Presentation from November 1st webinar with Yahoo Research Manager, Strategic Insights & Research- Retail & Tech/Telco, Carla Valencia and Kenshoo CMO, Aaron Goldman. Covers in-depth holiday insights based on internal research and industry trends as well as best practices to ensure you are getting the most out of SEM during this crucial time.

1. 'TIS THE SEASON:
2011 HOLIDAY INSIGHTS & SEM BEST PRACTICES
Aaron Goldman, CMO, Kenshoo
Aaron Goldman Carla Valencia
_______________________, Yahoo!
November 1, 2011
Research Manager,
Chief Marketing
Officer Strategic Insights & Research
Retail & Tech/Telco.
November 1, 2011

2. Webinar Information
Audio instructions – listen via computer speakers or dial into
conference call at numbers listed in email from
gotowebinar@citrixonline.com
Still can’t hear the webinar? Tell us please!
Ask questions during & after the webinar via
Webcast@Kenshoo.com
Kenshoo: Proprietary & Confidential 2

3. Carla Valencia
Research Manger,
Strategic Insights & Research
Retail & Tech/Telco

4. Topics
• Understanding Search as part of the purchasing process
• Holiday Trends
o Retail Sales
o Key Dates
o Online traffic to Retail Categories
o Demographics
o Coupons
• Economic Landscape
• Implications for Marketers

5. Topics
• Understanding Search as part of the purchasing process
• Holiday Trends
o Retail Sales
o Key Dates
o Online traffic to Retail Categories
o Demographics
o Deals & Coupons
• Economic Landscape
• Implications for Marketers

6. Searchers are savvy shoppers that incorporate a wide range
of online resources in their purchasing process
% Respondents
Those who Searched Prior to Purchase
There are Store/retailer websites 61%
224MM unique Online consumer reviews and ratings
Online-only retailer websites
50%
50%
searchers in Saw an advertisement from the
manufacturer/retailer while on the Internet
47%
any given Shopping comparison websites
Shopping-related emails that I signed up
43%
41%
for
month. Consumer websites 38%
Each one of
Online auction websites 38%
Coupon websites 37%
them search in Information about this type of product in
blogs or message boards
33%
Magazine websites 29%
average 121 Online video sharing websites 26%
times. Brand's Facebook page Twitter blog etc. 25%
News websites 25%

7. This makes their purchase decision making process
complex and sophisticated
Before Now
… because digital content is an initial filter to further in-person investigation, marketers have the chance to
help their potential customers in the process by understanding who they are and how they search

8. Online sources are considered as influential as in-store
sale associates, and reach is their advantage
Influence to Purchase by Overall Usage
VERY
INFLUENTIAL
100% KEY
COMPARE DIGITAL OFFLINE
90%
INFLUENCE ON PURCHASE
80%
Salesperson
Consumer Report Site
Watch Video,
Expert Reviews on Website
Manufacturer Print Stories
Brand Site
70% Read Digital Articles
Watch Video, Reviews on
Expert Created Brand Site Enthusiast Site
60% Podcast
Retail Site
TV Stories
Search Engine
Company’s Consumer Site Dealership Site
Facebook (AOL,Yahoo!)
50%
Department Store Site
40%
NOT
VERY
30%
INFLUENTIAL 0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
OVERALL USAGE IN SHOPPING PROCESS
Source: Yahoo! & & . . “The Long and Winding Road: The Gamesmanship of Shopping”. 2011

9. Topics
• Understanding Search as part of the purchasing process
• Holiday Trends
o Retail Sales
o Key Dates
o Online traffic to Retail Categories
o Demographics
o Deals & Coupons
• Economic Landscape
• Implications for Marketers

10. A critical time of the year for retailers
$466 billion
predicted to be spent
on 2011 holiday shopping
24%
of total Department Store sales
generated during the holidays
National Retail Federation 2011 Holiday Survival Kit

11. Offline purchases represent the largest share of Retail
Sales in the US, but online purchases grow faster
% Change
from Prior Year
$43 billion 20%
17.6%
spent on e- 16.5%
16% 14.9%
commerce during 14.4% 14.6%
Q4 2010 12%
8.6%
7.4% 7.8%
8%
6.6%
5.7%
91% 4%
of retail sales still 0%
occur offline, despite 1st QTR
2010
2nd QTR
2010
3rd QTR
2010
4th QTR
2010
1st QTR
2011
12% YOY growth in Total Sales E-commerce
e-commerce
Source: US Census. Estimated Quarterly U.S. Retail Sales (Not Adjusted)

12. Search patterns highlight consumer interest
Weekly Search Buzz Index Trend
Search activity query volume
2009 2010 2011
7,000
Holiday
Holiday Season
Season
6,000
Memorial Day
Weekend
5,000
4,000
Memorial Day Labor Day
Weekend Weekend
3,000
2,000
1,000
0
11/9/09
12/7/09
1/18/10
2/15/10
3/15/10
3/29/10
4/12/10
4/26/10
5/10/10
5/24/10
6/21/10
7/19/10
8/16/10
8/30/10
9/13/10
9/27/10
11/8/10
12/6/10
1/17/11
1/31/11
2/14/11
2/28/11
3/14/11
3/28/11
4/11/11
4/25/11
5/23/11
10/12/09
10/26/09
11/23/09
12/21/09
1/4/10
2/1/10
3/1/10
6/7/10
7/5/10
8/2/10
10/11/10
10/25/10
11/22/10
12/20/10
1/3/11
5/9/11
Gifts Holidays & Observances
Source: Yahoo! Internal. Search buzz index = measure of share of search, specifically weekly number of searchers of specified product category or keyword
divided by total weekly number of searchers in audience segment * 100,000

13. Consumers use search to find gifts
DEPARTMENT STORES
30%
APPAREL & ACCESSORIES
28%
% Traffic from Search
Engines to …
CONSUMER ELECTRONICS
30%
FLOWERS & GIFTS
27%
Source: Hitwise . Industry Statistics. Week of 12/26/10

14. Holiday Shopping Trends
The online holiday
shopping season
historically peaked each
year around December 12.
However, holiday season
sales have received a
push from promotional
dates. Cyber Monday has
emerged as the top
online spending day of
the year.
Similarly, Thanksgiving
Day, Free Shipping Day
and the week leading up
to Christmas all posted
sales growth above the
13% rate in 2010.
Source: comScore. Dec’2010

15. Total Holiday Spending in 2010 was $30.1 Billion
Holiday TOTAL RETAIL Online Spending
Millions ($)
% change
from prior
28% 9% 16% 12% 61% 17% In 2010 total
year online retail
spending grew
$2,450
13% from prior
$2,098 year.
$1,028
$954 $942
$887 $854
$648 $586
$595
$407
$318
Thanksgiving Black Friday Ciber Monday Green Monday Free Shipping Dec 20 -
Day Day Dec 26
2009 2010
Source: comScore. Dec’2010

16. Online users shop and compare first and then
make a purchase decision onViews dates
Page
key
700,000
Total
Spent Total
Total Total
$648M Spent
Spent Spent
600,000 $954M
$1.0B $2.4B
500,000 Total
Spent
$942M
400,000
300,000
200,000
100,000
-
Wednesday
Wednesday
Wednesday
Wednesday
Wednesday
Wednesday
Wednesday
Wednesday
Wednesday
Thanksgiving
Tuesday
Thursday
Tuesday
Thursday
Tuesday
Thursday
Tuesday
Tuesday
Thursday
Tuesday
Thursday
Tuesday
Thursday
Tuesday
Thursday
Tuesday
Thursday
Sunday
Sunday
Sunday
Sunday
Sunday
Sunday
Sunday
Sunday
Christmas
Monday 11.1.10
Friday
Monday
Friday
Monday
Friday
Monday
Black Friday
Friday
Monday
Friday
Monday
Friday
Monday
Friday
Saturday
Saturday
Saturday
Saturday
Saturday
Saturday
Free Shippin Day
Saturday
Saturday
Green Monday
Cyber Monday
SundayConsumer Electronics Department Stores Home Improvement Mass Merch Apparel
Although PV’s hit the highest point on Black Friday, hard data for Cyber Monday let us assume
that users shop and browse for products earlier and then make a decision on Monday. A similar
trend happens on the days following Christmas.
Source: Yahoo! Internal. Magellan Panel Data. Nov,10

17. Online shoppers population grows fast as
Holidays get closer
UU’s to Select Retail Categories
(in millions)
91 Oct'10
86 88
77 Dec'10
69 71 70
64
54
41 41 42 39
34 37
31 31
26
20
16
Source: comScore. Media Metrix.

18. Family tops the list for gifts this year
Bought/Buying for in 2011
59%
53%
51% 50%
47%
44%
38%
35% 35%
25%
HOL1 For which of the following people, if any, did you buy gifts for last holiday season (2010) and which do you plan to shop or buy gifts
for this holiday season (2011)? Please think of any gifts that you may shop for or purchase during the holiday season, as well as those
you may shop for or purchase after the holidays (e.g., post-holiday sales). Base: Total Sample (1500)

19. Most will experience some type of stress this holiday
season with finance topping the list…
My biggest concern this holiday season is….
ANY STRESS FOR HOLIDAY
SEASON
Money/expenses and other financial
pressures
Knowing what gifts to buy
The stress of gift buying (dealing
with stores/finding the time)
Dealing with family
Pressure to maintain traditions
Gift wrapping
Decorating the house/tree 2011
Dealing with children
2010
0% 50% 100%
HOL40 What is your biggest concern this coming holiday season?

20. Online advertising not only drives sales but it also is
an effective way to connect with Holiday Shoppers
Online Advertising Should Help Me…
Get gift ideas 55%
SPIRIT Get me into the holiday spirit 20%
Entertain me for the holiday season 13%
Know when there are sales events 50%
DEALS Informed about deals , offers, & promotions 47%
Make a decision about what I should buy 36%
Remind me of stores don't usually think of 31%
Remind me about different products & brands 34%
REMIND Find out about stores I want to go to 33%
Find out about other places I want to go to 26%
HOL24 How might online advertising help you while shopping for gifts during this upcoming holiday season? Base: Plan to Buy Gifts This Holiday Season (1402)
20

21. A majority of holiday shoppers are interested in
offers and promotions, free shipping is key!
I am definitely/probably interested in the following…
Price discounts or sales 21% 60% 79%
Free shipping 20% 56% 75%
Purchase incentives 27% 42% 66%
Coupons from newspapers/mags 24% 44% 64%
Coupons received through email 24% 41% 63%
Rebates 25% 38% 56%
Probably Interested
Coupons that I found online 23% 39% 60%
Gifts sold as sets or with free items for less 23% 28% 48% Definitely Interested
Coupons from a coupon club website 21% 29% 48%
Lay-away plans 13% 22% 32%
HOL31 How interested are you in taking advantage of the following types of holiday offers and promotions from your local retailer (such as Target, Best Buy, JC Penney’s, etc.)?
Please think of any offers that you might receive online as well as those offline. Base: Plan to Buy Gifts This Holiday Season (1402)
21

22. Holiday Shoppers largely mirror US population
Source: Hitwise.

23. Volume of 2010 Black Friday related searches similar
to previous holiday season
3%
52%
Source: Hitwise.

24. Searches for retailer coupons and discount codes
showed strong growth last Holiday Season
+13%
+27%
Source: Hitwise

25. Topics
• Understanding Search as part of the purchasing process
• Holiday Trends
o Retail Sales
o Key Dates
o Online traffic to Retail Categories
o Demographics
o Deals & Coupons
• Economic Landscape
• Implications for Marketers

26. Declining economy make people feel less optimistic about
their current and future situation
The country isn't really doing
anything positive right now and the
The powers in Washington have unemployment rate is very high.
overused their powers and don't
care about the rest of the nation
All of our opportunities are
disappearing. We are letting too many
immigrants in and giving them I consider it not the land
everything they need of opportunity unless you are
OBAMA a politician or big business.
while we all suffer.
C
C
Source: Yahoo! Consumer Pulse.. IPSOS OTX. Sep’11
ECON21.Why don’t you consider America to be the land of opportunity?
Base: Strongly/Somewhat disagree that America is still the land of opportunity

27. … and this outlook has an impact on their
expenditures pattern
Current Discretionary Spending
2010, 2009 And 2008
Less More
Total
2010 38% 7% 37% BC 18%
A
Total
2009 38% 8% 27% C 27%A
B
Total
2008 39% 9%A 23% 29%A
C
Spend less now Don't know About the same Spend more now
*Letter indicates statistical significance between
Source: Yahoo! Consumer Pulse.. IPSOS OTX. Sep’11 comparative groups at the 90% confidence level
ECON2/ECON3/ECON4. How does your current discretionary spending compare to your discretionary spending in 2010, 2009 and 2008?
Base: All respondents (n=1,500)

28. Parents, especially Dads, buy the most gifts
and spend the most money
Avg. # of Gifts Avg. Budget Avg. $
Plan to Buy for Gifts Per Gift
Total 11 -1 vs 2010 $725 $66 -11% vs 2010
Parent
15 $893 $59
of 0-17
Dads 15 $1,005 $67
Moms 15 $819 $55
Consumers are buying 1 less gift and spending 11% less per gift this year.
HOL2 How many people in total do you plan to shop or buy gifts for the upcoming holiday season? Base: Total Sample (1500)
HOL18 How much money will you be budgeting to cover all of your upcoming holiday gift purchases?
Base: Plan to buy gifts this holiday season (varies) *Excludes outliers (2 x standard deviation plus the mean)
28

29. Despite negative views of the economy, Holiday spirit
is still prevalent and gift shopping has already started
“Buy Early” Type Late Shoppers
I've already After Just days After the
After On Black Thanksgiving Cyber
done the Thanksgiving before the holidays
Halloween Friday weekend Monday
majority of it weekend holidays are over
8% 25% 19% 6% 5% 24% 11% 2%
When do you plan to do the majority of gift shopping for this 2011 Holiday Shopping?
Source: Yahoo! & IPSOS OTX. Sep’11. Attitudes about Holidays

30. Implications for Marketers
• People who SEARCH represent a group of hyper engaged
shoppers. They gather information from more sources prior
Understand the to purchase.
purchasing • Purchase decision making process is complex. Marketers need
to be present all along the way to help conversion.
cycle • Search remains the key driver of traffic to retailers and
represented 28% of all upstream traffic in December 2010.
• Holiday Shoppers start early in their gift shopping process.
• Holiday Shoppers are also budget-conscious shoppers that
Understand the turn to search to find discounts & deals during the holiday
consumers season,. In 2010 searches for retailer branded coupons increased
13% YoY
state of mind • Holiday shoppers will spend less money this year in gifts than
last year
• Display enhances search
• Holiday Shoppers will buy gifts mainly for their parents and their
Strategize significant others and/or spouses.
• Long tail terms are fertile ground to gain SOV

31. AARON GOLDMAN
CMO
KENSHOO

32. Overview
Learn from past holiday seasons
Plan your strategy and tactics
Execute your campaigns with decisive action
30%+ of Yearly Sales Can Be Driven In the Next 2 Months
We are here.
Are you ready?
32

33. LEARN
33

34. Search is Sacred
34

35. Loyalty is Lacking
35

36. Shopping starts Sooner
36

37. Budgets are Bigger
37

38. Bids are Bolder
38

39. Search still Scores
39

40. PLAN
40

41. Calendar Cues: 2010
41

42. Calendar Cues: 2011
42

43. Outline Objectives
Objectives Settings
43

44. Balance Budgets
44

45. Schedule Stuff
SCHEDULED ACTION STEP 1: SCHEDULED ACTION STEP 2:
Create Advanced Search Save Advanced Search on Results Page
SCHEDULED ACTION STEP 3:
Schedule your action
45

46. ATTACK
46

47. Use Advanced Search to selectively to selectively decrease and decrease bids.
Use Advanced Search increase and increase bids.
Boost Bids
To expose seasonalTo expose seasonalalso the option t o querythe option t o queryare less than the minimum bid and then
keywords, there’s keywords, there’s also for keywords that for keywords that are less than the minimum bid and then
take an action to increase those bids increase those bids t o the minimum.
take an action to t o the minimum.
Important Note: This is recommended onlyrecommended only who manageusers bids with k eyword-levelwith k eyword-level algorithms or
Important Note: This is f or Kenshoo users f or Kenshoo their who manage their bids algorithms or
manually. If you are manually. If youBid Optimization, we do not recommend do not recommend manual interference.
using Portfolio are using Portfolio Bid Optimization, we manual interference.
Advanced Search Bidding
Advanced Search Bidding
47

48. Pick Portfolios
Portfolio:
• Define scope (Profile, Campaigns, Ad Groups)
• Set goals (Profit, Revenue, Conversions, Traffic)
• Set constraints (e.g. ROI>2.5, Daily Spend<10K)
Input:
• Historical data
• Custom seasonality index
• Custom keyword similarity groupings
Output:
• New keyword bid recommendations
• Performance forecasting
48

49. Pick Portfolios
Portfolio:
• Define scope (Profile, Campaigns, Ad Groups)
• Set goals (Profit, Revenue, Conversions, Traffic)
• Set constraints (e.g. ROI>2.5, Daily Spend<10K)
Input: 885% Profit Increase for campaigns running Portfolio Bid
• Historical data
Optimization during the 2010 holiday season vs. Manual
• Custom seasonality index and Keyword Bid Optimization
• Custom keyword similarity groupings
Output:
• New keyword bid recommendations
• Performance forecasting
49

50. Forecast Future
Use Kenshoo’s Forecast reports to find the optimal budgets f or your bid port folios.
If you are using Kenshoo Portfolio Bid Management (model-based policies) you can run Forecast reports in the Reporting
Dashboard to see how budget changes will af ect your performance.
Forecast Report in the Kenshoo Dashboard
50

51. Reporting Reminders
Set bookmarks for important campaigns/ ad groups/ ads/ keyword
information so you can quickly jump to a page.
Bookmarking is a f eature that allows you to save any page in the Kenshoo interface for quick access. Bookmark campaigns,
ad groups, keyword lists, or ads that require frequent review. New this year, you can also create bookmarks for Advanced
Searches so that you can quickly run your saved queries without having to reconfigure all of your settings.
Bookmarks
51

52. Reporting Reminders
Use Advanced Search to schedule reports to be sent to your inbox on a daily basis.
Advanced Search Time Period Selection Advanced Search Scheduled Reports are custom report
you can create and schedule t o arrive in your inbox
Reports are customized to your specific requirement
time ranges. Any query performed through Advanced S
can become a scheduled report. You can query for not
key performance indicators, but for reports for disappr
keywords and ads as well.
Kenshoo updates revenue numbers in the grid every co
of hours, allowing you to query for incoming conver
intraday. The intraday conversion data includes inform
on the campaign, ad group, keyword, and revenue am
This information can be paired with cost data, mined
optimized intraday.
52

53. Reporting Reminders
Use Scheduled Reports to run reports with data spanning multiple profiles.
Use Kenshoo’s Scheduled Reports to create multi-profile reports to quickly monit or your activities across more than one profile.
You can also use these reports with Dimensions t o create deeper analytical views.
Scheduled Report Templates
53

54. Reporting Reminders
Dashboard Sharing Settings
With over 1 customizable widgets, the reporting possibilities within Kenshoo are endless. Keep in mind that many widgets have the
4
option to view revenue, click, and conversion trends for current day. This capability allows you to monitor and adjust strategy intraday.
Here are a few specific widgets worth noting:
HOURS: Track conversions*, clicks, and revenues throughout the day for specific campaigns or all campaigns. This widget
provides same day updates every few hours and provides directional intraday information.
*only for customers using a Kenshoo pixel.
Hours Widget
54

55. Reporting Reminders
Dashboard Sharing Settings
PERIODS: Compare campaign or ad group performance against the previous day.
Period Comparison Widget
55

56. Reporting Reminders
Dashboard Sharing Settings
DIMENSIONS: Set up dimensions to cluster campaign, ad group, ads, and keywords. Create dif erent dimensions for high
performing products, promotions, ads, and more. Understand how a single business unit is performing across multiple channels.
Dimensions Widget
56

57. Reporting Reminders
Dashboard Sharing Settings
NOTES: Write and store reminders and action items within Kenshoo.
Notes Widget
57

58. Reporting Reminders
Fusion Reports allow you view large amounts of data in a single report. For example you can create a report with all of your
active campaigns and include the below data.
Fusion Report Available Campaign Columns
58

59. RECAP
59

60. Recap
Learn
– Mine trends and be ready!
Plan
– Schedule and automate actions!
Attack
– Stay vigilant and react!
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61. HAPPY HOLIDAYS!
Kenshoo.com/2011HolidayGuide
61