Presentation from the IRCE 2014 session "A Year Later: The Impact of Enhanced Campaigns" delivered by Kenshoo CMO Aaron Goldman and Director of E-Commerce Marketing at Walgreens, Adam Garcia, on Friday, June 13.

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Enhanced Campaigns:
One Year Later

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About Us
Aaron Goldman
Chief Marketing Officer, Kenshoo
Adam Garcia
Director Online Marketing, Walgreens

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Agenda
• Enhanced Campaigns Overview
• Market Trends
• Retailer Perspective
• Mobile Opportunity Gap
• Best Practices for Multi-Device Marketing
• Future-Proofing

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Enhanced Campaigns (EC) Overview

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Just the Facts, Ma’am
WHAT
New Google campaign type consolidating paid search management across
desktop, tablet, and mobile ad placements
WHY
Make holistic multi-device marketing the default in a mobile world
WHEN
Automatic migration: July 22, 2013

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2%
34%
24%
27%
13%
What was your attitude toward the
Enhanced Campaign migration?
Very positive
Positive
Neutral
Negative
Very
negative
Industry Reaction
Source: Kenshoo Marketer Survey: Enhanced Campaigns One Year Later
40%+ of respondents had a negative
attitude towards the EC migration

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Marketer Prognostication
Source: Kenshoo Marketer Survey: Enhanced Campaigns One Year Later
73%
14%
13%
Spend
57%
16%
27%
Click volume
59%
35%
6%
CPC
25%
60%
15%
Overall paid search performance
(relative to your primary KPI)
Before the Enhanced Campaigns rollout, what effects
did you EXPECT it to have on the following metrics?
Increase Decrease No Change

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Migration Process
Source: Kenshoo Marketer Survey: Enhanced Campaigns One Year Later
2%
82%
16%
What was the process your team took to migrate your
campaigns to EC?
We waited until Google automatically
migrated our campaigns
We migrated a few campaigns at a
time to monitor performance
We migrated all campaigns on our
own at once

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Market Trends

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Top-Line KPIs
In Q1 2014, global Kenshoo Search clients saw:
10%
YoY increase
in spend
12%
YoY increase in
advertiser
revenue
2%
YoY increase in
cost-per-click
Source: Kenshoo Search and Social Snapshot – Q1 2014

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Mobile Spend Share Increasing
• Mobile now accounts for 25%+ of total spend and 30%+ of total clicks
Spend Clicks
Q1 2013 Q1 2014 Q1 2013 Q1 2014
U.S. 17% 26% 21% 30%
U.K. 23% 31% 26% 31%
AU 23% 34% 30% 42%
Source: Kenshoo Search Advertising Trends – Q1 2014

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$0.40
$0.45
$0.50
$0.55
$0.60
$0.65
$0.70
$0.75
$0.80
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
CPC by Device: Americas
Desktop
Phone
Tablet
Desktop Still Carries Price Premium
Source: Kenshoo Search Advertising Trends – Q1 2014
$0.66
$0.57
$0.52

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Mobile Performance Trails Desktop
2%
18%
16%
27%
37%
How would you rate the performance of your mobile
paid search efforts when compared to desktop?
Mobile performs much better than desktop
Mobile performs slightly better than desktop
Mobile performs about the same as desktop
Mobile performs slightly worse than desktop
Mobile performs much worse than desktop
Source: Kenshoo Marketer Survey: Enhanced Campaigns One Year Later

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Retailer Perspective

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Initial Reactions
“This goes against all
of the best practices
laid out by Google.”
Mobile is on our
roadmap and very
important but this shift
doesn’t align with
our business needs
and timing.”
“This removes
control at the most
granular and
efficient levels.”“

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Lost control over device, OS targeting
This limited our messaging and copy targeting capabilities.
Single URL
This created a situation where we had to review and optimize all of our LP selections.
CVR dropped
For those campaigns that we did enable mobile, we saw a drop.
CPC remained flat
This is due to the control of mobile bids via multipliers (aka “Bid Adjustments”).
Major Findings

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Brand keywords are opted into mobile
in a controlled way
Not all lines of businesses are opted in
-Strategic selection of departments based on use
case and performance
Accelerate mobile first thinking
-Remove flash as much as possible
Gain deeper insight into device usage
Current Operating Mode

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Key Takeaways
Non-desktop devices are
primary players
This shift was yet another way
that Google was ahead of the
curve in seeing the trends.
Test, test
and retest
If you haven’t tested adjusting
your multiplier, do so!
Prioritize adaptive/responsive
design
Move it up in your roadmap
timeline.
1 2 3

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Mobile Opportunity Gap

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Consumers are increasingly using all three
screens as part of the purchase journey.
Source: Advertiser Perceptions of the Three-Screen World, Kenshoo
Does the interplay between paid search across
devices make an impact on consumer activity?
99% of respondents agree that the
interplay of paid search across devices
carries at least some impact on
consumer conversion
Somewhat impacted
by each other
Very much impacted
by each other
No, each device
works on its own

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The mobile web is often used for researching
purchases.
Source: The Mobile Opportunity Gap: An analysis of consumer shopping behavior and multi-device strategy, Yahoo! and Kenshoo
Consumers plan on using mobile and tablet even more
in the future for shopping/researching

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Shopping information accessed via the mobile
web helps consumers validate purchases.
Source: The Mobile Opportunity Gap: An analysis of consumer shopping behavior and multi-device strategy, Yahoo! and Kenshoo
Which of the following activities do you feel applies to consumers that
conduct shopping research using their mobile device while in a store or
at a place of business?

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Marketers’ cross-device strategies are lagging
behind.
Source: Advertiser Perceptions of the Three-Screen World, Kenshoo
How sophisticated do you feel most advertisers are
with regards to cross-device marketing strategy?

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Consumers expect more from mobile shopping
experiences…
Source: Advertiser Perceptions of the Three-Screen World, Kenshoo
As a consumer yourself, what is your reaction when
reaching a non-mobile optimized size via mobile device?
Very bothered,
I leave the site
Somewhat bothered,
but I continue on
No reaction at all

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…and are reluctant to return to a site if it is not
optimized for mobile.
Source: Advertiser Perceptions of the Three-Screen World, Kenshoo
“I am less likely to re-visit a brand/manufacturer’s site if it wasn’t
optimized for my mobile device the first time I visited it.”
Strongly agree
Somewhat agree
No opinion either way
Somewhat disagree
Strongly disagree

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Marketers have an opportunity to grow!
Source: Advertiser Perceptions of the Three-Screen World, Kenshoo
Already doing it
Planning on
doing it in 2014
Planning on
exploring it in 2014
Not planning on exploring
or doing it in 2014
While approximately 50% of
marketers feel they are
already providing rich mobile
experiences, when it comes
to deeper, more sophisticated
tactics, there is room for
marketers to grow

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Best Practices for Multi-Device
Marketing

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1. Establish concrete, device-specific goals
22%
3%
38%2%
11%
24%
Online Traffic
In-store Traffic
Direct Sales
App installs
Phone Calls
Other conversion activity
Source: Kenshoo Marketer Survey: Enhanced Campaigns One Year Later
What is your mobile paid search goal?

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2. Align messaging across multiple channels
Heighten search performance by leveraging social media

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3. Leverage advanced targeting techniques
In order to meet performance goals, target desired audiences by:
Location Device Time of Day

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4. Deploy device-specific bidding strategies
25%
64%
9%
2%
To increase mobile bids
To decrease mobile bids
To opt out of mobile
Source: Kenshoo Marketer Survey: Enhanced Campaigns One Year Later
What is the strategy behind your mobile bid adjustments (MBA) in the
majority of your campaigns in which you use MBAs?

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5. Optimize the post-click experience
Source: The Mobile Opportunity Gap: An analysis of consumer shopping behavior and multi-device strategy, Yahoo! and Kenshoo

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6. Implement multi-touch attribution models

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Future-Proofing

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Broaden your definitions of “mobile” and
“devices”
WEARABLE TECHNOLOGY
• Google Glass
• Pebble Smartwatch
DIGITAL HEALTH
• Fitbit
• Nike Fuelband
HOME AUTOMATION
• Nest
• Apple TV?
AUTO INTEGRATION
• Siri
• Google Voice Search

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Be Mindful of New Google Offerings
Shopping Campaigns: new campaign type for managing Google Product Listing Ads (PLAs)
• Streamlined product-based bidding
• Advanced reporting
• Competitive landscape data

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Leverage Mobile App Download Promotion

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Bing Product Ads
Showcase product images, promotional text, pricing,
and company name
Yahoo Stream Ads
Naturally blend into the content
streams viewed by users
Don’t forget Bing and Yahoo!

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Additional Resources
• Kenshoo Search and Social Snapshot – Q1 2014: Kenshoo.com/Search-Social-Snapshot
• Kenshoo Search Advertising Trends – Q1 2014: Kenshoo.com/GlobalSearchTrends
• Advertiser Perceptions of the Three-Screen World: Kenshoo.com/Three-Screen-Perceptions
• The Mobile Opportunity Gap: Kenshoo.com/Mobile-Opportunity-Gap
• Added Value: Facebook Advertising Boosts Paid Search Performance: Kenshoo.com/FBAddedValue
• Quantifying the Impact of Multi-touch Attribution: Kenshoo.com/MTA
• An Inside Look at Google Shopping Campaigns: Kenshoo.com/Inside-Google-Shopping
Coming Soon:
• Enhanced Campaigns One Year Later

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Thank You