DATA Targeting - Powering Display Advertising

Presentation by : Siddharth Puri Business Head – Tyroo Direct

DATA driven Targeting – Strengthening Display to become effective alternate to Search

About Tyroo

India’s Largest Digital Reach Vehicle APAC’s Largest Performance Platform for E-

Commerce and Internet Businesses Over 5,000 handpicked publishers Reach – 19.2 Million UVs, 1.5X of Rediff, 60% of

Yahoo!1

Competitively priced, Brand safe, Engaging rich media formats

Strong focus on ROI/performance goals Work with all major advertisers and agencies

active in digital – 200+ active campaigns at a given time

Multi – Format Driven – Display/EDM/Text Links/ Product Feeds

1ComScore May 2011

Advertisers

Tyroo Reaches to nearly 50% of the total Indian internet audience

E-Commerce Marketing Team Goals

Goals

Acquire First Time Customers from Paid Media to do transaction on site

Breakeven on Cost of acquisition of customer within gross margin earned on sale driven

Have higher ratio of Prepaid Customers

Zero Cancellation or Order Returns

Measurable Metrics

First Buyer to Repeat Transaction Ratio

Gross Margin earned on each transaction

% of Credit Card to COD Order driven

Cancellation/Returns Ratio post call Centre Order Verification

Paid Media strategy to acquire Customers

** Basis Market Feedback and interactions with Marketing Departments

Channel % Spend Deployed

First Buyer to Repeat Ratio

Gross Margin earned on each Product

% Prepaid Users

Cancellation/ Return RTO Ratio

Direct Traffic 65% – 35% 8% 6%

Google SEM 35% 80% - 20% Breakeven 12% 8%

Facebook CPC 30% 70% - 30% (- 30%) 18% 6%

Performance Networks

30% 65% - 35% Breakeven 4% 11%

Display/ Others

5% 60% - 40% (- 500%) 20% 10%

• Evolved Online Retailer – Established 3 years Ago , Leader in its segment

• Spending on an average 1Cr Per month on Digital Media

• Done Large TV advertising spends 2 times in last 12 months for Brand Building

Display – Ugly duckling of Media Plan ?

Display’s Challenge is Lack of consideration of Brand Visibility aligned metrics

Without spend on display With 30% spend on Display

Impact on Direct Traffic X # of Transactions from Direct Traffic

2X # of transactions from Direct Traffic

Impact on # of Organic Searches of Brand Keywords

X# of Searches on brand keyword

3X# of Searches on Brand Keywords

Impact on CTR and CR on other Channels

10% improvement in CR across channels

Impact on Gross Sale Value 15% improvement in Gross sales value

Data driven Display Advertising

プロファイリングターゲティング

Data TargetingData Targeting

Analy

ze v

isitors

Analy

ze v

isitors

Pro

ducts

Pro

ducts

Data Targeting

Site Visitor⇒ Retargeting Efficiency : high Target Users : limited

“persona” user⇒ Audience targeting based on profiling Efficiency : medium 　 Target Users :mediumNon- Persona User⇒ CPA Optimized non-targeting Efficiency : law 　 Target Users : large

Analyze advertiser’s site visitor and create original “persona” in order to advertize audience targeting based on profiling data.

Seamless!!

Behavior

Gender

Age

Area

Others

CPA Optimized non-targeting

Audience targeting

Retargeting

Personalized Retargeting – How it’s work

1. As a visitor enters a merchant’s website, they are tagged with a simple smart cookies

2. When the visitor enters in the Tyroo Media network - the system spots them.

3.Tyroo recommendation engine chooses the offering that are most likely to appeal for each visitor, based on advance machine learning and wisdom of the crowds algorithms

4. Then user clicks, returns to product page and completes purchase

5. Tyroo shares Tracking Order Id and Amount

F.A.Q – Re-targeting

Q1. Do I pay on CPM/CPC/CPA ?

Ideal is to pay on CPA, but you don’t loose out evenpaying on CPC as difference against normal CPCadvertising is higher Conversion ratio equal or sometime better than search

Q2. Why should I do it beyond SEM/SEO/Affiliate ?

Gain Advantages of Brand Visibility Metrics + create another performing channel for incremental sales

Q3. How Much traffic is ideal to add Re-targeting to Media Plan, Should one Do it if not spending money on Paid Traffic?

Re-targeting is Ideal if your website has 10,000 Unique Users Every Day

Q4. What Channel should I Trade off/Replace in my strategy?

If you are spending <10% of your paid media budget onDisplay including Google Display Network, you shouldfirst allocate spend from this bucket, balance basis itsperformance will start to win spends from otherBuckets

Q5. Should I do Display at all, If doing Re-targeting?

This decision should be taken after evaluating yourposition in the brand management cycle.

Q6. What kind of Optimization is Required?

All Re-targeting Platform comes with by default CPAoptimization but now specialist platform also bring inadditional capability to optimize for Higher Order Value/Higher First Buyer to Repeat Ratio among many other

Q7. Is it level playing field between large vs small advertisers or competitive bidding environment as Search?

Fortunately re-targeting doesn't get largely impactedfrom media placement as input point on conversionratio, you are bidding for quality of user bidding onprobability of him converting basis marketing goalmetrics defined

Q8. What is the Minimum Budget to test the channel?

Its function of # of users on your site but for a site with10,000 UU per day should setup a budget of 30,000clicks for 3 months to measure impact.

Q9. Why 3 Months?

Re-targeting like Search need to be trained on metricsand given opportunity to find right audience setcombination and ability to understand your traffic tobuying behaviour. Immediate impact seen as comparedto display advertising but needs some time to settle tosearch advertising level

Q10. How to Create Benchmarks for evaluation?

Re-targeting or any other performance channels shouldbe pitched on metrics of Google Non Brand Keywordother than SEO oganic brand keyword searches whichshould compete against brand keywords

Thanks

Questions!!

Y