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Making Integrated Campaigns Work:How a Search Marketing Mindset Can Drive the ROI of Display Advertising
Eli Goodman Keith WilsoncomScore, Inc. The Search Agency, Inc.
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Our Presenters
Eli Goodman
Search Evangelist
comScore, Inc.
2© comScore, Inc. Proprietary and Confidential.
Keith Wilson
Director of Display Media
The Search Agency, Inc.
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Agenda
Introduction
Applying Search Intelligence to Display Advertising
Search & Display Advertising - Quantifying the full ROI beyond Direct Response
3© comScore, Inc. Proprietary and Confidential.
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The Search Agency
� The Search Agency provides an integrated suite of p re-click online advertising services and post-click conversion path optimizatio n services.
4© comScore, Inc. Proprietary and Confidential.
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Agenda
Introduction
Applying Search Intelligence to Display Advertising
Search & Display Advertising - Quantifying the full ROI beyond Direct Response
5© comScore, Inc. Proprietary and Confidential.
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Case Study Example: Online Dating
� Client: Lavalife
– Online Subscription-based Dating Service
� Goal: Driving registrations at targeted CPA
� History: Increasing spend on paid search and conte xtual text based ads
– Could not yield additional volume at target CPA
� Solution: Test display ads to increase efficiency of content campaign and drive volume
6© comScore, Inc. Proprietary and Confidential.
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How to approach display advertising?
� Display advertising is evolving
– Greater emphasis on direct response metrics
TV / Print Display Paid Search
Measurability ����
7© comScore, Inc. Proprietary and Confidential.
– Greater emphasis on direct response metrics
– Pricing is evolving to bid based model
� Approach display media management like paid search
– Budget accountability
– Applying direct response best practices
– Driving ROI for each incremental ad dollar spent
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Results: 170% increase in conversions in 3 weeks
400%
170%200%
300%
400%
500%
Client Results
8© comScore, Inc. Proprietary and Confidential.
170%
-50%
16%
-12%
-100%
0%
100%
200%
Click-Through Rate
Conversions Cost per Click Brand Search Queries
CPA
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Applying search intelligence to display advertising
1. Data Integration
2. Advanced Targeting
3. Account Structure
4. Budget Management
5. Creative Testing
6. Conversion Path Optimization
7. Campaign Optimization
9© comScore, Inc. Proprietary and Confidential.
Data Integration
Advanced Targeting
Account Structure
Budget Management
Creative Testing
Conversion Path
Optimization
Campaign Optimization
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Data Integration: Integrate campaigns and backend conversion data
� Create single view of key metrics for efficient ana lysis
� Leverage ad serving/optimization technology to guid e efficiency of ad spend
� Example: Subscription Model
– Free registrations
Large sample size
Allows technology to learn faster
10© comScore, Inc. Proprietary and Confidential.
Allows technology to learn faster
– Paid subscriptions
Smaller sample size
Enables bid optimization based on revenue
Data Integration
Advanced Targeting
Account Structure
Budget Management
Creative Testing
Conversion Path
Optimization
Campaign Optimization
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Advanced Targeting: Leverage high intent to purcha se targeting
� During initial tests, diversify across multiple tar geting techniques
23.4%
22.0%
12.0%
7.6%
48.6%
54.3%
26.5%
49.7%
27.9%
23.6%
61.4%
42.7%
Affiliate marketing
Rich Media Ads
Pop-up, Pop-unders
Website ads (.gif banners, etc.)Great ROI Middle of Pack ROI Poor ROI
11© comScore, Inc. Proprietary and Confidential.
40.5%
36.7%
29.7%
50.0%
50.5%
51.5%
5.5%
12.8%
18.8%
0% 20% 40% 60% 80% 100%
Contextually targeted ads
Behavioral targeted ads
Text-Link ads
Source: MarketingSherpa, February 2008
Data Integration
Advanced Targeting
Account Structure
Budget Management
Creative Testing
Conversion Path
Optimization
Campaign Optimization
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Case Study Example: Contextual targeting
� Identified high-performing keywords from paid searc h
– Focus on brand terms and core category terms
� Identified placements relevant to online dating
– Including competitor sites
� Used media planning tools to identify/exclude relev ant audiences
– Demographics
– Behaviors
12© comScore, Inc. Proprietary and Confidential.
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Account Structure: Organize campaigns into meaning ful segments
� Group campaigns by demo, geo, and behavioral segmen ts
� Structured campaigns enable efficiency
– Provides greater flexibility to optimize campaigns by price, creative or targeting
– Visibility to lower level of data allows optimization of poor and exceptional targets
13© comScore, Inc. Proprietary and Confidential.
Data Integration
Advanced Targeting
Account Structure
Budget Management
Creative Testing
Conversion Path
Optimization
Campaign Optimization
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Case Study Example: Organize by relevant segments
� Grouping by geo allows targeted ad copy
� Measuring ROI across key consumer segments enables more efficient media planning
14© comScore, Inc. Proprietary and Confidential.
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Budget Management: Determine best use of budget
� Evaluate pricing structures to mitigate advertiser risk
High Risk• CPM (Cost per 1000 Impressions)
Medium Risk
• Dynamic CPM (Bid-based CPM)• CPC (Cost per Click)
Low Risk• CPA (Cost per Action)
15© comScore, Inc. Proprietary and Confidential.
� Bid-based pricing enables setting a maximum allowab le price that achieves ROI goals
� Affiliate channels deliver incremental conversions at fixed acquisition goal metric
Data Integration
Advanced Targeting
Account Structure
Budget Management
Creative Testing
Conversion Path
Optimization
Campaign Optimization
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Case Study Example: Max CPC bidding to drive effici ency
� Able to use bid optimization platform
� Dynamically adjust bids to allowable levels based o n historical performance
� Set daily spending caps to avoid over saturation
� Enabled cross-channel optimization
– One system, one budget
– Allocate incremental dollars most efficiently
16© comScore, Inc. Proprietary and Confidential.
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Creative Testing: Test, test, test
� Iterative process where goal is to continually impr ove your ROI
– Increased efficiency drives increased volume
� Develop a testing methodology that isolates creativ e elements:
– A/B testing
– Multivariate testing
17© comScore, Inc. Proprietary and Confidential.
Data Integration
Advanced Targeting
Account Structure
Budget Management
Creative Testing
Conversion Path
Optimization
Campaign Optimization
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Case Study Example: Tested 3 concepts per ad size
� Followed best practices to improve efficiency:
– Animation creates attention
– Clear value proposition inspires action
– Call to action language demonstrates intent of ad
– Relevance reduces banner blindness
18© comScore, Inc. Proprietary and Confidential.
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Conversion Path Optimization:Determine success and friction elements affecting c onversion
� Analyze conversion beyond the initial landing page
� Increase consumer motivation by incorporating banne r and paid search copy
� Test and identify bounce rate and conversion contri butors
� Reduce friction factors to increase progression
– Reinforce credibility with qualifiers
– Keep content short and to the point
– Show a clear progression path for a multiple page process
19© comScore, Inc. Proprietary and Confidential.
– Show a clear progression path for a multiple page process
Data Integration
Advanced Targeting
Account Structure
Budget Management
Creative Testing
Conversion Path
Optimization
Campaign Optimization
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Case Study Example: Optimized conversion experience
� Landing page emphasized key messages from ads
� Reduce friction by providing a path
– Minimal bounce points keeps the user on task
– Reinforcement cues build consumer confidence
20© comScore, Inc. Proprietary and Confidential.
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Campaign Optimization: Apply targets/filters to de liver ROI
� Campaign structure enables detailed data analysis
� Isolate targeting criteria affecting performance
– Remove underachieving inventory, content channels or sites
� Lock in additional inventory at allowable pricing
� Duplicate successful campaigns across multiple netw orks
21© comScore, Inc. Proprietary and Confidential.
Data Integration
Advanced Targeting
Account Structure
Budget Management
Creative Testing
Conversion Path
Optimization
Campaign Optimization
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Many solutions with good reach
22© comScore, Inc. Proprietary and Confidential.
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Key Points
� To drive ROI, adopt a “search” mindset to display a dvertising
� Display budgets can be justified using same direct response tactics of paid search
� Disciplined methodology and commitment to ongoing t esting will increase effectiveness of display efforts
23© comScore, Inc. Proprietary and Confidential.
Data Integration
Advanced Targeting
Account Structure
Budget Management
Creative Testing
Conversion Path
Optimization
Campaign Optimization
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Agenda
Introduction
Applying Search Intelligence to Display Advertising
Search & Display Advertising - Quantifying the full ROI beyond Direct Response
24© comScore, Inc. Proprietary and Confidential.
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Powerful PlatformGlobal Panel of 2MM Users, Largest of Its Kind
360°°°° View of Consumer Behavior
Online Transactions
DemographicsLife Stages
Web Visiting and Viewing
The Only Global Measurement of Audience and e-Commerce
25© comScore, Inc. Proprietary and Confidential.
25
Media Exposure
Search Behavior
Streaming Video
32 Media Metrix Reported Countries
172 Countries with Sample Presence
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Growth in online advertising slowed in 2008
Total Online Advertising $ Billions and % Chg vs. YA
+29% +24% +27%+23% +18%
4.9 5.1 5.25.9 5.8 5.7 5.9
6
7+13% +11%
26© comScore, Inc. Proprietary and Confidential.
Source: PricewaterhouseCoopers and the Internet Adv ertising Bureau (IAB )
4.9 5.1
0
1
2
3
4
5
Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08
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Search spending continued to grow strongly through Q2 2008
$4.10$4.71
$5.06
$8.00
+30%+30%
+24%
+37%+29%
Total Search Advertising$ Billions and % Change vs. YA
27© comScore, Inc. Proprietary and Confidential.
$3.16$3.64
$4.10
$0.00
$4.00
H1 06 H2 06 H1 07 H2 07 H1 08
+37%+29%
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$2.70 $2.82 +19%
$2.86 +16%
$2.93+12%
$2.93+9%
$3.03+8%
$3.01
3
Growth in online display advertising slowed in 2008and shifted dramatically to pay-for-performance
Total Online Display Advertising(CPM + CPC)
$ Billions and % Chg vs. YA
+5%
28© comScore, Inc. Proprietary and Confidential.
+17% +19% +16%
2
3
Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08Source: CMR Data include static and rich display but do not inc lude paid search or video ads
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The Right Metrics are Critical: Clicks Understate Campaign ROI
29© comScore, Inc. Proprietary and Confidential.
Clicks Understate Campaign ROI
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Decline in online ad click-through rates
2.50%
1.12%1.50%
2.00%
2.50%
2002
In 2008, comScore measured
click rates as less than 0.1%
30© comScore, Inc. Proprietary and Confidential.
1.12%
0.41%
0.20%
0.00%
0.50%
1.00%
Rich Media Non-Rich Media
2002
2006
Sources: Doubleclick, eMarketer, Eyeblaster, ABI Re search estimates
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68%
16%
51%
10%
31%
30%
6%18%
50%
100%
Heavy
Moderate
Light
Non
Clickers follow the 80/20 rule
31© comScore, Inc. Proprietary and Confidential.
51%
20%0%
% Internet Pop % of Clickers % of Clicks
Source: comScore Natural Born Clickers study for T acoda & Starcom, Total US Online Population, July 2007
Clickers are predominantly younger (25 - 44) with lower income (under $40K)
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Clicks on display ads are a misleading metric and don’t reflect brand-building effects
� Only use for direct response ad campaigns (or searc h)
� Clicks don’t measure all of a campaign’s sales impa ct nor the cumulative (latent) impact of ads
� Clicks don’t tell you anything about brand building effects
32© comScore, Inc. Proprietary and Confidential.
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“The Role of Search in Consumer Buying”comScore study with Google
Direct Online Effects 16%
Latent Online Effects 21%
The Three Components of how Search Drives Buying
33© comScore, Inc. Proprietary and Confidential.
Source: Google/comScore “The Role of Search in Con sumer Buying” Press Release, March 21, 2006; based on holiday-related purchases completed online and offline across 11 product categories for 60 da ys post-search
Latent Offline Effects 63%
Only measuring direct online effects understates RO I by a factor of 6X
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The Impact of Display
and
34© comScore, Inc. Proprietary and Confidential.
and
Search Advertising
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Measuring the Holistic Impact of Online Ad Campaign s
� 200+ studies conducted to assess the impact of paid search and online ads on online and offline sales
� Real world analysis: comScore panelists divided int o two matched groups (exposed and non-exposed to advertising)
– Search only– Display ads only– Search and display ads together– Neither
35© comScore, Inc. Proprietary and Confidential.
– Neither
� Passively measured behavior and / or surveys
– Linked to in-store buying through CRM databases, retailer loyalty cards (we have 125
Million card dataset accessible), credit card data, IRI scanner panel
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Display Ads Lift Site Visitation Across All Vertica ls
4.5%
0.9%
1.3%
0.6%
6.6%
1.9%
2.3%
Average, N=139
Automotive, N=38
Finance, N=16
CPG & Restaurant, N=10
Advertiser Site ReachWeeks 1-4 after first exposure
% Lift: 46%∆ Lift: 2.1%
% Lift: 114%∆ Lift: 1.0%
% Lift: 86%∆ Lift: 1.1%
% Lift: 77%
36© comScore, Inc. Proprietary and Confidential.
0.6%
9.1%
7.0%
5.8%
4.8%
1.1%
13.8%
10.0%
7.2%
5.8%
CPG & Restaurant, N=10
Retail & Apparel, N=21
Media & Entertainment, N=24
Electronics & Sof tware, N=14
Travel, N=9
Control Test
% Lift: 77%∆ Lift: 0.5%
% Lift: 52%∆ Lift: 4.7%
% Lift: 42%∆ Lift: 2.9%
% Lift: 25%∆ Lift: 1.5%
% Lift: 21%∆ Lift: 1.0%
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Display ads don’t just increase site visiting: trad emark searches also continue to see a lift over the 4 weeks past exposu re to an ad
Results from comScore Campaign Effectiveness Studie s
0.5%
0.6%0.5%
0.7%
0.9%% Making a TM/Brand Search
37© comScore, Inc. Proprietary and Confidential.
0.2%
0.4%
0.5%
0.3%
0.5%
Week of f irst exposure
Weeks 1-2 af ter f irst exposure
Weeks 1-3 af ter f irst exposure
Weeks 1-4 af ter f irst exposure
Control Test
% Lif t: 52.3% % Lif t: 46.0% % Lif t: 40.3% % Lif t: 38.1%
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Clear synergies between search and display in drivi ng online sales
1.0% 1.1%1.9%1.5%
2.4%
5.1%
Display Only Search Only Search & Display% Lift: +42%
% Making A Purchase on the Advertiser Site (Retail Only)
% Lift: +121% % Lift: +173%
38© comScore, Inc. Proprietary and Confidential.
% Lift: +42% % Lift: +121% % Lift: +173%
$994 $1,548$2,723
$1,263$2,724
$6,107
Display Only Search Only Search & Display
Control Test
Online $$ per 000 Exposed(Retail Only)
% Lift: +27% % Lift: +76% % Lift: +124%
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Online is important but you can’t ignore offline bu ying eitherOnline is important but you can’t ignore offline bu ying either
Incremental Impact on Offline Sales per (000) Expos ed
� Higher offline sales lifts are found for search adv ertising vs. display but when combined the synergy provides even more lift
� Lift generated by online advertising is significant and would not be captured by a CPC or cookie-based model
39© comScore, Inc. Proprietary and Confidential.
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Higher reach of display ads often lifts sales more than does search
� The overall number of unique people reached by disp lay ads is typically much higher than search
� As a result, even though the sales lift among those exposed to a search ad is higher, the total dollar sales gained from display ads is often larger than search due to the smaller lift acting on a larger base
119%
Incremental Impact on Offline Sales per (000) Expos ed
40© comScore, Inc. Proprietary and Confidential.
11% 8%
81%
Search &
Display
Search
Only
Display
Only
% of Total
Exposed
Group
119%
82%
16%
Search and Display Search Only Display Only
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Key Points
� Online Advertising spend is still growing, but not nearly as fast as it has in the past
� When considering the full impact of both Search & D isplay ROI, you must take into account the soft dollar metrics
� Both Search & Display see most of their value in la tent response, both online and offline
� Although Search is the ultimate direct response cha mpion, greater frequency of exposure to Display ads can drive greater sales thr ough volume of impressions
41© comScore, Inc. Proprietary and Confidential.