Enhanced Campaigns: One Year Later - Kenshoo and Walgreens - IRCE 2014

1 © 2014 Kenshoo, Inc. Confidential and Proprietary Information

Enhanced Campaigns: One Year Later


About Us

Aaron Goldman Chief Marketing Officer, Kenshoo

Adam Garcia Director Online Marketing, Walgreens


Agenda

• Enhanced Campaigns Overview

• Market Trends

• Retailer Perspective

• Mobile Opportunity Gap

• Best Practices for Multi-Device Marketing

• Future-Proofing


Enhanced Campaigns (EC) Overview


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


2%

34%

24%

27%

13%

What was your attitude toward the Enhanced Campaign migration?

Very positive

Positive

Neutral

Negative

Verynegative

Industry Reaction

Source: Kenshoo Marketer Survey: Enhanced Campaigns One Year Later

40%+ of respondents had a negative attitude towards the EC migration


Marketer Prognostication


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


Migration Process


2%

82%

16%

What was the process your team took to migrate your campaigns to EC?

We waited until Google automaticallymigrated our campaigns

We migrated a few campaigns at atime to monitor performance

We migrated all campaigns on ourown at once


Market Trends


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


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


$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

DesktopPhoneTablet

Desktop Still Carries Price Premium

Source: Kenshoo Search Advertising Trends – Q1 2014

$0.66

$0.57

$0.52


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



Retailer Perspective


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.” “


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


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


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


Mobile Opportunity Gap


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


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


Shopping information accessed via the mobile web helps consumers validate purchases.


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?


Marketers’ cross-device strategies are lagging behind.


How sophisticated do you feel most advertisers are with regards to cross-device marketing strategy?


Consumers expect more from mobile shopping experiences…


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


…and are reluctant to return to a site if it is not optimized for mobile.


“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


Marketers have an opportunity to grow!


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


Best Practices for Multi-Device Marketing


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


What is your mobile paid search goal?


2. Align messaging across multiple channels

Heighten search performance by leveraging social media


3. Leverage advanced targeting techniques

In order to meet performance goals, target desired audiences by:

Location Device Time of Day


4. Deploy device-specific bidding strategies

25%

64%

9%

2%

To increase mobile bids

To decrease mobile bids

To opt out of mobile


What is the strategy behind your mobile bid adjustments (MBA) in the majority of your campaigns in which you use MBAs?


5. Optimize the post-click experience



6. Implement multi-touch attribution models


Future-Proofing


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


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


Leverage Mobile App Download Promotion


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!


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


Thank You