Where Over-Simplified Bullshit About Paid Search Is Just Not Accepted

21 Secret Truths of High-Resolution PPC is our soon-to-be released ebook that shares what we think are the guiding principles for efficient and effective paid search management.

The idea for ‘High-Resolution PPC’ was hatched two or three years ago, as we looked deeper and deeper into how paid search really worked, and how large and complex paid search campaigns should be managed.

At the time we were managing accounts for a range of very large advertisers. Like anyone else we were striving to produce better results. But we were constantly frustrated by the limits of the data we could access, the inflexibility of the tools at our disposal, and the general level of transparency we felt the engines were providing into how the choices we made impacted the behavior and performance of our campaigns.

To address the first two issues, we accepted a venture capital investment, built an in-house product development team, and created ClickEquations. To address the last item, we began development of what was originally called ‘the methodology’.

The methodology was an effort to document the facts about how search worked and the process that one should follow to build and manage accounts. It started as a collection of ideas, beliefs, and habits we assumed were best practices. Over time we pulled back to look at the shape and sequence of the overall process, and dove in to examine individual elements, options, and interactions.

Eventually a framework emerged. Groups of items and options that fit together. Stages of the process that had natural breaks and measurable outcomes. The framework provided a structure around which all the steps, options, measurements, goals, interactions, and components of paid search management could be organized.

It got the name ‘High-Resolution PPC’ because one recurring theme of the exercise was the fact that everything we knew before was right, but far too over-simplified.

• Keywords mattered, but only in the way they attracted search queries, which had a lot to do with how and when match types were assigned.
• Bids mattered, but only due to their influence on ad rank which itself influenced CPC.
• CTR mattered, but it (and nearly everything else) was reported as an average and if you accepted the number without really thinking hard about how it was calculated you were likely to be misled. The examples continued endlessly.
• The list went on and one. Most of what we knew or thought was in fact true, but there was always a but. And if you know about the ‘but’ you would take different action than if you didn’t.

It seemed like the conventional wisdom was paid search at 300-dpi, but with a little effort and thought we could understand and act at 2400-dpi.

More accurate info. More precise actions. Better results. Higher resolution.

For the last 18-months or so we’ve continued to refine the High-Resolution PPC framework, and research and document the information on which it’s based. We’ve talked a bit about the process of managing paid search in this way (the original outline is presented here), and some of the posts on this blog over the past year have discussed elements of paid search in the terms we see and use them within High-Res.

But our new ebook is the first complete summary of what we’ve learned, at least in terms of the facts and philosophies we’ve come to consider the structural base of High-Resolution PPC.

To keep the book snappy, and a reasonable length, it’s written in a concise style – with just 1 page per item. Over the next month, this blog will feature a behind-the-scenes tour of the 21 truths, with expositions, examples, and with your help some conversations.

Sign up below to get your copy. And if you’ll be at SMX, SES, or OMMA in March, please visit the ClickEquations booth for a full color printed copy.

Get a free copy of ‘21 Secret Truths of High-Resolution PPC’.

The ebook will be available for download later this month.

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High-Resolution PPC is a new way to understand and manage paid search accounts. It was developed as an alternative to the obsolete or over-simplified information and methods that dominate paid search marketing today.

High-Resolution PPC is about clarity. It’s about removing the confusion surrounding how things work, which measurements matter, and what you should do to drive better paid search results.

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Since the dawn of time, paid search has been conceived of and managed based on four key components and common perceptions of their roles:

1. Keywords. Keywords define when your ads run. Choose keywords and phrases that people looking for your product or service would use.
2. Bids. Bids define how much you’re willing to pay when your ad appears for any particular keyword. Higher bids can help position your ads higher on the page and appear more frequently.
3. Text-Ads. Text-ads give you a headline and two lines of copy to attract and persuade searches to click and view your website.
4. Click/Conversion Reports. Basic reporting tells you how each keyword is doing, both individually and within campaigns, and ad-groups, in terms of clicks, conversion rates, and ROAS.

These four items remain important aspects of paid search today, but they’re not the most important variables, nor the best way to think about PPC.

We’re not operating in the same technical, competitive, or business environment as four or five years ago:

• In a world where changing definitions for match-type determine which queries cause your ads to run, worrying solely about keywords is inadequate.
• In a world where quality score has such a huge impact on where your ads run and how much you pay for them, worrying largely about bids is inadequate.
• In a world where a majority of your buyers visit your site multiple times before purchasing, text-ads remain important but must be considered in context of all user touchpoints.
• In a world where profitability is the real goal, then measuring intermediate metrics while ignoring the one that really matters – ROI – is illogical.

We’ve got a name for this old ‘keywords & bids’ view of the paid search world: ‘Low Resolution PPC’.

It was fine five or six years ago when the engines were simpler and the budgets smaller. It’s not fine anymore.

• Today you have to think about your user targeting based on the interaction of keywords, match types, and search queries.
• Today you have to think about your costs based on how quality scores and bids interact with match type keyword traps and negative keywords.
• Today you have to think about persuasion and conversion as a chain of events that starts with your text ad and continues through your landing page, your site, and the experience users have in your shopping cart.
• Today you have to think about analytics as a way to understand all of these variables and more.

It’s a high-def world, even in paid search marketing.

Introducing High Resolution PPC
But there’s more to High Resolution PPC than just a deeper consideration of the core mechanics of paid search.

We also want to shift the focus away from the mechanics of running paid ads and onto our relationship with the people to whom we’re advertising and how we manage that relationship.

We want to know who the people are conducting these searches, clarify why we want to talk to them, understand what will get their attention, and make sure to learn from our interactions with them so we can perform better in the future.

The Cornerstones of High Resolution PPC
In High Resolution PPC we manage our campaigns by using the options and controls in paid search to move clients through the marketing acquisition cycle.

Accordingly, we no longer think of search in terms of the four old cornerstones of paid search – keywords, bids, text ads, and operating reports – but instead in terms of the four stages of customer acquisition and management:

1. Target - To begin you define the focus of your efforts, using campaigns, ad-groups, and keywords to target specific groups of people who are asking the kinds of questions you want to answer with your paid search ads.
2. Value - Next you refine this focus within your target groups, using bids and match types and keyword negatives to properly value the different people who you want to attract to your website or landing pages.
3. Satisfy - With clearly targeted and properly valued searchers identified, the goal becomes delivering text ads, landing pages, and offers which satisfy user desires and advance them toward and through conversion.
4. Understand - Throughout this process we capture, analyze, and present meaningful and actionable information about each specific phase and the overall. Here you’ll apply improved reporting standards and metrics.

Each of these corresponds to specific tasks in the management of your paid search campaign, certain options that control your campaigns, and reports that provide metrics which guide the way or measure progress. (Watch future posts for details.)

Why the Change
The driving factor in moving to a High Resolution PPC approach is a desire for better returns on our investment of both time and money.

As with any other investment, we control risk by increasing the depth of our visibility and understanding, and then manipulating the options we have at our disposal.

With a High Resolution PPC approach, you regain control over your paid search campaigns, both in terms of having vastly better visibility into what is happening but also by understanding why specific results occur and how you can fix or improve them.

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