mason garrity - the online super bowl: keys to winning the holidays
DESCRIPTION
Mason Garrity, 3Q Digital The Online Super Bowl: Keys to Winning the Holidays Presented at Seattle Interactive Conference 2013 Last year Cyber Monday represented the single biggest day in online spending, totaling $1.465 billion in retail sales. Up 17% from 2011, the macro data shows no signs of this growth slowing. The holiday season as a whole is the single most critical time for companies to execute best in class digital marketing tactics to ensure that they maximize their return during peak demand. Given the importance, your planning and implementation should begin now. We’ll dive into search, social, display, retargeting, and analytic strategies that will help you win during the holiday season, and use this time of year to propel you to a new baseline in 2014.TRANSCRIPT
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The Online Super Bowl Keys to Winning the Holidays
Mason GarrityAccount Director, 3Q Digital
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HOLIDAY TRENDS
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• $61B projected for Nov-Dec in 2013, a 15% increase over 2012
• 30-40% of total online retail sales happen in Nov-Dec
• 12 days topped $1B in sales last year
• 2013 will be condensed with 6 fewer days between Thanksgiving and Christmas
2012-13 BY THE NUMBERS
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Holiday Season: Nov 1 – Dec 31
Hanukkah: Nov 27 – Dec 5
Thanksgiving: Nov 28
Black Friday: Nov 29
Cyber Monday: Dec 2
Green Monday: Dec 9
Free Shipping Day: Dec 18
2013 DATES OF SIGNIFICANCE
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2012 YEAR OVER YEAR GROWTH
Holiday Season
$46.6B $53.7B
+14%
Thanksgiving
$479M $633M
+32%
Black Friday
$816M $1B
+28%
Cyber Monday
$1.25B $1.47B
+17%
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2011-12 BY THE NUMBERS
Week 1 (11/4)
Week 2 (11/11)
Week 3 (11/18)
Week 4 (11/25)
Week 5 (12/2)
Week 6 (12/9)
Week 7 (12/16)
Week 8 (12/23)
Week 9 (12/30)
$- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000
Weekly Spending ($ Millions)
2011 2012
36% y/y increase in sales during the week of Christmas in 2012
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2013 TOP CATEGORIES
What are people going to be shopping for this year?
• Gift Cards: 56%
• Apparel: 54%
• Toys: 44%
• Electronics: 39%
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2012 ACCOUNT EXAMPLES
Holiday Cards
Gift Cards (buy and sell)
Tech gadget, single product
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PRODUCT LAUNCHES
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• New customers increased 49% in holiday months in 2012
• 25% of people shop on sites they previously had not shopped on
• Most are looking for the best price
• Followed by selection
• People become less brand loyal
CREATE A NEW BASELINE
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CREATE A NEW BASELINE
• Use the spike in demand and first time customers to create new, loyal customers
• If you can do this…
• 1/3 of the time they will share your brand with others
• Over 50% of the time they will make a repeat purchase
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MESSAGING
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WHY ONLINE IN 2013?
68% - Free Shipping
58% - Online only discounts
46% - Avoiding the crowds
43% - No sales tax
41% - Easy to use website
14% - “nothing would entice me to buy holiday gifts online”
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FREE SHIPPING IS A KEY DRIVER
Many companies offer free-shipping or qualified shipping year round, those who don’t introduce it during select holiday dates
• A UPS study indicated that 68% of shoppers have recommended an online store on the basis that they offered free shipping
• If free shipping is not an option 36% plan to buy online, and pickup in-store
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DISCOUNT SHOPPING
• Discounts are more important than ever
• 48% will search for and buy only discounted items
• 76% will shop discount retailers (73% in 2012)
• 39% will return and then repurchase an item that goes on sale
• An item being on sale is the primary driver for making the purchase
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“WEBROOMING” AND “SHOWROOMING”
• “webrooming” is on the rise and is popular with 65% of holiday shoppers
• 47% want to avoid shipping costs• 46% want to be able to see the item before
buying• The likelihood of showrooming is also on
the rise, 63% vs. 56% in 2012
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METRICS
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ACCOUNT METRICS
Month AOV CPC ConRate Purchase Quantity
September $ 184 $ 0.56 2.4% 1.29October $ 190 $ 0.62 2.6% 1.30November $ 193 $ 0.71 3.1% 1.31December $ 215 $ 0.80 4.1% 1.43
• People are more likely to convert, buy more products, with a higher order value
• These conditions will lead to a more competitive marketplace – CPCs will increase significantly
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TIME SHIFT
Latency is cut down, more revenue and conversions come in on same day as click
Non-Holiday55% of conv46% of rev
31% of rev 24% of convafter 12 days
Holiday Season72% of conv61% of rev
26% of rev14% of conv after 12 days
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CHANGE IN CLICK PATH BEHAVIOR
There is also a change in click patterns, it takes more clicks to get a conversion
Non-HolidayHoliday Season
13% increase in multi-click conversion paths
13% increase in 2-click path conversions
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SEARCH TACTICS
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IMPORTANCE OF SEARCH
• Annually, retail is the largest spender on search by a large margin
• 65% of retail ad spend focuses on direct response, vs. 35% on branding
• 51% of people are unsure when they will begin shopping for the holidays
• 30% that do know, plan on starting before Halloween
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2012 QUERY TRENDS
November-December
2012
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GENDER DIFFERENCES
Index Avg
Men: 54
Women: 22
Boys: 16
Girls: 23
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RELATIONSHIP DIFFERENCES
Index Avg
Mom: 38
Dad: 29
Husband: 7
Wife: 11
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KEYS TO SEARCH
• Reacting quickly to data over the next 2 months is critical
• Start by looking at historical query data from 2012, by different time segments
• You should know the top performing queries for the holiday season, as well as on the important dates outlined
• Structure these keywords in a manner that allows you to be nimble
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ALPHA-BETA & SINGLE KW AD GROUPS
• A Beta campaign is designed to quickly identify profitable search queries and eliminate unprofitable ones
• An Alpha campaign is designed to isolate profitable queries into ad groups with targeted ad text and landing pages
• The overall objective is to take 100% control of your queries!
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ALPHA-BETA & SINGLE KW AD GROUPS
Query: holiday shoe deals
Ad Group: holiday shoe dealsKeyword: [holiday shoe deals]
Ad Copy/LP: Customized to this query
Negative keyword: -[holiday shoe deals]
Apply to all other campaigns in account
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REMARKETING LISTS FOR SEARCH
Expand your reach by layering user lists
Profitable Keyword
Set
Relevant Keyword
Set Profitable Keyword Set
When Targeting
Relevant Users
Combine with custom messaging
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PRODUCT LISTING ADS
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PRODUCT LISTING ADS
• May ‘12 Google announces product results will transition to full pay for placement model
• Oct ‘12 Google transitions to full commercial model, removing organic shopping results
• Since the switch there has been an increase in search share vs. text ads, CPC, CTR, and overall spend
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PLA TRENDS
Indexed CPC peaked in December, but has continued to rise through ‘13
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PLA TRENDS
Spend on PLAs vs. Text sees a massive uptick over the holidays
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PLA TRENDS
PLA CTR has been on the rise for most of 2013, suggesting large increases ahead in Nov & Dec
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PLA BEST PRACTICES
• Ability to optimize campaigns will largely be determined by the quality of your data feed
• Granularity of product targets is key to running an efficient campaign, and maximizing volume
• Group similar products for promotional text
• Group top performing products
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360 IMAGES WITH GOOGLE
Enhance your products in Google Shopping and PLAs with 360 Images
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DISPLAY AND RETARGETING TACTICS
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DISPLAY OVERVIEW
• Unlike search, retail is not the largest industry on display throughout the year
• However, they do buy the majority of RTB impressions
• This share goes from ~25% in Q1/Q2 to 36% in Q4
• CPMs become very expensive, so for non-retail display advertisers – throttle back your display plans
• Retargeting needs to be a key tactic in your holiday plans
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RETARGETING BASIC SEGMENTATION
0 to 3 Days 4 to 7 Days 8 to 14 Days 14 to 30 DaysVisitors 5 4 3 2Category page 6 5 4 3Product Page 7 6 5 4Shopping Cart 8 7 6 5
Create retargeting lists based on site interaction, and time passed since interaction
Purchasers should also be a list, and depending on timing, can be utilized in different ways
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RETARGETING FOR THE HOLIDAYS
• Create new lists for holiday segments, with shorter pixel windows
• Create targeted messages based on site interaction to encourage purchase
• Gradually lift frequency caps on appropriate segments as holiday season moves on, and purchase deadline approaches
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VISITOR SEGMENTS – GOOGLE ANALYTICS
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DYNAMIC RETARGETING
Dynamic retargeting allows for custom messaging and product targeting, especially useful for abandoned shopping carts
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SAVING FOR NEXT YEAR
Use your holiday retargeting lists to target these customers post-holiday season
• Retargeting is the best performing display format year round
• Leverage your newly expanded lists to create new, loyal customers in 2014
• Valentine’s day in particular is a great target depending on product
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YOUTUBE VIDEO ADS FOR DR
If executed properly, YouTube TrueView ads can act as a great direct response medium
• Creative needs to be created for this purpose, with strong call-to-action
• Take advantage of lower TrueView CPCs
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THE MULTI-SCREEN WORLD
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MOBILE BY THE NUMBERS
• 68% increase in online sales from mobile in 2013
• 13% of online sales in during the 2012 Holiday Season happened on mobile
• Projected to be 16% in 2013
• 1 of 3 holiday shopping queries happened on a mobile device in 2012
• Mobile usage peaks during “in-office” hours, while tablets peak after-work
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THE POWER OF MOBILE
Mobile’s ability to bridge the online and offline shopping experience presents unique opportunities. This season mobile devices will mostly be used to:
• Make purchases• Research products• Check prices• Read product and store reviews• Locate retail locations
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MOBILE PURCHASES
As more apps and sites optimize their mobile checkout experience, the barrier to transaction is lowering dramatically
• 57% of retailers have invested in optimizing their mobile websites in the past year
• 18% claim “they are not easy for shopping” compared to 28% in 2012
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COMPANION SHOPPING
• 84% of shoppers use smartphones as in-store shopping companions
• 69% use Google for mobile price research, 57% turn to Amazon
• 1/3 use their phones rather than talking to an employee
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IN STORE OFFERS
Using Swirl, Timberland ran a 20% in-store only discount at two retail locations
• 72% of offers were opened
• 35% were redeemed
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IN STORE SHOPPING AIDS
Lowe’s uses companion features such as delivery/pick-up method and item locator
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IN STORE TOOLS
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MOBILE AND FREE SHIPPING
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MOBILE PRODUCT LISTING ADS
On Oct 17th Google updated the look of mobile PLAs on the SERP
If you are not opted-in to mobile in your PLA campaigns, time to test or re-test it
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APPS: KEEP THE GOOD TIMES GOING
Interest in apps has peaked between Christmas & New Years for the last 3
holiday seasons
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CLICK TO INSTALL ADS
Have a mobile app? Your peak is from Christmas to New Years. Take advantage of this time to make a strong push
• Mobile Ad Extensions on Google Search
• In-app click to install products (AdMob, inMobi, etc.)
• New Facebook App ad formats
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NEW FACEBOOK APP ADS
App Ads for Installs & App Engagement Ads
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SOCIAL INFLUENCE
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SOCIAL INFLUENCE
• 67% purchase a gift they found on social media
• 65% of shoppers use social media to find the perfect gift
• 54% use social media while shopping in stores
• 44% discover holiday deals through peer recommendations
• 25% say peer recommendations on Facebook and Twitter are the leading driver of holiday purchases (runner-up TV commercials at 13%)
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SOCIAL INFLUENCE
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SOCIAL SALES
Social media played a very small part in driving revenue in 2012, with most retailers expecting it to drive less than 5% of sales this year
• Facebook ad formats and targeting has vastly improved year over year, suggesting better performance may be ahead
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FACEBOOK FORMATS
• The introduction of newsfeed “dark posts” has led to huge performance gains in 2013, greatly outperforming sidebar placements
• Leveraging FBX as another retargeting medium has been very successful
• Mobile CPCs are still low compared to mobile search
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FACEBOOK FORMATS
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FACEBOOK: CUSTOM AUDIENCES
Another area of opportunity to use are Custom Audiences
• Target current customers with specific messaging and offers to aid brand loyalty
• Use lookalike audiences based on past purchasers to reach relevant, new people
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THE INFLUENCE OF TWITTER
1.9x more retailers on Twitter y/y
With more retailers turning to Twitter, expect more customers to directly reach out to these companies for various reasons
“Twitter has become an essential way for Target to give our guests the inspiration and ideas they crave
whenever they’re in the mood to shop,”
- Shawn Gensch, SVP of Marketing, Target
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THE INFLUENCE OF TWITTER
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LOOKING TO 2014
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• 2013 will be the biggest holiday season ever… the growth will continue next year
• Online sales growth will continue to outpace in-store growth
• Mobile and Social will continue to play an increasingly important role, this puts more emphasis on the need for attribution
• As more dollars shift online, new and improved ad products will continue to drive efficiency for advertisers
CONTINUING TRENDS
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GOOGLE SHOPPING CAMPAIGNS
Open to a limited number of advertisers through Q4, complete roll-out in 2014
• Streamlines PLA management
• Ability to create custom labels
• Provides advanced reporting
• Competitive data
• Basically… more like regular search!
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GOOGLE SHOPPING CAMPAIGNS
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BING PRODUCT ADS
Currently open to limited advertisers through Q4
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PINTEREST AND INSTAGRAM ADS
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KEYS TO WINNING THE HOLIDAYS
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KEYS TO WINNING THE HOLIDAYS
1. Analyze your data… know it inside and out!
2. Utilize all ad formats at your disposal
3. Timing is critical; create a roadmap for all channels, across all devices
4. These are year-round improvements, the holiday season only exaggerates their importance.
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DON’T BE THIS
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BE THIS!
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The Online Super Bowl Keys to Winning the Holidays
Mason GarrityAccount Director, 3Q Digital
[email protected]@masongarrity
@3qdigital