Presentation by Aaron Goldman, Kenshoo CMO, at OMS Chicago. July 26, 2011. Covers all the hot companies, channels, and trends in online advertising including Facebook, Groupon, Apple, Google, Microsoft, and Yahoo.

1. What’s hot in digital marketing? July 26, 2011 @AaronGoldman #OMSCHI

2. 2 Heat-o-Meter Companies Channels Macro Trends

3. 3 companies Feeling Hot, Hot, Hot!

4. 4 Facebook

5. 5 Facebook

6. 6 Facebook

7. 7 Facebook

8. 8 Facebook

9. 9 Facebook

10. 10 Groupon

11. 11 Groupon

12. 12 Groupon

13. 13 Groupon

14. 14 Apple

15. 15 Apple

16. 16 Apple

17. 17 Google

18. 18 Google

19. 19 Google

20. 20 Google

21. 21 LinkedIn

22. 22 LinkedIn

23. 23 Twitter

24. 24 Twitter

25. 25 Microsoft

26. 26 Microsoft

27. 27 Microsoft

28. 28 Yahoo

29. 29 Yahoo

30. 30 Yahoo Source: SEMPO State of Search 2011

31. 31 channels The Heat is On!

32. 32 Social

33. 33 Social

34. 34 Social

35. 35 Social

36. 36 Social

37. 37 Mobile

38. 38 Mobile

39. 39 Mobile

40. 40 Mobile

41. 41 Mobile

42. 42 Local

43. 43 Local

44. 44 Local

45. 45 Local

46. 46 Local

47. 47 Video

48. 48 Video

49. 49 Search

50. 50 Search

51. 51 Search

52. 52 Display

53. 53 Display

54. 54 Display

55. 55 Display

56. 56 Macro trends If You Can’t Stand the Heat, Get Out of the Kitchen!

57. 57 Automation Source: SEMPO State of Search 2011

58. Dynamic SEM Merchandising King’s Soft Field Sofa Only 12 left at $550.00. Price Match Guarantee www.acme.com/LivingRoom/Sofa Promotions Brand Keyword Combos Price Inventory Category 58

59. Dynamic SEM Merchandising Top 500 internet retailer drives 200%+ increase in ROI through dynamic campaigns ROI increased on average from $ 2.94 to $ 6.41 2.6 Million Keywords and 1.5 Million Ads Created into Highly Granular Campaigns (categories, styles, SKUs) King’s Soft Field Sofa Only 12 left at $550.00. Price Match Guarantee www.acme.com/LivingRoom/Sofa Promotions Brand Keyword Combos Price Inventory Proof Point Category 59

61. Tracking parameter causes broken link

62. 404 Page Not Found

63. Extraneous Load Times

64. Product not found

66. Tracking parameter causes broken link

67. 404 Page Not Found

68. Extraneous Load Times

69. Product not found

70. Promotion endedProof Point

71. 62 Integration Source: SEMPO State of Search 2011

72. 63 Connect the Dots Offline Call Conversion Optimization Promotion Conversion Optimization

73. 64 Connect the Dots Offline B2C Furniture Retailer Gets Big Lift Accounting for Offline Phone Conversions Driven by SEM 31% of total revenue driven offline 38% increase in Average Order Value 130% increase in ROI Call Conversion Optimization Promotion Conversion Optimization Proof Point

74. 65 Attribution Source: SEMPO State of Search 2011

75. (Last Click) Give Credit Where It’s Due Blue T-Shirt Great Prices T-shirt.com Red T-Shirt XL Size Available T-shirt.com Green T-Shirt Great Prices T-shirt.com Keyword 1 Keyword 2 Keyword 3 40% 25% 10% 5% 10% 10% 40% 25% 25% 25% 0% 0% 0% 100% 60% 25% Most advertising tracking systems report and act on only the last click prior to purchase 66

76. (Last Click) Give Credit Where It’s Due 14% increase in Facebook revenue for apparel advertiser with 1st click attribution Proof Point Blue T-Shirt Great Prices T-shirt.com Red T-Shirt XL Size Available T-shirt.com Green T-Shirt Great Prices T-shirt.com Keyword 1 Keyword 2 Keyword 3 40% 25% 10% 5% 10% 10% 40% 25% 25% 25% 0% 0% 0% 100% 60% 25% Most advertising tracking systems report and act on only the last click prior to purchase 67

77. Search + Social = 3 Top 100 Internet Retailer running DR search and social campaigns on Kenshoo platform, both with positive ROI 20% of all conversion paths showed ad clicks from more than one channel (searchand social) Over 1/3 had brand queries in the path to conversion Consumers discover brand on FB and then search for it by name Logarithmic Distribution of Keywords in Multi-Channel Conversion Paths Source: Kenshoo Social

78. Kenshoo Case Study – Search & Social Top 100 Internet Retailer running DR search and social campaigns, both with positive ROI 20% of all conversion paths showed ad clicks from more than one channel (searchand social) Over 1/3 had brand queries in the path to conversion Consumers discover brand on FB and then search for it by name Kenshoo.com/WebinarRegistration Logarithmic Distribution of Keywords in Multi-Channel Conversion Paths Source: Kenshoo Social

79. STAY Cool! Aaron.Goldman@Kenshoo.com @AaronGoldman #OMSCHI