How You Can Generate More Profit Using Google’s Dynamic Search Ads

This is a guest post from Eyal Reich of StoreYa

Here at StoreYa we manage an ads budget of ~$1M per month using the Traffic Booster.
Advertising on Google AdWords and competing with the big players out-there can be hard. This is the reason we decided to share with you in this post some valuable information that will help you win the AdWords game!

If you haven’t started using AdWords Dynamic Search Ads yet, you’re missing out on heaps of targeted traffic for your online store.

In a nutshell, Dynamic Search Ads (DSA) are campaigns that use Google’s crawling abilities in order to display to each target potential shopper an ad that has a custom headline and that redirects to the most relevant product page within the retailer’s online store.  

These campaigns allow eCommerce site owners to gain traffic through targeted ads to more queries and this way fill in the gaps for keyword campaigns resulting in more traffic and better ROIs. The question is – where to start?

If you’re new to DSA, then it can seem a little overwhelming at first. To soften the initial panic, and get your first campaigns up and running in no time, StoreYa has put together this comprehensive DSA guide.

How Dynamic Search Ads Work

With Dynamic Search Ads, Google will automatically and dynamically generate ad headlines and landing page URLs and match them to relevant customers according to the terms they seek on Google.

Depending on the structure of your site and it’s content, DSA is designed to help you reach more potential shoppers that are relevant to your business and offers a host of segment options based on the products you sell. They do this by pulling information and details from either your entire website or from the pages you select for your targeted ads, and therefore it would work better for site owners that have invested in their content, have many pages indexed on Google, and have described their products in detail. Let’s go a little further…

Dynamic Search Ad Control

As a DSA advertiser, you have control over your targets, your bids, your budgets and your ad templates. Plus, you are able to use negative keywords as you would with normal search ads to help with optimization. You also have the ability of excluding certain phrases or words within the content of your website and/or whole pages, so that if you’re out of stock you can ensure these targets are excluded.

Additionally, when it comes to reporting, DSA gives you a lot of control. Through the dashboard you are able to view the people who have searched and clicked on ads, which headlines were used, and which landing pages they clicked through to. DSA will also show you which categories on your web store are performing better than others and what your average conversion rate is.

How to Optimize Your Dynamic Search Ads

The trick to optimizing your Dynamic Search Ads to ensure the highest ROIs, is to start wide and then systematically exclude terms that don’t work well — according to the CTR and conversion rate of these terms — paying close attention to the target’s estimated website coverage. There are a number of ways online advertisers can optimize the ads. We’ve broken them down for you.  

DSA Negative Keywords

Because queries are matched to website content instead of keywords, using negative keywords is the most important optimization you need to do. If you’re new to DSA and launching your first campaigns, it’s important to check your reports often and thoroughly for queries that are not relevant – i.e targets that are not relevant, costing you money and yielding no results – and then eliminating them.

DSA Negative Keywords

DSA Segmentation

One of the most critical optimization steps is to ensure you have proper segmentation. When creating your DSA campaigns, you have three main targeting options: targeting your entire website, certain categories and specific web pages. Poor targeting and segmentation can result in a high bounce rate and low ROIs.

Dynamic Ad Targets

We don’t recommend targeting your entire website as it will give you less control over the traffic being driven and therefore result in less targeted traffic. You should only target pages that can directly convert the customers.

DSA Target Exclusions

Exclusion Targets

As we mentioned, Dynamic Search Ads allow you a certain amount of control over where ads appear and where traffic is sent from those ads. You can do this by excluding certain Dynamic targets from your campaigns or your ad groups. Like segmentation, using exclusions will help optimize your campaigns and keep them structured.

Dynamic Search Ad Requirements

To ensure you have success with Dynamic Search Ads, there are a number of requirements you need to consider. DSA is for online retailers that have content-rich sites — at least 100 indexed pages on Google, sites that feature a variety of products and stores with plenty of unique landing pages. This is because of the way DSA works, linking shopper search queries, to specific product pages, rather than generic website pages. Sites with well-optimized title tags and H1 titles will perform better. On the other hand, DSA will not fit stores that change their products too often as their page indexing will not be updated on time.

It is also important that you have enough budget to run ads with, as well as optimizing capabilities. Like your traditional AdWords search ads, you should be monitoring your accounts daily, tweaking where you can for the best conversions for your spend.

Dynamic Search Ad Pros and Cons

Dynamic Search Ads have a lot of advantages, and a few disadvantages, over traditional search ads. We’ve broken them down into the main pros and cons below:

Automatic Updates
When you make a change to your website, whether it’s to pages or products, your Dynamic Search Ads will be updated. This is due to Google’s web-crawling algorithms which will recognize the changes.

DSA Keyword Coverage
DSA helps ensure no relevant keywords, however ‘long tail’ they are, slip through the cracks. Dynamic Search Ads offer a far wider range of keywords covered and therefore enables you to capture traffic that you may not have keyword coverage for with traditional search ads.

Text Freedom
DSA dynamically generates the ad headline based on the combination of what the user is searching for and the content from your most relevant landing page. The dynamic headline is also not restricted to the regular 25 character limit of a regular search ad. The combination of these two generates a much higher CTR (Click Through Rate) and therefore a lower CPC (Cost Per Click).  

Efficiency
Unlike traditional search ads that require a lot of creativity in creating the keyword lists, Dynamic Search Ads do it for you. This really helps as an advertiser – you need to be cautious and exclude terms on time, but you’re to be sure that you will be targeting any relevant customer.

DSA Cons

Budget
There is no doubt that Dynamic Search Ads yield good ROIs, however, if you are not able to optimize and monitor closely – at least on a daily basis – you are bound to lose money.

Limited Control
With Dynamic Search Ads, you’re going to have to put a lot more further into Google’s algorithm tech with regards to targeting than you would have to with traditional ads. Having said that, since it’s launch in 2011, it has improved immensely and a little less control does not outweigh the convenience.

We hope this helps you get you closer to your traffic-driving goals this year. If you have any questions or want to chat, get in touch with us in the comments below.

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