large_scale_bid_management-gerry_bavaro.ppt

© 2008 Didit - Confidential & Sensitive

Large Scale Bid ManagementPubcon, November 11th 2008

Gerry Bavaro - Executive Vice President, Didit


“Large scale campaign” What is it?

Beware – more keywords doesn’t necessarily mean more success.

Keywords are campaign building blocks, but don’t forget, you pay for them.

• Your budget waste goes to the engines’ bottom line• Inventory may drive long tail, but what’s the real gain?• High keyword traffic concentration is common (80/20)• Clicks are people – think like a smart marketer


Don’t Lose Sight of The Goal!

Keyword addition reaches diminishing marginal return fast

Maximum returns at the top – the trick is “affording” it

Power Keywords = Your successful go-to list/controlSegmentation = Testing levers that increase ROI


Efficiency – The New CreativityThe ratio of the effective or useful output to the total input in

any system.


“How many Segments are you running?”

A SINGLE power keyword may segment into five, ten,or 100 audience segments.

• All with different profitability• All with varying lifetime values• All with different search desires and offer receptiveness

Recognizing a power keyword’s variable audience requires deep analysis – common basic segmentation:

• Geo Analysis – audience behavior changes by geo• TOD/Day of Week Analysis – changes by time, day, both


“How many Segments are you running?”

Segmentation levers are there, more than ever, beyond keywords to marketing fundamentals.

Pick the clicks you want most and target to that human segment’s predicted profitability. Your levers:

• Syndication, Content vs Search (same creative? different?)• Syndication site targeting in content networks (display ads?)• Products purchased (keyword bid on vs. what was purchased)• Age (five age ranges) (MSN/MSFT)• Gender (M/F) (MSN/MSFT)


Segmentation Goes Beyond SearchWhat do you know about your existing customer base

that might predict key metrics?

Find clusters of customers that behave and respond differently?

• Higher interest level or brand affinity (increased CTR)• Higher conversion rate of offline campaigns or online media• Larger shopping cart sizes (AOV)• Propensity to return and shop more (ex. customer, LTV)• Influence/correlation of other media• Site analytics – attrition points, conversion paths

This data translates your business into search.


Are Behaviors Really Different by Segments?This is just Time-of Day and Day-of-Week

(macro):


It’s About Better Targeting

Segmentation drives better targeting.

Better targeting brings us closer to the holy grail:

• More budget towards best prospects/customers• Searchers see highest relevance ads • Publishers get higher yield on impression inventory• Quality score increases through inherent “tuning”


What’s Possible at “Large-scale”?

Geographic Segmentation• National Campaign…3:1 aggregate ROI• NY, TX, IL, FL “Overlay” Campaigns…6:1 ROI

• Why? Top positions when bidding by geo – under competitive radar• Why? Increased CTR and conversion rates from geo ads

• Possible 30% increase in overall ROI due to overlay (4:1)

• Best part – efficiencies supplement national bidding

Remember, the trick was “affording maximum returns attop positions” – now you can.

Segments drive smarter/variable bidding strategies.



Lifetime Value SegmentationCrunch your customer file. Do certain geographies predict higher lifetime value?

Do certain initial purchases lead to latent revenue?

Marketing a casino – LA audience likely to return to Vegas twice as often and gamble four times as much as national average, you can afford to bid more for segment.

Keywords perceived as “inefficient” are now assists

critical to longer term ROI and growth.



Creative & Landing Page SegmentationWe often forget that clicks are people – what’s the right ad copy and landing page per segment?

It’s not just a keyword any more• Ad copy and landing pages can be tuned to geo, day-part, etc.• LTV driving early keywords – ad/landing page tuning for

acquisition• Keywords that tie to other channel messaging – ad/LP’s tuned

Testing drives smart “large-scale” campaign organization:• Different ad groups/keywords based on segments• Ad/landing page variations with maximized conversion rates• Complex campaign organization with multiple power segments


Conclusion

“Large-scale” search campaigns may have more keywords, but it’s the data from high spend, click, and conversion volume that value should be extracted from.

• Ask what’s possible in every keyword • Think like a smart marketer• Track deeply, analyze logically, test aggressively

…and Segment!

Questions: [email protected]

large_scale_bid_management-gerry_bavaro.ppt

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segmentation levers

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audience segments

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better targeting segmentation

lifetime value segmentation

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