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Digital Marketing Mistakes that Killed Profitability in 2018


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What were the top advertising mistakes that drained budget and ROAS last year? Let’s address common ad mismanagement by reviewing data across multiple advertising channels: display, Google Ads, Facebook and Instagram.
Let’s also review how to combine these advertising platforms to maximize profit. Having a presence on social media is one thing—but being able to drive traffic to your website is another. Let’s unpack how.

Published in: Retail
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Digital Marketing Mistakes that Killed Profitability in 2018

  1. 1. Digital Marketing Mistakes that Killed Profitability in 2018 And Best Practices in Search & Social Advertising to Maximize Performance in 2019
  2. 2. Today’s Logistics ● Session recording and slides will be sent ● Submit questions to our panelists ● Join in on our poll questions throughout ● Resources available as handouts Analicia Santaella Marketing Coordinator
  3. 3. Overview Founded in 2007 Google Premier Partner 600+ Active Retail Clients Top 50 Fastest Growing Company San Diego Solutions Retail-focused PPC & Shopping Amazon Sales Acceleration Facebook Performance Marketing Creative Services Gavin Magoon Retail Search Manager Today’s Speaker
  4. 4. Mike Zappulla Director, Paid Social Today’s Speaker Founded on search. Focused on holistic performance-driven digital marketing. The Drum US Search Awards Chairman’s Award Glassdoor 2018 Best Places to Work Bing Independent Agency of the Year Ad Age Top 25 US Search Agencies
  5. 5. 5 About AdRoll 37,000+ ambitious brands around the world use AdRoll Global offices San Francisco. New York. Dublin. Sydney. Tokyo. Chicago. Salt Lake City. $246 Billion Generated in sales annually. Display, mobile, and native web Facebook, Instagram, and social media Triggered and behavioral email Veronica Covdy Growth Marketing Manager Today’s Speaker
  6. 6. Today’s Agenda ● Marketing Measurement & Attribution ● Optimization of Search and Display Responsive Ads ● Strategizing Showcase Shopping & Expanded Text Ads ● Paid Social Best Practices Checklist ● Deeper Dive into Social Tactics
  7. 7. POLL QUESTION What was your biggest challenge that killed profitability in 2018? ● Attribution ● Search campaigns ● Display campaigns ● Social campaigns
  8. 8. Marketing Measurement & Attribution
  9. 9. The Attribution Problem But, that’s no longer the case. LINEAR CLICK-BASED MODEL
  10. 10. The Attribution Problem 56Avg. retail consumer touch points, from intro to sale. Cisco, 2010 “The Future of Retail Touchpoints
  11. 11. How is this a problem? Last-click. Last click: ● Last Click does not tell the whole story. Most conversions are usually a result of many touches. ● According to a SmartInsights 2018 study only a fraction of internet users click display ads, so click-only models paint an impartial picture at best ● Some channels like search or direct are by nature more click heavy compared to display, so a click-only attribution model would already favour these channels from the start ● There is no "one size fits all" attribution model. ● Clicks are not king. Fewer and fewer people click on ads.
  12. 12. It’s time for marketers to address the issue 60%of everyday transactions around the world are digital 44%of marketers are still using last-click attribution NOCorrelation between CTR and purchase intent metrics
  13. 13. So how does Attribution come into play?
  14. 14. “Marketing Attribution is the practice of determining the role any given channel plays in informing and influencing the customer decision to convert” - eConsultancy
  15. 15. First, a history of marketing attribution “Half the money I spend on advertising is wasted; the trouble is I don't know which half” - John Wanamaker (1838-1922) Without a doubt, marketing attribution has been a longstanding and unsolved issue. Unsolved:
  16. 16. Marketers are beginning to take note
  17. 17. So what are they scared of?
  18. 18. So what are they scared of? We KNOW it’s a problem. It’s hard to find a SOLUTION. VERY time-consuming to research best fit vendors Reliant on SINGLE vendor LACK of dedicated SPECIALIST Lack of: TIME KNOWLEDGE TECH
  19. 19. How do you address the issue of attribution?
  20. 20. Areas of focus Measuring impact In a multi-channel world, attribution measures the monetary impact each marketing channel has on real business goals Reporting structure Attribution is a way of changing the reporting structure and moving away from general metrics such as time on site, engagement rates, click-through rates etc. and moving into the importance of volumes of sales, profit and customer lifetime value Allocation Marketing Budgets Attribution helps marketers to understand real impact and invest smarter “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.” -John Wanamaker
  21. 21. The types of Attribution that exist RULE-BASED CLICK ONLY DATA-DRIVEN RULE-BASED CLICK & VIEW
  22. 22. Rule-based attribution RULE-BASED CLICK ONLY ● Last Interaction ● Last Non-direct Click ● Last Google ads click ● First Interaction ● Linear ● Time Decay ● Position Based
  23. 23. RULE-BASED CLICK & VIEW Rule-based click and view attribution ● Instead of relying solely on click, these models also take into account ad views during the conversion journey
  24. 24. DATA-DRIVEN Data-driven attribution ● A good attribution system is fully derived from data rather than subjective rules
  25. 25. So what is right for me?
  26. 26. The features of a good solution Go beyond click data by ingesting impressions and cost of other channels BEYOND CLICK Relatively painless integration allowing set-up within 4 weeks INTEGRATION Offer a solution that’s accessible to a wider set of marketers AFFORDABLE Make attribution actionable, remove the guesswork by machine learning DATA-DRIVEN Deliver actionable results that allow learning through transparency TRANSPARENCY Deliver results within 2 weeks after integration TIME TO RESULTS
  27. 27. The features of a good solution Collected Unified Personalized Orchestrated Unique ID: 138AB125 Name: Elizabeth Jones Email: Last Purchase: 11/17/17 Attributes: Female / Athlete Deal Seeker High Value New Visitor
  28. 28. Getting in front of Mobile Shoppers with Google Showcase Shopping Ads
  29. 29. New Showcase Shopping Ads What? ● New format mid-2018 providing more control over products displayed for broad searches ● Shoppable ads at the top of the Google Search when a user searches for broad, non-branded keywords on a mobile device ● Brands can introduce themselves early in the buyer journey How? ● Requires a lifestyle image with two smaller side images ● Charged on cost-per-engagement (CPE) bidding ● Run separate from shopping campaigns ● Target high-funnel queries & pixel searchers yet to visit your site
  30. 30. Reviewing Pros & Cons Pros ● Feeding upper-funnel at affordable rates ● Great for brand discovery ● Opportunity to showcase your catalog for those unfamiliar with your brand. ● Data-building for your website. Cons ● Not as successful for mid-bottom of funnel ● Difficult to prove immediate return One of our clients received an enormous increase of 14 million impressions over a three-month period using Showcase Shopping ad campaigns
  31. 31. Top 2 Best Practices for Showcase Shopping 1. Make a good first impression with your header creative ○ Use HQ lifestyle imagery reflective of your branding and target audience ○ Use relevant product images for a cohesive experience 2. Segment Showcase Shopping campaign structure ○ Optimize product mix and ease targeting queries ○ Use an isolation bidding strategy by creating multiple ad groups at the category and subcategory levels, then bid accordingly ■ Start with broad ad groups identifying which terms generate engagement, winter clothes ■ Create additional ad groups targeting sub-categories, men’s sweater vests ■ Increase for these sub-category ad groups that show higher buy intent ■ Pro-Tip: it’s optimal for each ad group to contain at least three ads, each with unique headers, descriptions, headlines and category URLS
  32. 32. Leveraging Responsive Ads in Your Google Search/Display Campaigns
  33. 33. Easier Way to Reach Customers via Display ● With new updates rolled out end of 2018, Responsive Display Ads (RDAs) is Google’s new ad format for testing Ad copy. ● Optimization is powered by Google’s advances in machine learning ● Google automatically tests up to 5 different combinations of headlines and descriptions ● Google will display the most relevant and best performing combination for that searcher. Source: Google
  34. 34. Benefits of RDAs Pros ● Allows advertisers to test a wider range of ad copy variations. ● Machine looks to pick best ad copy for each searcher. ● Automatically optimizes your inputs for increased conversions ● Broader reach with adjustable sizes to fit more placements ● You can monitor the performance of each individual asset
  35. 35. RDA Best Practices 1. Provide as many unique headlines as possible. The more headlines, the more opportunity for more relevant ads, increasing performance 2. Highlight additional product or service benefits and features, a problem you’re solving, or highlight shipping and return info 3. Try creating headlines of different lengths ○ Pro-tip: 4. Add at least 2 distinct descriptions 5. Set your campaign goals and targeting based on your goal for that ad group/ad 6. Build and upload your own ads outside of Google Ads by uploading with your assets with a .zip file
  36. 36. RDA Best Practices for Display 1. Tailor your images to appeal to the different audiences you’re targeting. 2. Utilize responsive ads as an appealing way to speak to your audiences. 3. Utilize your best and strongest creative assets to speak and appeal to your audience. 4. You can still connect to the product feed for dynamic product feed ads
  37. 37. Optimize Your Search Campaigns with Expanded Text
  38. 38. Breaking Down Expanded Text Ads ● Three headline fields ● Two descriptions with up to 90 characters each ● Domain of your display URL is based on your final URL domain ○ Can have two optional “Path” fields ● Bigger ads allow you to take up more space. ● Stay prominent with more enticing ads
  39. 39. Pro-Tips for Ad Formatting Overview ● Use ad extensions ● Optimize headlines & description to fit your brand Headlines ● Branded Campaign ○ Brand, product type, value ● Non-branded Campaign ○ Product type, brand, value & added value Description ● Utilize current descriptions ● Callout unique or distinguishing factors - chance to really stand out
  40. 40. Overall Best Practices in Paid Social
  41. 41. Social Checklist Conversion Event - optimize toward standard event on confirmation page Tactic Allocation - split in volume between prospecting & retargeting for new user acquisition Audience generation - emphasis on lookalike generation using HLTV seed lists Creative - focus on video assets with strong call to actions and overlays Testing Cadence - using a rules-based testing format to allow for scale
  42. 42. Deep Dive into Social Optimization & Tactics
  43. 43. Simplified Account Structure ● Campaigns - optimizing on the conversion event, separated by tactic ● Ad Sets - by tactic and using stop loss settings as automated rules ● Ad Count - limit creative testing and use single variable testing Limit ad count for data sufficiency and increase testing frequency
  44. 44. Tactic Allocation Feed the top of funnel with prospecting and nurture retargeting pool
  45. 45. Prospecting Audience Targeting Static and dynamic seed list best practices 2-3k Users in Seed List High Value Users CRM Segmentation 30 Day Lookback for Seasonality Converting Traffic Page Interaction Time Spent on Site
  46. 46. Account Structure – Prospecting Exclusions Facebook should drive north of 85% net new customers, with proper exclusions against current customers What is the current percent of net new customers from the channel? Exclude traffic + lifetime purchasers to drive net new customers + growth
  47. 47. Optimization Guardrails Implement automated actions to limit exposure of inefficient ads Current Setup Stop Loss Implementation
  48. 48. Testing Methodology Review testing cadence to ensure goal at scale • Testing Framework – limit exposure against new tests and exploit winning segments • Launch ■ Conservative Ad Set Budgets ■ New Ad Types/Formats ■ New creative/audience tests ■ Iterations on existing assets • Harvest ■ Aggressive Ad Set Budget ■ Top performing audience + creative pairings ■ Allows for scale against KPI
  49. 49. Optimization Guardrails Implement strong A/B tests with actionable takeaways Vertical CPC Delta CTR Delta CPM Delta Conversion Delta Lead Generation 8% higher 33% lower 29% lower 28% Improvement Ecommerce 51% higher 22% higher 19% lower 32% improvement Ecommerce 48% lower 17% lower 57% lower 18% improvement Square Link Ads Outperforming Landscape Link Ads
  50. 50. SMALL TEXT STACK TEXT ROW 1 STACK TEXT ROW 2 Shall We Continue the Conversation? Schedule Your 1-1 Strategy Evaluation
  51. 51. Q & A Gavin Magoon Retail Search Manager Mike Zappulla Director, Paid Social Veronica Covdy Growth Marketing Manager