WHERE IS PAID SEARCH GOING IN 2014?

Key Online Ad Trends

The shift from keywords to audiences

Proliferation of channels

Multi-channel bidding and attribution

Valuing customers not transactions by accessing CRM data

Integrating and leveraging disparate sources of data

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Digital Advertising

Growing SERP Complexity

Sitelinks

Product Listing Ads

Organic deep links

Social

Panel

Call Extension

Current Trends: Mobile

- By December 2015, mobile devices will account for 50% of all paid-search clicks (spending surpasses in 2017)

- Average CTR is 3.7% (vs. 2.7 and 2.5 for tablets and desktops)

- Tablet conversion rate surpassed desktops in 2013

Source: Marin Software, eMarketer (for mobile spend estimate)

Current Trends: PLAs

- In 2013, retail advertisers increased spend on PLAs by nearly 300%- 1 out of 5 paid shopping clicks in 2013 was on a PLA (estimated

30%+ by end 2014)

- In 2013, smartphone PLAs had a 33% higher CTR and 20% lower CPC than PLAs on desktop and tablets

Source: Marin Software

Streamline the setup of adWords for bidding and tracking products Organize and group your product feed on existing columns Leverage distinct feed values rather than defining boolean expressions Reduces risk of products living in multiple groups More feed-based formats coming soon!

Shopping Campaigns

A Database of Intentions

Bidding on Keywords Can Only Take Us So Far

Keyword Portfolio

Cost related

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Emerging Trend: Audiences are the New Keywords

Boosting Bids Based on Audiences

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Lifetime Value Estimation Improves Responsiveness

1. What are the known attributes of an order? Eg Gender, product interest, location, new visitor y/n?

2. Looking back over time, which of those attributes most affect the value of that visitor?

3. Using historical data, build a lookup table based on key combinations of attributes

4. At time of order, assign a proxy value to each order based on its attributes

Proxy value

At time of order…

Product Interest Isolated

Repeat monthly

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• Page-based, not keyword-based

• Richer results pages

• Carousel / mobile experiences

Changes for Natural Search / SEO

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Search Vs Social Growth

2013 2014 2015 $-

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$47.00 $51.60

$61.40

$9.00 $11.90

$14.90

SearchSocial

Paid search will continue to dwarf Social over the next two years (4X) However, Social’s growth rate is expected to be 2X and 1.5X that of

Search for 2014 and 2015, respectively

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Facebook, Twitter and LinkedIn dominate the Social Advertising market today– The market share split between the big three is 89%, 7% and 4% respectively. – Facebook has the highest CAGR at 4.763

There are an additional 200+ social networks, several of which will launch ads products– Instagram, Pintrest and Vine will likely launch advertising product this year– Asian Social networks RenRen, Sina Wiebo and Qzone launched advertising in 2013, and are

becoming increasingly popular in this market

Social Publishers

Key Players in Social Advertising TODAY Other Global Social Networks to Watch

Current Trend: Search + Social

• Search revenue/click is 36% higher when managed with Social• 74% of FB users access via a mobile device

Source: Facebook, Marin Software

Newsfeeds up 140% Y/Y, at 1/3 the CPA of right side North America is 15% of users, nearly 50% of ad spend

Newsfeeds Up

Source: Facebook (geo distribution), Marin Software (newsfeed growth and perf.)

Emerging Trends: Cross-channel

- 47% of revenue comes from purchases made in more than one day (Google)

- 65% of revenue comes from purchases made in more than one step (Google)

- Search Engines and Social Networks are the top two sources of used to research purchase decisions (eMarketer)

Marin’s Vision for Paid Search: Customer Acquisition Engine