paid search and paid social: birds of a feather or different flock?
DESCRIPTION
Aaron Goldman, Chief Marketing Officer at Kenshoo, presents on paid search advertisements and paid social advertisements and SIMposium 2012.TRANSCRIPT
PAID SEARCH AND PAID SOCIAL: BIRDS OF A FEATHER OR
DIFFERENT FLOCK?
Chief Marketing Officer, KenshooAaron Goldman
Aaron Goldman is Chief Marketing Officer at Kenshoo, a digital marketing software company that engineers global technology solutions for search marketing, social media and online advertising. Kenshoo powers 7 of the world’s top 10 retailers, 9 of the 10 largest ad agency networks, and 23 of the Fortune 50 companies.
Goldman is a digital marketing veteran with more than 10 years of industry experience and the author of Everything I Know about Marketing I Learned from Google (McGraw-Hill 2010).
Agenda
Search + Social = 60% of Online Ad Spend
August 2011 “US Interactive Marketing Forecast, 2011 To 2016”
Social Ad Spend Growth Outpacing Search
Birds of a Feather
Paid + Organic
Paid + Organic
PPC Auction
PPC Auction
Precise Audience Segmentation
Precise Audience Segmentation
Highly Customized Creative Messaging
Highly Customized Creative Messaging
Continuous Optimization
Continuous Optimization
Birds of a Feather
1. PPC Auction
2. Precise Audience Segmentation
3. Highly Customized Creative Messaging
4. Continuous Optimization
Different Flock
Consumer Mindset
vs.
Consumer Mindset
Social
Search
Click Rate Distribution Between Paid Social and Search Campaigns
# o
f Cam
paig
ns
CTR
Time Spent
Time Spent
Ad Targeting
Ad Targeting
Ranking Criteria
High Correlation Between CTR and CPC for Retail Advertiser
CTR %
CPC %
Ranking Criteria
Source: SitePosition
Conversions
Conversions
Conversions
Metrics
Purchases
Revenue
CTRCPC
Conv Rate
Cost
Clicks
Impressions
Revenue/Click Leads
ROI
CPL
CPA
CPM
Downloads
Metrics
Social Impressions
Likes
Fans
Shares
Share of Voice
Connections
Tweets
Retweets
Churn
Follows
AOVMentions
RSVPs
Uniques
CPFVideo Views
Purchases
Revenue
CTRCPC
Conv Rate
Cost
Clicks
Impressions
Revenue/Click Leads
ROI
CPL
CPA
CPM
Downloads
Reach
Social Reach
Engagements
Different Flock
1. Consumer Mindset
2. Time Spent
3. Ad Targeting
4. Ranking Criteria
5. Conversions
6. Metrics
Best Practices
The Marketing Funnel
Awareness
Consideration
Purchase
Intent
Awareness
Consideration
Purchase
Intent
Customer
Repeat
Advocate
Loyal
The Marketing Hourglass
Holistic Strategy
Multi Channel
Attribution3rd Party
Integrations
Advanced Search Keyword Tool Dimensions
Custom Bid Algorithms
Reporting Dashboard
Path to Conversion
Keyword Bid Optimization
Support & Training
Intelligent Campaign Automation
Cross-Profile Advanced
SearchCampaign Templates
Hyper-Local Geo Targeting
Budget Management &
Reallocation
Objectives Management
Call Conversion
Optimization
Google Places/Locations Integration
Call Extensions
SMB/Reseller Support
Flexible Reporting
Intelligent Campaign Automation
Path to Conversion Reporting
Social Ads Manager
Segment Templates
Ad Permutations
Custom Targeting Options
Premium Ads Tracking
Support & Training
Multi-Edit, Copy & Paste
FB Specific Algorithms
Scheduled Actions
Intelligent Campaign Automation
Multi-Channel Attribution
Keyword 1
Madonna TicketsTicketsNow.comBuy Madonna tickets Now Available!
2012 Madonna TourTicketsNow.com
Get your tickets nowFor Madonna’s 2012
tour!
Keyword 2 Keyword 3
Most advertising tracking systems report and act on only the last click prior to purchase
Ad 1
Concert TicketsGet your tickets now!TicketsNow.com
TicketsNow® Official Site
TicketsNow.comOfficial Site of
TicketsNow.com™. ® - Official Site.
Multi-Channel Attribution
60%
25%
10%
5%
Attribution Models
Linear Ratio
U Shaped
Distribute Evenly
Single Click Only (First or Last)
Keyword 1
Madonna TicketsTicketsNow.comBuy Madonna tickets Now Available!
2012 Madonna TourTicketsNow.com
Get your tickets nowFor Madonna’s 2012
tour!
Keyword 2 Keyword 3Ad 1
Concert TicketsGet your tickets now!TicketsNow.com
TicketsNow® Official Site
TicketsNow.comOfficial Site of
TicketsNow.com™. ® - Official Site.
Multi-Channel Attribution
40%
10%
10%
40%
Attribution Models
Linear Ratio
U Shaped
Distribute Evenly
Single Click Only (First or Last)
Keyword 1
Madonna TicketsTicketsNow.comBuy Madonna tickets Now Available!
2012 Madonna TourTicketsNow.com
Get your tickets nowFor Madonna’s 2012
tour!
Keyword 2 Keyword 3Ad 1
Concert TicketsGet your tickets now!TicketsNow.com
TicketsNow® Official Site
TicketsNow.comOfficial Site of
TicketsNow.com™. ® - Official Site.
Multi-Channel Attribution
25%
25%
25%
25%
Attribution Models
Linear Ratio
U Shaped
Distribute Evenly
Single Click Only (First or Last)
Keyword 1
Madonna TicketsTicketsNow.comBuy Madonna tickets Now Available!
2012 Madonna TourTicketsNow.com
Get your tickets nowFor Madonna’s 2012
tour!
Keyword 2 Keyword 3Ad 1
Concert TicketsGet your tickets now!TicketsNow.com
TicketsNow® Official Site
TicketsNow.comOfficial Site of
TicketsNow.com™. ® - Official Site.
Multi-Channel Attribution
100%
0%0%0% (Last Click)
Attribution Models
Linear Ratio
U Shaped
Distribute Evenly
Single Click Only (First or Last)
Keyword 1
Madonna TicketsTicketsNow.comBuy Madonna tickets Now Available!
2012 Madonna TourTicketsNow.com
Get your tickets nowFor Madonna’s 2012
tour!
Keyword 2 Keyword 3Ad 1
Concert TicketsGet your tickets now!TicketsNow.com
TicketsNow® Official Site
TicketsNow.comOfficial Site of
TicketsNow.com™. ® - Official Site.
Increase in Facebook ROI for Retail Advertiser Based on Revenue Attribution
Last Click Attribution Undervalues Facebook Performance
• First Only
• Prefer First
• Distribute
Evenly
• U-Shaped
• Prefer Last
• Last Touch20% 40% 60% 80% 100%
First Only Prefer First Distribute Evenly U-Shaped Prefer Last Last Touch
Increase in Facebook ROI for Retail Advertiser Based on Revenue Attribution
• First Only
• Prefer First
• Distribute
Evenly
• U-Shaped
• Prefer Last
• Last Touch20% 40% 60% 80% 100%
First Only Prefer First Distribute Evenly U-Shaped Prefer Last Last Touch
Last Click Attribution Undervalues Facebook Performance
Increase in Facebook ROI for Retail Advertiser Based on Revenue Attribution
• First Only
• Prefer First
• Distribute
Evenly
• U-Shaped
• Prefer Last
• Last Touch20% 40% 60% 80% 100%
First Only Prefer First Distribute Evenly U-Shaped Prefer Last Last Touch
Last Click Attribution Undervalues Facebook Performance
Increase in Facebook ROI for Retail Advertiser Based on Revenue Attribution
• First Only
• Prefer First
• Distribute
Evenly
• U-Shaped
• Prefer Last
• Last Touch20% 40% 60% 80% 100%
First Only Prefer First Distribute Evenly U-Shaped Prefer Last Last Touch
Last Click Attribution Undervalues Facebook Performance
Increase in Facebook ROI for Retail Advertiser Based on Revenue Attribution
• First Only
• Prefer First
• Distribute
Evenly
• U-Shaped
• Prefer Last
• Last Touch20% 40% 60% 80% 100%
First Only Prefer First Distribute Evenly U-Shaped Prefer Last Last Touch
Last Click Attribution Undervalues Facebook Performance
Increase in Facebook ROI for Retail Advertiser Based on Revenue Attribution
• First Only
• Prefer First
• Distribute
Evenly
• U-Shaped
• Prefer Last
• Last Touch20% 40% 60% 80% 100%
First Only Prefer First Distribute Evenly U-Shaped Prefer Last Last Touch
Last Click Attribution Undervalues Facebook Performance
Attribution Simulation
Kenshoo Case Study – Search & Social• Top 100 Internet Retailer running direct response
search and social campaigns, both with positive ROI• 20% of all conversion paths showed ad clicks from
more than one channel (search and social)• Over 1/3 had brand queries in the path to conversion• Consumers discover brand on FB and then search for it by name
Logarithmic Distribution of Keywords in Multi-Channel Conversion Paths