Finding Google AdWords Super Converter Keywords
Those keywords, which Stokes calls "super converters," surface when a combination of keyword phrases, ad copy, landing page and company's values align. They can produce "enormous profits" for the marketers who find them. They are nearly impossible to predict, but Stokes believes he has a method to increase the odds.
In the "Mastering Search Advertising" Webinar hosted by ROI Revolution, Stokes ran down four rules related to bid management that aims to improve results in Google AdWords campaigns. "For most people I don't recommend bid management software," Stokes said. "I do recommend a method to ballpark the right bid price for your low-volume niche keywords--those keywords that will produce the bulk of your sales."
Search ad agency aimClear President Marty Weintraub called Stokes' rules an "insightful expression" of industry-accepted best PPC practices, and confirmed that the "Tao" of the combination really does reveal super converters. "The approach also satisfies some quality score elements, especially the keyword/ad's propensity to generate click-throughs," he said. "Typically, we do multivariate testing on a grid of ad messages and landing pages to determine the best combination."
Stokes' rule of thumb is to take average conversion rates, times order size, and compare them to the cost-per-click at the bottom of the page. For instance, the conversion rate on a particular ad on a landing page is 5%, which means that 5% of the people coming through Google on this ad convert at an average order size of $40. Also, the cost-per-click at the bottom of the page is about 8 cents.
Stokes provided a formula to find the super converters: (Conversion rate average order size) > (10 CPC at Position 8); .01 x $40=$0.40; $0.40 < $.80; and 10x$.09=$.80.
"Once you find the keywords, jack them all the way to the first or second spot in the page," he said. "The chances are you have an opportunity to dominate one of those keywords."
Marketers are investing in Google AdWords campaigns. When asked during the Webinar to reveal the amount spent on Google AdWords campaigns in January, 27% said they didn't spend anything; 26%, between $250 and $1,000; 25%, more than $5,000; 11%, between $1,000 and $2,500; and 11%, between $2,500 and $5,000.
Dominating keywords also required three other rules. Rule No. 1, Stokes said: Bid on broad keywords that give you a place at the bottom of the first page of the search engine query results. This will let you pay the lowest price possible, but land the company on the first page, which is where 85% of all searches end. Only 15% of the time, people click through to the second page.
"You need to win the battle at the bottom of the page before you consider moving higher," Stokes said. "If you can't turn a profit there, you need to consider lowering your bid or dropping the keyword."
Rule No. 2: If marketers can make a profit at the bottom of the page, try raising bids to position No. 5 or No. 6, and measure the results again.
Rule No. 3: Look for super converters. In some cases, the combination of keyword phrases, ad copy, landing page and company's value proposition align to produce "enormous profits." The flipside is it's nearly impossible to predict them, but marketers can increase the chances of finding them by generating hundreds of targeted keyword phrases and matching ads.
And finally, Rule No. 4: Set your bid high enough to reach position No. 2 or No. 3.