Lecture on Performance Marketing

Introduction

Key Participants

• Speaker: Timothy Davis
• Host: Unknown
• Context: Timothy Davis has led Performance Marketing for Shopify and consulted for Pinterest, LinkedIn, and Eventbrite.

Key Themes

1. Performance Marketing Essentials
2. Experimentation with Platforms
3. Mistakes and Fixes in Performance Marketing
4. Team Structure and Hiring
5. Impact of AI and Upcoming Trends

Summary

Performance Marketing Essentials

• Is it for everyone?
  • Hot Take: Paid is for everyone; most platforms today make it essential.
  • Key Platforms: Google (including search, YouTube, GDN), Meta (Facebook, IG), TikTok, LinkedIn.
• What is Performance Marketing?
  • Measurable marketing efforts often focused on online channels, although offline and affiliates can also be performance-based.
  • Key metrics include clicks, conversions, CTR, and cost per conversion.

Experimentation with Platforms

• Signs of Life Test
  • Test with small budget.
  • Look for platforms where you already have organic traction.
  • Creative granularity: Use own data to build 1–10% lookalikes.
  • Steps include checking impressions, CTR, and making data-driven adjustments.
• Duration of tests: Depends on budget and statistical relevance.
• Key advice: Not all experiments work and that’s okay – focus on learning.

Mistakes and Fixes in Performance Marketing

• Common Mistakes by Agencies
  • Using playbooks rather than customizing.
  • Not diving deep into data specifics (keywords, ad copy, landing pages).
• Important Metrics and Reporting
  • Google Ads reports for ad strength and relevance.
  • Using metrics like CTR, ad relevance, landing page experience to judge performance.
• Competitor Strategy
  • Using auction insights to identify threats.

Team Structure and Hiring

• First Hires
  • Data-focused Growth Marketing Specialist.
  • Creative person (graphic design/branding).
  • Dedicated Data Scientist for in-depth analysis.
• When to grow: Red months indicate the need for hiring after evaluating cutbacks.
• Training: Provide immediate responsibility to new hires, hands-on implementation, shorten on-ramp period.

Impact of AI and Upcoming Trends

• AI in Ads
  • Historically used in smart bidding, ad recommendations.
  • Emerging tools in creative algorithms.
• Future Trends
  • Connected TV, VR, voice search, AI-assisted creative, and podcast advertising.

Incrementality Testing

• Importance: Determines true additional impact of campaigns.
• Methods: Geo experiments, conversion lifts; needs high budget.

Attribution

• Preferred Model: Multi-touch, leaning towards time decay or linear.
• Tooling: In-house tools for large companies, leveraging built-in platform options.

Final Tips

• Forward Thinking, Backwards Planning: Set long-term goals and plan actionable steps.
• Creative’s Impact: Critical in engaging users; more significant than often perceived.
• Staying Updated: With technological changes like ATT, work closely with platform partners to adapt strategies.

Resources Mentioned

• Books: Daily Stoic, Great By Choice, Deep Work
• Tools and Sites: PPC Hero, in-platform tools
• Case Studies and Examples: eBay experiment, Dollar Shave Club ad video

Other Notes

• Metrics Visualization: Creating custom reports in Google Ads and PPC Hero for actionable insights.
• Favorite Creative Strategies: Emotional impact ads as illustrated by Dollar Shave Club.

Contact

• Guest: Timothy Davis