Columnist
Andreas Reiffen adapts his talk from SMX London 2017 into a handy
"how-to" for search marketers looking to improve ad performance
through testing.
PPC (pay per
click) is a key component of many online marketing campaigns. And while it can
drive significant revenue, it’s also one of the most expensive ongoing costs in
a campaign. Therefore, it’s key that you test your ads regularly, to make sure
you aren’t letting any conversions slip through the cracks.
Testing and
optimizing is an important part of our job as digital marketers. And I’m not
just talking about perfecting your ad copy.
At SMX
London earlier this year, I gave a talk on how we design and implement tests at
Crealytics for both Text and Shopping ads.
Carrying on
from that, this post will cover three methods you can use for successful
testing, two types of testing to help you take performance to the next level,
and five common pitfalls that testers often run into. I’ll also illustrate
these points with examples from our own internal testing efforts.
Deciding
which method to use
Designing a
good experiment is actually the most important step in getting actionable
results. Which testing method you use will depend on what data you have
available and what variables you are trying to test. In general, there are
three basic types of testing methods:
- Drafts and experiments
- Scheduled A/B tests
- Before/after tests
- Each of these methods comes with pluses and minuses.
Drafts and
experiments
Drafts and
experiments are the most diverse testing tools. This two-pronged testing method
lets you propose and test changes to your Search campaigns.
Drafts let
you create a mirror image of your campaign and then change the element(s) you
want to test. This lets you play around with what settings it’s possible to
change without messing up your current campaigns. Once you’ve created your
draft, you can turn it into an Experiment.
Experiments
help you measure your results to understand the impact of your changes before
you apply them to a campaign. Once you’ve completed your Draft setup, you
convert it to an Experiment and choose a percentage of your traffic to run the
test on, as well as a time frame.
Through this
method, you can test almost anything within your campaign. You can test
structural elements of your campaigns like Ads, landing pages or match types.
You can also test the influence of bidding variables like bid amounts,
modifiers (device, schedule, geo-targeting) and strategies (eCPC, Target CPA).
Finally, this method allows you to test changes within features in your
campaigns, such as Ad extensions or Audience lists.
Unfortunately,
drafts and experiments are currently only available in Text ads.
Example: A/B
test landing pages with drafts and experiments for conversion rate
In this
example, we want to know which of two landing pages gets the most conversions.
To set it
up, create a draft of your campaign, change the landing page URL and set it as
an experiment. For the analysis, keep
track of top line performance using the automatic scorecard displayed in the
experiment campaign.
In this
case, our new landing page didn’t perform as well as the old one.
Once the
experiment has run its course, make sure to take a deep dive into the data to
rule out any irregularities.
Manually-scheduled
A/B tests
There are
still some scenarios where you can use manually-scheduled A/B tests, in which
the tests are run alternately instead of simultaneously. These are especially
useful in the cases where drafts and experiments won’t work because it stops
your campaigns from potentially cannibalizing each other.
This kind of
testing works best for things like search terms where the query composition is
important, i.e., match type changes and negative changes. It also allows you to
test the structure, bidding and features of your Google Shopping campaigns.
Recommendation:
Use this scheduling to avoid cannibalization while still being independent of
seasonality
To use
manual A/B tests, create a duplicate of your campaign, change an element and
use the campaign settings to share hours justly between the two.
Example: How
fast do quality scores pick up after campaign transition?
To set it
up, duplicate the campaign and set a schedule to run it against the original
campaign. For your analysis, compare traffic and Quality Score levels. In this
example, we can see that Quality Scores pick up within a few days.
Before/after
tests
Before/after
tests are a versatile type of testing often used for feed components. In this
type of testing, it’s important that you have a good control group; that way
you will know how much of the performance uplift is due to seasonal or budget
changes and how much is due to your experiment.
Before/after
testing is best for things that are difficult or take a long time to change,
such as product titles, images and prices. In these tests, you are measuring
the relational change between your test and control groups. This is often the
only way to test variables in Google Shopping.
Example:
Does Google reward cheaper product prices with more impressions?
Here we want
to know if Google is more likely to show lower-priced products in Google
Shopping. To set it up, choose a product and increase its price from lowest to
highest among competitors. To analyze the results, compare traffic before and
after the change, using your control group as a baseline.
In this
case, a small 5 percent increase in price, had a huge negative effect on the
number of clicks. You can read more about our theory on Google’s low-price bias
here.
Google
Merchant Center experiments
Right now,
before/after tests are the only way for you to test how product information
(title, image, description) affects Google Shopping performance. However,
Google is beginning to test allowing for feed optimizations directly in the
Merchant Center interface. These tests include Phase 1 and Phase 2 in
comparison to the baseline.
However, the
idea is still in beta, and there isn’t much evidence around whether or not it
works. The biggest issue we’ve noticed with this method is that Google
randomizes the products that can be included in both the test and the control
group, meaning the suggestions aren’t based on the true uplift potential of the
account.
For more on
how we’ve tested Feed Titles in the past, check out this Search Engine Land
post.
A/B testing
tools
Calculating
whether or not the results of your test were statistically significant can be
tricky. Luckily, there are plenty of online A/B tools that can help. You upload
your data and then run statistics tests on your success metrics, which can
include clicks, conversions or impressions.
Optimizing
current accounts and performance
There are
two reasons you might conduct a test within your PPC campaign. The first is to
optimize the parameters within the Google sandbox to get better Google KPIs. In
this case, you are testing your ads to optimize performance directly. This is a
necessary step to make sure your account is performing at optimum level.
The second
is to help you understand what the black box does. In this case, you are
testing your understanding of how Google works. Knowing how Google does what it
does (or even exactly what it is doing) can help you inform and improve your
strategy and may allow you to gain an early advantage over your competition.
Optimization
example: Shopping campaign segmentation
A few years
ago, we theorized that splitting Shopping queries into generic and designer
campaigns would save advertising costs while maintaining revenue. Using
campaign priorities and negatives, we designed an AdWords structure that would
force Google to split traffic into a generic or designer campaign based on the
shopper’s query, for which we could then set different bids. We wanted to test
whether this campaign structure would be more effective than the regular
AdWords structure.
To test our
new campaign structure, we used a rotating A/B test. We duplicated the products
into a test campaign, applied the new structure and gave the designer campaign
a higher bid. Then we rotated by scheduling.
Turns out we
were right. Queries with higher conversion probability get more exposure,
overcompensating for the higher CPC.
What we
learned
- A/B testing campaign setups are possible.
- To keep results comparable, either keep cost or revenue stable.
- Don’t measure the uplift of the test campaign itself, only the overall change in relation to the control group, to eliminate outside influences like seasonality.
Black box
example: Bidding on products is like ‘Broad Match’
Another big
question we had when we started using Google Shopping was about how Google’s
bidding algorithm worked. Google was pretty tight-lipped when it came to what
was going on behind the scenes, but from our cursory observations, it seemed as
though higher bids led to a larger share of lower-converting traffic.
To test our
hypothesis, we increased bids on brand campaigns by 200 percent. As we
expected, our impressions skyrocketed, while our conversions remained stable.
Our results
indicated that after a certain amount, your traffic quality gets weaker as you
increase your bid — just like in broads. Essentially, you’re just paying more
for the same traffic, which makes overbidding in Shopping a real problem.
What we
learned
- Pure before/after tests need multiple sibling tests to validate the results; we tested several brands with the same results.
- Look beyond your hypothesis for additional insights — same traffic at a higher CPC was surprising.
- Always segment out queries, device, top vs other, search partners and audience vs. non-audience.
For more on
how we drew conclusions on Google’s bidding algorithm and how to structure your
campaigns, read this article.
Common
pitfalls
There are
lots of things that can bias the results of your tests, making them unusable.
Here are five pitfalls we’ve encountered and how to overcome them.
1.
Statistical significance
You should
only end a test when you have enough information for it to be statistically
significant. If you only run a test for two weeks, you might think something
has no effect, when really it just takes a while for the effect to kick in.
This is
especially true when working with Google. Their algorithm needs time to learn
and adjust to the changes you’ve made. Use the tools we talked about earlier to
help you evaluate if your data has relevance.
2. Don’t
aggregate
Don’t just
analyze the totals of any one metric. Instead, you want to measure changes on
the actual changed elements. In this example, if you look at the total
aggregated data, it looks as though changing the title actually hurt
impressions.
However,
when we look at all the data individually, we can see that in every case except
one, impressions increased by an average of 116 percent. In this case, one very
large outlier completely skewed our aggregated data.
3. Think
outside the box
Regardless
of what you ran your test to look for, you don’t have to limit your
observations to the original changed variable. There are plenty more insights
to be gained from other changes in your campaigns. For example, when we tested
Enhanced CPC (eCPC), we noticed that it increased conversions by 5 percent.
Then, upon further analysis, we noticed that eCPC helped lower the CPO of ads
on tablet.
4. Know your
surroundings
With any
experiment, it’s important to think about what other factors may have
influenced your results. The data alone doesn’t always tell the whole story.
For example,
when we first looked at testing images, sometimes the change produced better
results and sometimes it didn’t. Based solely on this data, we would have had
to rule our results inconclusive.
But, just to
be extra sure, we took a closer look at the testing environment. What we found
was that in cases where changing the image made it stand out from all the other
images, we saw uplift. However, if there was already a variety of image types
on the page, changing the product image had no effect.
5. Look out
for cannibalization
This is
another form of understanding your surroundings when running a test. Sometimes
a product’s increased performance means that it is diverting traffic away from
some of your other products.
For example,
when we increased the bids on one of our customer’s products, we saw a
significant increase in impressions. However, it turned out when we looked at
the total account performance, the product with the increased bid was
cannibalizing other products by taking away the impressions they usually saw.
Based on
that information, we were able to conclude that the actual incremental
improvement was much lower than initially observed.
Takeaways
Testing is
an essential part of any good PPC strategy because it allows you to gain a
significant advantage and can lead you to some major campaign improvements.
However, you
can’t just wade in and start changing things willy-nilly. Accurate testing
requires a detail-oriented approach and a lot of planning.
Here are the
four things you should have before attempting any significant tests:
PPC
experience. In order to derive smart hypotheses and come up with intelligent
testing methods that take into account external factors, a significant amount
of PPC experience is invaluable. Experience also helps when analyzing the data
for insights, since you’ll have a good idea of what to look out for in terms of
extra insights and variables that may affect your results.
Loads of
data. Some experience with data science or at least data warehousing will
definitely be beneficial. Before you begin any tests, make sure you have a way
to store, clean and analyze the data you collect.
Source: - http://searchengineland.com/test-perfect-nearly-everything-ppc-276587
A knack for
numbers. Liking data, numbers and analytics will make wading through all that
data you collected a lot more pleasurable.
The big
picture. Data miners and scientists aren’t everything. You need to make sure
someone in your testing team understands the bigger picture. This high-level
thought process enables you to pull back and ask why something might be
happening, which is often even more important than the observation that it is
happening.
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