Rahul Nim

Search Engine and Display Marketing: Data Challenges Rahul Nim Architect, Efficient Frontier

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Agenda • What is Online Performance Marketing? – How is it done? – How is performance measured?

• What constitutes performance data? • How is it collected? • What are the issues in data collection and analysis? • What is the future of online marketing? 2

Overview Customer

Content Ads

TV Print Other

Search Display Content

Content Sites

Advertiser Analytics and Tracking Services 3

Display Overview Customer Ad Networks

Display Ads Display Sites

Advertiser Analytics and Tracking Services 4

Performance Marketing and Information • Companies need to get the most out of their marketing dollars. • How do we measure the performance of those dollars? – Broadcast Media (Traditional, but mind the future) – Direct Marketing Profit = Revenue - Cost Performance = Profit/Cost – Ad Networks – Search Engines – Social Networks and Mobile 5

Marketing on Search Engines and Ad Networks • How do Search Engines make money? – Organic Search Results – Paid Search Results, PPC/CPC model – Content Ads

• How do Ad Networks make money? – Premium inventory – Biddable inventory, CPM model

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Organic and Paid Search Examples

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Paid Search Concepts • • • • •

Advertiser Accounts Campaigns Ad Groups Ads Keywords

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Search Marketing Optimization • SEO – Landing Page Optimization – Best practices

• SEM – Optimally bidding on keywords – Designing effective ads

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Performance Indicators (SEM) • Impressions • Clicks • Conversions

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Collecting Performance Data: PixelBased Tracking Click Data

Bat.jpg

Redirect/Pixel server

Conversion Data

3. Redirect

… Cricketbats.com 11

Performance Data Elements • Browsers and Cookies, Unique IDs for events • Tracking URLs • What goes into the cookies – Tracking information: relating events to ads

• Click and Impression data from search engines and Networks • Conversion data from web servers 12

Tracking Elements • Installed Ad URL

url=http://pixel2002.everesttech.net/2002/rq/3/s_3aa8e5aa1261d038a0fe6ff 010d01ed9_2671584663_{keyword}_{creative}/url%3Dhttp%253A//www.vita minshoppe.com/store/en/index.jsp%253FsourceType%253Dps%2526source% 253Dgo%2526adGroup%253DVitamin%2526keyword%253Dvitamins%2526cm _mmc%253DPaid%252520Search-_-Google-_-Vitamin-_-vitamins

• Click (generated) URLs

http://www.google.com/aclk?sa=L&ai=CHdAMUkv7S8HMpisnwevg7Ac64yWyQGj4YqVCt6g7AQIABACKANQyeOVuwJgye7thsijoBnIAQ GqBBxP0HFcOLaERWbapnR_ZsmWw6q-L_64wP2v93j&sig=AGiWqtw1di18T6otSuXIM6tGzpvtXwmTqg&adurl=http://pixel2002.ever esttech.net/2002/rq/3/s_3aa8e5aa1261d038a0fe6ff010d01ed9_2671584663 _cheap+shoes_creative101/url%3Dhttp%253A//www.vitaminshoppe.com/sto re/en/index.jsp%253FsourceType%253Dps%2526source%253Dgo%2526adGro up%253DVitamin%2526keyword%253Dvitamins%2526cm_mmc%253DPaid%2 52520Search-_-Google-_-Vitamin-_-vitamins

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Collecting and Using Performance Data • Build – Data generated and collected in-house from Web Servers – Analyzed internally

• Buy – Tracking service from providers like Omniture, Google Analytics, Dart – Analytics providers like Core Metrics, Google Analytics – Combined like Efficient Frontier, Kenshoo 14

Collecting Performance Data: Mechanisms • Collecting data for self – First Party Cookies – Setting up web servers to log events

• Collecting for clients (as a service provider) – HTTP redirect mechanism – Tracking info – Third party cookies – Javascript 15

Issues • Data quality – Detecting Duplicates – Detecting Click Fraud

• Scalability – In collecting the data – In modeling – Redirecting – Example architectures 16

Performance Management in Display Networks • Similarities to SEM – Clicks and Conversions

• Differences from SEM (and challenges) – Impressions – Campaign structures – Analysis and modeling – Real-Time Bidding (RTB)

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So what should you do as a CMO? • People are spending increasing amounts of time on the internet – $6.3 Billion spent in Q4’09

• Develop an effective online marketing strategy – Budget for Online Advertising

• Get ready for Online Video

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…And as a CIO (from data perspective)? • Engage with service providers (Buy) – Evaluate Quality of Services – Evaluate future readiness

• As service providers – More data • Social graph data for segmentation • Online video • Display impressions

– (Real-time) Biddable media slots 19

References • SEM: http://en.wikipedia.org/wiki/Search_engine_marketing • Online advertising revenues: http://www.iab.net/insights_research/947883/adrevenuer eport • Cookies: http://en.wikipedia.org/wiki/HTTP_cookie • Generating unique IDs for events: http://httpd.apache.org/docs/1.3/mod/mod_unique_id.ht ml • Tracking URLs: http://help.yahoo.com/l/au/yahoo/ysm/sps/start/overview _trackurl.html • Click Fraud: http://en.wikipedia.org/wiki/Click_fraud 20