering brands who used display advertising as a critical component in their overall marketing mix to connect with their audience, engage them emotionally, and as a result, drive meaningful results. Let’s take a closer look.

Animal Planet attracted 1.6MM viewers for the season premiere of River Monsters, putting it in the #1 spot among its target audience, by running an integrated video and rich media campaign across YouTube, AdMob, and the Google Display Network. (read case study)

Volvo drove an 88% lift in purchase intent for its new S60 sedan by leveraging the YouTube homepage and masthead unit, interactive video ads on AdMob, and standard IAB ads on the Google Display Network. (read case study)

Sealy reinvented its Posturepedic brand using YouTube promoted video ads and in-stream video ads, which drove 46% of its website traffic during the first week of the campaign. (read case study)

At OMMA Global this week, we shared a simple framework for brand building that we developed after analyzing the campaigns of our most successful brand advertisers. These “better practices” focus on three key areas: connecting with the right consumer at the right moment, delivering an engaging message, and measuring the metrics that matter.

Connecting with the right consumer at the right moment. As consumers continue to access the internet more frequently throughout the day, from a multitude of devices, it’s increasingly important for brand marketers to create device-inclusive, rather than device-specific, campaigns. And by targeting a combination of audience and contextual signals, it’s now easier than ever to reach the right person, at the right time, on the right device through the Google Display Network or DoubleClick AdExchange.

Engaging them emotionally. The best display ads don’t just leverage sight, sound, and motion, but also harness display’s interactive capabilities that drive deep engagement with a brand. Our research shows that rich media ads drive significantly better brand performance than standard Flash ads--1.7X for brand awareness, 2.7X in purchase intent, and 5X increase in brand favorability.2 We also see that newer ad formats, like mobile display and in-stream video, are even more effective at moving consumers down the brand funnel. Lastly, we’ve seen masthead ads on the YouTube homepage garner an 11% interaction rate and drive a 4X lift in engagement compared to standard ads.3

Measuring more robustly. Looking beyond simple clicks and conversions, brand marketers use Campaign Insights to measure increased awareness and interest through the lift in search queries and website visits. Paired with Google Analytics and Multi-Channel Funnels, advertisers can see a complete picture of the chain of online and offline media that drives brand engagement. And to close the loop, many of our brands match geo-targeted display campaigns to offline sales to measure the true impact of a display ad campaign.

More and more studies show that brand marketers who focus on these three levers see the the greatest return on their display ad investment. With display’s ability to connect more precisely with your target consumer, engage more emotionally with interactive messages, and measure robust metrics along all parts of the purchase funnel, it’s no wonder that display builds brands.

Watch this space.
google.com/watchthisspace

(1) Advertiser Intelligence Reports (AIR) study, Advertiser Perceptions, August 2011
(2) The Brand Value of Video and Rich Media Ads, DoubleClick, September 2011
(3) YouTube Homepage Impact Study, Compete, December 2010

Posted by Brian Zeug, National Sales Director, Display and Video

A look at how display drives performance for marketers today

(Cross-posted from the AdWords Agency Blog)

Few would argue that online display advertising is playing an increasingly important role in the marketing mix. While we frequently talk about how the vast majority of our top advertisers have run a Google display campaign in the last year while continuing to increase their investment, today we’re shining a light on some specific examples.

For each brand we’re highlighting today, display was an integral part of their broader marketing strategy. To make it work, they tapped into a robust display advertising toolbox and applied targeting, creative, measurement and optimization solutions that made the most sense for their campaign objective. Let’s take a look at the results.

Airbnb increased the number of nights booked from 800,000 to 2 million with help from remarketing on the Google Display Network and TrueView video ads on YouTube. (Read case study)

Groupon acquired millions of subscribers with the help of contextual targeting and auto-optimization on the Google Display Network. (Read case study)

ShoeDazzle got 45% of their conversions from the Google Display Network by applying a variety of targeting and optimization tools. (Read case study)

At the heart of each success lies a common theme: Great display advertising happens when smart strategies are applied in three key areas: Finding the right customer, showing them the perfect ad, and measuring and optimizing effectively.

Find the right customer. Reaching just the right audience is at the crux of any successful campaign. In fact, marketers are saying the biggest driver of increased display budgets is the availability of better targeting technologies. (1) From remarketing strategies that reach 84% of users on a typical list, to interest categories that show interested users your message while respecting user privacy, we’re constantly innovating to precisely connect your message with your audience. And just last month, we shared strategies for applying the right targeting mix to extract the most out of direct response campaigns on the GDN.

Show them the perfect ad. You can find the right audience, but what do you tell them? With display, marketers have a wide-open canvas to connect with consumers to drive the results they care about. And an effective ad can come in any format. In fact, many of the brands we’re highlighting today used Standard IAB display ad units but with compelling messaging and beautiful creative that really resonated with their audience.

Measure and optimize based on real-time insights. Advertisers have always benefited from transparency into exactly where ads run, their costs, and the right metrics to measure campaign performance, providing actionable insights to optimize their campaigns. Our recent investments in measurement and optimization take this further. Marketers can now see a complete picture of the chain of impressions and clicks that drives campaign performance with Multi-Channel Funnels. And applying Google’s 10 years of experience in developing optimization algorithms, we’ve launched tools like Display Campaign Optimizer, which can be used to do fully automated bidding and targeting to boost conversions and ROI.

So today, while we’re celebrating these successes, more than that, there is a valuable insight here. The display toolbox is a rich one. It’s the agencies and marketers who tap into that toolbox and apply it in ways that make sense for their campaigns, who will greatly benefit from display as a medium. So.. will your campaign be the next one we shine a light on?

Watch this space.

google.com/watchthisspace

(1) Effective Audience Targeting Leads To Bigger Display Budgets, eMarketer, May 2011

Posted by Emel Mutlu, Product Marketing Manager, Google Display, Client Communications

Rimm-Kaufman Group discusses their experience with Product Listing Ads

Recently we had a chance to catch up with Matthew Mierzejewski of Rimm-Kaufman Group (RKG) to discuss his experience managing Product Listing Ads for his clients.

Founded in 2003, RKG is a data-driven online marketing firm that specializes in paid search marketing, multichannel attribution management, and display advertising. RKG has 170 clients that range from start-ups to the Fortune 500 and that include both B2C and B2B direct marketers. In August of 2008, RKG was named to Inc. Magazine's list of the Top 500 Fastest-Growing Private Companies in America.

Matthew Mierzejewski, RKG’s VP of Client Services, has been working with Product Listing Ads for clients since they launched last year, and he’s offered to share some of his results and recommendations for other saavy marketers here:

Inside AdWords (IA): What initially drew your interest to Product Listing Ads?
Matthew Mierzejewski (MM): We have many retail clients who are looking for scalable ways to increase their presence in search. Because Google managed the targeting for Product Listing Ads, we wanted to see how much incremental traffic we could gather outside of our existing keyword-targeted campaigns. Also, the prominent ad listings with highly relevant product images are an extremely attractive ad space to play in.

IA: Was the implementation challenging?
MM: Most of our retail clients are already using Merchant Center to get free traffic in Google Product Search. For those clients, the basic CPC implementation was pretty simple. Furthermore, working with Google to implement some additional attributes was helpful and has allowed us to accurately track and improve our ROI.

IA: How much incremental traffic should an advertiser expect from Product Listing Ads?
MM: It varies a fair amount based on product category and bid level, but we see some clients getting up to 10% additional traffic from Product Listing Ads. These are clients who have already done a lot of work with their core keyword-targeted accounts, so it was great for them to have another tool available.

IA: How do the conversion rates for Product Listing Ads compare to keyword-target text ads in search?
MM: We've seen conversion rates up to 10% higher on Product Listing Ads compared to average text ad conversion rates. Taking it one step further and looking at queries that serve both a Product Listing Ad and a text ad to the same product-level landing page, we're seeing Product Listing Ads in some cases with a 30% higher conversion rate. With all other elements being held equal, we conclude that since the user is able to see the exact item of interest, price, and often a promotional message, they are more likely to convert per click in Product Listing Ads versus text ads.

IA: How do the costs for Product Listing Ads compare to keyword-targeted text ads in search?
MM: In general, where the data is significant and we're bidding effectively to ROI targets, we're bidding and paying up to 15% more on Product Listing Ads compared to text ads. Though, as I called out earlier, in many cases we're seeing a greater return on Product Listing Ads traffic, so we can afford to be slightly more aggressive [with our bids].

IA: How do results vary between clients who use cost-per-click (CPC) pricing versus those who use the cost-per-action (CPA) pricing?
MM: We don’t see much difference in terms of conversion rates between CPC and CPA pricing. Though, in general, clients who use CPC pricing have been able to get more volume than those who are using CPA pricing. We like the idea of CPA pricing, but if we optimize our CPC bids we’re able to meet our ROI goals just as easily. It’s all a matter of testing and optimizing.

IA: Who do Product Listing Ads work best for?
MM: Advertisers with products that already do well in natural product search are ideal, since they know that users are already searching for their products. In general, when a user’s query can closely match a specific product in your Merchant Center feed, you’ll do better. For example, canon eos 60d will do better than men's suit coat. Think of it as objective versus subjective user intent that a robot would have a hard time parsing out.

IA: What advanced tips do you have for an advertiser using Product Listing Ads?
MM: Advertisers should be using some combination of, if not all available, Merchant Center parameters available to them: adwords_grouping, adwords_labels, adwords_publish, and adwords_redirect. Those attributes should be used to set up granular product targets inside of AdWords. Segmenting those bids will ensure proper ROI goals can be met. Sometimes this means using multiple attributes together to get the best result.
Finally, you should consider utilizing promotional messages for various product targets. These can easily differentiate your ad from the competition and can lead to higher CTRs and CRs if you can afford the offers.

We’d like to thank Matthew and RKG for taking the time to talk to us about their experience with Product Listing Ads so far. To learn more, including how to get started and best practices, please visit our Help Center.

Posted by Dan Friedman, Inside AdWords crew