5 Trends on the Use of Data in Online AdvertisingJon MyersVP & Managing Director - EMEA

@JonDMyers

November, 2014

Online Advertising: Looking back over 20 years

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The history of online advertising 1993 - 1998

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2000: An online advertising behemoth was born

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Google.com: 1999

No Recorded Revenue for 1999

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The history of online advertising 2000 - 2007

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Google.com: 2007

2007 Revenue = $17.5bn

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The history of online advertising 2007 - 2013

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Google.com: 2014

2013 Revenue = $57.8bn

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November, 2014

Online Advertising Trends: 1) Search is learning from display

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Search is online advertising’s biggest channel…

…but it’s still learning from other channels@JonDMyers

Search has traditionally been focused on keywords

Keyword Portfolio

Cost related

Re

turn

rela

ted

1 2

3

4

56

high

high

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Audiences are the new keywords

Audience activation in RLSA: “Credit Card”

• High HHI• Affluent Cluster• Senior Mgmt

Existing Customer

Top Rewards Card Perks

Low RateDouble Miles

No MessingNegative bid boost: - 100%

Audience Search Ad Copy Bid

• Student• Frequent Traveler

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Adjust bids based on audience data

12% uplift in generic query CTRs for Motor Insurance vs. standard campaigns 7% reduction in CPCs across Motor Insurance vs. standard campaigns 14% uplift in margin across the Insurance vertical

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Adjust messaging based on audience data

Non-Member Member

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November, 2014

Online Advertising Trends: 2) Display is learning from search

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Display took search’s biddable model

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Now display is taking search intent

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Intent signal capture

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November, 2014

Online Advertising Trends: 3) Search and social work together

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The buyer’s journey is highly fragmented

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 used to research and

inspire purchase decisions (eMarketer)Sources: Brand Perfect, “Adventures in Retail”, November 9 2012 and http://www.thinkwithgoogle.com/tools/customer-journey-to-online-purchase.html

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Search and social have become our go-to channels

Rapid and Continuous Growth 50% of Total Media

Budgets50% of Marketers

Will Increase

6 Billion Google Searches / Day

1 Billion Daily Facebook Users

Google / Facebook = #1 / #2 for ROI

75% See as Critical for Cross-Channel

Sources: RBC Capital Markets and Advertising Age, “Facebook, Inc.” September 12, 2013, and http://news.magnaglobal.com/ipgmediabrands/press-releases/magna-global-advertising-forecast-2014-ipg-mediabrands.htm

Consumer Usage is Omnipresent

Marketers Are Embracing

Looking at search and social separately doesn’t tell the full story

Social is more likely to “assist” sales made in other channels For every Social click resulting in a purchase, there are two clicks assisting another

converting channel

Source: Google http://www.thinkwithgoogle.com/tools/customer-journey-to-online-purchase.html

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Social advertising drives better search performance

Customers who touch both channels are more valuable

Google / Bing Click+ Facebook Click

Facebook ClickOnly

Google /BingClick Only

3.56% CR$3.16 RPC

1.88% CR$1.56 RPC

.76% CR$.77 RPCSource: Marin Software’s Combining the Power of Search and

Social for Exponential ROI report

Search Revenue per Click is Higher When Managed with Social o + 36% higher than Search campaigns managed independently

Search Revenue per Conversion is Higher When Managed with Social o + 68% higher than Search campaigns managed independently

Is search and social campaign integration worth it?

Source: Marin Software’s Combining the Power of Search and Social for Exponential ROI report

November, 2014

Online Advertising Trends: 4) “Cross-channel” is about the consumer, not the channel

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Journey to conversion is about the consumer

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One to One RelationshipHow well do you understand your consumer?

Cross-channel audience activation

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Mr. CMO – Tear down those walls

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November, 2014

Online Advertising Trends: 5) Programmatic is moving towards transparency

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Mr. CMO – Tear Down Those Walls

You need to gain transparency & control from programmatic display

Transparent bid calculations

Second-party data visibility

Full view of media costs

November, 2014

Advertising in the Future: What other media could become programmatic?

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Could television ads go programmatic?

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Could radio ads go programmatic?

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Could outdoor go programmatic?

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Your World

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Thanks!Jon MyersVP & Managing Director - EMEA

@JonDMyers