How I Optimize My PPC Campaigns
As many of you know, I am a 16 year old affiliate marketer. A lot of people are more interested in talking to me about my age or how much money I make– than the techniques I use to do it. It’s true that I usually make a six figure net (not gross) income each month, primarily through PPC. But were I someone else wanting to get their start in affiliate marketing, I’d be more interested in learning something, than talking about things you’d typically find in the gossip magazines. So this guest post goes into some of what I do. You’ll perhaps be amazed that there are no “secrets”. It’s not because I’m not telling you— rather, it’s a ton of hard work and a little bit of luck. It’s amazing how “lucky” you get when you work hard. Don’t believe the “get rich quick” scams that would have you believe a single piece of magic software or a single technique to find the right keywords is all you really need. I hope you find this post helpful– ping me at harrison@gevirtzmedia.com with comments and don’t forget to check out my social ad network and small business advertising service.
KEYWORDS
When initially setting up your campaigns, DO NOT go to some keyword tool and dump in a gazillion keywords into your adgroups and campaigns– unless you want to boast about how many terms are in your keyword portfolio. The majority of these terms, scored by whatever techniques are going to be junky and low volume– and the engines will penalize you for it. Rather, what I do is hand pick just a few terms per ad group and then borrow ads from competitors that are already bidding on those terms. Sounds simplistic? Well, it is– but it works. Make sure you group your keywords tightly, so they all reflect the same user intent. The engines will choose one of the ads from that ad group to show, so make sure that each keyword is just as relevant for the ad you show.
MONITORING AND OPTIMIZATION
This is probably where most people fall down, because they try to get really fancy and end up spending lots of time optimizing garbage— spending their time in the wrong places. What I do is let a campaign run for a day or two (less if there’s lots of volume) and then look at which terms are driving the most volume— sorting first by clicks descending in AdWords Editor. By the way, if you aren’t using AdWords Editor and are trying to optimize via the web interface, you are handicapped right there because you can’t make bulk changes and do “Excel-like” things like sorting, find/replace, and copying. So I spend just a few minutes looking at what keywords are driving the most clicks and see what the conversions are looking like. The question I get all the time is “How much data do you need to make a decision?” Depends on what the offer payout is. If it’s dating and you’re getting $3, then maybe you’d spend up to $6 on that keyword/ad group to determine whether it’s worth continuing. Or maybe it’s a small biz credit card offer that pays out $150— you’d be willing to spend a lot more. There is a statistical significance formula for calculating sample size that’s based on your expected conversion rate, confidence interval, and threshold for detection– but you don’t need that level of precision here. At this point, you’re trying to get a rough idea of what’s working, not fine tuning. And because your ad groups are focused tightly, you can make decisions on performance based on the overall ad group performance, instead of by keyword.
So if that ad group looks like it’s working, then starting spinning off other variants– add those keywords on other match types (assuming there is volume to justify it), come up another ad or two, maybe even bid a little higher. If it’s not working (based on my rule of spending twice the CPA amount), then you need to ruthlessly cut it. And if you’ve run a campaign for a few weeks and there are keywords that have no impressions or clicks— cut them. Don’t be afraid to prune. Same with cutting ads– look at both CTR and conversion rate. The search engines are deciding which ads to show based on what’s making THEM more money– which is based on eCPM. All else equal, Google’s optimization will choose ads that have the highest CTR, even though there is usually a corresponding trade-off in conversion rate. So when testing campaigns, choose the campaign setting to have ads rotate equally– don’t let Google choose. Finding the right balance between making Google money (to get more volume with high CTR) and maximizing your margin is hard. There is a clear trade-off between volume and price— as you have to bid up (or favor higher CTR ads) to get more clicks. Would you like to have 100 clicks a day that net you 20 cents of profit each or 500 clicks a day at 5 cents profit? I’m taking my first semester of Economics right now, and the teacher tells me that trade-off is elasticity– a measure of how much you need to pay proportionately compared to proportionately how much more volume you can get. Your profit is how many clicks you get times how much you net per click– it’s an inverse relationship, unless you are bidding on tail terms or perhaps certain branded traffic.
You’ll also want to look at your analytics data to get a sense of quality– don’t be just a PPC tool jockey. Check out your landing page bounce rate per keyword. You’ll find that some terms will have a 60%+ bounce rate and should therefore either be cut– or you have to change your landing page. A bounce rate is what percentage of folks bail on your landing page. Most affiliates choose to look only at conversion rate, but bounce rate is a great intermediate metric, since you get a lot more data earlier than having to wait for a conversion. We use our in-house analytics system, by the way, because we don’t want to give the engines our data. For many of our clients, however, we just install Google Analytics, since it’s easy, cheap (free), and has a beautiful UI. Anyway, the bounce rate is usually a good indicator of eventual conversion– after all, if they leave, they didn’t exactly have a chance to convert. So that will save you some money. If you’re sending people to your own site, you’ll also want to look at keywords that drive organic traffic. Provided you are not a one-page wonder and have a real site with information, then you’ll probably find a fair number of terms that people are coming in on— put those into your PPC campaign. And for terms that have worked well in PPC— start making pages on your site, so you can start ranking for them. I don’t look at things like KEI, LSI, or another TLA (three letter acronym). I rarely even use the Google Adwords API– but do in cases where there is enough volume to make it worth putting automated bid management in place. You do get dinged on using the API, for those who don’t know, so AdWords Editor is a more effective prototyping tool. Once you have something stable, then you can consider scaling it to the moon and using the API.
CREATIVES (ADS and LANDING PAGES)
Affiliates are notorious for copying each other– because if it’s working for someone else, then I ought to do it, too. Plus, it’s the lazy man’s approach. I admit that I do, it, too— since it’s a great starting point. But don’t just be a PPC tool jockey and think that this approach will bring you massive success. You gotta consider for a moment– if I’m doing what everyone else is doing, what kind of results can I realistically expect? It does frustrate me when other affiliates copy my ads— what am I going to do, tell them to stop or sue them? Guys, you know who you are. So come up with a clever twist for your ads and landing pages. That slight increase in conversion rate or CTR can allow you to make significant profits even if your PPC campaigns are no better than everyone elses. I highly recommend Tim Armstrong’s book on landing page optimization (insert amazon link– with affiliate code if you like). And promote related products on your landing pages— you already got them there, so might as well increase your chances of converting on something.
SILLY THINGS THAT I SEE PEOPLE DO
ROUNDING IT UP
There is much more we can talk about here— maybe I should write a book? The main point I wanted to get across is that my wins in affiliate marketing (I’m still young, so who knows where this will go) have come from being a cross-functional player. I understand a little bit about PPC, analytics, SEO, landing page development, relationship building (to get the best offers and payouts), and creative writing. With a limited reliance on tools and no formal education, I’ve been able to do reasonably well so far by coming up with new strategies at the intersections of these areas– for example, monitoring my natural and paid rankings together for keywords or using analytics to data drive PPC bids. In the last year, I’ve branched out beyond pure affiliate marketing and started doing lead gen for Fortune 500 companies, as well as a semi-automated solution for small business advertising (blitzlocal). Our team has developed some internal tools in the process, such as a kick-ass ad server and some PPC/SEO/analytics tools. We’ll be publicly releasing these tools in trimmed down versions soon. Meanwhile, I hope this was informative for you. Check out my blog for more articles.
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Thanks mate for sharing with us your ways.
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Online Dividends Reply:
August 31st, 2008 at 1:06 pm
Thanks for sharing your tricks with us. I am looking into affiliate marketing myself so hopefully I will be as succesfull as you are!
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Blain Reinkensmeyer Reply:
August 31st, 2008 at 10:18 pm
Agreed, I am a total n00b when it comes to Adwords but no new comer to affiliate marketing… could be a great combination for my site, thanks!
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harrison Reply:
September 20th, 2008 at 6:56 am
Let me know how it goes.
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harrison Reply:
September 20th, 2008 at 6:21 am
Rishabh,
I checked out your blog— you should definitely put up some stuff there! It’s still got the default filler text. I wanted to know more about you!
H
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Hot post bud!
Great advice on all concepts, especially keeping bounce rate in mind, and not being afraid to clean the crap out of your account. People often take paid search too lightly, opting for the concept that it is a setup and let it run kind of biz, not so. Keep making that bread, and when you turn 21 you can take me out for your birthday
Dave
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harrison Reply:
September 20th, 2008 at 6:25 am
Dave– why wait until I’m 21 to meet? I’m going to AdTech London tomorrow and will be speaking at SMX Singapore, plus going to have a booth at AdTech NY. You going to any of these?
You can drink beer– I’ll drink ginger ale.
H
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I f*cked up some of the html there, whoops
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web hosting rebates Reply:
August 31st, 2008 at 1:47 pm
it looks great now!
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Webmaster Forums Reply:
August 31st, 2008 at 4:25 pm
I didnt notice.. Unless you fixed it already.
But you sure do write big paragraphs!
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More than some html. Now he’s gonna kill you.
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TylerC Reply:
August 31st, 2008 at 11:00 pm
lol! 23.649 second load time (YSlow) even on the cached page…. WTF?
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Le Melon Reply:
September 1st, 2008 at 8:17 pm
What exactly did he do to cause that? Do you know by any chance?
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Post is a bit jumbled but I got the gist of it. great info.
Never knew about AdWords Editor, gonna start using it now. Thanks.
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SEO Loser Reply:
September 4th, 2008 at 5:45 pm
… i hope this is a joke
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Hy Jeremy,
why are some parts of your post being repeated several times? Its a bit confusing. Purpose or problems with your blog?
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JumboCasher.com Reply:
August 31st, 2008 at 1:30 pm
Could be the wp upgrade causing this…
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Goran Website Reply:
August 31st, 2008 at 4:10 pm
And there is no link to Tim Armstrong book on landing page optimisation.
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Great tips. Incredible success.
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Nice Harrison, haha you definitely should write a book … maybe in the future…because many would read it.
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Thanks for the tips, and the very informative article.
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dude, why not just be a kid while you can? Play video games, chase girls, have fun. your going to miss the best part of your life working on this crap.
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Yebot Reply:
August 31st, 2008 at 5:18 pm
When you make mad loot, you don’t to chase girls. They come to you.
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jack Reply:
September 9th, 2008 at 5:18 am
Amen to that
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TylerC Reply:
August 31st, 2008 at 11:04 pm
Fu©k that, be like me and cop an SL600 for your senior year of highschool. Who would have thought that cheerleaders would be paper chasers???
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Nice post Harrison, you write well and its good to see you’re not letting others put in you in a box because you’re younger than most.
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harrison Reply:
September 20th, 2008 at 6:29 am
Luke,
You have a great blog! Congrats on taking the leap from Ogilvy to do your own thing. How have you found it?
H
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informative article but pretty hard to follow
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JumboCasher.com Reply:
August 31st, 2008 at 1:33 pm
Success is always a little harder than the rest ;)… What Say?
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Some great tips but the article really needs some formatting.
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Sure jeremy will tidy things up in time.
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Thanks for sharing. Good info.
Tim
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Harrison,
Great post! Lots of great tips. But Something I am confused about is, how does a 16 year old legally sign up for an affiliate program? All of the ones that I have belonged to and seen require that the affiliate be 18.
Joe
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Le Melon Reply:
August 31st, 2008 at 1:29 pm
I think he probably:
Says he’s 18; gets parental consent or asks the networks for special treatment.
#1 and #2 are pretty easy options
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Jeremy, indeed a wonderful and in a very long time. Thanks for all the tips!
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Pretty good accomplishments you have so far, especially that amount of income at your age…congrats…keep up the good work and best of luck.
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Thanks for some great tips, especially on the landing pages. I will have to look at some of mine and see how I can make them convert better.
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JumboCasher.com Reply:
September 1st, 2008 at 1:13 pm
Yes indeed the landing pages work would be great
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It takes application and hard work to execute effectively, but you have done it. ‘Post Preview’ is my tip 2 u
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Very awesome post! This is definitely getting bookmarked.
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Goran Website Reply:
August 31st, 2008 at 4:13 pm
And Printed and distributed in the office and put into the learning file
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Hello, GREAT ARTICLE! Do you have any examples of your landing pages?
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meethere Reply:
August 31st, 2008 at 10:06 pm
I also want to see some landing page examples..
How to implement affiliate link in landing page forms ?
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JumboCasher.com Reply:
September 1st, 2008 at 1:14 pm
yup examples would be an added bonus!
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Some good advice, will read again and again to help me remember
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Great tips. I just DL’d Adwords Editor last week and am going to start experimenting with it.
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JumboCasher.com Reply:
September 1st, 2008 at 1:14 pm
care to share the results!
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Wow 16 and already 6 fig gross? Very nice. Thanks for the tips bud.
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You guys, replyers, doing or selling ‘how to make money’ are all sheep - no pun intended.
you don’t see the picture
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Thanks for the inspiring testimony, Harrison! You showed that with knowledge and consistent effort, success is attainable to anyone in this field.
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Goran Website Reply:
August 31st, 2008 at 4:14 pm
I agree, its a motivation for all of us that are doing PPC. I know that I get carried away and some of what you have said will make me think a bit different with the next campaign.
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Hey there Harrison. I know you know your stuff…so I think this is a typo?
“CTR is important in search, but not in content.”
CTR is probably MOST important in content network…
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JumboCasher.com Reply:
September 1st, 2008 at 1:15 pm
is’int cpa taking over ctr ratios?
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Thanks for your professional advice. It was a nice and insightful read.
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great post..
Thanks.
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I love this kind of topic. I need a lot of infos in my life… Thanks for this!
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Great post, but this stuff still seems to be going over my head. I just don’t understand the overall concept and no matter how hard I try to find info on google its always just someone trying to sell me something… Anyone have any good resources that go more in depth on PPC marketing since I am not even really sure how that even works!? Any help would be appreciated
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Dick Reply:
September 1st, 2008 at 5:54 am
Knowledge is weapon and money. I think that would be really difficult to get valuable information from people.
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Paul Piotrowski Reply:
September 4th, 2008 at 1:36 am
I know what you mean Reid. All this stuff was over my head just a short while ago, but I’ve started playing with PPC affiliate marketing now and it all starts to make sense. It’s hard to learn it if you’re not doing it.
Stop by my blog if you want, you might find some info there more targeting beginners since I’m just learning the ropes.
-Paul
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Looking forward to changing my campaigns up a bit based on some of your suggestions. Thanks for the tips.
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yes great
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Great post Harrison I look forward to getting more into PPC very soon, these methods will def help!
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harrison Reply:
September 20th, 2008 at 6:33 am
Dustin,
Let me know how it goes!
H
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really thanks for ur tips mate
hoping that myself too will catch up that 6 figure sum someday
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From my experience, those who brag about the amount of money they’re making aren’t really making it.
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harrison Reply:
September 20th, 2008 at 6:33 am
must be true then.
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Very nice, you have some simple but good suggestions. Would love to see more posts from you.
Thanks.
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Its great to read about what other people do. Keeping away from the keyword research initially and then keeping an eye of the conversions and bounce rate and making campaigns around those that perform all makes sense. Thanks for the great post.
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Great post Harrison.
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Harrison,
Informative post— you should talk about other areas in your next article– such as monetizing Facebook traffic, how you organize your time, why you are interested in small biz marketing and how you’re different.
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wow i learned a lot with this post! hope to get more tips from you…
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harrison Reply:
September 20th, 2008 at 6:34 am
Melvin,
Have you checked out CPAshare.com, my blog?
I’ve posted a bunch of new stuff.
H
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Great overall approach to PPC management. Obviously it would have been nice to have had a few more details divulged, but totally understandable and it’s very charitable you shared what you did. Thanks for the tips!
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Great post. Looking forward to hearing more.
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When I was 16 I had to worry about gas money and how to dig up enough scratch for a new skateboard. This kid is insanely smart and loaded. He shouldn’t have any problem getting together some gas money.
Great article though. I’d love to understand everything he’s talking about but, oh well. I’ll just have to keep learning. Keep up the good work young blood.
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Dick Reply:
September 1st, 2008 at 5:49 am
“Young blood” is the cheapest tool in the world. -(((
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JumboCasher.com Reply:
September 1st, 2008 at 1:15 pm
and the most precious one too…
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Wish I had accomplished as much at 16! Thanks for sharing your knowledge.
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MoneyM8 Reply:
September 1st, 2008 at 4:24 pm
Me too…When I was 16 I was only making $6.00 an hour.
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Affiliate marketing is all about optimization. Great article!
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Basic - but still great tips. Now what I really want to know HOW do you track sales? How do you know which keyword made sales for you. I figure there are some kind of software that do it.
I know it’s easy to do when you’re a publisher because you can add a piece of code that will track the purchases/keywords - but what if you’re an affiliate?
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AWESOME POST!! Dude how about writing copy that’s similar to the copy on women’s magazine covers…that’s one of my favorites
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Apparently proof reading copy isn’t one of your tips:
“insert amazon link– with affiliate code if you like”
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Some good info and definitely shows you know what you are talking about. Thanks for sharing!
As far as the age thing, I think it’s just as annoying as people getting special attention just because of their age which is probably somewhat like being the one getting the attention for how old they are and not what they have done or can do. I think the only thing that I would wonder myself, because of your age, is how you got started when it came to paying for campaigns and building up your “bankroll”. Did you start with other peoples credit cards or just debit cards or maybe co-signed cards? Kind of silly to only wonder how you funded your accounts I guess lol but just curious.
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Very good tips!
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Very good tips, I’ll try to follow some if your advices to see how it will perform for me!
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harrison Reply:
September 20th, 2008 at 6:35 am
Zak,
How have your tests fared?
H
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Great post, informative and inspirational
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As everyone else has said - amazing advice. I’ll be sure to keep an eye on your blog for further info in the future!
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Those are some great tips
I recently started PPC campaigns and I am losing.. but its start though..
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Did you mean to say the landing page optimization book was written by Tim Ash? Because I don’t see anything about landing page optimization written by a Tim Armstrong…
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harrison Reply:
September 20th, 2008 at 6:37 am
Chris,
You’re right– Freudian slip. Tim Armstrong is the Google advertising guy!
H
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lol, when this kid posts the comment feature turns into crack!
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Jeremy, Amazing story. The web is so democratic, anyone has the same opportunities. The real deal from a real great Affiliate Marketer. So if I’m so smart, why aren’t I rich? It’s because i’ve been fumbling around, without a real business plan, focused with daily weekly and monthly goals.
Jonathan Volk just posted about this subject, and he’s been frustrated that he cannot break over the $170,000.00 per month mark! I have yet to break over the $1.00 a day threshold, let alone 169,000 times more than that! This guy actually gets it, The Way To Success. Respectfully, Nicholas
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harrison Reply:
September 20th, 2008 at 6:38 am
Nicholas,
Have you made it over a dollar a day? What are you working on?
H
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Thanks for getting my head on straight about the up side of the PPC Campaigns.
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Thanks Harrison for the encouragement to get out of my shell and try it.
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I envy your achievement at such young age. It gives me inspiration to try even harder now to make money online.
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Thanks for sharing these good tips and tricks to follow.
ot: I can see a Macbook in the background of this post. Does anybody else?
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Excellent post! You’re a whiz-kid!
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$$$$$$$$$$ moneyyyyy $$$$$$$ please do not frighten’m not a virus. ; )
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Dick Reply:
September 2nd, 2008 at 7:19 am
To make money, you need to think well. -)
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Smart Kid great tips!
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Some really inspiring advice. I’m just starting out. Being nearly 10 years your elder, it gives me the confidence that people can break the mould and achieve success what ever your situation.
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Hey, those tips are great Harrison - and congratz on the 6 figures a month
I’m still trying to get there (1 more year till i’m 16)
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harrison Reply:
September 20th, 2008 at 6:42 am
You should only include one link to bloggerlee.com per post— doing so multiple times won’t increase your search rankings, according to a study by Rand.
H
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Thanks man there is some great substance in this post.
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This is a good article. I think it is worth quoting. I learned a lot of new things.
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Goran Website Reply:
September 1st, 2008 at 2:23 pm
Me too, especially that any one can be successful online from home or work.
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mega-post - thx!
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Interesting post - nice to see someone putting up useful info that will help others improve their sites.
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thank you for your advice.i really needed.
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I am tired of this kids mentioning their ages, it always mean: look at me I am successful and I am only 16 years of age. So what, it has nothing to do with years it is only hard work and little luck.
If you are 16, go out, play a ball, find a girlfriend, go get drunk with you buddies you have a long life to make something of your life. You will grow up quickly and you will will be sorry later.
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TYCP Entertainment Magazine Reply:
September 2nd, 2008 at 11:24 pm
And that’s the thing. Unless they are truly psychic, no one knows how long they have in life. No one is guaranteed tomorrow, so I see absolutely nothing wrong with starting this sort of thing early.
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And the novice asks, what is PPC? and how exactly does affiliate marketing work?
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Nothing new here, what a waste of a post…
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Great post, not just for affiliates, but ‘offline’ businesses too - I learned a lot. Thanks.
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Another inspiration :]
I am going to start PPC campaign!
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Very well written Harrison. I am glad you emphasized fundamentals, math and hard work. All three of these make good friends. You are a brilliant guy, and obviously have paid your dues.
dk
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harrison Reply:
September 20th, 2008 at 6:44 am
DK,
Thanks for the kind words! Hope to see you at Elite Retreat again, if not sooner! That Thai dinner place rocked— and so did those Chipotle gift cards (player cards)! Got any more?
H
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PPC 2 Profit, that’s a founding knowledge!
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That is very helpful information and we will use this suggestion to for PPC
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great post… I never touch PPC, but am sorely tempted after this post. Probably the best guest post ever on shoemoney.
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Thanks Harrison, enjoyed your post and found it very inspiring.
I note you mentioned using your own in-house analytics system? can you or anyone else here, recommend a good alternative to G’s analytics? (for the purpose of keeping the stats data out of G’s hands).
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harrison Reply:
September 20th, 2008 at 6:46 am
Big Bear,
I’ve used ClickTracks to great success– that was over a year ago, however, and not sure what has happened since John Marshall sold it. If you have enough need and money, I could perhaps license what I have to you– haven’t really considered it before.
H
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I’m sure this is an interesting post but it’s WAY too long to actually read.
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Good Read
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Great Article. Its great to see someone only 16 doing so well.
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Harrison is a great guy and a really good affiliate marketer, thrilled you put this on here
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“Rather, what I do is hand pick just a few terms per ad group and then borrow ads from competitors that are already bidding on those terms.”
Harrison could you expand on this a little, I don’t totally understand what you mena here?
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harrison Reply:
September 20th, 2008 at 6:47 am
Hi Eddie,
In other words, don’t just dump 2,000 random keywords into an ad group. Choose a few of them– pretend you are a contestant on Family Feud. Iterate by actually searching on those terms– it will give you ideas for more, plus negative keywords you might not have considered.
H
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Cool article - So right about being an allrounder - and developing internal apps when you know you need better data or a more automated function.
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As a non programmer, I hope I can gleam enuf info from this post to begin a bit of PPC myself. So far I am always the content rich publisher and that is all.
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Great post Harrison
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Its great to see someone only 16 doing so well.
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harrison Reply:
September 20th, 2008 at 6:48 am
thank you!
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I foresee an audit in your future. Enjoy the week!
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