Easily Make PPC 300% Better With Ads Optimizer

Richard Kohberger demos Ads Optimizer, a ServiceTitan feature that feeds job-completion and revenue data into Google Ads to optimize for profit instead of just clicks. Pilot results showed 300% ROAS lift across 34 companies in 42 days.
Questions this video answers
30 transactions
80% remains on the original strategy and 20% is allocated to the Maximize Conversion Value test clone.
34 companies
Approximately 300% increase on return on ad spend (after ~42 days)
What's going on, everybody? It's Richard Kohberger here, the blue collar nerd. And in this video, I'm going to be talking to you about Ads Optimizer. So first of all, I want to be clear about what we're talking about here. Ads Optimizer is a feature of Marketing Pro Ads, and Marketing Pro Ads is a module available as part of the Marketing Pro suite of products. Now, I did make a Marketing Pro Ads video about a year ago, but at the time that I made that video, Ads Optimizer was still in beta. But Ads Optimizer is really the most valuable part of Marketing Pro Ads. So now that it's not in beta anymore and it's generally available, I want to make another video explaining that. So first of all, just to kind of lay a foundation here, with Marketing Pro Ads, your Service Titan account becomes connected with your Google Ads and Google Analytics account, meaning that information can now be passed back and forth between those two parties. Now, in order to understand the value behind Ads Optimizer, first we need to understand DNI or dynamic number insertion. So DNI is part of what you get with Marketing Pro Ads and basically it changes the phone number that people will see when they arrive on your website, depending on how they got to your website. That way you don't have to have just one tracking phone number that's like the website tracking phone number because that's not very helpful. People get to your website a lot of different ways. So with dni, if they get there from an organic search, then they'll see a different tracking phone number than A if they got there from PPC campaign A versus PPC campaign B. It gives you much more granular information of not just this person called from the website, but this person called from this particular PPC campaign. So that's part of what you get with Marketing Pro Ads. That information is fed back into ServiceTitan and then you can see which campaigns are getting more phone calls, which is good. But that is not the main value behind Marketing Pro Ads. You can get dynamic number insertion with without involving Service Titan. You won't be able to see that data in Service Titan, but you can do it. But if we stop there, we've got kind of a major problem. Let me explain. So Google has an algorithm known as smart bidding and they're making it very clear that is the future of the ads platform. They're really pushing hard for everybody to be on that. And in theory, it's a really good thing. It's supposed to automatically adapt bid Strategy based on what's working, but with straight up vanilla dynamic number insertion. The only information that we are giving to Google is which campaigns are resulting in the most phone calls. Meaning that's all that it can optimize for. It can only optimize for maximum phone calls. Well, and clicks. It knows how many clicks the campaign got. So it can optimize for calls and it can optimize for clicks. Those are the only two pieces of information that it has. But as we all know, not all calls are created equal. Not all clicks are created equal. Calls and clicks are upstream of what we really want to be optimizing for, which is revenue. Just because a particular PPC campaign is getting you a lot of phone calls doesn't necessarily mean that that same PPC campaign is getting you a lot of revenue, a lot of return on your investment. So if a particular PPC campaign, for example, is bringing in 30 calls a day for you, but half of those are people asking for a service you don't provide, and the other half just result in a trip charge, and that's it. All Google knows is you got 30 phone calls, it's going to consider that a successful campaign and it's going to think, yeah, let's put more money into there. On the flip side, if you have a different PPC campaign that only brought you five calls for the whole month, but four of them were 10 to $20,000 installations, all Google knows is that that one got fewer phone calls, that one only got five phone calls for the entire month, while the other one got 30 in one day. But in reality, the latter campaign is more favorable to us as a business than the former. And that is where Ads Optimizer comes in. So with Ads Optimizer, the entire customer journey is tracked from phone call to job complete, and that data is also sent over to Google, meaning now Google's algorithm knows not just how many phone calls we got off of this campaign, but how many of those phone calls turned into jobs. How lucrative were those jobs? And by feeding all of that information over to Google, we unlock two new bidding strategies on the Google smart bidding side. So we're now able to tell Google's algorithm, okay, instead of maximizing for just phone calls, maximize for maximum conversion value or for return on ad spend. So, so you have those two new strategies at your disposal. Okay, so there's two new strategies now, but how do we know which one to use? Well, you've got a few different options there. You could manually test to yourself which one's gonna be More successful, you could work with an ad agency and have them manually test. Or you could also simply flip this autopilot switch. And what Autopilot does is it automatically runs an A B test between those two strategies and settles on the one that's more successful. So if you flip that on first, it's going to wait for a little bit for enough information to be sent from Service Titan to Google to actually do an accurate test. So if you just set up Ads Optimizer and then immediately flip that switch on, it's not going to happen right away. It's going to wait a minute because it needs data to work with and specifically it waits for 30 transactions. Once a campaign has 30 transactions, the autopilot is going to try out the maximize Conversion Value strategy, because that's the one that most often outperforms over the return on ad spend strategy. So once you've enabled autopilot on a campaign and it has its 30 transactions, it's going to create a clone of that campaign. Then 80% of the campaign's traffic is going to remain allocated to whatever bid strategy was already in place. And then 20% of the traffic is going to be targeted with the Maximize Conversion value bid strategy. And then the campaign runs until one strategy is clearly outperforming the other. Then once a winner is determined, it takes that winner and runs it against the ROAS or the return on ad spend strategy. And then once that experiment concludes, the winning strategy is the one that is settled on basically determining automatically which strategy is going to be best for you. Now, if you do use that and you're working with an ad agency, you definitely want to let the ad agency know that you're doing that because it's going to be automatically making changes on the Google Ad side and they need to be aware why that's happening. Or they may also prefer to just run that AB test themselves. Now, another benefit of Ads Optimizer is something called capacity awareness. Basically, okay, let's say you have a campaign that is mainly targeted for getting installs. With Capacity Awareness, you're able to tell Service Titan to look one to seven days out in the future and see how much capacity we have in the installation business unit in that department. And you can set a low capacity threshold and a high capacity threshold, and then it will send alerts to the people of your choosing based on those thresholds, allowing you to make any necessary adjustments. For example, if you've got a PPC campaign for installations, that's pretty successful for you, but you're booked entirely out for the next seven days on installations, and you're still spending a bunch of money on that campaign. Unless you think you're going to be able to scrape another crew together real quick, then maybe you want to cut back the spend on that campaign. And with this feature, you don't have to be manually checking for that. You're going to get an alert. Same thing with the low capacity threshold. If your service department hardly has any jobs and you're not putting very much money into the PPC campaign that is successful in that department, you'll get an alert and then maybe you want to adjust the spend up for that. Now, to be clear, this particular part of the feature, the capacity awareness right now, it is sending you alerts so that you can take action. It is not automatically taking any action for you. That is the direction we're aiming to get there eventually. But there are a whole lot of factors to consider before we start messing with something so important. There's a lot of reasons why somebody might make a seemingly illogical choice, at least from an AI's point of view. And so getting that to work properly is a big project. So let me hit you with some real life numbers here. Before the launch of Ads Optimizer, we had a test group of 34 companies. And with that test group we saw an average of a 300% increase on return on ad spend after the company had been on Ads optimizer for over 42 days, which is a very significant jump. Now granted, 34 is not the biggest sample size, but as of the time of me recording this video, Ads Optimizer hasn't been publicly available for long enough for us to have statistics that are reliable with a bigger sample size. But with all that said, that is Ads Optimizer in a nutshell. I'll leave some resources in the description box down below. If this is something that you're interested in, or even something that you already have but just haven't gotten around to setting up yet, please hit like if you like this video and found it valuable, please subscribe to surface Titan's YouTube channel. If you haven't done that already, hit that bell icon so that YouTube notifies you anytime we upload a new video. Appreciate it. Peace. Sam.
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