TUI and Adobe talk maths, models and marketing

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The collision of data and advanced learning algorithms is no more apparent than in search marketing. And that requires effective and flexible models aligned with accurate data. Hear how the digital …

The collision of data and advanced learning algorithms is no more apparent than in search marketing. And that requires effective and flexible models aligned with accurate data. Hear how the digital gurus at TUI First Choice think about campaign optimisation and how you can apply it to your business.

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  • 1. Paid search campaign optimisation: maths, models and marketing Emily Gudeman, Adobe | Chris Fensome, TUI Travel UK© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 1
  • 2. #AdobeSummitADOBE MULTI-CHANNEL ADVERTISING TECHNOLOGY© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
  • 3. #AdobeSummit© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 3
  • 4. #Future of Digital #AdobeSummit History of Efficient Frontier Technology© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
  • 5. #Future of Digital #AdobeSummit The Performance Difference  Using sophisticated math, we build Predictive Models based on the ad marketplace to simulate how they will perform at different bid levels  Portfolio Theory approach achieves the best performance by examining all possible tradeoffs across all ads simultaneously  When Predictive Models are combined with the Portfolio Theory approach, you can Forecast the performance of your campaign and optimize accordingly© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 5
  • 6. #Future of Digital #AdobeSummit TUI Brands we work with© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 6
  • 7. #Future of Digital #AdobeSummit First Choice Holidays Part of the TUI Travel group which the largest Tour Operator in Europe First Choice website is estimated to drive 59m visits in 2012 and over £370m in revenue Paid Search is the largest driver of online bookings and makes up 15% of the total First Choice business© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 7
  • 8. #Future of Digital #AdobeSummit What are we going to show you? Increasing First Choice’s year-on-year paid search passengers by 77% for a 35% increase in cost© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 8
  • 9. #Future of Digital #AdobeSummit Key Takeaways1 Ensure your current campaigns follow best practice Understand how your money is being spent 23 Leverage your campaign structure for maximum conversion© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 9
  • 10. #AdobeSummit Discovery & Recommendations© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 10
  • 11. #Future of Digital #AdobeSummit What do we look for? • Keyword coverage • Bidding strategy Exposure • Bid frequency • Spend strategy & patterns • Match Type mix • Competitive Landscape Traffic • Ad Copy • Ad Extension use • Promos/ Offers • Conversion funnelling Conversion • Landing page relevance • Inventory Alignment • Seasonality phasing Efficiency • Quality Score Mix • Simulation modelling • Uplift forecast© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 11
  • 12. #Future of Digital #AdobeSummit First Choice score card Optimisation Adcopy / Budget Keywords Management Matching Overall Score: 15/40© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 12
  • 13. #Future of Digital #AdobeSummit What did we find? Bid optimisation severely lacking Keyword coverage needed to be more relevant Ad copy should be fresher and better targeted Yahoo/Bing seriously under-represented Budget management left money on the table© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 13
  • 14. #Future of Digital #AdobeSummit See into the future Simulations will give you control over your spend investment Decide what target best meets your goals Available daily in MCAT dashboard© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 14
  • 15. #Future of Digital #AdobeSummit First Choice simulation Daily Passengers Existing performance Forecast a 24% increase in bookings at the same spend level Daily Spend© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 15
  • 16. #Future of Digital #AdobeSummit Quick Wins Efficiency Conversion Use portfolio theory & sims in spend & bid management Traffic Deep link landing pages Negative keywords to funnel traffic USP lead ad copy + Site links Exposure Increase phrase and exact match type mix Expand campaigns to Yahoo! & Bing Change campaign settings to maximize daily exposure Expand keyword coverage to reflect product inventory© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 16
  • 17. #Future of Digital #AdobeSummit 7 weeks to hit the High Season© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 17
  • 18. #Future of Digital #AdobeSummit How did we do it?© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 18
  • 19. #Future of Digital #AdobeSummit Quick Wins Efficiency Conversion Use portfolio theory & sims in spend & bid management Traffic Deep link landing pages Negative keywords to funnel traffic USP lead ad copy + Site links Exposure Increase phrase and exact match type mix Expand campaigns to Yahoo! & Bing Change campaign settings to maximize daily exposure Expand keyword coverage to reflect product inventory© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 19
  • 20. #Future of Digital #AdobeSummit Why Automation is needed – Bidding at Scale 1m+ keywords 11 ads per page Costa clear favourite Impossible de clear a to del Spain Holidays and holiday and youre Sol Luz of water for the Holidays to Spain and manage or Whether find Costa Costas de Holidays Spain Golden the with theseto manage these Impossible del make bids youll beaches beauty nightlife of Sol la looking of the Family Holidays in Spain bids manually Blanca the beaches manually and de on Brits la Cheap Holidays Spain Hotels Spain favourite looking what Brits calm of what Whether 1m Costas or and Costa keywords = All Inclusive Spain Holidays 1m keywords = 35 days to Spain entertainment sunshine on holiday the Spain Holidays with Spanish 35 water the manually optimise de Golden Costa Weather in Spain entertainment Spain days Spanish to nightlife a Spain Holidays sunshine optimise youll for Costa Luz youre Summer Holidays Spain Almeria Costa Costa manually make calm youre looking or Almeria youre the find beauty and Blanca looking for o© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 20
  • 21. #Future of Digital #AdobeSummit Turning Destinations into Campaigns Generate Keywords 250k holiday offers Dynamic Pricing Flat File of Plugs into daily Advanced prices Campaign Management tool Update Inventory© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 21
  • 22. #Future of Digital #AdobeSummit Automated Campaign Structure NewStructure Old Structure Spain Research Broad Mainland Spain Hols – Balerics Hols – Costa Blanca Hols – Costa Brava Short Haul Broad G_Hols_Destination Short Haul Exact Hols – Tenerife Hols – Menorca M_Holidays Destination Y_Brand + Destination Top Destinations Broad Generics - Exact G_Eclipse_New Search Query = “Spain Dest - Spain AccommodationDestination Y Holidays Broad Holidays” Feed Brand Mainland Spain Majorca Research Mainland Spain Brand + Destination Hols - Fueterventura Top Destinations Exact Hotel Destination Y - Spain Mobile Visibility Countries Hols – Ibiza Hols – Majorca Brand + Destination Hols – Costa Del Sol Port Aventura Spain Generics M Spain Y Mobile Visibility AD Center - Spain G - Spain© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 22
  • 23. #Future of Digital #AdobeSummit Automated Campaign Structure Oct 2011 Jan 2012 Phrase 10% Exact Feed 36% Broad Broad Exact 50% 64% 40%© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 23
  • 24. #Future of Digital #AdobeSummit Destinations restructure: ad copy Old Ad Copy New Ad Copy Ad Copy Month Impressions Clicks CTR Old Ad Copy Oct 2011 8,333,382 139,805 1.68% New Ad Copy Jan 2012 30,964,657 810,152 2.62% 24 CTR increased by 56%!© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
  • 25. #Future of Digital #AdobeSummit Increased Spend investment based on performance and simulationsBased on the actual performanceof the programme improvements,and additional 86% was invested inJanuary’s PPC spend© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 25
  • 26. #Future of Digital #AdobeSummit How did we do?© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 26
  • 27. 0 10000 12000 14000 16000 18000 20000 2000 4000 6000 8000 10/08/2011 11/08/2011 12/08/2011 13/08/2011 14/08/2011 15/08/2011 16/08/2011 17/08/2011 18/08/2011 19/08/2011 20/08/2011 21/08/2011 22/08/2011 23/08/2011© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 24/08/2011 25/08/2011 26/08/2011 27/08/2011 28/08/2011 29/08/2011 30/08/2011 Manual Bidding 31/08/2011 01/09/2011 02/09/2011 03/09/2011 04/09/2011 05/09/2011 06/09/2011 07/09/2011 08/09/2011 Why Automation is needed – Bidding at Scale27 0 10,000 12,000 14,000 16,000 18,000 20,000 2,000 4,000 6,000 8,000 08/04/2012 09/04/2012 10/04/2012 11/04/2012 12/04/2012 13/04/2012 14/04/2012 15/04/2012 16/04/2012 17/04/2012 18/04/2012 19/04/2012 20/04/2012 21/04/2012 22/04/2012 23/04/2012 24/04/2012 25/04/2012 26/04/2012 Automatic Bidding 27/04/2012 28/04/2012 29/04/2012 30/04/2012 01/05/2012 #Future of Digital #AdobeSummit
  • 28. #Future of Digital #AdobeSummit Destinations Restructure: Year on Year Comparison CPA CPC CPA CPC Jan 25th 2011 - 28 Feb 2011 Jan 25th 2012 - Present Decreased CPA by 51% and CPC by 24%© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 28
  • 29. #Future of Digital #AdobeSummit Targeted campaigns lead to increased conversions Cost per Acquisition % of Total Passengers Other Other Generics Generics Destinations 2011 Destinations 2011 Feed 2012 2012 Brand Brand Accommodation Accommodation £0 £100 £200 £300 0% 10% 20% 30% 40% 50% Decreased non brand CPA by 29% Reduced total bookings from expensive generic terms from 47% to 13%© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 29
  • 30. #Future of Digital #AdobeSummit Before & After Simulation – Jan 2012 Jan ‘12 Uplift through account Simulation development Daily Bookings Pre-sales Simulation Uplift through bid optimization Daily Spend YoY in January pax increased by 77% & cost by 35%© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 30
  • 31. #Future of Digital #AdobeSummit The Results: 2012 vs 2011 ROAS 44% -4% Conversion Rate -23% Cost per Acquisition -26% Cost per Click Passengers 77% Clicks 67% -40% -20% 0% 20% 40% 60% 80% 100% YOY % Change© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 31
  • 32. #Future of Digital #AdobeSummit Key Takeaways1 Ensure your current campaigns follow best practice Understand how your money is being spent 23 Leverage your campaign structure for maximum conversion© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 32
  • 33. #AdobeSummit© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 33
  • 34. #AdobeSummit© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 34