Opportunities for optimization in digital

Возможности оптимизации в digitalдля повышения эффективности расходов

Agenda

Economic context

Optimization opportunities in digital

Marketing Automation

Economic context

Marketing budgets in context of current economic conditions

Context: Marketing budgets and focus

Budget trends mixed, depending on industry Reactionary reductions in spend (demand, costs) Preemptive cautionary cuts (costs) Budget shifts to digital (costs, efficiency)

From business expansion to business sustainment? Financial institutions leverage digital for PR

campaigns to emphasize stability in reaction to fast changing conditions

B2B and IT retail promote credits / discounts

Context: advertising in Russia

Context: online trends

PricewaterhouseCoopers, Sep 2008 identified a “trend towards performance-based advertising is expected to accelerate in the downturn, putting pressure on display”

Search (benefits from its ability to demonstrate clear return on investment) vs.

Display (focus on brand advertising and limited measurability)

Context: marketing focus

The question for many is not “how much budget”, but where and with what objective?

“How much” should be derived from analyzing needs and making tradeoffs

Clarity on objectives is critical (traffic, conversions, ROAS/profits, PR, brand awareness, …)

Context: Russian advantage?

A: Know how to work and play hard

B: Good-looking and well-educated

C: Come into digital later in the game

D: All of the above

Optimization opportunities in digital

for maximum campaign performance

Opportunities in digital marketing

Optimization of creative (banners, site usability, organic and paid search)

Optimization of marketing spend within a channel (paid search, day parting, targeting)

Optimization across online and offline channels (media planning based on campaign objectives and performance)

Optimization of creative: online display

Creative optimization: banner anatomy

Copy

Calls to Action

Placement

PictureSize

Landing Page

Creative optimization: from standard banners to rich media

0.07 - 0.15%

0.50 - 1.08%

US Russia

Rich media on the path of 98% of conversions!

82% of the last impressions viewed before the conversion were Rich Media

Creative optimization: A/B Testing

Project X Landing Page

Treatment Clicks Conversions Conversion Rate

Treatment A 549 68 12.38%

Treatment B 403 38 9.43%

Treatment C … … …

One change at a time Small changes - Big differences Testing two very different creatives

Clicks don't exist in a vacuum!

A

B

LandingPage

Optimization of creative: site usability

Creative optimization: site usability

Poor navigation Irrelevant information Broken checkout …

LandingPage

Conversionpages

Conversion rate

Optimization of creative: organic and paid search

Optimization of search creative:Search = SEO + SEM

SEO – Organic/Natural Positioning Site indexing (code, structure) Relevancy index optimization (site content) 275+ variables that affect positioning

Long term approach Cost efficient investment

SEM – Paid/Contextual - Performance driven Placement creative Buy relevant search queries

Contextual & short term / mid term driven Managed costs - “You pay for what you get”

Optimization of search creative:Search = SEO + SEM

49% of consumers change brand after search

67% of searchers were influenced by offline

63% of search related purchases happen offline

16% of shopping spend online (up to 5% in Russia)

50% increase in online sales

85% of web traffic started with search

US/EU statistics

Optimization of search creative:Case for search

Optimization of marketing spend within a channel

Spend optimization: paid search

Maximizing to an objective metric within given constrains and budget

Making tradeoffs between spend, volume, and efficiency

Example: Objective: increase #acquisitions

(conversions) Constraints: CPA, budget, min position

Spend optimization: paid search

Keyword based optimization vs. portfolio

Click path analysis (first vs. last)

Brand/generic – long tail dynamics

Multi objective optimization – tradeoffs

Efficiencyconstraints

Kwdconstraints

Budget

Objective

Spend optimization: paid search

CPC = 0.12

Clicks = 2000

Volume / Efficiency Tradeoffs

Spend optimization: paid/organic optimization

If my site is in position 1 in organic search, do I need to spend on paid search? And if yes, how much?

It depends on campaign objective and budget constraints

Is budget a constraint? Is brand awareness an objective? Measure results and optimize!

Spend optimization: day-parting

All digital channels: search, email, display, mobile

Finding time-dependent trends Month of year Week of month Day of week Hour of the day

Fine tune spend based on identified trends

Valuable technique, but does not work in all cases (lack of data, changing conditions)

Spend optimization: targeting

Targeting mechanisms: Geographic User profile (CRM, preferences) Behavioral

Channels: search, display, email, mobile

Again, measurement is key

Optimization across channels (online and offline)

Optimization across channels

Integration of online and offline enables holistic marketing campaigns

Some enabling technologies: QR codes, bluetooth / mobile Integration with call centers and CRM for day

parting

Rationale to substantiate spend allocations based on better measurable traditional media campaigns

Optimization across channels

Integration of print and mobile using QR codes

Measurable print campaigns

Basis for further optimization

ptimization landscape

$

Online Offline

Search Display Mobile TV

Organic PPC

Print OOHRadio

??

Other

Creative

LandingPage

Conversionpages

Clicks

SiteCreative

Conversions

Spend

Channel

CRM / Call centerBack office

Analytics S

ales

Client systemsChannels

3rd partyTrackingSearch

Impressions, clicks, conversionscosts, revenue, custom data …

3rd party

Automation of marketing

to drive efficiencies

Automation: technologies

Ad serving & Tracking

Measurement & Analytics

Reporting

Other technologies: rule-based engines, statistical analysis, neural networks, NLP, genetic algorithms

Integration between marketing systems Data exchange standards Integration interfaces

Automation: analytics

Wordcatcher tool is used to conduct analysis on competitive rankings and keyword selection

Supports Russian language and Yandex

Automation: paid search analytics

Click2Sales is a bid optimization and campaign management tool that supports ROI-based portfolio optimization Rules-based keyword

management Day/time-parting Unicode standard Tracking

The tool supports optimization and bidding on Google, Yahoo, MSN and Baidu platforms, Yandex and Rambler planned

Reporting interface

Automation: analytics

SEO analytics tool

Tracks site positioning

Benchmarks against competitors

Watch for best opportunities in natural positioning

Automation: reporting

Marketing Console offers integrated reporting for all online media campaigns e-commerce display SEM & SEO affiliate programs recruitment campaign mobile …

Where you can track audience conversions bookings leads ROI

Automation: reporting

Detailed channel specific views, including online advertising and paid search

Cross channel consolidated results

Media budget forecasts

Comparisons to goals and forecasts

Key indexes, monitoring and triggers

Filters, region / business unit

Automation: Benefits to clients

Faster response to market changes

Objective driven, measurable campaign performance

Rationale to allocate spends based on results

Results-driven media planning

Transparency through reporting

Automation: Marketing analytics

Emergence of marketing analytics as core marketing discipline

Why?

Consumer focus: pull vs. push marketing Performance driven spend Marketing is not limited to advertising

Broader marketing opportunities

Remember the good old marketing mix? Company, Customer, Competitors Product, Price, Promotion, Place

Advertising touches most areas, but not all

Marketing Analytics enable holistic approach Define objectives Track and measure applicable metrics Make judgments against objectives Optimize and automate campaign adjustments Communicate to consumers, suppliers, partners

Questions?Sam Der-Kazaryan

sderkaza@digitas.com+7 916 301 7586

Thank you!