Synergies of Display and Search Advertising Dirk Henke, Criteo E Commerce Russia, Moscow October 2012

1. Synergies of Display and Search Advertising
Dirk Henke, Criteo
E Commerce Russia, Moscow October 2012

2. IN
FIGURES
4
3COUNTRIES
CONTINENTS
3 000
CLIENTS
$200MILLION
2011 REVENUE
700EMPLOYEES

3. With over 300 engineers,
the R&D team represents 40% of our staff.
www.criteolabs.com
3

4. AGENDA
1: Search & Display
2: Search & Display: Win-Win Situation
3: Criteo: Sophisticated bid management and optimization

5. Search & Display
C H A P T E R 1

6. SEARCH
DISPLAY
&
SYNERGIES?

7. SEARCH
WORKS
The Results are obvious in most cases:
Search Marketing delivers outstanding performance
CPC Search reachs users and has a high distribution
 Search is scalable
 Search campaigns deliver high ROI on a low risk level
 Search campaigns are personalizable and optimizable

8. MARKETERS’ CHALLENGE: SEARCH IS ALREADY
DETAILED OPTIMIZED
Search spend is rising faster than query volume
driving a CPC increase.
SEARCHSPEND
CPC
Average cost-per-click on Google increased about 5% in Q3 2011 over Q3 2010
(Source: Google Q3 2011 Earnings Report).

9. Copyright © 2012. Confidential
FACT#1 : SEARCH IS GREAT BUT HAS
USAGE LIMITATIONS
(*Source: Nielsen study – Sept 2011 – USA)
SEARCH REPRESENTS ONLY
5% OF TIME OF
ONLINE ACTIVITY*
5%
(*Source : Mediametrie//Netratings - FRANCE - April 2012
– internet users use Google search channel every 2,4 days)
SEARCH USAGE IS
1 SEARCH
EVERY 2.4 DAYS*
2.4
ONLY 14% OF
INTERNET USERS CONDUCT
SHOPPING
RESEARCH
ON A DAILY BASIS*
(*Source : Deloitte, vox populi: state
of the media democracy survey – May 2012)
14%

10. BANNER EXAMPLES
DISPLAY CRITEO
static product based

11. REAL TIME OPTIMIZED
BANNERS
With over 300 possible combinations Criteo banners are precisely optimized
in terms of high relevance and CTR

12. Copyright © 2012. Confidential
FACT#3 : SEARCH & PERFORMANCE DISPLAY
HAVE DNA IN COMMON
Power, Performance & Control
BID
OPTIMIZATION
& CONTROL
PERSONALIZED
ADVERTISING
UNMATCHED
SCALABILITY
PURE
CPC
1

13. CLASSIC DISPLAY
TOO EXTENSIVE AND NOT RELEVANT?
Display myths are becoming obsolete if you chose inteligent
modulation of display advertising.
Myth 1:
“User, who click
don’t buy”
Clickers buy
3X
more frequently
than non clickers
Myth 2:
“Nobody clicks on
banners anymore”
Myth 3:
“Most clicks are made
by few users”
43%
of regular buyers
click on Criteo ads
alone
50%
of users are
responsible for
80% of the clicks
and sales

14. 49%
DISPLAY & SEARCH
IAB UK CASE STUDY “AUTOMOTIVE”
Exposed to Online
Display Advertising
Exposed to Online
Display Advertising
Exposed to Online
Display Advertising
also use
Search
Brand A Brand B Brand C
Source: IAB UK Case Study “Customer Conversion Journey – Sector “Automotive” – Feb 2012, Nielsen UKOM/NetView
45%
39%
Online visitors are using Search in combination with Display
Advertising
also use
Search
also use
Search

15. SYNERGIES OF DISPLAY & SEARCH
contextual
P E R
F O R
M A N C E
visual
active
passiv

16. 8,0%
3,4%
0,1%
7,3%
0,5%
7,4%
3,9%
2,1% 2,9%
13,6%
37,6%
7,0%
3,8%
11,6%
46,4%
Brand 1 Brand 2 Brand 3 Brand 4 Brand 5
%oftotalconversions
Display only Search only Display and search
+408%
+79%
+81%
+300%
+241%
Source: IAB UK Case Study “Customer Conversion Journey – Sector “Retail” – July 2012
COMBINATION OF DISPLAY & SEARCH
IAB UK CASE STUDY „RETAIL“%percentageshareoftotalconversions

17. Search & Display: Win-Win Situation
C H A P T E R 2

18. visitors buyersshoppers
The combination of Display & Search allows to reach users on all
levels of the funnel
NEW
users
ACTIVE
users
LOST
active users
WIN-WIN #1
PERFORMANCE WITHIN THE FULL FUNNEL

19. WIN-WIN #2
MORE SEARCH QUERIES
Source: Nielsen Médiamétrie – Ad Effectiveness study of two leader European online retailers. (fashion,
high tech, furniture…) Number of exposed internet users : 8,2 millions. Question polls involving 1600
users (800 exposed, 800 non exposed). Schedule : May and August 2011. France. All rights reserved.
Advertiser’s visitors, who saw Criteo banners are delivering 28%
more SEO clicks than visitors who didn´t see Criteo banners
+28%
SEO TRAFFIC
SEO
Now 28% more!

20. WIN-WIN #3
INCREASING BRANDING EFFECT
Source: Nielsen Médiamétrie – Ad Effectiveness study of two leader European online retailers. (fashion,
high tech, furniture…) Number of exposed internet users : 8,2 millions. Question polls involving 1600
users (800 exposed, 800 non exposed). Schedule : May and August 2011. France. All rights reserved.
… and on awareness
+20%
brand awareness
for advertiser
…on brand search queries
+60%
search queries,
which contain
advertisers brand
name

21. WIN-WIN #4
CROSS- UND UPSELLING
Product recommendations deliver additional orders.
Over 50% of the sales Criteo drives are products users have never
checked on advertisers’ websites before.

22. Criteo: Sophisticated bid
management and optimization
C H A P T E R 3

23. CPC BID
MANAGEMENT TOOL
PRODUCT CATEGORY
OPTIMIZATION
USER SEGMENT
OPTIMIZATION
EXTRA DATA
OPTIMIZATION
Enhance CPC bids by product category and by user intent
segment. Leverage extra data.
CRITEO PERFORMANCE OPTIMIZATION PLATFORM

24. BIDDING OPTIMIZATION:
PRODUCT CATEGORY MARGIN
$0.30 $ 0.25 $0.15 $0.35

25. BIDDING OPTIMIZATION:
SEGMENTATION OF USERS’ INTENT
CRITEO PERFORMANCE OPTIMIZATION PLATFORM
$0.35 $0.15 $0.45
PROSPECTS SHOPPERS BUYERS

26. Thank you!
Dirk Henke
Criteo GmbH
Managing Director Eastern Europe
d.henke@criteo.com

27. Benchmarks: ROI and Conversion Rate
B A C K U P

28. BENCHMARK
WITH SEARCH (EUROPE)
ROI
Conversion Rate
ROI
X 2.5
13.01$5.22$
2.30%< 2%
CONVERSION RATE
SEARCH2
CRITEO1
SEARCH2
CRITEO1
1: Aggregation of Criteo statistics, retail Europe only - Deduplication average of 50% I Criteo 2011
2: Aggregation of search statistics (Google, Yahoo, Bing), retail US only – Kenshoo 2011 Online Retail Holiday Shopping Report I Kenshoo, Inc.

29. BENCHMARK
WITH SEARCH (USA)
ROI
Conversion Rate
ROAS
X 1.96
10.24$5.22$
2.73%< 2%
CONVERSION RATE
CRITEO1
SEARCH2
CRITEO1
SEARCH2
1: Aggregation of Criteo statistics, retail US only - Deduplication average of 50% I Criteo 2011
2: Aggregation of search statistics (Google, Yahoo, Bing), retail US only – Kenshoo 2011 Online Retail Holiday Shopping Report I Kenshoo, Inc.

30. BENCHMARK
WITH SEARCH
ROI
X 2,5
13.01$5.22$
2.30%< 2%
CONVERSION RATEROAS
X 1.96
10.24$5.22$ 2.73%< 2%
CONVERSION RATE
Aggregation of search statistics (Google, Yahoo, Bing), retail only – Kenshoo 2011 Online Retail Holiday Shopping Report I Kenshoo, Inc.
UNITED STATES EUROPE
CRITEO
SEARCH
Aggregation of Criteo statistics, retail only - Deduplication average of 50% I Criteo 2011

31. CASE STUDY
(1/2) GOLFSMITH
31
Background
• Golf and tennis specialist shop
• Multi-channel strategy for online
communication
Challenges
• Improve sales by developing new digital
communication tactics
• Clearly identify your conversion rates
and ROI of each channel, compared
between Google, MSN and Criteo.
info@kenshoo.com I CONFIDENTIEL(1 ) : Source: kenshoo

32. CASE STUDY
(2/2) GOLFSMITH
Setup
• Integration of Criteo through the Kenshoo platform with all other SEM campaigns.
• Compared analysis of each channel’s conversion rates and ROIs
32info@kenshoo.com I CONFIDENTIEL(1 ) : Source: kenshoo
3
Results
Criteo conversion & ROI
comparable to Google & Bing.
Increase the number of sales
thanks to Criteo without
deteriorating the ROI

33. COMBINE DISPLAY & SEARCH AND REACH MAXIMAL
PERFORMANCE
RESUME
P E R F O R
M A N C E