Yahoo! Close The Loop Understanding the Synergy Between Search and Display Advertising Phase 1 Findings.

Yahoo! Close The Loop

Understanding the Synergy Between Search and Display Advertising Phase 1 Findings

2Yahoo! Proprietary and Confidential. ©2006 All Rights Reserved

Study Objectives 11

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Study Objectives

Agenda

Summary of Results

Methodology

Industry Overview

Detailed Results

6Key Takeaway


Study ObjectivesTo measure the individual and collective impact of search and display advertising in driving lifts in:

•Onsite Engagement

•Online Purchasing

•Offline Purchasing

•Trademark Searches

Study Objectives


Industries TestedIndustry Overview

Industry: Telecom

Testing Period: Feb 1st-Mar 31st 2006

Base Size Examined:

Search & Display: 6,500Search Only: 1,600Display Only: 76,000

Industry: Retail

Testing Period:March 19th – April 22nd 2006

Base Size Examined:


Industry Home Loans

Testing Period: March 1st – April 30th 2006

Base Size Examined:

Search & Display: 400Search Only: 1500Display Only: 9000

Industry: Travel

Testing Period: Sept 1st – Nov 30th 2005

Base Size Examined:


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Yahoo! Proprietary and Confidential. ©2006 All Rights Reserved

Study MethodologyDissecting Online Behavior By Level Of Ad ExposureThose exposed to the advertising are matched to a control group that are demographically and behaviorally similar with the exception of advertising exposure.

By examining the lifts between our control and exposed groups, we isolate the effectiveness of the advertising in driving activity that wouldn’t have otherwise occurred.

Internet Universe

Display Advertising Only

ExposedUnexposed

Search Advertising OnlyExposed

Unexposed

Search & Display Advertising

ExposedUnexposed

Respondents will be placed in 1 of 3 buckets:


ExposedUnexposed

Search Advertising OnlyExposed

Unexposed


ExposedUnexposed

Respondents will be placed in 1 of 3 buckets:6

* Test is internet wide and not limited to Yahoo


Search Advertising Only


Exposed Exposed Exposed

Unexposed Unexposed Unexposed

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What is a lift? A lift measures the effectiveness of the advertising in getting someone to “do something”. We isolate the effectiveness of the advertising by comparing the activity of those who saw the advertising vs. a control group who didn’t see the advertising but are otherwise behaviorally and demographically identical.

Are Lifts Comparable?While lifts will indicate which advertising is most effective (and which audience you should look to maximize) – lifts in-and-of-themselves are not directly comparable due to the reach of each form of advertising. Small lifts among a large target are often equivalent to large lifts among a small target.

Exposed to Search Campaign Only: 5%Sample Size (n) = 8,200

Exposed to Both Search & Display Campaign: 6%Sample Size (n) = 10,500

Exposed to Display Campaign Only: 89% Sample Size (n) = 146,000

Study Methodology

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Summary of Results

We Have Lift OffWhile individual exposure to search or display advertising is effective in driving lifts in visitation, engagement and online & offline purchasing - the advertising is most effective when a user is exposed to both forms of advertising.

Exposure to both Search and Display advertising is:

• The most effective means of driving higher levels of engagement in your category (relative to your competitors)

• The most effective means of driving online & offline purchases

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Grabbing a Greater Share of Category Engagement: More important than just visitation, how can online advertising increase your share of engagement in your category (as measured by time spent & pages viewed)?

The most effective means of grabbing a greater share of investment from a consumer (relative to your competitors) is by utilizing both search and display channels holistically

Search & DisplaySearch & Display

Lift in Share of Pages Viewed:Lift in Share of Pages Viewed:

Lift in Share of Time Spent:Lift in Share of Time Spent:

Search OnlySearch Only



Display Only*Display Only*



68%68%

66%66%

54%54%

49%49%

4%4%

3%3%

* Note: Engagement with the display ad itself was not measured in this research. Lift vs. Control

Detailed Results

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Increasing Online Purchasing: And again, delivering users both search and display advertising is the most effective means of increasing online purchases you wouldn’t have otherwise received.

* Lift vs. Control This metric was not tracked for the Home Loans test.

Lift In Online Purchases:Lift In Online Purchases:

50%

Display Only

210%

Search Only

244%Search & Display

Lift In Lift In ShareShare of Online of Online Purchases:Purchases:

23%

Display Only

102%

Search Only

135%Search & Display

Detailed Results

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Increasing Offline Purchasing: The effectiveness of the advertising in driving lifts in sales isn’t limited to online purchases, but offline as well.

Lift In Offline Lift In Offline Purchases:Purchases:

9%

Display Only42%

Search Only

89%Search & Display

Detailed Results

* Lift vs. Control This metric was not tracked for the Home Loans test. Share of offline purchases was not measured in this test.

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Display Increases Trademark Searches 26%: On average, exposure to a display ad increases trademark searches by 26%.

* Lift vs. Pre-campaign period

YOUR AD HERE

Detailed Results

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Display AudienceDisplay Audience

Search AudienceSearch Audience

Solid Lifts, Mass ReachSolid Lifts, Mass Reach

Larger Lifts, TargetedLarger Lifts, Targeted

Search & Display AudienceSearch & Display Audience

Largest Lifts, Largest Lifts, Highly TargetedHighly Targeted

Key Takeaways: The Shape of Things

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Different advertising works in different ways

Key Takeaways

Utilize display advertising for building awareness and reinforcing your brand image among a mass audience. And with it’s massive reach, even smaller lifts in online and offline sales can have a BIG impact on your bottom

line.

Utilize search advertising for reaching your low hanging fruit: in market

shoppers looking for what you have to offer. Utilizing search to deliver a relevant

experience to a relevant target dramatically increases both online and

offline sales.

Both Search and Display ads offer the opportunity to increase

onsite engagement, and more importantly, online and offline

sales.

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Maximize the effectiveness of your advertising by delivering consumers both search and display advertising

Take advantage of Behavioral Targeting

Target in-market shoppers searching for either your brand, or something you offer, with a relevant display ad.

Target someone based on their interests. If someone searches for something that’s in line with what your brand stands for, reinforce that association with a relevant display ad.

Key Takeaways

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Maximize the effectiveness of your advertising by hitting consumers with both search and display advertising

Take advantage of relevant brand searches:

Exposure to a display ad increases trademark searches. Take advantage of this interest with a search campaign that reinforces your messaging.

Key Takeaways


Contact : [email protected] u e s t i o n s ?

THANK YOU

Yahoo! Close The Loop Understanding the Synergy Between Search and Display Advertising Phase 1 Findings.

Documents

display advertising

form of advertising

forms of advertising

yahoo proprietary

driving lifts

study methodology slide

collective impact of

large lifts