(energetic music)
- Today is the very best day there has ever been
to be in the floor covering business.
On the Floor with John Weller
How you doing Todd, welcome to Sarasota.
I see that you've settled in very nicely
with your short pants.
Todd is the CEO of AdHawk in New York City,
he's down here on vacation and he was gracious enough
to come spend some time during his vacation
and hang out with us at FloorForce.
- Yeah, I got to get out of the snow,
we had, I think, eight inches of snow in New York.
So coming down to Florida, had to rock the shorts.
- Awesome man, so let's get into it.
So, for people who don't know Todd's story,
Todd was a Googler, worked at Google
and worked on the AdWords team.
And I gotta ask the question, what prompted you,
what inspired you to start AdHawk and actually jump
out of the work heaven environment?
- Yeah, so a little on my background,
and then I'll get into that.
So my confounder and I both came from
the AdWords team at Google, there we worked
with, you know, thousands of small businesses,
helping them grow their AdWords accounts
from a couple hundred dollars a day to a couple thousand
to tens of thousands of dollars a day.
And our job was to help them do that profitably.
Google's a great place to work, right?
You can sit on beanbags, you get a free lunch.
There's really nothing not to like.
The real honest truth is, if you wanna have a bigger impact,
if you wanna do more than just your day to day job,
you wanna kind of get into the grind a little bit,
have an impact with individual businesses,
dive a little deeper, really help them explore
the opportunities outside of just Google,
you obviously can't do that within Google.
So, for us, we knew that Facebook was important.
We know that AdWords is important.
We know that websites are important for customers.
And it's really, you're kind of pigeonholed
a little bit while working at Google.
- What would you say to a flooring retailer who says,
hey man, I've tried AdWords, I've actually done it twice.
It doesn't work in my market,
and it just doesn't work for us.
- Yeah, I would say a couple of things, right?
When people come to us and say that,
we're able to look under the hood
and within a couple of minutes, identify why it didn't work.
So, the first thing I would look at,
if you think it doesn't work in your market,
I would really look at yourself in the mirror and say,
did I give this a professional and expert level setup?
Was I optimizing this every single day or every single hour?
Or did I just watch a YouTube video online
and try to get this set up?
So, at it's core, was it set up correctly?
I think something we've done really well for customers
that say that is do an audit, right?
Data speaks for itself, so we can look in the account,
and say, hey, here are the five reasons why it didn't work
and actually give you an honest answer
if it's gonna work for you in the future.
But I've seen AdWords, I've seen AdWords specifically
in this industry work for over 700 retailers,
so I'd be really hard pressed to say it doesn't work.
Now, you might get a higher CPA based on your location
just because it's more competitive
or you might get a lower CPA in your location.
But to say it doesn't work and you can't do it profitably,
I mean look at Google, right?
They're a massive business, we see hundreds
of flooring retailers doing it well.
You just might have to take a different strategy
than what you're typically used to.
We have some retailers that search campaigns
work really well.
We have some retailers where marketing works well,
call only ads, Gmail ads, and that's also part
of why you need to work with, you know, an expert.
Because there are so many options out there.
Almost too many options that, yes,
search might not work for you or marketing
might not work for you, but you need to know
all of the options that are available
before you just say, this isn't going to work.
Because the truth is, if this
isn't gonna work, then what's gonna work?
You're not gonna advertise in the Yellow Pages anymore.
You know, Google really is where people do their searching,
they type in, flooring store near me.
Or they type in, you know, buy hardwood flooring,
you need to be there.
- So Todd, I think we have about 700 flooring retailers
that we now work on together with AdWords.
You know, and I think about this all the time
and we do a lot of testimonial videos,
but in your mind, does any story stick out
as one where we really did have an impact on one
of these flooring retailers that you wanna talk about?
- Yeah we actually had a flooring retailer come to us,
that you brought to us, I think about two years ago.
They were managing themselves,
they were kind of hesitant to work with us, if you remember.
But they came to us, I think their CPA
was about 60 dollars per lead.
Came to us and the account was done pretty well, right?
It was optimized well but we knew for sure
that if we put technology and algorithms to the account,
we could see better performance.
And I remember, after about two months,
after, you know, we were working together
on the account, we saw the CPA drop
from about 60 dollars to 35 dollars.
And when I looked at how that was done with our algorithm,
I mean we really leveraged the data
that you guys provided us on the location level.
So what happened was, they were targeting this one city
but what they weren't doing is using
what's called location bid adjustments
across all the small neighborhoods.
So instead of targeting one city with one bid,
what we were doing was targeting over 150 neighborhoods
with individual bid adjustments
that were changing on an hourly or daily basis.
And then, on top of that, with some of the information
you guys provided us, we were actually
layering income levels on top of that.
So we kind of leverage the power of demographics
of customers that we have at scale that you provided us
on top of the bid adjustments we're able to do in AdWords
and we saw the CPA decrease by about 50 percent.
- We do AdWords right now
with about 50 percent of our clients.
So there's 50 percent of our clients,
over 500 of them have never done AdWords,
have never done digital marketing.
So, being that you're an ex-Googler and you're here,
I'd love to hear just the basics
from a very high level view, how does AdWords work?
And if you've never done it before, what should you expect
in your first endeavor of advertising on Google's platform?
- Yeah, so AdWords works, when someone types something
into Google, there's text ads on top
of the Google search results.
Now the really awesome thing about AdWords is
it's pay per click, sometimes in the industry known as PPC.
And what that means is you only pay when a customer
actually clicks on your ad and gets to your website.
So you don't pay for customers just to see it,
you know, you think about billboards
and other things like that, you're paying for impressions
or people to see it, they're not actually physically
visiting your store or visiting
your online store, your website.
Whereas with Google, you're actually paying
for someone to come to your website.
So it's a much more qualified visit
than your typical billboard or
Yellow Pages ad or something like that.
Now once you launch your first AdWords campaign,
I gotta be honest, you shouldn't
expect results three days in.
Anyone that promises you that is selling you snake oil.
You know, once you launch your AdWords campaign,
it takes time to optimize it, find the right audience
because we don't wanna just get you leads.
It's important to get quality leads,
if they're not quality leads, your phone will ring
with people asking you nonsense questions
and kind of wasting your time.
So, I tell all retailers and businesses
that are just starting up, the first 30 days
is all about data gathering.
Making sure we have the right data on your customers,
on the demographics, on what a qualified lead means to you.
You know, 30 to 60 days is really optimizing
and trimming the fat, trimming all the wasted spend,
really narrowing focus in
on the most qualified customer for you.
And then from then on out, I would say about 70 days
or so on it's kind of a race of, how can we push the needle?
How can we move the budget?
How can we get more leads into the funnel?
And that's kind of how we look at it,
but again, the really great thing about AdWords is,
at bare minimum, these people are clicking on your ad,
going to your website, and learning more about you.
Sometimes we can track these leads, right?
If they call you, we can track that lead.
If they fill out a form, we can track that lead.
If they don't do either of those, we can run retargeting
which is when that ad follows them around the internet
and says, hey, don't forget we offer
this really awesome flooring, come back to our website.
But I think the one thing that I've heard most
from retailers is they've seen their in-store traffic go up.
So a customer can go to your website, click on your ad
and decide, alright, this is really awesome,
I'm not gonna call them right now but I'm going that way,
I'm gonna pass their office when I go to work tomorrow,
maybe I'll stop in their store.
So there's this brand initiative with Google,
with AdWords as well, this brand awareness
that isn't very trackable but from what we've seen
over the last, you know, couple of years,
it's pretty impactful.
- The number one question I get from retailers
when we're having a conversation about AdWords is,
I'm a retailer, I've never done AdWords.
It scares me to death, what should
my budget be to start doing AdWords?
- Yeah, it's definitely a tough question
and we definitely get asked this a lot.
I think, in order to come up with your budget,
you should first look at what is your goal, right?
Like what are you trying to accomplish?
Is it five qualified leads every month?
Is it 20 qualified leads every month?
And then based on that, we have a ton of historical data
from the 700 somewhat retailers that we're working with,
you know the conversion rates that,
you know, we see on the website.
We can analyze the website traffic,
the cost per clicks in the location
and then we can actually back out an answer
to what the budget to be based on all of that.
Now, you know, if I was hard pressed to give an answer,
I would probably say a thousand dollars a month
is a good target to start.
But that said though, Google takes time to optimize, right?
We need statistically significant data
in order to make good decisions and in order to optimize
to decrease the cost per lead over time.
Now if you're spending 500 dollars a month,
we might not have statistically significant data
for six, eight, or even ten months.
However, if you're spending a thousand
or two thousand dollars, we may be able to get to that
maximum level of optimization in just three or four months.
So, really what I would tell anyone who's thinking about
starting on AdWords and, you know, trying to figure out
what their budget should be, I would focus
on your goals rather than the budget.
And then from the goals, the FloorForce team
can kind of do a deep dive in your website traffic,
the demographics of your customer,
the cost per clicks in your city.
And they can actually back out a number
of what your budget should be.
And we've done that for a lot of customers
and we've seen, you know,
pretty good success doing it that way.
- When Todd came for the interview,
he said to me, can I get to do a fun fact?
(both laugh)
So what is the fun fact that you would like to share
with our audience here at FloorForce?
- Yeah, I've had to practice fun facts for awhile,
you know, working at Google, you do a lot of ice breakers,
you do a lot of these games to get to know people around you
and the fun fact I always go with is,
I have over 140 brothers and sisters.
- Wow, what is that?
- So when I was growing up, my parents did foster care.
So, from about the age of 12 to 18,
we had different people living in our house,
and that was either one day, sometimes it was a week,
sometimes two people actually stayed with us
for over a year.
I still keep in touch with as many of them as I can.
But when I tell that fact, I get the same type of look
from you which is like, how in the world do you have
that many brothers and sisters?
But yeah, it was definitely impactful for me growing up
and it's something I hope to continue later on in my life.
- That's awesome, that's really cool.
Thanks for coming while you're on vacation,
hanging out here at FloorForce.
Tell your girlfriend, thank you for letting you come
at seven o'clock in the morning and hang out with us.
I think it was insightful, I hope everybody
got value out of this conversation
and we hope to have you back.
- Yeah, thanks so much for having me
and I know, a couple months ago,
we brought a couple of FloorForce retailers
out to our office in New York.
We actually gave them a tour around Google,
did a little digital marketing summit.
I'd love to make an offer to anyone watching this video,
if you sign up with FloorForce and end up,
you know, getting online with digital advertising,
we'd love to take you on a tour of Google in New York.
Our doors are always wide open, so please feel free
to come by, reach out to John,
I'm sure he could help get that set up.
And for anyone that's still considering getting online,
I'm willing to offer any FloorForce retailer
365 dollars in free AdWords spending.
- Who's paying for that?
- We're gonna split it.
- Deal.
- So, any customer that's thinking
about spending money online and is hesitant about it,
again, we are going to comp your first 365 dollars
in ad spend and on top of that, please come to our office
in New York, we'd love to tour you around Google.
And in the next few months, we're gonna put together
a FloorForce AdHawk summit at Google
for FloorForce customers only.
- Thanks, Ben.
- Yeah, take it easy.
- Good seeing you.
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