1. Search Marketing Experts Since 1995 Anton E. Konikoff Acronym Media December 4, 2006

2. Search Marketing Experts Since 1995 Another job interview at Acronym.. Anton: Why do you think ad testing is important? Candidate: Mmm.. So that you can increase the click through rate….?

3. Search Marketing Experts Since 1995 Why Engage in Ad Testing? Get quantifiable insights in a controlled environment Understand messaging effectiveness Identify the most attractive product offerings/benefits Create the optimal search campaign that maximizes ROAS/ROI

4. Search Marketing Experts Since 1995 More Compelling Image?

5. Search Marketing Experts Since 1995 Responder Set

6. Search Marketing Experts Since 1995 Clear Winner! 39.3%58.1%

7. Search Marketing Experts Since 1995 Search Provides a Perfect Platform for Testing Google democratized the concept –Everyone feels like a research pro –Need for careful experiment design Keeping it simple (for now) –CTR and conversion rates –Memorability, brand perception by demo next? Direct Marketers’R’Us –No assumptions; let customer voice be heard

8. Search Marketing Experts Since 1995 Fundamentals of Ad Testing – Where Can You Test? Google/MSN – Allows for a controlled environment with Ad Rotation Ad Rotation – Ability to rotate multiple creatives for a group of similar keywords. Google automatically delivers the ad with the higher Click-through Rate (CTR) more frequently. –Turn this option off when doing ad testing to ensure equal delivery of ad variations

9. Search Marketing Experts Since 1995 Ad Testing on Google

10. Search Marketing Experts Since 1995 Fundamentals of Ad Testing - Where Can You Test? Yahoo & Other Engines- Ad rotation is currently not available in Yahoo! and Tier II engines –These engines have a 1:1 keyword-ad copy relationship –Ad tests for Yahoo! and other engines can be conducted by rotating in different ads at different times Example: For 2 weeks, use ad copy A. For the next two weeks, use ad copy B, and so on Changing with Yahoo Panama release

11. Search Marketing Experts Since 1995 Fundamentals: Key Metrics Click-Through Rate (CTR) –How attractive is your ad or offering –Which messaging is more effective at driving traffic –A high CTR allows ads to maintain the same position with lower bids due to increased Quality Score Conversion Rate By Ad –Ultimate measure of success! –Capability to track both on a keyword and ad creative level through Google Value Track and similar systems

12. Search Marketing Experts Since 1995 Effective Ad Testing Strategies

13. Search Marketing Experts Since 1995 Ad Testing Setup How Much to Test? Small budgets: 3-4 ads Larger budgets: 5+ ads Allow enough time and spend Data sample size How much data should be collected before evaluating ad copies? At least 100 clicks, ideally at least 1,000 clicks

14. Search Marketing Experts Since 1995 Tactics For Title Lines/Display URL Title Lines –Leverage your titles lines to closely match the keywords in your ad group Display URLs –Use display URL to test additional messaging: Paltalk.com/FreeTrial” vs. “Paltalk.com” as display URL

15. Search Marketing Experts Since 1995 Description Lines Keep your title line consistent to test descriptions, then test titles Create a variety of description lines using a themed approach: –Price Points “All Time Low Price!” –Official Site“Visit Official Site” –Time Sensitive/Urgency “Buy Now!” “Apply by 12/6” –Promotional Offers“Save 50% With Coupon!” –Language Variations“Join Now” Vs. “Signup Now”

16. Search Marketing Experts Since 1995 Award-Winning Unique Tested three themes of ad copy across all ad groups Discovered that the “Award-Winning” theme had the highest CTR with a 11.72% and highest conversion rates Klutz Toys – Themed Copy Testing How-to

17. Search Marketing Experts Since 1995 More Granular Ad Testing Punctuation ‘Try Free Today!’ vs ‘Try Free Today.’ Capitalization Sirius.com vs SIRIUS.com in display URL Proper Case vs. Sentence Case ‘Get Free Trial Now. Vs.. ‘Get free trial now.’ Accent Usage vs. Non-Accent Usage Useful in foreign language campaigns Keyword Insertion vs. Non-Keyword Insertion Using Keyword Insertion in titles will almost always increase CTR, but not necessarily improve the conversion rate

18. Search Marketing Experts Since 1995 Sirius Radio Case Study $30 rebate OR Low Subscription Fee of $9.99/month Test Period: 1 Month $30 OffOne Free Month PPC Referrals27,85628,412 Click-Through Rate4.5%3.5% Conversion Rate By Ad 3.5% 1.5% $30 Rebate Free Trial

19. Search Marketing Experts Since 1995 Ad Testing: Path to Success Start with the most straightforward test Try multiple (and radical) hypotheses Keep up a testing regimen TEST TEST TEST, then INVEST Set aside a budget for testing Reserve multivariate testing for Stage 7

20. Search Marketing Experts Since 1995 Be curious. Don’t settle. Always Be Testing. “What we have to do is to be forever curiously testing new opinions and courting new impressions.” Walter Pater English Writer and Critic, 1873

21. Search Marketing Experts Since 1995 Contact Information Questions? (or for a visit to the top of the Empire State Building): Anton Konikoff Acronym Media anton@acronym.com www.acronym.com