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Synergies of Display and Search Advertising

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Synergies of Display and Search Advertising

Dirk Henke, Criteo E Commerce Russia, Moscow October 2012

Published in: Marketing, Technology, Business
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Synergies of Display and Search Advertising

  1. 1. Synergies of Display and Search Advertising Dirk Henke, Criteo E Commerce Russia, Moscow October 2012
  2. 2. IN FIGURES 4 3COUNTRIES CONTINENTS 3 000 CLIENTS $200MILLION 2011 REVENUE 700EMPLOYEES
  3. 3. With over 300 engineers, the R&D team represents 40% of our staff. www.criteolabs.com 3
  4. 4. AGENDA 1: Search & Display 2: Search & Display: Win-Win Situation 3: Criteo: Sophisticated bid management and optimization
  5. 5. Search & Display C H A P T E R 1
  6. 6. SEARCH DISPLAY & SYNERGIES?
  7. 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. 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. 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. 10. BANNER EXAMPLES DISPLAY CRITEO static product based
  11. 11. REAL TIME OPTIMIZED BANNERS With over 300 possible combinations Criteo banners are precisely optimized in terms of high relevance and CTR
  12. 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. 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. 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. 15. SYNERGIES OF DISPLAY & SEARCH contextual P E R F O R M A N C E visual active passiv
  16. 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. 17. Search & Display: Win-Win Situation C H A P T E R 2
  18. 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. 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. 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. 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. 22. Criteo: Sophisticated bid management and optimization C H A P T E R 3
  23. 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. 24. BIDDING OPTIMIZATION: PRODUCT CATEGORY MARGIN $0.30 $ 0.25 $0.15 $0.35
  25. 25. BIDDING OPTIMIZATION: SEGMENTATION OF USERS’ INTENT CRITEO PERFORMANCE OPTIMIZATION PLATFORM $0.35 $0.15 $0.45 PROSPECTS SHOPPERS BUYERS
  26. 26. Thank you! Dirk Henke Criteo GmbH Managing Director Eastern Europe d.henke@criteo.com
  27. 27. Benchmarks: ROI and Conversion Rate B A C K U P
  28. 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. 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. 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. 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. 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. 33. COMBINE DISPLAY & SEARCH AND REACH MAXIMAL PERFORMANCE RESUME P E R F O R M A N C E

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