Are audiences the new keywords? Remarketing in 2015 and beyond…Chris Howard – head of digital, Shop Direct

Are audiences the new keywords?

A brief history

of targeting

Google RLSA –

our experience

Are audiences the

new keywords?

Our predictions

for the future

vs

Who we are

Largest brand at £0.8bn+ and

growing at 20+% YoYSome market potential Limited growth online

EXPLOSIVE GROWTH GROWTH HERITAGE

Shop Direct in numbers

> 1 million86%…with 51% of those

on mobile devices

Daily website visits:Annual sales:

£1.7 billion

Proportion online:

Our digital marketing

Award-winningDirect management Data-driven

Are audiences the new keywords?

A brief history

of targeting

Google RLSA –

our experience

vs

Are audiences the

new keywords?

Our predictions

for the future

The 20th century

Broadcast advertising dominant

The 20th century

The pinnacle of targeting

2000s

Search revolutionises marketing with intent-based, relevant ads

2000s

Only email builds on

DM targeting methodsDigital marketing predominantly broadcast

2010-12

Search development stagnates due to lack of focus

2010-12

Audience targeting revitalises display advertising

2010-12

Audience targeting at heart of Facebook ad growth

2013-14

Google introduces audience targeting to search

2013-14

Is Google planning for a world without keywords?

The levers which have defined the first

fifteen years of paid search are changing

Integrations to date only scratch the

surface of where paid search is going

Understanding and using audience data will be the key tactic for future success

My SES presentation, 12 months ago

Are audiences the new keywords?

A brief history

of targeting

Google RLSA –

our experience

vs

Are audiences the

new keywords?

Our predictions

for the future

Google RLSA – available data

Onsite behaviour Customer segments Age & gender

Google RLSA – levers

Modify bids Tailor creative Adjust landing page

Our experience – behavioural audiences

Demand£470k

ROI5.9

Homepage visitors

Basket abandoners

Converters

Our experience – CRM micro-segments

Demand£220k

ROI6.1

Age Gender

Purchase recency Account type

RLSA impact for Shop Direct

£66m

2013 2014

£41m

Paid search demand growth

RLSA incremental demand

£25.2m

£0.7m

RLSA contribution to growth 3%

Shop Direct non-brand paid search demand

RLSA barriers to scale

Lack of APIs Limited tracking Hacks unsatisfactory

Are audiences the new keywords?

A brief history

of targeting

Google RLSA –

our experience

vs

Are audiences the

new keywords?

Our predictions

for the future

Are audiences the new keywords?

Query-based advertising is here to stay

$45bn

2012 2014

$31bn% of total

Google

revenues

68%

Google websites revenues

2013

$37bn

Source: http://investor.google.com

Query-based advertising is here to stay

$45

$3.55

Annualised ad revenue per user, Q1 2014

$7.24

Source: http://kpcb.com/InternetTrends

The real threats to keywords

Reduced control Dynamic search ads Inventory ads

Google Shopping impact – Very.co.uk

£40m

2013 2014

£25m

Paid search demand growth

Google Shopping demand growth

£14.6m

£5.7m

Shopping contribution to growth 39%

Very.co.uk non-brand paid search demand

Are audiences the new keywords?

A brief history

of targeting

Google RLSA –

our experience

vs

Are audiences the

new keywords?

Our predictions

for the future

The future – audiences in search

Valuable overlay Scalability Additional data

Crossover of intent and customer data

Audience management

central to future strategy of

search software companies

Introduction of intent data to social

Kenshoo intent-driven audiences

Introduction of intent data to social

Graph search by keyword has huge advertising potential

Growing advertiser control in display

Personalisation beyond

wisdom of the crowd

Consistency of message

across channels

Customer not cookie

Cross-device targeting and attribution aided by leading publishers

Search remarketing has yet to live up to the hype, but the building blocks to make this scalable are

rapidly being put into place

Key takeaways

Smart use of audience data will continue to grow as a critical driver of digital marketing success

across channels, including search

Audiences will complement, not replace, keywords – blurring of customer and intent data will be key battleground for advertisers and publishers alike

Chris Howard

chris.howard@shopdirect.com

@choward1981