Adwords Campaign Final Paper

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Pre-Campaign Strategy – Parsippany’s Best Pizza Client Overview Client Profile: Parsippany’s Best Pizza is a family-owned and operated pizzeria and restaurant focused on bringing high quality pizza, authentic Italian-style entrees, delicious pasta dishes, and a wide range of sandwiches and appetizers to the Parsippany, New Jersey area as well as Lake Hiawatha, Pine Brook, Montville, Whippany, Mountain Lakes, and Denville. The business opened in January 2014 and is comprised of five owners, and currently has approximately fifteen employees. The business maintains an online presence through Facebook, Twitter, and their website (www.parsippanypizza.com). As of September 2014, all online interaction and maintenance has been done by Frank Massanova. These include posting pictures of product, status updates on social media, interacting with users through posts and messages, and fixing and maintaining the website using www.wix.com. As of now, all of the business’s sales have come through over-thephone or in-person ordering. The business has no plans to offer online menu ordering in the foreseeable future. Besides occasional social media ads, the business does not advertise on the internet and does not have plans to do so. Market Analysis: Parsippany’s Best Pizza’s current customers include people through Parsippany and the aforementioned towns above. These customers include residents living in the area as well as travelers passing by from highways such as Route 80, Interstate 287, and Route 46. With a large percentage of customers coming from Parsippany and Lake Hiawatha, potential customers include more people from surrounding areas. Current competitors include other pizzerias in the area, most who have been there for a longer period of time. These include Anthony & Franco’s Pizzeria, Baldwin Pizza, Anabella’s Pizza, Marco’s Pizzeria, and Domino’s Pizza. All of these pizzerias offer similar products at a competitive price. Other potential competitors could include newer pizzerias opening in the area. The pizzeria industry in the Parsippany area is nothing out of the ordinary. According to the customer base, not many pizzerias in the area do particularly better business than one another. Although there is a high density of pizzerias in the area offering similar products and services, Parsippany’s Best Pizza prides itself on its high quality ingredients and products, decades of experience in the pizza industry, their service to customers, and attention to detail when pitching themselves to customers. Thus far, the pizzeria’s owners have experienced an 1 overwhelmingly high rate of customer satisfaction, quickly rising to the #1 Yelp-Rated pizzeria in their area. The pizzeria industry is one that is heavily influenced by seasonality. The owners have come to expect a steady change in sales throughout the year. Starting in September, sales will increase due to families settling into fall-routines, more professional sports games, and colder weather. A slight dip occurs after the holidays as people tend to hold off on unnecessary spending. However, once Lent begins in February, weekends (especially Fridays) see extraordinary sales boost, as people of Christian and Catholic faith avoid meats and look towards pizza or similar alternatives as their meal of choice. Then, as summer starts, a gradual decline remains until September as families go away on vacation and spend less time at home. Also, the hot temperature of pizza can be a turn-off for customers seeking a refreshing meal in the heat. Current Marketing: Parsippany’s Best’s biggest source of marketing is their website, featuring their history, a full menu, hours, and a photo gallery. The site also features a “Contact Us” tab where customers can voice their opinions to the company and improve the business. Strengths of the site comprise of a beautiful photo gallery with a descriptive menu including prices which most restaurants do not include. Some potential weaknesses include lack of visits to the website and poor presence on social media. The Google PageRank score that the website received was a 0, meaning that the website has very poor visibility. Social media is another important aspect of increasing the visibility of Parsippany’s Best Pizza website. The pizza restaurant currently has 521 likes and on Facebook, 8 followers on Twitter, and 1208 views on Google+. This shows that although the company has a solid website and product, it is lacking in customers’ attention. The Google Online Marketing Challenge will allow Parsippany’s Best Pizza to become better known in the area and thus hopefully increasing sales. Soon we hope to play TV advertisements in addition to the online marketing campaign and create a broader target market by doing so. Conclusion: Parsippany’s Best Pizza’s marketing goals are to: 1) show customers that the company has the freshest, best tasting pizza in the area, 2) increase the website’s traffic and social media presence, and 3) maintain a high level of customer appreciation that creates a buzz and brings customers back through the company’s doors. As a local small business with a limited marketing budget, Google AdWords will enable us to reach higher goals on a reasonable budget. 2 Proposed AdWords Strategy The goal of this AdWords campaign is to increase awareness and sales of Parsippany’s Best Pizza. This proposed AdWords strategy will consist of three campaigns, with a total of twelve Ad Groups. First, the Pizza Campaign will focus on all of the different types of pizza the company offers. This will be broken down into popular pizza, specialty pizza, and chain pizza, allowing us to focus on the different categories of pizza that exist. Next, the Kitchen Food Campaign will be focused on all other food that the company offers. The AdGroups in this campaign include cold sandwiches, hot sandwiches, paninis, chicken dinners, and pasta. Last, the Delivery/Takeout Campaign will be used to target consumers that are interested in ordering out. This campaign will be broken down into Ad Groups that target specific geographical locations. We will be utilizing the Google Search Network for all three of these campaigns. The table below demonstrates each of the three campaigns and the Ad Groups that they encompass. Table 1 – Campaigns and AdGroups Campaigns Pizza Popular pizza Specialty pizza Chain pizza AdGroups Geotargeting Morris County, NJ Kitchen Food Cold sandwiches Hot sandwiches Paninis Chicken dinners Pasta Morris County, NJ Delivery/Takeout Morris County Parsippany Lake Hiawatha Morris County, NJ The Google Keywords Tool was used to generate relevant keywords and to estimate the CPC of the keywords. Broad, “Phrase”, [Exact], and negative keywords will be used for the ad groups. The table below demonstrates example keywords and negative keywords for the Popular Pizza Ad Group. We will manually bid on these keywords and we will adapt the keywords by studying the CTR and effectiveness of the keywords that are used. Throughout the campaign, negative keywords will be utilized to help regulate unwanted and irrelevant traffic to the website, resulting in reduced costs and an improved CTR. In regards to keyword bidding, the campaign will attempt to keep the average bid at $1.00. Since the campaign will be run in a short period, we plan to use Enhanced Cost-Per-Click (eCPC). This will allow us to test ads in the early stages of the campaign and maximize traffic throughout the campaign period. Furthermore, ad extension will be used to help increase the CTR. Table 2 – Sample Keywords AdGroup Popular pizza Keywords plain pizza, pepperoni pizza, sausage pizza, cheese pizza, best pizza, good pizza, small pizza, medium pizza, large pizza Negative keywords -free, –recipe, -coupon Below are three sample Ad copies. These three ads are from the chicken dinner, Morris County, and popular pizza AdGroups, respectively. For each of our AdGroups, we will be 3 rotating ads evenly. For each ad group, two slightly different ads will be created to test in the market. If one of the two ads has a low CTR, the ad will be removed since this is a direct indication of its appeal to potential customers. Also, we will optimize the ads as the campaign progresses to help increase the CTR and Quality Score of our ads. Geotargeting will be used to ensure that ads are not seen by irrelevant people. We will restrict ads to targets in the Morris County area of New Jersey. Table 3 – Sample Ads Delicious Italian Entrees http://tinyurl.com/ld3f6k8 Try Parsippany’s Best Pizza! Plus Apps, Subs, Wraps and More! Sample Ads Delivery & Takeout Pizza http://tinyurl.com/ld3f6k8 Try Parsippany’s Best Pizza! Free Delivery-Fast, Friendly Service BEST Pizza in Parsippany www.parsippanypizza.com #1 Yelp Rated in area. Try our Specialty & Grandma Pies In regards to budgeting, the Pizza Campaign is receiving 50% of the budget, the Delivery/Takeout Campaign is receiving 30% of the budget, and the Kitchen Food Campaign is receiving 20% of the budget. Furthermore, each week the percent of the budget for the entire campaign will increase. Week over week we will be able to understand which ads and keywords are working most effectively, which means that a larger percentage of the budget will be utilized during the times we are most confident that our spending is going in the right places. For all three campaigns, the search network will be used. The table below demonstrates the daily and weekly monetary values that will be allocated to each campaign. Table 4 – Campaign Budgets Campaign Total Budget (% of Budget Allocated) Week 1 Week 2 Week 3 25% 35% 40% Day Week Day Week Day Week Pizza $125 (50%) $4.46 $31.25 $6.25 $43.75 $7.14 $50.00 Delivery/Takeout $75 (30%) $2.68 $18.75 $3.75 $26.25 $4.29 $30.00 Kitchen Food $50 (20%) $1.79 $12.50 $2.50 $17.50 $2.86 $20.00 $250 (100%) $8.93 $62.50 $12.50 $87.50 $14.29 $100.00 Total The goal of this AdWords campaign is to attain an average click-through-rate (CTR) of 2% with an average cost-per-click (CPC) of $1.00. For this to be successful, 12,500 impressions and 250 clicks must be made. Google Analytics will be used to gauge whether the campaign is a success. The number of website visits received before the campaign will be compared to those received after the campaign reaches completion. Post-Campaign Report – Parsippany’s Best Pizza 4 Executive Summary Campaign Overview: This AdWords campaign had three main goals: 1) make customers aware of the fresh, best tasting pizza the company offers, 2) increase website traffic, and 3) create buzz between consumers to spread word of mouth and keep customers coming back. To accomplish these goals, three campaigns were created: Pizza, Kitchen Food, and Delivery/Takeout campaigns. Within these campaigns, there were a total of 18 ad groups, 69 ads, and 890 keywords. Lastly, we aimed to attain an average CTR of 2% with an average CPC of $1.00. Along with this, we wanted to obtain 12,500 impressions with 250 clicks. Key Results: The campaign reached 146 clicks at a CTR of 0.68%. Along with this, 21,578 impressions were reached with an average CPC of $1.71. In the end, the Kitchen Food campaign ended up performing the best, with a CTR of .84%, 75 clicks, and an average CPC of $1.02. The Pizza and Delivery/Takeout campaigns had clicks of 32 and 39 respectively. Also, they had a CTR of .72% and .47%, along with an average CPC of $2.37 and $2.48 respectively. Regarding ad groups, Pasta Dinner was by far the best performer, resulting in 63 clicks, a 1.27% CTR, and an average CPC of $1.05. The next two best performing ad groups were Parsippany and Best Pizza, however neither came close to performing at the same level as Pasta Dinner. Conclusion: By the end of the campaign, we were able to better understand what worked and did not work in regards to keywords, ad copy, and ad groups. As a result, the clicks we received over the course of the campaign trended upwards, and would most likely continue to do so going forward with more time to learn what works and with an increase in budget. Over time it was clear that as we further optimized all aspects of the campaign, the results came fairly quickly. Future Online Marketing Recommendations: Moving forward, we believe the AdWords campaign can be successful for the company. By continuing to analyze all aspects of the campaign and determining what works and what does not, Parsippany’s Best Pizza can continue to improve upon the AdWords campaign. Furthermore, the company will need to increase their budget to allow for more clicks per day, and to be able to compete with the bigger pizza restaurants. Lastly, the company needs to improve upon their website to gain a better quality score for their ads. This is very true for mobile as well, since many consumers use their phones when searching for pizza restaurants. Industry Component 5 Campaign Overview: The goals of the AdWords campaign for Parsippany’s Best Pizza were to 1) inform customers that the business has the freshest, best tasting pizza in the area, 2) increase the company website’s traffic and social media presence, and 3) create a buzz in order to maintain a high level of customer appreciation and bring customers back through the business’ door. We aimed to accomplish this by attaining an average CTR of 2% with an average CPC of $1.00. We sought to obtain 12,500 impressions and for 250 clicks to be made. The 13-day campaign lasted from March 31, 2015 through April 12, 2015 and cost a total of $249.45. The AdWords account consisted of 3 campaigns: Pizza, Kitchen Food, and Delivery/Takeout. These campaigns were created by targeting the three main reasons why a customer would order from the pizzeria. Each of these was broken down into multiple ad groups. For each ad group, several ads and numerous keywords were included. The keywords for the Pizza and Kitchen Food campaigns consisted mostly of items on the business’ menu as well as popular dishes associated with the pizzeria and restaurant industry. The keywords for the Delivery/Takeout campaign mostly consisted of enticing options for people searching for local food such as “free delivery” and “fast delivery”. The Pizza campaign contained 3 ad groups, 12 ads and 80 keywords. The Kitchen Food campaign contained 8 ad groups, 32 ads and 639 keywords. Lastly, the Delivery/Takeout campaign contained 7 ad groups, 25 ads and 171 keywords. Figure 1 details the Account Structure. In total, the account contained 3 campaigns, 18 ad groups, 69 ads and 890 keywords. Figure 1: Account Structure We targeted each of these campaigns to towns in which the business delivers to. This would provide a general area to reach a large amount of customers who would be likely to either a) drive to the pizzeria to eat, b) get food delivered to their house, or c) pick up food at the pizzeria and return to their homes. These towns included Parsippany6 Troy Hills, Lake Hiawatha, Whippany, Mountain Lakes, Pinebrook and Montville. Overall, the campaign’s location setting allowed us to potentially reach up to 280,000 people. The cost structure of each campaign varied greatly. The Delivery/Takeout and Pizza campaigns required a much higher a CPC and bid price as compare to the Kitchen Food campaign. Competitors such as Pizza Hut, Dominos and Papa John’s had placed such high bids that some prices were unrealistic for our AdWords account budget. We structured our budget to deal with these inconveniences by increasing both our Max CPC’s for all ad groups as well as the daily budgets for each campaign. Evolution of Campaign Strategy: The campaign started roughly. For the first 3 days, our budget settings for our campaigns, ads, and keywords were too low compared to that of our competitors. This resulted in little to no activity on the account. On April 2nd we began to increase the daily budgets for each of the 3 campaigns to better compete with the likes of the chain pizzerias listed above. We increased the Pizza Campaign budget from $4.46 to $7.00, the Kitchen Food budget from $1.79 to $4.00, and the Delivery/Takeout budget from $2.68 to $5.00. These changes were all based on suggestions from the Campaign Budget Simulator tool. However, from here until the campaign ended, we used our own discretion to make changes in budget prices. On April 4th, we increased the Kitchen Food budget from $4.00 to $8.00. On April 5th, we increased the Delivery/Takeout budget from $5.00 to $9.10. On April 6th, we increased the Pizza budget from $7.00 to $8.38. On April 7th, we increased the Pizza campaign budget from $8.38 to $9.38, the Kitchen Food budget from $8.00 to $9.00, and the Delivery/Takeout budget from $9.10 to $10.10. After this time, we took a few days to see the results of the changes. On the final day of the campaign we increased the Kitchen Food budget from $9.00 to $18.00 and the Delivery/Takeout budget from $10.10 to 16.10. As for Max CPC prices, we kept them the same until April 2nd. On April 2nd, we increased the CPC for all ad groups from $1.00 to $2.50. On the 4th, we increased them again to $3.12. On the 6th, we increased them to as high as $13.00 for some ad groups. However, we didn’t think the results justified the price changes and on the 7th we decreased the Max CPC for all ad groups down to either $4.74 or $4.44. In addition to our regular daily budget and Max CPC changes, keywords and ads were regularly changed/updated every 1-2 days. We based our decisions of keyword changes on the Keyword Planner and Opportunity tools provided by Google. In addition, we also took current results and keyword quality score into account. Keywords 7 that were performing poorly were paused or replaced with something different to test the results. The increased bid prices and updated keywords allowed us to see a moderate increase in both clicks and impressions, culminating on April 11th and 12th, where we saw 56 combined clicks between the two days. This data is represented below in Figure 2. Figure 2: Performance Graph: Clicks vs Impression Key Results: Overall we think the campaign turned out to be relatively successful even though many of our goals were not satisfactorily met. Quickly after initiating the campaign, we learned that the pizza industry was very competitive regarding AdWords, and that the goals we set were going to be challenging to reach. First of all, we sought out to reach 12,500 impressions, and by the end of the campaign we resulted in 21,578 impressions. On the other hand, we expected 250 clicks at a CTR of 2% and average CPC of $1.00. In reality, we obtained 146 clicks at a CTR of 0.68% and average CPC of $1.71. We quickly learned that our CPC budget was far too low, and as a result had to raise the budget for each campaign to ensure we were making it to the front page for our ads. To combat the limited budget that we had, we stuck to a strategy that would allow us to slowly improve the campaign over time by looking at what worked and did not work. This allowed us to not waste money early on keywords and ad copy that was ineffective. Over the course of the campaign, we steadily increased the budget of each campaign to ensure we were getting as much value as possible out of our keywords. We also adjusted the budgets of some keywords individually that were performing far above expectations. As a result of the budget adjustment, the amount of clicks we received per day trended upwards as a whole. Last, for each ad group, multiple ad copies were created. This allowed us to better understand what the consumers were more likely to click on, and adjust our ads over time to be more in-sync with the consumers. Overall, over the course of the campaign, the campaign with the largest increase in cost was Pizza. The key words in this campaign were the most 8 competitive, which meant that we had to increase the budget greatly over the course of the campaign to get a high AdWords position. The campaign with the greatest increase in clicks over the course of the campaign was Kitchen Food. As opposed to the Pizza campaign, the keywords in Kitchen Food were the least competitive, meaning we were able to gather a large amount of clicks at a minimal cost. To go along with this, costs tended to increase fairly equally to the number of clicks we were receiving: / Table 1 – Campaign Statistics Campaign Total Clicks Impressions CTR Avg. Cost Avg. Budget/Day CPC Position Pizza $9.38 32 4,445 .72% $2.37 $75.96 1.1 Delivery/Takeout $16.10 39 8,246 .47% $2.48 $96.76 1.6 Kitchen Food $18.00 75 8,887 .84% $1.02 $76.73 1.1 Total $43.48 146 21,578 .68% $1.71 $249.45 1.3 The table 1 demonstrates results we had by the completion of the campaign. Kitchen Food was by far out most efficient campaign, with an average CPC more than half of both Pizza and Delivery/Takeout. As a result, this campaign brought us the most clicks and most impressions because of the low cost along with a high percentage of the total budget we allocated towards it per day. One of the other positive takeaways from this campaign was our average position with each campaign. Overall, our average position was 1.3, meaning the majority of the time our ads were displaying in the number one position. This gave our ads very good visibility for consumers. / Our most efficient keywords were those that were directly targeted towards our exact target market. For example, “pizza Parsippany nj” had a CTR of 16.67%. Even though the impressions were small, the amount of clicks were great because it is clear that when someone uses that search term or a similar one, our business is what they are looking for. Another example is “Parsippany pizza”, which had a CTR of 2.86% on 105 impressions. On the other hand, we had many keywords that did not perform very well at all. The keywords that performed poorly tended to be food items that were not very popular, which resulted in a lack of searches for these terms. As a result, these types of keywords relevant keywords were added. were deleted or paused and more useful and Regarding ad groups, our top performers were as follows: 9 Table 2 – Ad Group Statistics Ad Group Pasta Dinner Parsippany Best Pizza Specialty Pizza Clicks 63 18 13 11 Impressions 4,976 1,508 2,408 1,716 CTR 1.27% 1.19% .54% .64% Avg CPC $1.05 $2.48 $2.27 $1.26 Cost $66.03 $44.58 $29.54 $13.85 Avg Pos 1.1 1.3 1.2 1.0 As can be seen, the Pasta Dinner ad group was by far our best performer in every way. This accounted for the vast majority of our clicks in general. Because of the low average CPC, it is pretty clear that this ad group contained keywords that were not nearly as competitive as the other ad groups. This allowed us to reach a large number of people at a fairly cheap price. Conclusions: By the end of this campaign, we were able to much better understand what worked and did not work in regards to keywords, ad copy, and ad groups. By looking at the results of the campaign, it is clear that the campaign’s performance continued to improve from start to finish. Going forward, we believe that AdWords can be beneficial in bringing more people to Parsippany’s Best Pizza by both increasing the traffic to the website, and also increasing the traffic to the physical restaurant as a result. While the campaign did not reach the statistical goals set out for it, moving forward we believe that with great optimization, these goals can be both met and exceeded. One of the main reasons it was difficult to reach our goals was due to the vast amount of competition and limited budget. Moving forward, a larger budget would allow the company to better compete against the bigger competitors in the industry, allowing them to bid on better, more searched for keywords. /Future Recommendations: For this company’s future marketing efforts, we would recommend that they continue where we left off. With this foundational AdWords campaign that we have created, we believe that the company can continue on with, refine, and become even more successful with it. Moving forward, we believe the company should continue to track and update keywords, ad copy, and ad groups. The company should monitor every ad and adjust them when necessary. By testing out even more ad copies, the company can determine exactly what consumers are enticed to click on, resulting in both a higher CTR and quality score moving forward. Furthermore, a larger budget will be necessary when moving forward to increase the amount of clicks per day. Also, the company website improvements could be made to boost the quality score of the ads, resulting in better ad placement and a higher chance of consumers seeing the ads, 10 increasing the CTR, and decreasing CPC. A website should be built specifically for mobile users as well, since many consumers use their phone when searching for pizza restaurants. Learning Component Learning Objectives and Outcomes: When we decided to participate in the GOMC challenge, we were very excited and eager to learn new things. We entered the competition having very little knowledge about Google AdWords and how it worked. We viewed the challenge as an opportunity to learn more about the use of e-marketing since it is a going trend globally. We also hoped to find out how this new marketing communication medium can affect the marketing strategies of today’s businesses particularly in the local restaurant where advertising budget is limited. /Having a limited knowledge of Google Adwords, we underwent training to prepare ourselves for the challenge. We learned how to use the data that Google AdWords and Analytics recorded to create a successful campaign. This served as a basis for the actions that were undertaken by the group to improve the overall performance of the campaign. Using Google AdWords, we learned that, through context-sensitive marketing, we could target unique customer groups and make specialized campaigns for them. We could also exclude untargeted customers with the help of negative keywords. By doing so, we gained the ability to advertise only to the people who are more likely to buy. This helps in better utilization and allocation of the advertising budget. We expected our campaign to get high impressions and clicks, but we did not get conversion since we did not connect the conversion tracking to Google analytics due to the nature of the business’ competitive environment. Many people are searching online for a great, quick meal, and they are potential customers for online sites like ours. However, we never anticipated that our cost per click would be so high. Group Dynamics: We did not often meet as a group because of location barriers and schedule conflicts. We did not have a common time to sit together and work, so we set up online meetings or communicated through texting. Since our group members are well-acquainted with each other, we knew how to interact and relate. We understood one another, and so whenever conflicts happened we came up with a compromise that is amenable to everyone in the group. We managed to surprise each other since this challenge is something new to us. We uncovered new abilities that we were not aware of. This changed the way we conventionally divide our work. 11 Client Dynamics: When we asked the client’s permission to join the Google Online Marketing Challenge, the owners of Parsippany’s Best Pizza did not hesitate to give us their approval. During the competition, communication was an easy task because one of our members is family with the owner. E-mail was not our only means of communicating with them which made life for us easier. Our clients were vaguely familiar with AdWords since they already had an experience with it the past, without too much success. We had to explain to them many of the things that they needed to know about the campaign, so that they can also give us their insights. We did not expect they would be willing to learn from students like us, even though they are already successful owners. Future Recommendations Client Dynamics: It is important to meet with your client regularly. They can help you to improve your strategies since they know more about the industry. They can also give you important pieces of advice on how to market the business more efficiently. Group Dynamics: Apply job rotation when dividing tasks. This will allow members to learn more, as well as give them the opportunity to experience each other’s tasks. This can help the group to work better. In addition, problems cannot be avoided when working with others because each member has an opinion on what strategies should be used in order for the campaign to succeed. In these instances, open-mindedness and compromise are essential. Strategy: Try everything during the first week of the campaign to test what the market wants and does not want. Afterwards, start cleaning your campaigns until you know more about your market. Furthermore, do not just market your products, market your appeal. /Learning Experience: Ask advice from people who are currently managing or had managed an AdWords account. They can give ideas on what strategies you can use for your own account. They can also give you some tips on how to clean up you campaigns. 12