DIGITAL ADVERTISING SAW SOME BIG SHAKE-UPS in Q2 that will change how you approach Q4. Learn what they are and how you can leverage them to kill it in Q4. Chris Chang, VP of Business Development at Elite SEM, and Chris Costello, Senior Director of Marketing Research at Kenshoo, cover: - Q2 Digital Advertising Trends From Kenshoo’s Q2 Global Trends Report - Important Take-Aways From Google Marketing Live - What All These New Revelation Mean For Advertisers - How You Can Use These Trends To Your Advantage In Q4

1. ELITESEM.COM CONFIDENTIAL
A Look Back at Q2 Trends that will
Disrupt Your Q4 Strategy
August 22, 2018

2. ELITESEM.COM CONFIDENTIAL
Housekeeping

3. ELITESEM.COM CONFIDENTIAL
Senior Director of Marketing Research
Chris “Coz” Costello
Kenshoo
VP of Business Development
Chris Chang
Elite SEM

4. Questions
What to Make of Amazon & Pinterest This Holiday Season
Google Marketing Live: Changes that will Impact your Q4
Diving In: Social Trends & Key Takeaways for Holiday Season
Diving In: Search Trends & Key Takeaways for Holiday Season
Search & Social Q2 Overview
Agenda
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Q2 Digital Advertising Growth
Consistent YoY growth for both Search and Social
+10% +40%
SEARCH SOCIAL
Source: Kenshoo Digital Marketing Snapshot, Q2 2018

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Search Trends

7. Search Spend
Grew 10%
Versus Last
Year
Search spend highest
since Q4 2017 (up 4%
QoQ) as Volume &
Engagement continue
to improve
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Source: Kenshoo Digital Marketing Snapshot, Q2 2018
+10%
SEARCH

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Search Spotlight
Mobile spend finally surpasses Desktop fueled by search
behavior, cross-device measurement & ad format choices
Source: Kenshoo Digital Marketing Snapshot, Q2 2018

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Key Drivers: Search
Search growth heavily fueled by Shopping & Mobile Ad
Units
Source: Kenshoo Quarterly Trend Report, Q2 2018

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Search Trends: Reach
Impressions grew 20% YoY; Clicks grew 24%
Source: Kenshoo Digital Marketing Snapshot, Q2 2018

11. Search
Trends: Ad
Engagement
Improves
Click-Through Rate
increased 4% YoY;
Average Cost per Click
(CPC) declined 12%
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Source: Kenshoo Digital Marketing Snapshot, Q2 2018

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Search Trend Takeaways
Search isn’t slowing down & it’s getting more effective
CTR driven by more engaging Ad Formats & Personalized Targeting options
Shopping will continue its domination now onto Mobile
Will be primary DR tactic used by retailers throughout the holidays.
Focus on your L/T KW Strategy. Mobile v Desktop Campaigns
Expand KW inventory to be top of mind throughout journey. Descriptives are critical. Near Me. Close By. Where Can
I.
Google desire to be advertiser’s weapon of choice, at all stages
From discovery to research to purchase. They know your customer. Start leveraging their toys.
Retailers Q4 focus: Driving In-Store & Mobile Shopping
90% purchases still happen offline coupled with the rampant increase in local centric searches

13. ELITESEM.COM CONFIDENTIAL
Poll

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Social Trends

15. Social Spend
Grew 40%
Versus Last
Year
Despite a challenging
news cycle, advertisers
still see considerable
value in the channel
ELITESEM.COM CONFIDENTIAL | 15Source: Kenshoo Digital Marketing Snapshot, Q2 2018
+40%
SOCIAL

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Poll

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Social Spotlight
Instagram
Source: Kenshoo Digital Marketing Snapshot, Q2 2018

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Key Drivers: Social
Instagram continued to fuel Social Spending even while
overall Facebook Daily Average Users (DAU) declined
Sources: Facebook Q2 Earnings Call, Kenshoo Quarterly Trend Report, Q2 2018

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Social Trends: Reach
Impressions grew 15% YoY; Clicks grew 94%
Source: Kenshoo Digital Marketing Snapshot, Q2 2018

20. Social
Trends:
Effectiveness
Click-through rate
increased 69% YoY;
Average CPM increased
22%
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Source: Kenshoo Digital Marketing Snapshot, Q2 2018

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Poll

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Social Trend Takeaways
A Full Funnel Social Experience
Branding and storytelling still highly relevant to video and Stories formats
Making a Better Impression
“Normalizing” of desktop impression inventory means social impressions are growing again
Volatile Video
Video CPM and spending were factors in overall increases and decreases, respectively
Getting Engaged on a Carousel
High-click Carousel Ads drive big increases in clicks and CTR
Not Just for Branding Anymore
Holiday adoption of Dynamic Ads for Products has been big for two holiday seasons and will continue

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Search News

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Search News
From Google Marketing Live
Cross Device Reporting & Remarketing via GA
The Holy Grail?!
New Ad Format! Responsive Search Ads
3 headlines v 2 | A/B Ad Copy Testing Automated | 90 v 80 | Automated Creation
Local Campaigns
Auto Serves Ads Across Search | YouTube | Google Maps | Places & Apps To Drive In-Store Engagement
All Things YouTube: Upper/Mid Funnel to DR
TrueView For Reach | TrueView For Actions | Maximize Brand Lift Bidding
Smart Shopping Campaigns
Ad Delivery Auto Optimized Based On Target ROAS | Goals: Store Visits v ROAS v New Customers

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Holiday Preview

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“North Poll”

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Holiday Preview
Holiday begins in November. Watch for Cyber 5
Source: Mastercard Advisors | Google

28. More than
just Search
and Social
Pinterest showed
strong seasonality in
2017, while Amazon
ads saw improved
performance for Prime
Day
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Source: Kenshoo Digital Marketing Snapshot, Q2 2018

29. In Summary…
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Know your customer. Engage with them from beginning to end.
Focus on audience centric personalization coupled with a sound cross channel strategy this holiday season.
Create that Mobile-First strategy & assess those KPIs.
Mobile won’t always drive immediate sales. So understand the value of mobile to your brand & position accordingly
Change still the constant for Social advertising.
Instagram, Instagram Stories driving innovation on the branding side, DPA pushing direct response
Newer ad platforms showing they’re in the mix for holidays.
Expand reach and effectiveness with campaigns on Pinterest and Amazon
Search got its cool back, will be a dominant factor Q4.
Don’t think of Search simply as a lower funnel solution. Be relevant & present for all incoming queries

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Questions? Let’s discuss!
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sayhello@elitesem.com

31. Thank You!
ELITESEM.COM CONFIDENTIAL
Chris Chang | VP Business Development @ Elite SEM
chris@elitesem.com
Chris Costello | Sr Director of Market Research @ Kenshoo
coz@kenshoo.com