A Guide to MarketLeadership in 2012A ClearSaleing OnlineAdvertising StudyClearSaleing 8415 Pulsar Place, Suite 477, Columb...
A Guide to Market Leadership in 2012: A ClearSaleing Online Advertising StudyFebruary 2012Executive Summary:As we enter an...
In fact, although it is not the highest traffic channel nor the leading driver of sales volume, the presence of social med...
2. Increase Focus on Consumer IntentIn order to build a successful online advertising strategy with longevity and profitab...
customers. Continue to refine your social marketing aptitude and create compelling, two-way conversations with consumersin...
Ad networks and DSPs absolutely have their place in a well-rounded display strategy, especially when you factor in theirpr...
Key 2012 Takeaways:When employing a robust attribution solution, customized to your unique business needs and varied custo...
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  1. 1. A Guide to MarketLeadership in 2012A ClearSaleing OnlineAdvertising StudyClearSaleing 8415 Pulsar Place, Suite 477, Columbus, OH 43240 | www.ClearSaleing.comThis Document is confidential. Its terms and conditions may not be disclosed to another party without prior written consent from ClearSaleing, Inc. Any non-public information received by either party in connection with the performance of the services described in this document will be treated as confidential.
  2. 2. A Guide to Market Leadership in 2012: A ClearSaleing Online Advertising StudyFebruary 2012Executive Summary:As we enter an election year, observe the volatile international financial markets and analyze shifting consumer search andshopping behavior, it is clear that 2012 will be a year of great change and great opportunity for online marketers. Whetherdriving subscriptions, creating memberships or selling goods online, all marketers will face a new reality in the year ahead.Those with a clear understanding of their customer journeys to a transaction (Purchase Paths), and who embrace clarity intheir metrics and innovation in their channel mix, will find themselves at the head of the pack in the new year.Our study identifies the trends and truths that will most highly impact digital marketing in 2012, including improvingconversion quality, increasing the focus on customer intent, seeking quality in display media campaigns, enhancing visibilityand efficiency in downstream channels, and employing customized attribution to keep ahead of competition. Furthermore, theresults of this study show an overwhelming support of social media and display advertising’s ability to create and enhanceconsumer intent, as well as monumentally affect the revenue driven per customer.Methodology and Data:ClearSaleing (CS) analyzed advertisers across multiple verticals, including retail, luxury retail, travel, healthcare, educationand financial services, using our platform between January 1, 2010 and August 31, 2011. ClearSaleing studied more than 56Bimpressions, 2.7B clicks and $13B in revenue tracked through the CS system, as well as channels across the spectrum of onlinemarketing, including intensive display advertising, social media channels, paid search, natural search, email marketing,affiliates, comparison shopping engines, etc. ClearSaleing’s methodology defines a customer purchase path in three sections: 1.The Introducer – The first touchpoint in a multi-step purchase path, 2. The Influencer – All steps in between Introducer andCloser in the purchase path that influence a conversion, and 3. The Closer – the final step a customer takes on their journey toconversion.1. Improve Conversion Quality – Drive More RevenueIt is a simple concept – drive incremental customers and increase their revenue per order, and your business revenue willincrease. Conventional wisdom would tell you that revenue per order is principally affected by site-side activities such asmerchandising, promotions, and conversion path optimization. You would also assume that customers in the mindset to buy –those who are already searching for your product or brand – are going to drive the most revenue. However, this studyillustrates that the channels with higher visual and emotional resonance and social media cache are actually significant factorsto drive higher revenue per order. 1 ClearSaleing 8415 Pulsar Place, Suite 477, Columbus, OH 43240 | www.ClearSaleing.com This Document is confidential. Its terms and conditions may not be disclosed to another party without prior written consent from ClearSaleing, Inc. Any non- public information received by either party in connection with the performance of the services described in this document will be treated as confidential.
  3. 3. In fact, although it is not the highest traffic channel nor the leading driver of sales volume, the presence of social media in aPurchase Path proved to drive higher value orders, in terms of revenue per order, than natural and paid search combined.A conversion occurring after social media exposure actually delivered more than $280 per order versus less than $100 perorder for natural search. Social also dominates traditional channels like email and paid search in terms of revenue per click($5.24 for social versus $3.18 for email and $4.38 for paid search), indicating that intent is high for social traffic.In addition, online marketers often focus their conversion efforts on the steps taken after a consumer reaches their site.Although conversion optimization is key on-site to increase basket size, this study also showed the strength of a consumerinteracting with specific channels pre-site. For example, when a display advertisement was included in a conversion path, theaverage revenue per order increased to more than $206, almost 65% more revenue than the overall average order size of$135.37. Revenue Per Order $300.00 $250.00 $200.00 $150.00 $100.00 $50.00 $0.00 All Digital Display Paid Search Natural Affliiates Comparison Email Social Media Channels Average Average Search Average Shopping Average Average Average Average AverageThe 2012 Takeaways:Online marketers should focus time and effort on growing channels that create better customer relationships, like socialmedia. They must also remain diligent about growing and protecting their brand online, as the more visually- and emotionally-connected channels, such as display and social media, have proven to highly effect the overall revenue per order, when presentin a conversion path. 2 ClearSaleing 8415 Pulsar Place, Suite 477, Columbus, OH 43240 | www.ClearSaleing.com This Document is confidential. Its terms and conditions may not be disclosed to another party without prior written consent from ClearSaleing, Inc. Any non- public information received by either party in connection with the performance of the services described in this document will be treated as confidential.
  4. 4. 2. Increase Focus on Consumer IntentIn order to build a successful online advertising strategy with longevity and profitability, marketers must understand theirown customer target’s conversion path and intent to purchase. This overall commitment to customer understanding musthappen throughout the organization and be reflected in the online advertising plans.However, this study unveiled some aggregate consumer intent behavior that can provide groundwork for online marketers tobuild upon.Channels with traditionally high consumer intent continue to be safe bets for online spend. For example, paid search showed arelatively high intent factor, with an average of $4.38 revenue per click in this study. That is more than double the revenue perclick present through comparison shopping engines, a channel more prevalent when brand and product are under moreintense consideration.Furthermore, the findings illustrate that in addition to the increase in revenue per order when social media is present in aconversion path, the channel also offers a higher level of intent to buy than any other channel. When social media was presentin a click path, the social media click accounted for $5.24 in revenue, an 8% increase over the average of all digital channelsanalyzed in this study, and more than 84% more revenue than from natural search. Revenue Per Click $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 All Digital Paid Search Natural Affliiates Comparison Email Social Media Channels Average Search Average Shopping Average Average Average Average AverageKey 2012 Takeaways:If you do not already have a thorough understanding of your own customer journey, commit the first quarter of the year todiscovering the unique conversion paths, channels and messaging for your customer. Be aware that although social media isstill in its early states in terms of revenue capture, it is proving a core channel for capturing intent and driving quality 3 ClearSaleing 8415 Pulsar Place, Suite 477, Columbus, OH 43240 | www.ClearSaleing.com This Document is confidential. Its terms and conditions may not be disclosed to another party without prior written consent from ClearSaleing, Inc. Any non- public information received by either party in connection with the performance of the services described in this document will be treated as confidential.
  5. 5. customers. Continue to refine your social marketing aptitude and create compelling, two-way conversations with consumersin that channel to see the most significant growth. Also, do not underestimate the power of capturing and quickly convertingthe customer with an intent to buy. Channels like email and paid search must be a seamless experience that are fully optimizedfor your budget and provide an easy user experience upon site landing.3. Seek Quality in Display Media CampaignsDisplay advertising has undergone radical shifts in the past five years, which has resulted in more options for reachingconsumers, but also more strategic confusion. Many advertisers continue to look at display media with a “spray and pray”mentality with campaigns based on limited targeting and remnant ad inventory.This study, however, showed the strength of premium publishers – publishers belonging to the Online Publisher Association –in starting new customer conversations, thus acting as “The Introducer” within the overall consumer conversion journey.When viewed through the CS attribution system, the strength of premium publishers became quite clear. Premium publishersdisplayed twice the ability of ad networks, and four times the ability of Demand Side Platforms (DSPs) to introduce and startnew customer conversations. This means that within the realm of online display, roughly 8.4% of all premium publisheradvertising interactions were the beginning of new Purchase Paths. Therefore, per impression delivered, premium publishersstand out from the online display pack as a means to create new customer relationships or invigorate dormant customerrelationships. Introducer Rate in Display 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% All Digital Channels Premium Publishers Ad Networks DSPs Average All Digital Channels Average Premium Publishers Ad Networks DSPsKey 2012 takeaways:As we enter 2012, it will be a key to success to shift mindset on display advertising. This begins with understanding yourcustomers and your success through the powerful filter and optimizer that is the CS attribution suite. 4 ClearSaleing 8415 Pulsar Place, Suite 477, Columbus, OH 43240 | www.ClearSaleing.com This Document is confidential. Its terms and conditions may not be disclosed to another party without prior written consent from ClearSaleing, Inc. Any non- public information received by either party in connection with the performance of the services described in this document will be treated as confidential.
  6. 6. Ad networks and DSPs absolutely have their place in a well-rounded display strategy, especially when you factor in theirprowess of retargeting in-market online users. However, in the mission to drive new and incremental customers, onlinemarketers should also investigate advertising with premium publishers. Although the cost is higher, the introducer rate, aswell as the efficiency per impression in terms of number of impressions per order (9.7 IMP/Order for Premium Publishersversus 22.5 IMP/Order across display as a whole), speaks to a rationale of why this ad inventory is worth the extra expense.4. Enhance Visibility and Efficiency in Downstream ChannelsIt is the constant quest of the online marketing professional to seek out efficiencies wherever they may exist. That drive,however, can often be hindered by poor visibility driven by last ad metrics.In this study, CS analyzed the performance of channels that are historically thought of as downstream channels due to theirstrong performance on a last ad basis. CS determined that all channels, with the exception of affiliate marketing, saw a lift inorder credit when analyzed through an attribution lens. While there may be trepidation of moving to an attribution view outof fear of negatively impacting channels like search, email, and comparison shopping engines, that fear appears to beunfounded. Additionally, as these channels tend to leverage performance-based pricing, data automation from the attributionplatform to the appropriate bidding agents will make the efficiency gains of attribution an automated function, as opposed to amanual function. Keep in mind that although affiliate marketing appears somewhat devalued in this attribution-basedanalysis, it has its place in many marketers’ successful advertising portfolios due to it’s ability to serve as an influencer(Influencer rate of 43%) in the purchase path. Order Lift (Attributed Order Credit Compared to Last Ad Order Credit) 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Paid Search Natural Search Affiliates Total Comparison Email Total -5.00% Total Total Total -10.00% 5 ClearSaleing 8415 Pulsar Place, Suite 477, Columbus, OH 43240 | www.ClearSaleing.com This Document is confidential. Its terms and conditions may not be disclosed to another party without prior written consent from ClearSaleing, Inc. Any non- public information received by either party in connection with the performance of the services described in this document will be treated as confidential.
  7. 7. Key 2012 Takeaways:When employing a robust attribution solution, customized to your unique business needs and varied customers, it becomespossible to gain true visibility not only across channels, but granularly for each channel. When optimizing your downstreamchannels, you have the ability to create significant gains, and by incorporating data integration between an attributionplatform and a media bidding system such as Kenshoo or Marin, the advertiser can reap the effects of this increased efficiencyautomatically.5. Employ Customized Attribution – Keep Ahead of CompetitionLike the endless debate about when the “year of mobile” will/has actually occur(ed), the arrival of attribution management asa mainstream practice has been lauded for the past few years. The fact is that the time has arrived for wise online marketers toplan, analyze and optimize through a comprehensive attribution program.Within the ClearSaleing client portfolio, there was more than a 58% increase in revenue measured in August 2011 versus2010, with revenue viewed and optimized through the attribution lens eclipsing $1 Billion. As online marketers seek to leadtheir competition, reach their customers in the most efficient way and drive better visibility and insight into their own strategyand expenditures, the utilization of robust and customizable attribution solutions will be core to business success.About ClearSaleingClearSaleing is an industry-leading advertising analytics and attribution platform. ClearSaleing enables innovative advertisersto increase sales volume and overall media mix profitability across their complex mix of advertising investments. TheClearSaleing platform and related services allow innovative clients such as American Greetings, Rosetta, iProspect andNationwide Insurance to achieve true transparency across their marketing mix performance and to understand whichmarketing channels are most influential to profit, engagement, and overall return on investment. The company was founded in2006 and is headquartered in Columbus, Ohio. ClearSaleing is a wholly-owned subsidiary of GSI Commerce. GSI Commerce isan eBay Inc. (Nasdaq: EBAY) company.For more information about ClearSaleing’s advertising analytics and attribution technology, please go towww.ClearSaleing.com. 6 ClearSaleing 8415 Pulsar Place, Suite 477, Columbus, OH 43240 | www.ClearSaleing.com This Document is confidential. Its terms and conditions may not be disclosed to another party without prior written consent from ClearSaleing, Inc. Any non- public information received by either party in connection with the performance of the services described in this document will be treated as confidential.

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