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Automated online marketing: A game-changer for SMBs


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Merchants around the world are realizing they cannot simply hope for top placement in organic search results, nor rely on product reviews to drive growth in online sales: marketing channels have become far too fragmented and competitive. To compete with the big players, small and medium-sized merchants need simple, powerful and automated tools that enable them to focus on running their businesses rather than managing the increasing complexity of search and social ad campaigns. The largest global retailers have long had the advantage of using sophisticated, algorithmic tools to drive demand and online sales. We’ll talk about how now, for the first time, even small merchants can take advantage of these enterprise-class tools.

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Automated online marketing: A game-changer for SMBs

  1. 1. AUTOMATED ONLINE MARKETING:A GAME-CHANGER FOR MERCHANTS October 13, 2011 Kenshoo: Proprietary & Confidential Information
  2. 2. Topics Kenshoo Overview Market Trends and Opportunity What is a Demand Generation Solution? Kenshoo X.commerce Extension Kenshoo: Proprietary & Confidential Information | 2
  3. 3. KENSHOO OVERVIEW Kenshoo: Proprietary & Confidential Information | 3
  4. 4. Corporate ProfileGlobal Leader in Digital Marketing SoftwareFounded in 2006Backed by Sequoia Capital and Arts Alliance10 global$15 billion annual online sales revenue offices, 240 employees (+100 engineers) directed through Kenshoo 650 million+ keywords managed through Kenshoo 33 Billion+ social media ads delivered on Facebook Campaigns running in over 100 countries Kenshoo: Proprietary & Confidential Information | 4
  5. 5. Kenshoo Customers7 of the top 10 global retailers6 of the top 10 global hotel groups7 of the top 10 global telecoms9 of the top 10 global agency networks23 of the Fortune 50 Kenshoo: Proprietary & Confidential Information | 5
  6. 6. MARKET TRENDS AND OPPORTUNITY Kenshoo: Proprietary & Confidential Information | 6
  7. 7. Retail sales becoming increasingly web-influencedSource: Forrester Research Inc. “Forrester Forecast: Double Digit Growth for Online Retail in US and Western Europe,” March 2010 Kenshoo: Proprietary & Confidential Information | 7
  8. 8. Merchants of all sizes need to. . .Acquire New Customers Gain Operational Efficiencies Strengthen Value Integrate with internal systems Proposition & other media channels Drive Revenue Automate manual processes Gain Market Share Streamline client interactionMaximize Marketing Investment Stay on the Cutting Edge Generate Qualified Capitalize on Trends Traffic Offer Innovative Solutions Avoid Cannibalization Track Point of Sale Attribute Offline SalesMinimize Churn Launch Quickly Stay within Budgets Meet and Beat Goals Kenshoo: Proprietary & Confidential Information | 8
  9. 9. WHAT IS A DEMAND GENERATION SOLUTION? Kenshoo: Proprietary & Confidential Information | 9
  10. 10. Inventory-Driven Demand GenerationTop 500 Internet retailer drives 200% increase in ROI ROI increased from average $2.94 to $6.41 2.6M keywords and 1.5M ads generated (categories, brands, SKUs)
  11. 11. Converting Keyword Harvesting & Expansion Automated Harvesting Manual Expansion Algorithms1. User queries search engine triggering a broad or phrase match keyword Integrated Options Available Algorithms • Concatenation Dictionaries • Automated Thesaurus • Typo Generator • Translator • Downstream Website Traffic • Competitive Databases 2. User Clicks on Ad and/or Converts • Industry Databases • Google Suggest 3. Actual query automatically 4. New keywords added to campaigns applied to expansion algorithms Kenshoo: Proprietary & Confidential Information | 12
  12. 12. Keyword-Based Bid Optimization Keyword Bid Optimizer • Use data accumulated over the last 7-90 days • Decisions consider position, min bid, current bid and number of clicks and conversions • Apply daily or weekly • Control over position, CTR, CPA or ROI CPA Increase Profit Improve CTRMaximize conversions for Increase profit while Influence bids to improvea set cost per acquisition maintaining goal ROI position and CTR Lowest Bid for Position Branding Policy Considers target position and Raises bids for keywords that maximum bid to ensure fall below a given position efficient bids are in place Kenshoo: Proprietary & Confidential Information | 13
  13. 13. Portfolio-based Bid Optimization Portfolio Modeling • Learn from several weeks of available data using smart historical weighting • Considers the interactions among position, impressions, clicks, cost, conversions • Bids optimized to reach business goals taking into account portfolio and KW level constraintsHolistic managementMarginal ROI OptimizationDynamic ClusteringLearning SystemFlexible ConfigurationAdvanced Seasonality Kenshoo: Proprietary & Confidential Information | 14
  14. 14. Optimal Budget ForecastingRevenue Curve Against Spend Marginal ROI Kenshoo: Proprietary & Confidential Information | 15
  15. 15. Flexible Attribution Models Green T-Shirt Blue T-Shirt Red T-Shirt Great Prices Great Prices XL Size Available Keyword 1 Keyword 2 Keyword 3 (Last Click) Attribution ModelsMost Advertising Tracking Systems report and act on only the last click Linear Ratioprior to purchase U Shaped Distribute Evenly Single Click Only (First or Last) Kenshoo: Proprietary & Confidential Information | 17
  16. 16. Kenshoo Product SuiteKenshoo: Proprietary & Confidential Information | 18
  17. 17. Kenshoo Product SuiteAll 3rd party logos represent companies with whom Kenshoo has completed data integration. Kenshoo Enterprise, Kenshoo Local, Kenshoo Search, Kenshoo Social, andKenshoo Universal Platform are trademarks (or pending trademarks) of Kenshoo, Inc. All other trademarks and copyrights are the property of their respective owners. Kenshoo: Proprietary & Confidential Information | 19
  18. 18. KENSHOO X.COMMERCE EXTENSION Kenshoo: Proprietary & Confidential Information | 20
  19. 19. Kenshoo & X.commerce ExtensionBringing enterprise-class demandgeneration tools to retailers of all sizes . . . in a simple to use and intuitive interface. Kenshoo: Proprietary & Confidential Information | 21
  20. 20. X.commerce Merchant Experience Kenshoo: Proprietary & Confidential Information | 22
  21. 21. ConfigurationKenshoo: Proprietary & Confidential Information | 23
  22. 22. Campaign CreationKenshoo: Proprietary & Confidential Information | 24
  23. 23. Product Selection & Publishing Kenshoo: Proprietary & Confidential Information | 25
  24. 24. Sample Google Campaign Kenshoo: Proprietary & Confidential Information | 26
  25. 25. Sample Facebook Campaign Kenshoo: Proprietary & Confidential Information | 27
  26. 26. Performance DashboardKenshoo: Proprietary & Confidential Information | 28
  27. 27. THANK YOUKenshoo: Proprietary & Confidential Information