Mason Garrity - The Online Super Bowl: Keys to Winning the Holidays


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Mason Garrity, 3Q Digital
The Online Super Bowl: Keys to Winning the Holidays
Presented at Seattle Interactive Conference 2013

Last year Cyber Monday represented the single biggest day in online spending, totaling $1.465 billion in retail sales. Up 17% from 2011, the macro data shows no signs of this growth slowing. The holiday season as a whole is the single most critical time for companies to execute best in class digital marketing tactics to ensure that they maximize their return during peak demand. Given the importance, your planning and implementation should begin now. We’ll dive into search, social, display, retargeting, and analytic strategies that will help you win during the holiday season, and use this time of year to propel you to a new baseline in 2014.

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  • Forrester, Google, comscore, emarketer, 51% are unsure when they’ll start shopping, GoogleForrestr says 30%
  • retail roundupOnline Black Friday sales increased 28%, but in-store sales actually decreased 2% in 2011 (shppertrak) Outside of 55+, every demographic plans on doing more of their shopping online than in stores this year, googleCyber Monday was the biggest shopping day in American history, this year should replace itMost people are expecting the best discounts to be on xgiving, black Friday or cyber monday
  • google
  • – survey on free shippingBargain hunters take note: free-shipping offers will not be hard to find this holiday season. According to’seHoliday survey conducted by Prosper Insights & Analytics, 16.3 percent of retailers will offer their first holiday free shipping offer by the week of October 28; more than one-third (34.9%) say they already offer year-round free shipping, compared to 23.1 percent last year. Additionally, more than half (51.2%) of online retailers surveyed plan to start their online holiday marketing promotions by Halloween. (NRF)
  • if on sale, vs. 34% best choice
  • emarketer
  • marin
  • emarketer
  • Google, monetate (forrester)
  • forrester
  • AccentureKnowing that consumers increasingly use their smartphones and tablets to research and purchase products, retailers have prepared accordingly. . More than half (57.4%) have invested in optimizing their mobile websites, nearly four in 10 (38.3%) have invested heavily in the smartphone user experience, and one-quarter (25.5%) say they invested in mobile commerce apps for smartphones.  
  • Google 3 strategiesforrester
  • Data source : Ad Age, “Timberland, Kenneth Cole Track Shoppers Who Opt-In For Deals,” August 26, 2013
  • Forrester
  • Google 3 strategies
  • Google data
  • Google 3 strategies
  • emarketer
  • emarketer
  • emarketer
  • Mason Garrity - The Online Super Bowl: Keys to Winning the Holidays

    1. 1. The Online Super Bowl Keys to Winning the Holidays Mason Garrity Account Director, 3Q Digital
    2. 2. H OLID AY TR EN D S
    3. 3. 2012-13 BY TH E N U MBER S • $61B projected for Nov-Dec in 2013, a 15% increase over 2012 • 30-40% of total online retail sales happen in Nov-Dec • 12 days topped $1B in sales last year • 2013 will be condensed with 6 fewer days between Thanksgiving and Christmas
    4. 4. 2013 DATES OF SIGN IFIC AN CE Holiday Season: Nov 1 – Dec 31 Hanukkah: Nov 27 – Dec 5 Thanksgiving: Nov 28 Black Friday: Nov 29 Cyber Monday: Dec 2 Green Monday: Dec 9 Free Shipping Day: Dec 18
    5. 5. 2012 YEAR OVER YEAR GR OWTH Holiday Season $46.6B $53.7B +14% Black Friday $816M $1B +28% Thanksgiving $479M $633M +32% Cyber Monday $1.25B $1.47B +17%
    6. 6. 2011 -12 BY TH E N U MBER S $8,000 Weekly Spending ($ Millions) $7,000 $6,000 2011 2012 $5,000 $4,000 $3,000 $2,000 $1,000 $Week 1 (11/4) Week 2 (11/11) Week 3 (11/18) Week 4 (11/25) Week 5 (12/2) Week 6 (12/9) Week 7 (12/16) Week 8 (12/23) Week 9 (12/30) 36% y/y increase in sales during the week of Christmas in 2012
    7. 7. 2013 TOP CATEGOR IES What are people going to be shopping for this year? • Gift Cards: 56% • Apparel: 54% • Toys: 44% • Electronics: 39%
    8. 8. 2012 ACCOUN T EXAMPLES Holiday Cards Gift Cards (buy and sell) Tech gadget, single product
    9. 9. PRODUCT LAU N C H ES
    10. 10. C REATE A NEW BASELIN E • New customers increased 49% in holiday months in 2012 • 25% of people shop on sites they previously had not shopped on • Most are looking for the best price • Followed by selection • People become less brand loyal
    11. 11. C REATE A NEW BASELIN E • Use the spike in demand and first time customers to create new, loyal customers • If you can do this… • • 1/3 of the time they will share your brand with others Over 50% of the time they will make a repeat purchase
    12. 12. MESSAGIN G
    13. 13. WHY ONLINE IN 2013? 68% - Free Shipping 58% - Online only discounts 46% - Avoiding the crowds 43% - No sales tax 41% - Easy to use website 14% - “nothing would entice me to buy holiday gifts online”
    14. 14. FREE SHIPPIN G IS A KEY D RIVER Many companies offer free-shipping or qualified shipping year round, those who don‟t introduce it during select holiday dates • A UPS study indicated that 68% of shoppers have recommended an online store on the basis that they offered free shipping • If free shipping is not an option 36% plan to buy online, and pickup in-store
    15. 15. D ISCOUNT SH OPPIN G • Discounts are more important than ever • 48% will search for and buy only discounted items • 76% will shop discount retailers (73% in 2012) • 39% will return and then repurchase an item that goes on sale • An item being on sale is the primary driver for making the purchase
    16. 16. “WEBR OOMING” AN D “SH OWROOMING” • “webrooming” is on the rise and is popular with 65% of holiday shoppers • 47% want to avoid shipping costs • 46% want to be able to see the item before buying • The likelihood of showrooming is also on the rise, 63% vs. 56% in 2012
    17. 17. METR IC S
    18. 18. ACCOUNT METR IC S Month September October November December AOV $ $ $ $ 184 190 193 215 CPC $ $ $ $ 0.56 0.62 0.71 0.80 ConRate Purchase Quantity 2.4% 2.6% 3.1% 4.1% 1.29 1.30 1.31 1.43 • People are more likely to convert, buy more products, with a higher order value • These conditions will lead to a more competitive marketplace – CPCs will increase significantly
    19. 19. TIME SHIFT Latency is cut down, more revenue and conversions come in on same day as click Holiday Season 72% of conv 61% of rev Non-Holiday 55% of conv 46% of rev 26% of rev 14% of conv after 12 days 31% of rev 24% of conv after 12 days
    20. 20. C HANGE IN C LIC K PATH BEHAVIOR There is also a change in click patterns, it takes more clicks to get a conversion Holiday Season 13% increase in multiclick conversion paths 13% increase in 2-click path conversions Non-Holiday
    21. 21. SEAR C H TAC TIC S
    22. 22. IMPORTANCE OF SEAR C H • Annually, retail is the largest spender on search by a large margin • 65% of retail ad spend focuses on direct response, vs. 35% on branding • 51% of people are unsure when they will begin shopping for the holidays • 30% that do know, plan on starting before Halloween
    23. 23. 2012 QUERY TR EN D S 2012 November-December
    24. 24. GENDER DIFFER EN C ES Index Avg Men: 54 Women: 22 Boys: 16 Girls: 23
    25. 25. R ELATIONSHIP D IFFER EN C ES Index Avg Mom: 38 Dad: 29 Husband: 7 Wife: 11
    26. 26. KEYS TO SEAR C H • Reacting quickly to data over the next 2 months is critical • Start by looking at historical query data from 2012, by different time segments • You should know the top performing queries for the holiday season, as well as on the important dates outlined • Structure these keywords in a manner that allows you to be nimble
    27. 27. ALPHA -BETA & SIN GLE KW AD GROUPS • A Beta campaign is designed to quickly identify profitable search queries and eliminate unprofitable ones • An Alpha campaign is designed to isolate profitable queries into ad groups with targeted ad text and landing pages • The overall objective is to take 100% control of your queries!
    28. 28. ALPHA -BETA & SIN GLE KW AD GROUPS Query: holiday shoe deals Ad Group: holiday shoe deals Keyword: [holiday shoe deals] Ad Copy/LP: Customized to this query Negative keyword: -[holiday shoe deals] Apply to all other campaigns in account
    29. 29. R EMARKETIN G LISTS FOR SEARCH Expand your reach by layering user lists Relevant Keyword Set Profitable Keyword Set Profitable Keyword Set When Targeting Relevant Users Combine with custom messaging
    31. 31. PRODUCT LISTIN G AD S • May „12 Google announces product results will transition to full pay for placement model • Oct „12 Google transitions to full commercial model, removing organic shopping results • Since the switch there has been an increase in search share vs. text ads, CPC, CTR, and overall spend
    32. 32. PLA TRENDS Indexed CPC peaked in December, but has continued to rise through „13
    33. 33. PLA TRENDS Spend on PLAs vs. Text sees a massive uptick over the holidays
    34. 34. PLA TRENDS PLA CTR has been on the rise for most of 2013, suggesting large increases ahead in Nov & Dec
    35. 35. PLA BEST PR AC TIC ES • Ability to optimize campaigns will largely be determined by the quality of your data feed • Granularity of product targets is key to running an efficient campaign, and maximizing volume • Group similar products for promotional text • Group top performing products
    36. 36. 360 IMAGES WITH GOOGLE Enhance your products in Google Shopping and PLAs with 360 Images
    38. 38. D ISPLAY OVERVIEW • Unlike search, retail is not the largest industry on display throughout the year • However, they do buy the majority of RTB impressions • This share goes from ~25% in Q1/Q2 to 36% in Q4 • CPMs become very expensive, so for nonretail display advertisers – throttle back your display plans • Retargeting needs to be a key tactic in your holiday plans
    39. 39. R ETARGETING BASIC SEGMENTATION Create retargeting lists based on site interaction, and time passed since interaction Visitors Category page Product Page Shopping Cart 0 to 3 Days 5 6 7 8 4 to 7 Days 8 to 14 Days 14 to 30 Days 4 3 2 5 4 3 6 5 4 7 6 5 Purchasers should also be a list, and depending on timing, can be utilized in different ways
    40. 40. R ETARGETIN G FOR TH E H OLIDAYS • Create new lists for holiday segments, with shorter pixel windows • Create targeted messages based on site interaction to encourage purchase • Gradually lift frequency caps on appropriate segments as holiday season moves on, and purchase deadline approaches
    41. 41. V I S I TO R S E G M E N T S – G O O G L E A N A LY T I C S
    42. 42. D YNAMIC RETAR GETIN G Dynamic retargeting allows for custom messaging and product targeting, especially useful for abandoned shopping carts
    43. 43. SAVING FOR N EXT YEAR Use your holiday retargeting lists to target these customers post-holiday season • Retargeting is the best performing display format year round • Leverage your newly expanded lists to create new, loyal customers in 2014 • Valentine‟s day in particular is a great target depending on product
    44. 44. YOUTUBE VID EO AD S FOR DR If executed properly, YouTube TrueView ads can act as a great direct response medium • Creative needs to be created for this purpose, with strong call-to-action • Take advantage of lower TrueView CPCs
    45. 45. TH E MU LTI -SC R EEN WOR LD
    46. 46. MOBILE BY TH E N U MBER S • 68% increase in online sales from mobile in 2013 • 13% of online sales in during the 2012 Holiday Season happened on mobile • Projected to be 16% in 2013 • 1 of 3 holiday shopping queries happened on a mobile device in 2012 • Mobile usage peaks during “in-office” hours, while tablets peak after-work
    47. 47. THE POWER OF MOBILE Mobile‟s ability to bridge the online and offline shopping experience presents unique opportunities. This season mobile devices will mostly be used to: • • • • • Make purchases Research products Check prices Read product and store reviews Locate retail locations
    48. 48. MOBILE PURC H ASES As more apps and sites optimize their mobile checkout experience, the barrier to transaction is lowering dramatically • 57% of retailers have invested in optimizing their mobile websites in the past year • 18% claim “they are not easy for shopping” compared to 28% in 2012
    49. 49. C OMPANION SH OPPIN G • 84% of shoppers use smartphones as in-store shopping companions • 69% use Google for mobile price research, 57% turn to Amazon • 1/3 use their phones rather than talking to an employee
    50. 50. IN STORE OFFER S Using Swirl, Timberland ran a 20% in-store only discount at two retail locations • 72% of offers were opened • 35% were redeemed
    51. 51. IN STORE SH OPPIN G AID S Lowe‟s uses companion features such as delivery/pick-up method and item locator
    52. 52. IN STORE TOOLS
    54. 54. MOBILE PROD U C T LISTIN G ADS On Oct 17th Google updated the look of mobile PLAs on the SERP If you are not opted-in to mobile in your PLA campaigns, time to test or re-test it
    55. 55. APPS: KEEP TH E GOOD TIMES GOING Interest in apps has peaked between Christmas & New Years for the last 3 holiday seasons
    56. 56. C LICK TO INSTALL AD S Have a mobile app? Your peak is from Christmas to New Years. Take advantage of this time to make a strong push • Mobile Ad Extensions on Google Search • In-app click to install products (AdMob, inMobi, etc.) • New Facebook App ad formats
    57. 57. N EW FACEBOOK APP AD S App Ads for Installs & App Engagement Ads
    58. 58. SOC IAL IN FLU EN C E
    59. 59. SOCIAL INFLU EN C E • 67% purchase a gift they found on social media • 65% of shoppers use social media to find the perfect gift • 54% use social media while shopping in stores • 44% discover holiday deals through peer recommendations • 25% say peer recommendations on Facebook and Twitter are the leading driver of holiday purchases (runner-up TV commercials at 13%)
    60. 60. SOCIAL INFLU EN C E
    61. 61. SOCIAL SALES Social media played a very small part in driving revenue in 2012, with most retailers expecting it to drive less than 5% of sales this year • Facebook ad formats and targeting has vastly improved year over year, suggesting better performance may be ahead
    62. 62. FACEBOOK FOR MATS • The introduction of newsfeed “dark posts” has led to huge performance gains in 2013, greatly outperforming sidebar placements • Leveraging FBX as another retargeting medium has been very successful • Mobile CPCs are still low compared to mobile search
    64. 64. FACEBOOK: C U STOM AU D IENCES Another area of opportunity to use are Custom Audiences • Target current customers with specific messaging and offers to aid brand loyalty • Use lookalike audiences based on past purchasers to reach relevant, new people
    65. 65. THE INFLUEN C E OF TWITTER 1.9x more retailers on Twitter y/y “Twitter has become an essential way for Target to give our guests the inspiration and ideas they crave whenever they’re in the mood to shop,” - Shawn Gensch, SVP of Marketing, Target With more retailers turning to Twitter, expect more customers to directly reach out to these companies for various reasons
    67. 67. LOOKIN G TO 2014
    68. 68. C ONTINUING TR EN D S • 2013 will be the biggest holiday season ever… the growth will continue next year • Online sales growth will continue to outpace instore growth • Mobile and Social will continue to play an increasingly important role, this puts more emphasis on the need for attribution • As more dollars shift online, new and improved ad products will continue to drive efficiency for advertisers
    69. 69. GOOGLE SHOPPIN G C AMPAIGNS Open to a limited number of advertisers through Q4, complete roll-out in 2014 • Streamlines PLA management • Ability to create custom labels • Provides advanced reporting • Competitive data • Basically… more like regular search!
    71. 71. BING PRODUC T AD S Currently open to limited advertisers through Q4
    74. 74. KEYS TO WIN N IN G TH E H OLIDAYS 1. Analyze your data… know it inside and out! 2. Utilize all ad formats at your disposal 3. Timing is critical; create a roadmap for all channels, across all devices 4. These are year-round improvements, the holiday season only exaggerates their importance.
    75. 75. D ON‟ T BE THIS
    76. 76. BE THIS!
    77. 77. The Online Super Bowl Keys to Winning the Holidays Mason Garrity Account Director, 3Q Digital @masongarrity @3qdigital