Connecting Retail Brands With Consumers' Digital Daily Habits
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The document discusses how consumers' digital daily habits have changed the retail shopping experience and the path to purchase. Key points include: - E-commerce is growing while brick-and-mortar traffic declines as consumers now access shopping information on mobile devices 180% more. - Media consumption is fragmented as people are distracted across many online activities and platforms throughout the day. - Digital daily habits like search, email, social media, etc. now drive how consumers research and browse for products online before purchasing. - Retailers can leverage data on consumers' digital behaviors to deliver personalized experiences across channels to better connect with shoppers.
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Connecting Retail Brands With Consumers' Digital Daily Habits
- 1. Connecting Retail Brands With Consumers’ Digital Daily Habits PRESENTED BY Leo Polanowski ⎪ January 30, 2014 ⎪Digiday Retail Summit
- 2. Retail: 2014 • E-commerce sales up 12% • Brick and mortar foot traffic down 14.6% • 180% growth in consumers accessing shopping information on mobile devices 2
- 3. Media consumption is fragmented, consumers cons fragmented, are distracted umers are distracted 150 125 10 +life 2.5 millions of people who watched the season finale of MASH 30 years ago millions of people who watched the series finale of Breaking Bad in 2013 the number of times smartphone users look at their device in a day million estimated of people who watched the print + games + PC + tablet + TV + series finale of Breaking Bad without multitasking 3
- 4. Search News Lifestyle Email Video Blogs Sports Q&A Music Shopping Games Socializing Daily habits are digital Top 12 daily online habits of internet users U.S. Internet users spend 30 hours per week online 4
- 5. Digital daily habits have changed the path to conversion COMPETITIVE ALTERNATIVES RECOMMENDATIONS FROM FRIENDS EYEBALLS PRICING COMPARISON APPS BUYERS USER GENERATED REVIEWS CONTRIBUTORS
- 6. Digital is delivering a more relevant shopping experience Knowledge: Information access fuels extensive prepurchase browsing and research Voice: The rise of social has made everyone a publisher, adding more voices to the mix Experience: Technology enables consumers to personalize their shopping experience
- 7. Mobile is extending the shopping process and adding convenience I agree with the following statement:
- 8. Digital daily habits enable personal connections TABLETS SMARTPHONES Data Intelligence: Reach your consumers in THE RETAILER smarter ways with digital YOU READERS VIDEO GAMES SOCIAL PCs
- 9. User data powers personalized experiences Data from across the web powers personalized experiences like never before • Explicit and implicit personal data • Click behavior • Social graph signals • Declared interests • And much more…
- 10. What does this mean for retail brands? 10
- 11. When ads and content are both personalized, ad receptivity increases by 40%
- 12. Merging search & display delivers more powerful results together Search ad y% avg CTR Display ad x% avg CTR Integrating search with display Search y% CTR + 1.4x display Integrating search with dynamic display search y% CTR + 3x display 12
- 13. Merging search & display delivers more powerful results together Display + Search Display only 86% increase in conversions vs display only Search only 24% increase in conversions vs search only 13
- 14. Personalized Search Retargeting 1 Personalized Search Retargeting 2 • Dynamic, customized display ads leverage the strong intent of signal search keywords Benefits 3 • Expand Your Reach - Harness the power of search intent signals beyond the search results page. • Personalizes Your Creative at Scale Personalize your ad creative based on keyword-level intent signals and other data points at scale • Boosts Your Performance- 131% CTR lift vs. static creative; 100% lift in conversion rates vs. regular search retargeting ads!
- 15. Retailer Case Study Challenge Leading online brand for premium event seating and ticket sales wanted to generate interest and drive sales in an extremely crowded online market. Strategy Yahoo partnered with the advertiser to launch a PSRT campaign, leveraging the advertiser’s existing keyword list from a sponsored search campaign. Based on search queries, PSRT leveraged the user’s granular search intent data to retarget the user with a highly-personalized ad. Results The use of the search keywords intent led to a 489% lift in CTR over typical remarketing campaigns! Two-fold increase in website visits while the PSRT ads were running on the Yahoo network. 18% ROI
- 16. Delivering 200X more than a leading search provider By combining search with display to expand marketing reach Point solution Integrated solution XX million people searched for the top 50 bidded non-brand keywords for credit cards 16 million people searched for the top 50 bidded non-brand keywords for credit cards Client bought 12MM SEM impressions Client bought 3MM SEM impressions 80,000 users clicked on Search Ad (7% CTR) 18,000 users clicked on Search Ad (6%CTR) 80,000 retargeting opportunities 16,000,000 retargeting opportunities 16
- 17. Recap 17
- 18. Retailers face a complex, changing path to conversion COMPETITIVE ALTERNATIVES RECOMMENDATIONS FROM FRIENDS EYEBALLS PRICING COMPARISON APPS BUYERS USER GENERATED REVIEWS CONTRIBUTORS
- 19. And hundreds of to solve this with Brands have triedmeasurement With no universal partner choices across solutions point solutions Audience Targeting Rich Media Direct Response Ad Network Video Ads Retargeting Mobile Display DSP Mobile Search Exclusive Events Native Dynamic Creative Database Targeting Social Branded Entertainment Sponsored Content Search 19
- 20. Yahoo delivers a better way Yahoo advertising, the only unified digital advertising solution in the market Rich Media Video Ads Premium Exclusive Events, Sponsorships Mobile Display Dynamic Creative Search Search Retargeting Audience Targeting Database Marketing Audience DSP Mobile Search Ad Network Direct Response Social Native Native Across devices and formats with robust analytics. Buy direct or programmatically. Sponsored Content 20
- 21. Yahoo offers a different approach through our unified advertising solution A continuous increase in Yahoo ad solutions leads to exponential lifts in performance Video + Mobile/Tablet = 8X conversion increase 22% CPA decrease + Premium = 23X conversion increase 16% CPA decrease + Audience = 59X conversion increase 37% CPA decrease 21
- 22. Unite your retail brand with your consumers’ daily habits 22
- 23. Thank you. 23
Editor's Notes
- To kick off today’s presentation, let’s start with a look at the current retail landscape. Here are a couple that talk to the changing landscape of retail – what the retail industry experienced in 2013, signaling what’s to come in 2014:E-Commerce sales up 12%: U.S. e-commerce sales 12% year over year in November and December, according to the Customer Pulse Index, which tracks online sales for 100 U.S. e-retailers. Brick and mortar foot traffic down 14.6%:Brick-and-mortar stores were hurt by foot traffic dropping 14.6% compared to the same two months last year180% growth in consumers accessing shopping information on mobile devices: A massive increase from just two years ago, reported by the Yahoo Strategic Insights research in 2013
- Daily habits at the end of the day are behaviors, and we can break down this behavior from 800M users around the world and use it to understand what content and advertising should be served to them using an integrated solution that can be embeded in all their daily habits.And, in a world where media consumption is fragmented and consumers are constantly distracted, you need an integrated solution that will touch all these behaviors, these daily habits with advertising solutions across all points in a cohesive way. For example:30 Years ago consumers tuned into one event which brands could advertise around.Move forward 30 years today, consumers media attention is fragmented, only 10M people tuned into the biggest TV series hit finale. And, on top of that only 2.5M did so without multi-tasking on their phone while watching. In fact, today, consumers are so distracted, that they check their phone 150 times a day. And, on top of all this, there is life, daily life. It is a challenge for brands to connect with their audiences through all forms of media across devices.
- It is a digital world that we live in – the web is deeply woven into the fabric of our every day lives. All day. Everyday. In today’s world, consumers are spending more and more time using their digital devices. In fact, U.S. Internet users spend more than 30 hours per week online*. As the world’s largest digital publisher, Yahoo sits at the center of these daily habits.In fact, all of the top 12 daily online habits of internet users, from reading local and world news, to email with family and friends, to checking sports scores or searching the web, can we done from Yahoo. Every day millions of people around the globe come to Yahoo to discover new information, read and watch inspiring content and connect to the most important people in their lives. People come to Yahoo because they know they’ll find exactly what they need. We program our site with the consumer in mind, leveraging insights to be sure we’re serving up the content and experiences that will keep our users coming back for more. *Source – According to a 2011 Ipsos survey tracking, lifestyles, media habits and spending patterns of affluent Americans, virtually all (98%+) affluent Americans use the internet. And the amount of time spent online rose about 20% to more than 30 hours weekly. Affluent Millenials, defined here as those aged 18 to 29, spend more than 40 hours a week online, essentially a full-time job.
- As daily habits continue to go digital, what used to be a discrete, linear path to purchase has become a non-linear, inter-connected, completely personalized shopping journey, full of stops-and-starts, detours, and interruptions.
- Digital is really powering this change by facilitating more personalized shopping experiences by…Giving shoppers access to more information than ever before. Coupled with economic pressures, this has normalized extensive pre-purchase research and created a state of on-going browsing.Giving shoppers a bigger voice. The rise of social has made everyone a publisher, adding many more voices to the communication landscape (reviews, etc.).Evolving the shopping experience. Technology proliferation, especially the rise of mobile, has empowered consumers to create and control unique, personalized shopping experiences for themselves.As a result, shoppers now want and expect a personalized and relevant experience from retailers.
- Source: Mobile & Tablet Shopper Study, Yahoo Strategic Insights research, May 2013It’s no surprise that we’re seeing the rapidly growing adoption of mobile and tablet transform the shopping experience. As this recent study from our Yahoo Strategic Insights team shows, mobile and tablet users agree that their devices are a convenient way to research purchases, and that it fuels them to do more shopping overall.Other mobile trends the retail industry has been experiencing – creating both challenges and opportunities alike:Show-rooming is a consumer dynamic has driven growth in mobile commerce, especially during holiday shopping season. The emergence of tablet (ahead of smart phones) as a transactional platform for consumers –Tablets have doubled in share of ad impressions in a year (Source: Adfonic, November 2013) Tablet users/shoppers are expected to grow at a rate 3X that of smartphones (Source: eMarketer, Sep 2013)
- Digital is also creating new ways for you to make personal connections between your brand and consumers and to meet shoppers evolving expectations.And an omni-channel approach is enabling retailers to reach shoppers in new, more effective ways….Digital is creating new channels for consumer engagement that deliver richer, more personal, more native experiences throughout the shopping journey-- from digital video (vs. TV) and digital coupon distribution (vs. print and direct mail), to onlinereviews (vs. WOM) and eCommerce/mCommerce. And, this is all powered by data intelligence that allows you to better understand your customers and create those personalized experiencesfor them.The ability to leverage user data in digital now enables the advertiser to reach consumers in smarter, more intelligent ways (versus the old channels, TV or print).
- Regardless of the platform, using data to personalize marketing, almost one to one, is critical to success. We have the inputs. Explicit and implicit personal data, Click behavior, social graph signs, declared interests, shopping history, browsing history. We know so much about users; these inputs can direct the messaging and the platform we choose to deliver that message. And quite frankly, consumers want this. They expect this. Do you really want to see a dancing free credit score ad when you don’t care. But when you are shopping for a car, or preparing for your back to school shopping, a personalized message is welcomed and helpful. And, be reached across multiple devices. And mobile is the device of choice for a large segment of our population.
- So what does this all mean for your business?
- Research shows when ads are personally relevant to consumers AND contextually relevant to the page, engagement spikes by more than 40%. (Source: Internal Yahoo data 2013.)At Yahoo, we see that personalized and premium content that is relevant to our users fuels their daily habits online and in doing so, connects brands with their consumers in relevant and meaningful ways.
- When it comes to connecting retail brands with consumers online to deliver results, we’re seeing that Search and Display are more powerful together. In this illustration, we show how search is merging with display to drive increased results. For example:Typically you would see an y avg CTR for search and an x average CTR for displayBut, when you integrate search with display in the form of search retargeting, your CTR can go up 1.4X versus display aloneAnd, further, when you integrate search with display in the form of personalized search retargeting (dynamic display creative + search), your CTR can go up 3X versus display aloneAnd, this is an important benefit we offer advertisers because we have both search and display and can use search keywords to expand your reach and efficiency in display. Source:Yahoo internal data, average CTR increases for search retargeting and personalized retargeting versus display alone We use y and x % for average CTR placeholders because CTRs on our network can vary from campaign to campaign.
- For a client we saw the following combined search and display results. Users exposed to display + search versus search only saw a 24% lift in credit card applications. Users exposed to display + search versus display only saw at 86% lift in credit card applications.(Source: Yahoo internal data 2012 – 2013)
- To add color to this concept of search plus display, a number of our retail clients have seen great results with Personalized Search Retargeting, or PSRT. Yahoo’s PSRT solution combines the power of search retargeting with the creative personalization and optimization capabilities of our Smart Ads solution. PSRT enables you to reach your target audience with personalized display ads, serving users a dynamic message that is uniquely relevant to their recent search queries.PSRT Benefits:Expands Your Reach:Harness the powerful search intent beyond the search results page.Personalizes Your Creative at Scale: Personalize your ad creative based on keyword-level intent signals and other data points at scale. Boosts Your Performance: 131% lift in CTR over static creative and a 100% lift in conversion rates over regular search retargeting ads!Note: Display only; 1 Results based on Yahoo! Personalized Search Retargeting pilot data, 2012 - 2013
- As another example,Yahoo has delivered 200X more than a leading search provider by combining search with display to expand marketing reach. For example, on Yahoo:16M people searched for the top 50 bidded non-brand keywords for credit cards on YahooClient bought 3M SEM impressions18K users clicked on the search adsBut, Yahoo still has 16M retargeting possibilities because we can retarget anyone from that 16M that searched for those keywords, not just those that clicked. And, we can do with static display ads across devices and formats or personalized display ads. This search provider on the other hand, can only retarget those that clicked on the search ad, limiting their retargeting pool, effectively always making it less than ours. Yahoo can retarget those that searched because it is our data, and we have this data across our network whereas other competitors may only choose to retarget those that clicked on the ad because they do not have the extended network of O&O sites that Yahoo does; they work with partner sites and there can be limitations in what they choose to do with their data on partner inventory.Source: Yahoo internal data 30 day snapshot using actual click-share data from a client. Assumption is made that Yahoo is getting approximately18% impression share (an average for this subcategory, and this is only for Yahoo, not Yahoo and Bing). And the scale up 16MM number is derived from the total marketplace impression volume on this list of top 50 KWs in the credit card space. We can remarket off of the advertiser AND competitor impressions, so the advertiser doesn’t need to deliver a search ad on that impression to leverage that impression for remarketing.
- [ Animation Build 1]: Brandshave tried to solve this challenge with point solutions. For example:To Build Brand Awareness: Brands use video, sponsorships, rich media and dynamic creative and more. To Reach Audiences: Brands leverage ad networks, retargeting shops, audience targeting networks and data partners. To Connect Through Relevance: Brands are experimenting with native, social and content marketing. To Convert Customers: Brands are focusing primarily on search without combining this strategy with display advertising. [Animation Build 2]: And with hundreds, hundreds of partner choices.[Animation Build 3]: And, there is no universal measurement across solutions. Brands are yet again forced to work with a number of companies to measure the effectiveness of all these point solutions. Not only is it messy, but it is expensive to manage, difficult to optimize, impossible to reallocate budget across campaigns, and measure effectiveness and ROI with one single view.
- [Animation Build 1]: You don’t have to go through this chaos, Yahoo delivers a better way, there is a way to access all your digital advertising needs in one place. [ Animation Build 2]: Yahoo delivers a better way with the only unified digital advertising solution in the market. We have a holistic approach that unites your brand with consumers daily habits across all touch points. And, we know the number of devices and touch points in the market is exploding, in fact, 25% of young adults are visiting the web from 4+ devices. We can inspire them wherever there; morning, day and night.And, we reach people, not pixels. Real people, authenticated users—creating a stronger connection for your brand message. How can we do all this? Aunified advertising solution. Why do we choose the word unified? Because we not only unite consumer experiences with advertising experiences, but we do it using the only unified advertising solution set in the market. It is unified because we can offer every digital advertising solution in one place across premium display, audience network, native, search and across devices and formats, driving results together to meet your marketing objectives, whether it is brand equity or direct response.We are not a one point solution, we are integrated. Integrating all of our offerings into a unified advertising solution provides powerful results not found with any other player in the industry. The key benefits of our solution are:Access – Allow advertisers to buy and manage their campaigns the way they want: managed, programmatic or self serve.Data – Leverage Yahoo’s datacombined with your own customer data and 3rd party data to identify the precise audience.Personalization – An engine that learns about each user times 800M global users and their daily habits providing content and experiences that are unique to each consumer resulting in increased ad receptivity and effectiveness.Analytics - measure engagement on/off Yahoo and on/offline Scale – 800M users globally, 196M US users and growing including Yahoo and major supply partners
- Our unified advertising solution is driving results. A continuous increase in Yahoo ad solutions leads to exponential lifts in performance. This data shows that when continuously adding Yahoo ad solutions to an existing campaign, it leads to exponential lifts in performance. It is important for advertisers to have this multi-channel/integrated approach and Yahoo can deliver all these solutions. Adding mobile/tablet buy to video only buy = 8X conversion increase and 22% CPA (cost-per-acquisition/conversion) decreaseAdding Premium display buy = 23X conversion increase and 16% CPA (cost-per-acquisition/conversion) decreaseAdding audience buy = 59X conversion increase and 37% CPA (cost-per-acquisition/conversion) decreaseWhat do these numbers represent?These numbers show what would happen to the number of conversions and the CPA if an advertiser who was just advertising on yahoo using video then added in other media such as mobile/tablet or premium display. What do these numbers mean?Adding additional media channels will increase the number of conversions for an advertiser and in this case reduce the average cost of each conversion.How did we get these numbers?These numbers come from one advertiser campaign on yahoo. We conducted an attribution analysis and built a simulator tool from this data. It allows us to ask the theoretical question, what would have been the outcome if the advertiser had only bought video or only bought video and mobile/tablet. In each addition the investment from the advertiser also increased.(Source: Yahoo internal data, 2012 – 2013)
- Looking ahead to the rest of 2014 and beyond, today’s retailers face a rapidly changing landscape, with new and exciting ways to connect with your audiences. I hope that today’s presentation has shed some light on some new thinking around engaging your audiences around their digital daily habits, both across screens and by leveraging the power of search and display together.For every user on the web, whatever their daily habits,Yahoo is committed to keep them coming back each day with personalized experiences, innovative products and leading content.Thank You.