Taxonomy to Help you with Personalised Ads: How to use ... Summit 2… · 373k unique users Brand A...

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Personalised Ads: How to use Taxonomy to Help you with Targeted Ads?

Vivek Thomas

Managing Director at AiSensum

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1Flow of Presentation

Transaction Data & Segmentation

method

Case study of 2 Fashion

Brands

Comparing results of 2

Fashion Brands

Current Taxonomy

usage

Impact of Taxonomy on

marketing efforts

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1Transaction Data usually shared by Fashion brands

Demography Details Products Details Price & Quantity

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1Segmentation methods using Algorithms

1. CLASSIFICATION ALGORITHM

Facebook KPIs(Sales, Amount Spent etc.)

Classification Algorithm extraction

28-35 attributes

Transaction Data from Fashion Brands

2. NMF*ALGORITHM

NMF Algorithm

Creates User Segments

28-35 attributes

*NMF: Non-negative Matrix Factorizationhttps://en.wikipedia.org/wiki/Non-negative_matrix_factorization

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Now, let’s understand the impact of Taxonomy by comparing 2 Fashion Brands : Brand A & Brand B

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Introducing the 2 Fashion Brands

SKU 1 Pants Long

SKU 2 Dress Gold

SKU 3 Set Avocado

1253 SKUs, 457k transactions, 373k unique users

Brand A

SKU 1 Tops Silk Cap Sleeves Grey

SKU 2 Dresses Sleeveless Pattern Navy Blue

SKU 3 Bottoms Denim Ankle length Basic White


Brand B

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Extract Classification / Taxonomy from

Product SKU

Create Product Segmentation &

it’s Custom Audience

Create Theme & Ads

Plan

Create Content based on the

theme

Step by Step Process implemented on Brand A & B

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Extract Classification / Taxonomy from Product SKU

SKU 1 Pants LongSKU 2 Dress GoldSKU 3 Set Avocado


Brand A

SKU 1 Tops Silk Cap Sleeves Grey SKU 2 Dresses Sleeveless Pattern Navy Blue SKU 3 Bottoms Denim Ankle length Basic White


Brand B

ML Classification Algorithm

ML Classification Algorithm

Category SKU1 SKU2 SKU3

1. Main Product Pants Dress Set

2. Color - Gold Avocado

3. Length Long - -

3 classifications / Taxonomy 5 classifications / TaxonomyCategory SKU1 SKU2 SKU3

1. Main Product Tops Dresses Bottoms

2. Material Silk Cotton Denim

3. Sleeve & Length Cap Sleeves Sleeveless Short

4. Pattern Pattern Pattern Basic

5. Color Grey Navy Blue White

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Create Product Segmentation & it’s Custom Audience

4 Audience Segments

Brand A12 Audience Segments

Brand B

Audience Segment Audience Size

1 Basic Pattern Lover 172,000 2 Casual Blouses 157,000 3 Oversized Shirt 142,000 4 Tops 112,000

Audience Segment Audience Size

1 Comfy Sets 59,000 2 Long Denim Pants 55,000 3 Denim Dresses 51,000 4 Silky Sets 43,000 5 Silky Dresses 39,000 6 Patterns Lover 31,000 7 Casual Blouses 31,000 8 Body Positive – Xl – 5Xl 27,000 9 Sleeveless 27,000

10 Earthy Skirts 27,000 11 Modest fashion 23,000 12 Long Sleeve Fashion 20,000

Audience overlap

56%Audience overlap

11%

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Create Theme & Ads Plan – BRAND A

4 Audience SegmentThemesSegments Product showcased in Ad

2 Themes

Casual Vibes ON!

Basic Patterns - Cullotes (Black, Cream)

Blouse (White, Black)

Oversize Shirt (White, Beige)

Basic Pattern Lover

Casual Blouses

Oversize Shirt

Monochrome Magic

Tops - Beige, White, BlackTops

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Create Theme & Ads Plan – BRAND B

12 Audience SegmentThemesSegments Product showcased in Ad

4 Themes

WFH Denims that makes me feel motivated

Set ( Comfort fit, Denim, White, Cream) Pants (Ankle Length Pants, Denim, Blue, Brown) Dresses (Denim ,Black)

Comfy SetsLong Denim PantsDenim Dresses

Silk Monochrome Magic

Silk Set (Black, White) Silk Dress (White, Black)

Silky SetsSilky Dresses

Be Yourself, be fabulous

Basic Patterns - Cullotes (Black, Cream) Blouse (White, Black) Oversize Shirt (White, Beige) Shirt (White, Cream) Skirt (Black, Cream)

Patterns LoverCasual BlousesBody Positive – XL– 5XL Sleeveless Earthy Skirts

Modest yet Stylish

Formal Pants (Black, Mocca) Longsleeve (Black, Brown)

Modest fashion Long Sleeve Fashion

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Create Content based on the theme

Casual Vibes ON!

Brand AWFH Denims that makes me feel motivated

Brand B

Dresses & Jumpsuits - Shirtdress (Black, Beige), Jumpsuit (Olive Green)

Set ( Comfort fit, Denim, White, Cream) | Pants (Ankle Length Pants, Denim, Blue, Brown) |Dresses (Denim ,Black)

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Ad & Audience performance on Facebook for Brand A vs Brand B

Brand A Brand B

Click Through Rate (CTR)

0.8% 1.3%CTR CTR

Cost Per Result (CPR)

2.5 1.7CPR $ CPR $

Return on Ad Spend (ROAS)

4.7 12.3ROAS ROAS

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1Current Usage of Taxonomy in Fashion brandsWe analyzed the taxonomy usage on 81 fashion brands in Indonesia & India

2 Taxonomy

33% 3 Taxonomy

27%4 Taxonomy

26%5+ Taxonomy

14%

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1Impact of TaxonomyTaxonomy can greatly improve marketing strategies on Paid & Organic platforms…

1. Vastly improves your customer segmentation

2. Use segments as Custom Audiences and create Lookalike audiences to improve ROAS and Sales

3 Taxonomy 7+ Taxonomy

4 Segments

56% Overlap12 Segments

11% Overlap

Avg. ROAS

4.7Avg. ROAS

12.3

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1Impact of TaxonomyTaxonomy can greatly improve marketing strategies on Paid & Organic platforms…

1. Content Ideas: Better taxonomy 🡪 more segments 🡪 better themes 🡪 better contents

2. Customized Newsletter: Better taxonomy 🡪 more segments 🡪 better themes 🡪 specific newsletters

3 Taxonomy 7+ Taxonomy

CTR

0.8CTR

1.3

Taxonomy to Help you with Personalised Ads: How to use ... Summit 2… · 373k unique users Brand A...

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