Every day there are over one billion queries made by online shoppers. Each month, over

1.5 trillion digital interaction decisions occur. Your potential customers are engaging

with your—or your competitors—ads while they research and buy products. Are you

giving them what they’re looking for?

Every marketing authority says the same thing—you have to deliver the right ad to the

right person at the right time. While we’re getting closer to being able to deliver on this,

we’re not quite there. We can, however, use the massive amount of data we collect to

create a unique ad experience for each shopper.

There is one simple truth—the more you know, the more they buy.

This white paper will explore the ways retailers can use shopping data and analytics

to deliver the best advertising experience for shoppers.

Learn how shopping analytics can help answer these four questions:• Is this a valuable ad moment?• What is the value of the ad moment?• What is my buyer’s context at this moment?• How do I maximize the moment?

The latestMore on the evolution of modern online advertising on our blog: www.adlucent.com/blog

About BuyerPath™BuyerPath™ is an applied shopping analytics platform that leverages query data, in-market data, CRM data and online/offline shopper demographics to help retailers find, value, and maximize valuable ad moments for optimal return.

By Bruce Flory, CMO, Adlucent

APPLIED SHOPPING ANALYTICS: The key to creating a unique ad experience

The more you know...

...the more they’ll buy.

The Benefits of Knowing MoreSince 2001, Adlucent has connected buyers to products through its shopping analytics

platform, DeepSearch™.

Our goal has been two-fold—drive and deliver predictable, superior performance and

make online advertising increasingly consumer-centric.

When a retailer continuously improves their knowledge of a consumer’s behavior and

preferences, and then applies that knowledge to create more targeted, relevant ads, their

performance skyrockets.

In fact, Adlucent clients have seen performance gains that are 2-5X greater than the

industry average.

Three challenges retailers must overcome to create a unique ad experience:

Omnichannel

The line between online and offline has blurred. Mobile has now shifted control

to the consumer. The path from query to purchase now spans multiple devices

that are usable anywhere.

Volume

The volume of searches has increased dramatically and continues to grow.

With over eight billion queries a month, the ability to identify and value search

opportunities with precision demands sophisticated tools for ad practitioners.

Technology

Technology has advanced to a point where it is now possible to use a variety

of online and offline data to understand consumer behavior, including the ads

they respond to, and the best way to deliver them.

Let’s explore how the latest innovations in shopping analytics can unlock the answers to

critical ad questions in today’s online advertising environment.

Note from the CEO:“Ultimately, what we’re trying to do is help retailers satisfy a consumer’s needs and interests. It goes beyond which ad is the right ad to serve; it’s which experience from ad to checkout is best at creating a unique shopping experience. We are the only company, to my knowledge, that looks at competitor price, promotions, demographics, shipping costs, inventory, weather, household income, and many other factors to determine the likelihood of delivering a valuable ad moment – for consumer and retailer. This is how we deliver unexpectedly positive results.”

– Michael Griffin, CEO, Adlucent

1

2

3

Answering the four most critical ad questions, at scale.

This is really a story of three types of queries; the one you know is valuable, the one

you didn’t know was valuable, and the one that is valuable, sometimes.

Chances are you have a search strategy that includes analyzing both your website and

product feed to determine which queries (keywords) are the most valuable. Expanded

analytics can also be used to evaluate text and product ad traffic, organic search, and

site search to expand the keyword build process.

Applied shopping analytics can augment this approach by:

» Evaluating the new queries to determine if they’re applicable. An additional 25

percent are created each month.

» Suppress ads for what appear to be a valuable ad moments, but due to in-

market conditions, they are not. This includes insufficient inventory, competitive

promotions that put you at a price disadvantage , and more. A keyword may indicate

this is a relevant query but the conversion opportunity is low.

Maximizing performance begins with finding all of your valuable ad moments and suppressing the rest.

In-Market Data Presents New Opportunities for One EtailerWith their peak holiday season approaching quickly, Adlucent focused on ensuring that

the highest performing products were showing for the top search terms. By expanding

the relevant query population, Adlucent was able to show the right products for the right

queries, directly resulting in a year-over-year lift of 24% in conversion rate. Adlucent’s

BuyerPath™ platform consolidates data in a unique way to optimize feeds for greater

visibility. This retailer saw a year-over-year increase in revenue of 29% and 102% when

looking at pre-holiday and peak holiday date comparisons.

Question 1:

BuyerPath™ features:BuyerPath™ helps you determine which customers’ queries apply to your business.

We determine if you carry products that may meet that customer’s intent, and whether those products are in stock.

Adlucent mines all queries to find your valuable ad moments, even from new queries you may have never seen before, so you don’t miss an opportunity.

IS THIS A VALUE AD MOMENT?

Pre Holiday Peak Holiday

Pre-Adlucent Post Adlucent

29%

102%

YoY Increase in Revenue (2012 vs 2013)

CASE STUDY

Not every ad moment is equally valuable, but every moment can make a contribution.

Query head terms are obvious ad moments, but it’s likely you and your competitors

are bidding for these, which drive up costs and diminish return on ad spend (ROAS).

On the other hand, there are huge opportunities buried deep in the long tail for retailers

equipped to find them.

Assigning a bid value to each ad moment is difficult for retailers—especially those with a

high number of SKUs. Maintaining them is even more challenging. But with an analytics

platform that includes query performance, point of sale results, and product margins,

retailers can predict the return on investment and business impact of each ad moment.

Have confidence each ad moment drives the business results you expect with the precision needed to value every possibility against revenue and profitability goals.

Buyer shopping behavior is much more complex than ever, and many changes in behavior

is not accounted for in the analytical approaches and the tools generally available

today. People use multiple devices online and offline along their path to purchase. To

understand the complex touch points required and value them appropriately, we have to

understand consumer behavior and marry that with better analytics.

Google’s Enhanced Campaigns allows retailers to incorporate bid parting into their

search strategies. Bid parting is particularly useful when targeting shoppers in various

geographies, on different device types, and at certain times of the day. Adlucent has

taken bid parting a step further by applying shopping analytics to bid parting decisions.

See example on the next page.

The data needed to improve online advertising decisions is available, but it remains largely untapped. Adlucent has used this data to pioneer advanced shopping analytics.

BuyerPath™ features:Adlucent fully leverages the bid adjustment capabilities available with Google Enhanced Campaigns. Using sophisticated algorithms and extensive in-house testing, bids are modified depending on the context of the shopper: where they are, what device they’re on, the time of day, and their inclusion in a particular audience (e.g., cart abandoner).

WHAT IS THE VALUE OF THE AD MOMENT?

Question 2:

WHAT IS MY BUYER’S CONTEXT?

Question 3:

BuyerPath™ features:We give you an unfair advantage in valuing and bidding by considering query performance and a rich set of personal conversion catalysts and in-market data to predict the likelihood of conversion and return on ad spend.

Adlucent’s Software as a Service applications allow you to set business goals (e.g. revenue, ROAS, impressions, new customer acquisition), then analyzes historical shopping and query performance to establish the optimal value for each and every relevant ad moment.

So far everything is lining up as planned. Now the moment of truth—will the buyer act on

the ad and make a purchase?

Identifying valuable ad moments, valuing them properly, and aligning with the buyer’s

context (time, location, and device) are absolutely critical, but the right ad tips the scales

in your favor and the wrong ad fails to take advantage of the moment.

The right ad is more than the right product. Buyers ultimately have a choice, and a

number of factors (or personal conversion catalysts) play heavily into their choice. With

the right shopping analytics, these conversion catalysts can be analyzed and applied to

ad decisions.

The right applied shopping analytics can help you design and deliver ads that not only

satisfy a buyer’s interest, but also compel them to buy – a merchandiser’s dream!

HOW DO I MAXIMIZE THE MOMENT?

Question 4:

CASE STUDY

A 30% Revenue IncreaseIn this example, a retailer who sells window furnishings wants to increase revenue.

The retailer knows that these products are frequently purchased shortly after a

new home purchase or when a major remodel is happening. At Adlucent, we tried

something a bit different. We went out to a third party to gather data about new

home construction and remodeling, by month, for every city and state. We took this

data and stack ranked the areas we wanted to target. We modified bids upwards for

cities with high construction activity and downwards for cities with low construction

activity. Over the course of several months, we increased aggregate revenue by

a whopping 30%. Of course, home construction is seasonal so we’re constantly

updating this data to do these calculations.Ft. Lauderdale Houston

$0K

$50K

$100K

$150K

$200K

$250K

Revenue Growth by Geography

Consumer Purchase Catalysts:Along with ad copy and product choices, these tools (or catalysts) can turn a shopper into a buyer:

• Pricing (Special Offers)• Free Shipping / Free Returns• Coupons / Promotions• Ratings / Reviews

Relevancy RewardedWe’ve all had it happen—you begin to search the web and you’re bombarded with ads.

You quickly realize the ads that are being displayed are promoting a website that your

brother said you should check out. You have no interest in what you found, yet here’s

the ad, staring you in the face.

In an online world cluttered with ads that target the wrong people with the wrong

products, delivering lukewarm promotional motivation, consumers are tuning out.

Irrelevant advertisements, in any form, are not going to covert. A significant percentage

of the $20B in search ad spend will be ineffectual, if not outright wasted.

Investments in shopping analytics allow retailers to create unique ad experiences,

serving the needs and interests of consumers, wherever the consumers path to purchase

may take them. And when retailers deliver a relevant experience they will be rewarded

with more sales and improved business results.

Proven Expertise, when and how you need itOver the years, Adlucent has been developing, improving, and extending its Applied

Shopping Analytics platform, BuyerPath,™ to help its clients know more about their

customers and apply the learnings to todays modern online advertising infrastructure.

What’s the payoff? Dramatic improvements in ad conversions. Revenue, not clicks.

Adlucent serves its clients with a mix of technology and a full range of services,

tailored to the individual retailer. The search marketing experts who helped define and

continuously perfect BuyerPath™ are the same ones who deliver custom services to their

clients, each and every day.

Are you ready to get started with applied shopping analytics? Contact us today for a

free assessment of your online ad programs, and we’ll give you ideas on how you can

leverage applied shopping analytics to create unique advertising experiences for your

buyers.

Let’s Chatw: adlucent.com/buyerpathp: 1-800-788-9152e: solutions@adlucent.com

ABOUT ADLUCENT

DISCOVER HOW TO CREATE A COMPETITIVE EDGE at adlucent.com

BuyerPath™ features:BuyerPath’s unique Shopping Analytics ensure your ads contain the right answers to drive conversions, including effective promotions, offers, and pricing aligned to buyer preferences that are scientifically proven to improve conversions.

Adlucent’s extensive testing capabilities ensure that the right ad text and landing pages are delivered to maximize the opportunity.