integrating search and display feb09

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.

Our Presenters

Eli Goodman

Search Evangelist

comScore, Inc.

2© comScore, Inc. Proprietary and Confidential.

Keith Wilson

Director of Display Media

The Search Agency, Inc.

Agenda

Introduction

Applying Search Intelligence to Display Advertising

Search & Display Advertising - Quantifying the full ROI beyond Direct Response


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.


Agenda

Introduction




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


How to approach display advertising?

� Display advertising is evolving

– Greater emphasis on direct response metrics

TV / Print Display Paid Search

Measurability ��


– 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

Results: 170% increase in conversions in 3 weeks

400%

170%200%

300%

400%

500%

Client Results


170%

-50%

16%

-12%

-100%

0%

100%

200%

Click-Through Rate

Conversions Cost per Click Brand Search Queries

CPA

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


Data Integration

Advanced Targeting

Account Structure

Budget Management

Creative Testing

Conversion Path

Optimization

Campaign Optimization

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


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


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


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


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


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


Data Integration

Advanced Targeting

Account Structure

Budget Management

Creative Testing

Conversion Path

Optimization


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


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)


� 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


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


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


Data Integration

Advanced Targeting

Account Structure

Budget Management

Creative Testing

Conversion Path

Optimization


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


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


– Show a clear progression path for a multiple page process

Data Integration

Advanced Targeting

Account Structure

Budget Management

Creative Testing

Conversion Path

Optimization


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


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


Data Integration

Advanced Targeting

Account Structure

Budget Management

Creative Testing

Conversion Path

Optimization


Many solutions with good reach


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


Data Integration

Advanced Targeting

Account Structure

Budget Management

Creative Testing

Conversion Path

Optimization


Agenda

Introduction




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

Media Exposure

Search Behavior

Streaming Video

32 Media Metrix Reported Countries

172 Countries with Sample Presence

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%


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

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


$3.16$3.64

$4.10

$0.00

$4.00

H1 06 H2 06 H1 07 H2 07 H1 08

+37%+29%

$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%


+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

The Right Metrics are Critical: Clicks Understate Campaign ROI


Clicks Understate Campaign ROI

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%


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

68%

16%

51%

10%

31%

30%

6%18%

50%

100%

Heavy

Moderate

Light

Non

Clickers follow the 80/20 rule


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)

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


“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


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

The Impact of Display

and


and

Search Advertising

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


– 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

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%


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%

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


0.2%

0.4%

0.5%

0.3%

0.5%

Week of f irst exposure

Weeks 1-2 af ter f irst exposure



Control Test

% Lif t: 52.3% % Lif t: 46.0% % Lif t: 40.3% % Lif t: 38.1%

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%


% 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%

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


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


11% 8%

81%

Search &

Display

Search

Only

Display

Only

% of Total

Exposed

Group

119%

82%

16%

Search and Display Search Only Display Only

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


Thank You.

Eli Goodman Keith [email protected] [email protected]

integrating search and display feb09

Documents

direct response comscore

drivevolume comscore

test display ads

search marketing mindset

bid optimization

advanced targeting

efficiency of ad

direct response best