Making Integrated Campaigns Work: How a Search Marketing Mindset Can Drive the ROI of Display Advertising

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Making Integrated Campaigns Work:

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Our Presenters

Eli Goodman

Search Evangelist

comScore, Inc.

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Agenda

Introduction

Applying Search Intelligence to Display Advertising

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The Search Agency

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Agenda

Introduction

Applying Search Intelligence to Display Advertising

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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 contextual text based ads

– Could not yield additional volume at target CPA

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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

– Greater emphasis on direct response metrics

– Pricing is evolving to bid based model

Approach display media management like paid search

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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

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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

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Data Integration: Integrate campaigns and backend conversion data

Create single view of key metrics for efficient analysis

Leverage ad serving/optimization technology to guide 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

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Advanced Targeting: Leverage high intent to purchase targeting

During initial tests, diversify across multiple targeting 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

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Case Study Example: Contextual targeting

Identified high-performing keywords from paid search

– Focus on brand terms and core category terms

Identified placements relevant to online dating

– Including competitor sites

Used media planning tools to identify/exclude relevant audiences

– Demographics

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Account Structure: Organize campaigns into meaningful segments

Group campaigns by demo, geo, and behavioral segments

Structured campaigns enable efficiency

– Provides greater flexibility to optimize campaigns by price, creative or targeting

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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

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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)

Bid-based pricing enables setting a maximum allowable price that achieves ROI goals

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Case Study Example: Max CPC bidding to drive efficiency

Able to use bid optimization platform

Dynamically adjust bids to allowable levels based on historical performance

Set daily spending caps to avoid over saturation

Enabled cross-channel optimization

– One system, one budget

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Creative Testing: Test, test, test

Iterative process where goal is to continually improve your ROI

– Increased efficiency drives increased volume

Develop a testing methodology that isolates creative elements:

– A/B testing

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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

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Conversion Path Optimization:

Determine success and friction elements affecting conversion

Analyze conversion beyond the initial landing page

Increase consumer motivation by incorporating banner and paid search copy

Test and identify bounce rate and conversion contributors

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

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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

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Campaign Optimization: Apply targets/filters to deliver 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

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Key Points

To drive ROI, adopt a “search” mindset to display advertising

Display budgets can be justified using same direct response tactics of paid search

Disciplined methodology and commitment to ongoing testing will increase

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Agenda

Introduction

Applying Search Intelligence to Display Advertising

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Powerful Platform

Global Panel of 2MM Users, Largest of Its Kind

360°°°° View of Consumer Behavior

Online Transactions Demographics Life Stages Web Visiting and Viewing

The Only Global Measurement of Audience and e-Commerce

Search Behavior Streaming

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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 5.2 5.9 5.8 _5.7 5.9 6 7

+13%

+11%

Source: PricewaterhouseCoopers and the Internet Advertising Bureau (IAB)

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Search spending continued to grow strongly through Q2 2008

$4.10

$4.71

$5.06

$8.00

+30%

+24%

+37%

+29%

Total Search Advertising

$ Billions and % Change vs. YA

$3.16

$3.64

$4.10

$4.00

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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 2008

and 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 08

Source: CMR

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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%

1.12% 0.41% 0.20% 0.00% 0.50% 1.00%

Rich Media Non-Rich Media

2002 2006

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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

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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 search)

Clicks don’t measure all of a campaign’s sales impact nor the cumulative (latent) impact of ads

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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

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The Impact of Display

and

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Measuring the Holistic Impact of Online Ad Campaigns

200+ studies conducted to assess the impact of paid search and online ads on

online and offline sales

Real world analysis: comScore panelists divided into two matched groups

(exposed and non-exposed to advertising)

– Search only

– Display ads only

– Search and display ads together

– Neither

Passively measured behavior and / or surveys

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Display Ads Lift Site Visitation Across All Verticals

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 Reach

Weeks 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

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Display ads don’t just increase site visiting: trademark searches also

continue to see a lift over the 4 weeks past exposure to an ad

Results from comScore Campaign Effectiveness Studies

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%

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Clear synergies between search and display in driving online sales

1.0%

1.5%

1.1%

1.9%

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 Online $$ per 000 Exposed

(Retail Only)

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Online is important but you can’t ignore offline buying either

Incremental Impact on Offline Sales per (000) Exposed

Higher offline sales lifts are found for search advertising vs. display but when combined the synergy provides even more lift

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Higher reach of display ads often lifts sales more than does search

The overall number of unique people reached by display 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) Exposed

11% _8% 81% Search & Display Search Only Display Only % of Total Exposed Group

119%

82%

16%

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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 & Display ROI, you must take into account the soft dollar metrics

Both Search & Display see most of their value in latent response, both online and offline

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Making Integrated Campaigns Work: How a Search Marketing Mindset Can Drive the ROI of Display Advertising