SEARCH AND OTHER CHANNELS

Jonathan Beeston, Global Marketing Director

GLOBAL PRESENCE

The biggest global performance marketers choose the Efficient Frontier platform

• $1 Billion in annual online marketing spend under management

• Working with 250 leading global marketers

• Over 150 million active keywords

• 5 Million bids set, 100+ million models processed daily

• 50+ Full-time engineers, 40 Master’s Degrees, 7 PhD’s

• 1 Patent granted, 6 patents pending

@efrontier

blog.efrontier.com

REPRESENTATIVE OF GLOBAL CLIENTS

TRAVEL RETAIL & AUTOS MEDIA AGENCY & OTHERFINANCE

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“All models are wrong. Some are useful.”

George Box

• On average there are 4-6 touchpoints across before conversion

Date Type Channel Ad/Keyword

6/25/2010 16:52 Click Yahoo Search “london hotels”

6/25/2010 16:56 Lead - -

6/27/2010 13:42 Impression Doubleclick AdX Creative_disp_1.gif

6/27/2010 13:42 Impression Doubleclick AdX Creative_disp_1.gif

6/27/2010 13:47 Impression Rightmedia Creative_disp_1.gif

6/27/2010 13:56 Impression Rightmedia Creative_disp_1.gif

7/1/2010 13:42 Click Facebook Creative_FB_1.gif

7/1/2010 15:30 Impression Doubleclick AdX Creative_disp_1.gif

7/2/2010 11:42 Impression Rightmedia Creative_disp_1.gif

7/2/2010 14:05 Click Google Adwords “hotel in london”

7/2/2010 15:05 Conversion

WHAT ARE USERS DOING ONLINE?

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THE PROBLEM WITH LAST CLICK

£1,000

£2,000

CROSS-CHANNEL OPTIMISATION

Unified

Tracking

• Track interaction of the user with all media channels at one place.

Attribute

, Analyse

• Model how different factors contribute to conversion.• Model how factors interact with each other.

Optimis

e

• Allocate media spend based on cross-channel models.

VALUE DISTRIBUTION ACROSS TOUCHPOINTS

Facebook ConversionDirect

WebsiteDisplay

ViewPaid

SearchPaid

Search

0.2 0.2 0.2 0.2 0.2 1

EF EVENT ATTRIBUTION MODELS

1

Last

First

Equal

Last More

FirstMore

Event 1 Event 2 Event k Event p

0 0 0 1

1 0 0 0

Custom

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MULTI CHANNEL ATTRIBUTION: INSIGHTS

• Changing attribution changes your budget allocation• Understand the impact before you make the change• Doesn’t really explain interaction effects between

channels• What about time between interactions?

Channel Equal credit Last Click Bayesian Model

SEM 35% 25% 38%

SEO 25% 50% 22%

Facebook 10% 5% 12%

Display 30% 20% 28%

WHAT IS CROSS CHANNEL OPTIMISATION?

PROBLEM• Determine the right way of spending across all media

channels, accounting for interaction effects across channels to maximise my ROI.

SOLUTION• Dynamically model all cross-channel interaction effects

and apply optimisation algorithms to determine the correct media mix.

Budget: €€€€€€Multiple Goals:(1) Max Revenue(2) >10,000 Leads

Cross Channel Modeling

Facebook

BiddableDisplay

SEM

TV

€

€

€€

€€€€

BudgetBids

CROSS CHANNEL OPTIMISATION: THE VISION

Dynamically model

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CROSS CHANNEL OPTIMISATION: ONLINE

Total Marketing Budget: $12,000

SEARCH + OFFLINE

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Collect SEM and TV data

Determine Revenue attribution for the multi-point multi-channel funnel

Build TV Models

Build SEM models

Cross Channel Optimization using portfolio theory

Cross-channel Efficient Frontier Objective:Given an overall budget, find the best way to bid across search and TV to get the maximum return for the advertising dollar.

$0

$2,

212

$4,

429

$6,

660

$8,

873

$11

,051

$13

,296

$15

,532

$17

,743

$19

,980

$22

,171

$24

,420

$26

,613

$28

,763

$31

,022

$33

,258

$35

,407

$37

,707

$39

,734

$42

,118

$-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

SEM + TV Frontier

Total Budget

To

tal

Rev

enu

e

SEARCH + TV

HOW LONG DOES TV EFFECT LAST?

TV Advertising has effect on both TV Contact and SEM ClicksTV effects usually last for 4 weeks on TV Contacts and SEM Clicks

Effect on TV Contact Effect on SEM Clicks

CROSS CHANNEL OPTIMISATION

$- $500,000 $1,000,000 $1,500,000 -

1,000

2,000

3,000

4,000

5,000

6,000

Cross Channel Model: Contacts vs Spend

Total Spend

To

tal

Co

nta

cts

• Our models show that the optimal budget allocation of TV and SEM spend in July would have resulted in 5% lift.

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PRESS + SEARCH

• Typically 6-7 weeks of improved search performance

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IN SUMMARY

• First pre-requisite: Unified Tracking Platform

• Attribution is a partial solution

• Attribution + Algorithmic Optimisation is the solution for answering the media mix question

• This is a young field! There’s a long way to go!

THANK YOU

Blog: blog.efrontier.com

Twitter: @efrontier; @searchbeest

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