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#SMX #14b @CommerceHub
Frank Kochenash, VP Client Operation, CommerceHub
Product Ads: Ch-Ch-Ch-Changes . . .
And how to pr...
#SMX #14b @CommerceHub
First, a review of a transitional year
(. . . A big one for mobile engagement)
#SMX #14b @CommerceHub
A transitional year in review . . Mobile impact
Share of ad spend dedicated to smartphones increase...
#SMX #14b @CommerceHub
A transitional year in review . . Mobile impact
. . . Correspondingly smartphone impressions increa...
#SMX #14b @CommerceHub
A transitional year in review . . Mobile impact
. . . But PLA CTR and CPC on smartphones remained c...
#SMX #14b @CommerceHub
A transitional year in review . . Mobile impact
. . . Which drove more traffic, but with a sustaini...
#SMX #14b @CommerceHub
A transitional year in review . . Mobile impact
. . . Resulting in increased smartphone orders and ...
#SMX #14b @CommerceHub
A transitional year in review . . Mobile impact
In total, Google Shopping returned very strong YoY ...
#SMX #14b @CommerceHub
A transitional year in review . . Mobile impact
Bing also had a good year with SSS growth rates acc...
#SMX #14b @CommerceHub
Second, take advantage of Bing
(and surviving CSEs)
(and new feed driven discovery sites)
#SMX #14b @CommerceHub
Bing product ads started growing strongly in Q4 2014 . . .
Bing Ads Sales
Total
#SMX #14b @CommerceHub
. . . A lot of that growth was driven by referral traffic from Yahoo! sites
0.00%
10.00%
20.00%
30....
#SMX #14b @CommerceHub
Meanwhile, return justified sales and growth remain on select feed driven
comparison shopping sites...
#SMX #14b @CommerceHub
New entrants, especially Polyvore and Pinterest are creating new
opportunities
0%
1%
2%
3%
4%
5%
6%...
#SMX #14b @CommerceHub
In short, leverage high quality product data across channels
•  Grow Bing properly allocating effor...
#SMX #14b @CommerceHub
A test: does more structured product
content make a difference?
(Hint: yes)
#SMX #14b @CommerceHub
Data quality case study: Publicly traded, multi-channel specialty retailer of
casual apparel & acce...
#SMX #14b @CommerceHub
Customer Success Story: Increased Attribute Coverage
We aggressively extracted attribute data from ...
#SMX #14b @CommerceHub
The impact was overwhelmingly positive
»  Assortment: 63% increase in active items
»  Searches: 60%...
#SMX #14b @CommerceHub
Another test: do more granular
campaign structures perform better?
(Hint: yes, but there’s a right ...
#SMX #14b @CommerceHub
Building out campaign structure to enable tighter bidding and spend
management and negative keyword...
#SMX #14b @CommerceHub
One more test: do brand terms in titles
matter? Does position in title matter?
(Hint: it depends)
#SMX #14b @CommerceHub
Common questions regarding brand and its usage in titles
»  Should brand be in the title?
»  If so,...
#SMX #14b @CommerceHub
Some findings based on portfolio review
»  If the merchant is the sole seller of the brand – do the...
#SMX #14b @CommerceHub
Last observation: get ready for the
future, where advertising converges
with commerce
#SMX #14b @CommerceHub
Facebook, Twitter, Pinterest are leading a trend of distributed “buy buttons”
merging commerce and ...
#SMX #14b @CommerceHub
. . . And maybe Google is too (?)
#SMX #14b @CommerceHub
Preparing for a “commerce-like” product advertising landscape: make your
advertising channels as ro...
#SMX #14b @CommerceHub
THANK YOU!
Join us @SMX East
NEW YORK CITY
Sept. 29th – Oct. 1st 2015
Upcoming SlideShare
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Product Ads: Ch-Ch-Ch-Changes...And How to Prepare By Frank Kochenash

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From the SMX Advanced Conference in Seattle, Washington, June 2-3, 2015. SESSION: Searching For Shoppers: How To Succeed With Feed-Based Product Campaigns. PRESENTATION: Product Ads: Ch-Ch-Ch-Changes...And How To Prepre - Given by Frank Kochenash, @mercent - Mercent, VP Client Services. #SMX #14B

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Product Ads: Ch-Ch-Ch-Changes...And How to Prepare By Frank Kochenash

  1. 1. #SMX #14b @CommerceHub Frank Kochenash, VP Client Operation, CommerceHub Product Ads: Ch-Ch-Ch-Changes . . . And how to prepare
  2. 2. #SMX #14b @CommerceHub First, a review of a transitional year (. . . A big one for mobile engagement)
  3. 3. #SMX #14b @CommerceHub A transitional year in review . . Mobile impact Share of ad spend dedicated to smartphones increased during the Shopping Campaign shift but has been pretty stable since . . . 2014-10 2014-12 2014-14 2014-16 2014-18 2014-20 2014-22 2014-24 2014-26 2014-28 2014-30 2014-32 2014-34 2014-36 2014-38 2014-40 2014-42 2014-44 2014-46 2014-48 2014-50 2014-52 2015-1 2015-3 2015-5 2015-7 2015-9 2015-11 2015-13 2015-15 2015-17 0% 5% 10% 15% 20% 25% 30% 2014-10 2014-12 2014-14 2014-16 2014-18 2014-20 2014-22 2014-24 2014-26 2014-28 2014-30 2014-32 2014-34 2014-36 2014-38 2014-40 2014-42 2014-44 2014-46 2014-48 2014-50 2014-52 2015-1 2015-3 2015-5 2015-7 2015-9 2015-11 2015-13 2015-15 2015-17 Weekly PLA ad spend by device type Smartphone share of ad spend Desktop Tablet Smartphone Shift to Shopping Campaigns Shift to Shopping Campaigns
  4. 4. #SMX #14b @CommerceHub A transitional year in review . . Mobile impact . . . Correspondingly smartphone impressions increased, especially during shift to Shopping Campaigns . . . 2014-10 2014-11 2014-12 2014-13 2014-14 2014-15 2014-16 2014-17 2014-18 2014-19 2014-20 2014-21 2014-22 2014-23 2014-24 2014-25 2014-26 2014-27 2014-28 2014-29 2014-30 2014-31 2014-32 2014-33 2014-34 2014-35 2014-36 2014-37 2014-38 2014-39 2014-40 2014-41 2014-42 2014-43 2014-44 2014-45 2014-46 2014-47 2014-48 2014-49 2014-50 2014-51 2014-52 2014-53 2015-1 2015-2 2015-3 2015-4 2015-5 2015-6 2015-7 2015-8 2015-9 2015-10 2015-11 2015-12 2015-13 2015-14 2015-15 2015-16 2015-17 2015-18 Desktop Tablet Smartphone Weekly PLA impressions by device type Shift to Shopping Campaigns
  5. 5. #SMX #14b @CommerceHub A transitional year in review . . Mobile impact . . . But PLA CTR and CPC on smartphones remained consistent . . . Weekly average PLA CTR by device type Weekly average PLA CPC by device type Desktop Tablet Smartphone $- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 2014-10 2014-12 2014-14 2014-16 2014-18 2014-20 2014-22 2014-24 2014-26 2014-28 2014-30 2014-32 2014-34 2014-36 2014-38 2014-40 2014-42 2014-44 2014-46 2014-48 2014-50 2014-52 2015-1 2015-3 2015-5 2015-7 2015-9 2015-11 2015-13 2015-15 2015-17 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 2014-10 2014-12 2014-14 2014-16 2014-18 2014-20 2014-22 2014-24 2014-26 2014-28 2014-30 2014-32 2014-34 2014-36 2014-38 2014-40 2014-42 2014-44 2014-46 2014-48 2014-50 2014-52 2015-1 2015-3 2015-5 2015-7 2015-9 2015-11 2015-13 2015-15 2015-17 Shift to Shopping Campaigns Shift to Shopping Campaigns
  6. 6. #SMX #14b @CommerceHub A transitional year in review . . Mobile impact . . . Which drove more traffic, but with a sustaining, and then improving, conversion rate. . . 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 2014-10 2014-12 2014-14 2014-16 2014-18 2014-20 2014-22 2014-24 2014-26 2014-28 2014-30 2014-32 2014-34 2014-36 2014-38 2014-40 2014-42 2014-44 2014-46 2014-48 2014-50 2014-52 2015-1 2015-3 2015-5 2015-7 2015-9 2015-11 2015-13 2015-15 2015-17 2014-10 2014-12 2014-14 2014-16 2014-18 2014-20 2014-22 2014-24 2014-26 2014-28 2014-30 2014-32 2014-34 2014-36 2014-38 2014-40 2014-42 2014-44 2014-46 2014-48 2014-50 2014-52 2015-1 2015-3 2015-5 2015-7 2015-9 2015-11 2015-13 2015-15 2015-17 Weekly PLA clicks by device type Weekly average PLA conversion rate by device type Desktop Tablet Smartphone Shift to Shopping Campaigns Shift to Shopping Campaigns
  7. 7. #SMX #14b @CommerceHub A transitional year in review . . Mobile impact . . . Resulting in increased smartphone orders and substantial increases in share of orders credited to smartphones, even after the GSC transition Weekly PLA orders by device type Smartphone share of ad spend Desktop Tablet Smartphone 2014-10 2014-12 2014-14 2014-16 2014-18 2014-20 2014-22 2014-24 2014-26 2014-28 2014-30 2014-32 2014-34 2014-36 2014-38 2014-40 2014-42 2014-44 2014-46 2014-48 2014-50 2014-52 2015-1 2015-3 2015-5 2015-7 2015-9 2015-11 2015-13 2015-15 2015-17 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 2014-10 2014-12 2014-14 2014-16 2014-18 2014-20 2014-22 2014-24 2014-26 2014-28 2014-30 2014-32 2014-34 2014-36 2014-38 2014-40 2014-42 2014-44 2014-46 2014-48 2014-50 2014-52 2015-1 2015-3 2015-5 2015-7 2015-9 2015-11 2015-13 2015-15 2015-17 Shift to Shopping Campaigns Shift to Shopping Campaigns
  8. 8. #SMX #14b @CommerceHub A transitional year in review . . Mobile impact In total, Google Shopping returned very strong YoY same channel sales growth once the transition stabilized and best practices were re-established 0% 20% 40% 60% 80% 100% 120% SSS YOY% SSS YOY% PY Google Shopping Same Store Sales YOY Growth %
  9. 9. #SMX #14b @CommerceHub A transitional year in review . . Mobile impact Bing also had a good year with SSS growth rates accelerating in Q4 -100% 0% 100% 200% 300% 400% 500% 600% SSS YOY% SSS YOY% PY Bing Shopping Same Store Sales YOY Growth %
  10. 10. #SMX #14b @CommerceHub Second, take advantage of Bing (and surviving CSEs) (and new feed driven discovery sites)
  11. 11. #SMX #14b @CommerceHub Bing product ads started growing strongly in Q4 2014 . . . Bing Ads Sales Total
  12. 12. #SMX #14b @CommerceHub . . . A lot of that growth was driven by referral traffic from Yahoo! sites 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00% Bing Ads Sales by Domain Total %Other % MSN % Yahoo!
  13. 13. #SMX #14b @CommerceHub Meanwhile, return justified sales and growth remain on select feed driven comparison shopping sites -60% -40% -20% 0% 20% 40% 60% 80% 100% 120% 140% Amazon Product Ads eBay Commerce Network PriceGrabber.com Shopzilla
  14. 14. #SMX #14b @CommerceHub New entrants, especially Polyvore and Pinterest are creating new opportunities 0% 1% 2% 3% 4% 5% 6% 7% 8% Pinterest rich pin and Polyvore traffic as a % of Google PLA traffic for clients live on both
  15. 15. #SMX #14b @CommerceHub In short, leverage high quality product data across channels •  Grow Bing properly allocating effort based on examining traffic and performance by referring site analysis •  Explore new channel opportunities like Polyvore, Pinterest Rich Pins and Sponsored Pins, Houzz, Wanelo •  Don’t forget about Amazon Product Ads if you can participate
  16. 16. #SMX #14b @CommerceHub A test: does more structured product content make a difference? (Hint: yes)
  17. 17. #SMX #14b @CommerceHub Data quality case study: Publicly traded, multi-channel specialty retailer of casual apparel & accessories, targeting 14 to 26 year olds »  Product catalog comprises ~40,000 SKUs »  Ambiguous & Incomplete Categories §  Example: Clearance > Girls Sales > VIEW ALL §  15% of products were missing merchant category all together »  Inaccurate & Inconsistent Attribute Values §  The retailers name inaccurately applied as Brand to all products §  Abbreviated Colors: LTORNG, LTBRWN 237, LT HTHR GREY »  Missing Key Attributes for Apparel Products §  Gender, Age Group, Material, Sleeve Length and Fit Decent, but not great data
  18. 18. #SMX #14b @CommerceHub Customer Success Story: Increased Attribute Coverage We aggressively extracted attribute data from unstructured elements and added or filled in new structured elements For example, client data did not have any fields for gender, age group, material or pattern. We populated them
  19. 19. #SMX #14b @CommerceHub The impact was overwhelmingly positive »  Assortment: 63% increase in active items »  Searches: 60% increase in distinct search terms »  CTR%: Increased from 4.34% to 6.16% »  Traffic: 107% increase in paid clicks »  Sales: 127% increase in orders Improved performance driven by greater listed assortment but also by a wider “capture basin” enabled by more keyword search relevance
  20. 20. #SMX #14b @CommerceHub Another test: do more granular campaign structures perform better? (Hint: yes, but there’s a right balance to hit)
  21. 21. #SMX #14b @CommerceHub Building out campaign structure to enable tighter bidding and spend management and negative keyword assignments enabled better performance *Revenue redacted from X axis
  22. 22. #SMX #14b @CommerceHub One more test: do brand terms in titles matter? Does position in title matter? (Hint: it depends)
  23. 23. #SMX #14b @CommerceHub Common questions regarding brand and its usage in titles »  Should brand be in the title? »  If so, should it be at the front or at the end?
  24. 24. #SMX #14b @CommerceHub Some findings based on portfolio review »  If the merchant is the sole seller of the brand – do they need to include the brand in the product title? §  No -- It may be redundant to have it in the title if they are the sole seller because seller name shows below the price on top placements §  Yes -- There is a probability that it may help to improve quality score »  If the merchant is not the sole seller of the brand – do they need to include the brand in the product title? §  Yes -- Removing brand from product titles generally results in reduced traffic sales. §  However – For short (i.e. more generic) queries on Google, only the brand of the product typically is shown, not the seller’s. »  Does it matter if it is in the front or the back of the product title? §  No -- Tests have not shown conclusive effectiveness
  25. 25. #SMX #14b @CommerceHub Last observation: get ready for the future, where advertising converges with commerce
  26. 26. #SMX #14b @CommerceHub Facebook, Twitter, Pinterest are leading a trend of distributed “buy buttons” merging commerce and advertising into a single experience . . . Pinterest* Buy *Speculative mockup
  27. 27. #SMX #14b @CommerceHub . . . And maybe Google is too (?)
  28. 28. #SMX #14b @CommerceHub Preparing for a “commerce-like” product advertising landscape: make your advertising channels as robust as your site experience •  Improve data quality to support needs of 3rd party transactions •  Child SKU variations need to be right •  Inventory availability has to be accurate •  Improve timeliness/frequency of data updates •  Prepare organizational functions especially fulfillment operations and merchandising
  29. 29. #SMX #14b @CommerceHub THANK YOU! Join us @SMX East NEW YORK CITY Sept. 29th – Oct. 1st 2015

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