Search Engine and Display Marketing: Data Challenges

Rahul Nim Architect, Efficient Frontier 1

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

Customer TV Print Other Search Display Content

Overview

Advertiser Content Sites Analytics and Tracking Services 3

Customer

Display Overview

Ad Networks Advertiser Analytics and Tracking Services Display Sites 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 –

Ad Networks

Profit = Revenue - Cost Performance = Profit/Cost –

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 6

Organic and Paid Search Examples 7

Paid Search Concepts

• • • • • Advertiser Accounts Campaigns Ad Groups Ads Keywords 8

Search Marketing Optimization

• • SEO – Landing Page Optimization – Best practices SEM – Optimally bidding on keywords – Designing effective ads 9

Performance Indicators (SEM)

• • • Impressions Clicks Conversions 10

Collecting Performance Data: Pixel Based Tracking Bat.jpg

Redirect/Pixel server Click Data Conversion Data 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=CHdAMUkv7S8H Mpisnwevg7Ac64yWyQGj4YqVCt6g7AQIABACKANQyeOVuwJgye7thsijoBnIAQ GqBBxP0HFcOLaERWbapnR_ZsmWw6q-L_64wP2v93j &sig=AGiWqtw1di18T6otSuXIM6tGzpvtXwmTqg&ad _cheap+shoes_creative101/ 52520Search-_-Google-_-Vitamin-_-vitamins url=http://pixel2002.ever

esttech.net/2002/rq/3/s_3aa8e5aa1261d038a0fe6ff010d01ed9_2671584663 url%3Dhttp%253A//www.vitaminshoppe.com/sto re/en/index.jsp%253FsourceType%253Dps%2526source%253Dgo%2526adGro up%253DVitamin%2526keyword%253Dvitamins%2526cm_mmc%253DPaid%2 13

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) 17

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 18

…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