How Can Small Advertisers Protect Their Budgets? SEM with Lance Loveday

TL;DR

Small advertisers can protect their paid-search budgets by reviewing Google’s defaults, tightly controlling keyword matching, and separating search and display campaigns. Lance Loveday explains that automatic targeting can include the US and Canada, potentially consuming 10% of a budget on irrelevant traffic, while broad match can place ads against unsuitable searches. Read on for the specific settings and campaign choices he says deserve scrutiny.

Transcript

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Key Insights

• 🫠 Google's ad system can be complex and may drain budgets without proper management.
• 🫠 Customizing default settings and selecting relevant keywords are crucial for protecting ad budgets.
• ❓ Leveraging alternative platforms like Facebook and Twitter can provide unique targeting opportunities.
• 😀 Tracking app installations and attributing them to lead sources can be a challenging but essential aspect for businesses.
• 🥺 Employing data-driven insights from ad platforms can lead to competitive advantages and smarter advertising practices.
• 🫠 Opting for alternative ad platforms can offer diverse targeting options and potentially higher ROI.
• 😀 Utilizing tools like Mixpanel for tracking app installations and attribution can enhance effectiveness.

Questions & Answers

Q: How can small advertisers protect their Google advertising budgets?

They should scrutinize default settings before launching campaigns and retain control over targeting, networks, keywords, bids, and spending. Lance Loveday warns that Google’s system appears simple but contains substantial complexity that can expose smaller advertisers to irrelevant traffic and unnecessary costs.

Q: Why does Lance Loveday say the deck is stacked against smaller advertisers?

He says Google has created a highly complex advertising system while making it appear simple. Because Google is a public company seeking to maximize revenue, advertisers should not assume its default choices always serve their interests.

Q: Which location-targeting default should advertisers review?

The account setup described in the talk opts advertisers into both the US and Canada. Loveday says a business that does not sell in Canada could spend an easy 10% of its budget reaching irrelevant people.

Q: Should search and display advertising run in the same campaign?

Loveday says they generally should not. He recommends separate campaigns for the search network and the display network instead of accepting the default that includes both in one campaign.

Q: Why can broad-match keywords waste money?

Broad match allows Google to show an advertisement for related terms it chooses, which can produce irrelevant or damaging placements. In one audit, Loveday found that HP had spent $50,000 broad matching the term “digital camera” to “Babe Cam” and variations.

Q: Why should advertisers be cautious about automated spending and bidding?

Loveday compares the arrangement to giving an agency a credit card and allowing it to decide how much to spend, what to buy, and the price. He argues that advertisers should question this apparently reasonable setup rather than surrender those decisions automatically.

Q: How much client money does Lance Loveday say his agency spends with Google?

He says the agency spends about $25 million per year of its clients’ money with Google. Despite describing Google as probably the dominant advertising platform, he believes its practices still deserve scrutiny.

Q: What experience does Lance Loveday bring to his SEM advice?

Loveday says he has worked in the field for about 15 years and has observed incremental changes to the advertising system. Reviewing the onboarding process with fresh eyes led him to conclude that many accumulated defaults disadvantage inexperienced advertisers.

Summary & Key Takeaways

• Google's complex ad systems can drain budgets if not managed carefully.

• Tips to protect yourself include avoiding default settings, focusing on relevant keywords, and understanding bid strategies.

• Utilize alternative platforms like Facebook and Twitter for effective ad targeting.