The document discusses how applying a search marketing mindset can help drive ROI for display advertising. It provides an example case study of an online dating company that saw a 170% increase in conversions within 3 weeks by applying techniques from paid search, like data integration, advanced targeting, account structuring, budget management, creative testing, and campaign optimization to their display campaigns. The document argues that to maximize ROI, display advertising should adopt tactics from paid search that focus on direct response metrics and measurement.

1. Making Integrated Campaigns Work:
How a Search Marketing Mindset Can Drive the ROI of Display Advertising
Eli Goodman Keith Wilson
comScore, Inc. The Search Agency, Inc.

2. Our Presenters
Eli Goodman
Search Evangelist
comScore, Inc.
Keith Wilson
Director of Display Media
The Search Agency, Inc.
© comScore, Inc. Proprietary and Confidential. 2

3. Agenda
Introduction
Applying Search Intelligence to Display Advertising
Search & Display Advertising - Quantifying the full ROI beyond Direct Response
© comScore, Inc. Proprietary and Confidential. 3

4. The Search Agency
The Search Agency provides an integrated suite of pre-click online advertising
services and post-click conversion path optimization services.
© comScore, Inc. Proprietary and Confidential. 4

5. Agenda
Introduction
Applying Search Intelligence to Display Advertising
Search & Display Advertising - Quantifying the full ROI beyond Direct Response
© comScore, Inc. Proprietary and Confidential. 5

6. Case Study Example: Online Dating
Client: Lavalife
– Online Subscription-based Dating Service
Goal: Driving registrations at targeted CPA
History: Increasing spend on paid search and contextual text based ads
– Could not yield additional volume at target CPA
Solution: Test display ads to increase efficiency of content campaign and drive
volume
© comScore, Inc. Proprietary and Confidential. 6

7. How to approach display advertising?
Measurability
TV / Print Display Paid Search
Display advertising is evolving
– Greater emphasis on direct response metrics
– Pricing is evolving to bid based model
Approach display media management like paid search
– Budget accountability
– Applying direct response best practices
– Driving ROI for each incremental ad dollar spent
© comScore, Inc. Proprietary and Confidential. 7

8. Results: 170% increase in conversions in 3 weeks
Client Results
500%
400%
400%
300%
200% 170%
100%
16%
0%
-12%
-50%
-100%
Click-Through Conversions Cost per Click Brand Search CPA
Rate Queries
© comScore, Inc. Proprietary and Confidential. 8

9. Applying search intelligence to display advertising
1. Data Integration
2. Advanced Targeting
3. Account Structure
4. Budget Management
5. Creative Testing
6. Conversion Path Optimization
7. Campaign Optimization
Conversion
Data Advanced Account Budget Creative Campaign
Path
Integration Targeting Structure Management Testing Optimization
Optimization
© comScore, Inc. Proprietary and Confidential. 9

10. Data Integration: Integrate campaigns and backend conversion data
Create single view of key metrics for efficient analysis
Leverage ad serving/optimization technology to guide
efficiency of ad spend
Example: Subscription Model
– Free registrations
Large sample
size
Allows technology to learn faster
– Paid subscriptions
Smaller sample size
Enables bid optimization based on revenue
Conversion
Data Advanced Account Budget Creative Campaign
Path
Integration Targeting Structure Management Testing Optimization
Optimization
© comScore, Inc. Proprietary and Confidential. 10

11. Advanced Targeting: Leverage high intent to purchase targeting
During initial tests, diversify across multiple targeting techniques
Great ROI Middle of Pack ROI Poor ROI
Website ads (.gif banners, etc.) 7.6% 49.7% 42.7%
Pop-up, Pop-unders 12.0% 26.5% 61.4%
Rich Media Ads 22.0% 54.3% 23.6%
Affiliate marketing 23.4% 48.6% 27.9%
Text-Link ads 29.7% 51.5% 18.8%
Behavioral targeted ads 36.7% 50.5% 12.8%
Contextually targeted ads 40.5% 50.0% 5.5%
0% 20% 40% 60% 80% 100%
Source: MarketingSherpa, February 2008
Conversion
Data Advanced Account Budget Creative Campaign
Path
Integration Targeting Structure Management Testing Optimization
Optimization
© comScore, Inc. Proprietary and Confidential. 11

12. Case Study Example: Contextual targeting
Identified high-performing keywords from paid search
– Focus on brand terms and core category terms
Identified placements relevant to online dating
– Including competitor sites
Used media planning tools to identify/exclude relevant audiences
– Demographics
– Behaviors
© comScore, Inc. Proprietary and Confidential. 12

13. Account Structure: Organize campaigns into meaningful segments
Group campaigns by demo, geo, and behavioral segments
Structured campaigns enable efficiency
– Provides greater flexibility to optimize campaigns by price, creative or targeting
– Visibility to lower level of data allows optimization of poor and exceptional targets
Conversion
Data Advanced Account Budget Creative Campaign
Path
Integration Targeting Structure Management Testing Optimization
Optimization
© comScore, Inc. Proprietary and Confidential. 13

14. Case Study Example: Organize by relevant segments
Grouping by geo allows targeted ad copy
Measuring ROI across key consumer segments enables more efficient media
planning
© comScore, Inc. Proprietary and Confidential. 14

15. Budget Management: Determine best use of budget
Evaluate pricing structures to mitigate advertiser risk
• CPM (Cost per 1000 Impressions)
High Risk
• Dynamic CPM (Bid-based CPM)
Medium
Risk • CPC (Cost per Click)
• CPA (Cost per Action)
Low Risk
Bid-based pricing enables setting a maximum allowable price that achieves ROI
goals
Affiliate channels deliver incremental conversions at fixed acquisition goal metric
Conversion
Data Advanced Account Budget Creative Campaign
Path
Integration Targeting Structure Management Testing Optimization
Optimization
© comScore, Inc. Proprietary and Confidential. 15

16. Case Study Example: Max CPC bidding to drive efficiency
Able to use bid optimization platform
Dynamically adjust bids to allowable levels based on historical performance
Set daily spending caps to avoid over saturation
Enabled cross-channel optimization
– One system, one budget
– Allocate incremental dollars most efficiently
© comScore, Inc. Proprietary and Confidential. 16

17. Creative Testing: Test, test, test
Iterative process where goal is to continually improve your ROI
– Increased efficiency drives increased volume
Develop a testing methodology that isolates creative elements:
– A/B testing
– Multivariate testing
Conversion
Data Advanced Account Budget Creative Campaign
Path
Integration Targeting Structure Management Testing Optimization
Optimization
© comScore, Inc. Proprietary and Confidential. 17

18. Case Study Example: Tested 3 concepts per ad size
Followed best practices to improve efficiency:
– Animation creates attention
– Clear value proposition inspires action
– Call to action language demonstrates intent of ad
– Relevance reduces banner blindness
© comScore, Inc. Proprietary and Confidential. 18

19. Conversion Path Optimization:
Determine success and friction elements affecting conversion
Analyze conversion beyond the initial landing page
Increase consumer motivation by incorporating banner and paid search copy
Test and identify bounce rate and conversion contributors
Reduce friction factors to increase progression
– Reinforce credibility with qualifiers
– Keep content short and to the point
– Show a clear progression path for a multiple page process
Conversion
Data Advanced Account Budget Creative Campaign
Path
Integration Targeting Structure Management Testing Optimization
Optimization
© comScore, Inc. Proprietary and Confidential. 19

20. Case Study Example: Optimized conversion experience
Landing page emphasized key messages from ads
Reduce friction by providing a path
– Minimal bounce points keeps the user on task
– Reinforcement cues build consumer confidence
© comScore, Inc. Proprietary and Confidential. 20

21. Campaign Optimization: Apply targets/filters to deliver ROI
Campaign structure enables detailed data analysis
Isolate targeting criteria affecting performance
– Remove underachieving inventory, content channels or sites
Lock in additional inventory at allowable pricing
Duplicate successful campaigns across multiple networks
Conversion
Data Advanced Account Budget Creative Campaign
Path
Integration Targeting Structure Management Testing Optimization
Optimization
© comScore, Inc. Proprietary and Confidential. 21

22. Many solutions with good reach
© comScore, Inc. Proprietary and Confidential. 22

23. Key Points
To drive ROI, adopt a “search” mindset to display advertising
Display budgets can be justified using same direct response tactics of paid
search
Disciplined methodology and commitment to ongoing testing will increase
effectiveness of display efforts
Conversion
Data Advanced Account Budget Creative Campaign
Path
Integration Targeting Structure Management Testing Optimization
Optimization
© comScore, Inc. Proprietary and Confidential. 23

24. Agenda
Introduction
Applying Search Intelligence to Display Advertising
Search & Display Advertising - Quantifying the full ROI beyond Direct
Response
© comScore, Inc. Proprietary and Confidential. 24

25. Powerful Platform
Global Panel of 2MM Users, Largest of Its Kind
The Only Global Measurement of Audience
°
360° View of Consumer Behavior
and e-Commerce
Web Visiting
and Viewing
Demographics Online
Life Stages Transactions
Streaming Search
Video Behavior
32 Media Metrix Reported Countries Media
Exposure
172 Countries with Sample Presence
© comScore, Inc. Proprietary and Confidential. 25
25

26. Growth in online advertising slowed in 2008
Total Online Advertising
$ Billions and % Chg vs. YA
+23% +18% +13% +11%
7 +29% +24% +27% 5.9 5.8 5.9
5.7
6 5.2
4.9 5.1
5
4
3
2
1
0
Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08
Source: PricewaterhouseCoopers and the Internet Advertising Bureau (IAB)
© comScore, Inc. Proprietary and Confidential. 26

27. Search spending continued to grow strongly through Q2 2008
Total Search Advertising
$ Billions and % Change vs. YA
$8.00
+24%
+30% $5.06
+30% $4.71
+29% $4.10
+37% $3.64
$4.00 $3.16
$0.00
H1 06 H2 06 H1 07 H2 07 H1 08
© comScore, Inc. Proprietary and Confidential. 27

28. Growth in online display advertising slowed in 2008
and shifted dramatically to pay-for-performance
Total Online Display Advertising
(CPM + CPC)
$ Billions and % Chg vs. YA
$3.03 $3.01
$2.93 $2.93
$2.82 $2.86 +12% +9% +8% +5%
3 $2.70 +19% +16%
+17%
2
Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08
Source: CMR
Data include static and rich display but do not include paid search or video ads
© comScore, Inc. Proprietary and Confidential. 28

29. The Right Metrics are Critical:
Clicks Understate Campaign ROI
© comScore, Inc. Proprietary and Confidential. 29

30. Decline in online ad click-through rates
2.50%
2.50%
In 2008, comScore measured
2.00%
click rates as less than 0.1%
1.50%
1.12% 2002
2006
1.00%
0.41%
0.50% 0.20%
0.00%
Rich Media Non-Rich Media
Sources: Doubleclick, eMarketer, Eyeblaster, ABI Research estimates
© comScore, Inc. Proprietary and Confidential. 30

31. Clickers follow the 80/20 rule
100% 6%
10% 18%
16% 50%
31% Heavy
Moderate
Light
68% 30% Non
51%
20%
0%
% Internet Pop % of Clickers % of Clicks
Source: comScore Natural Born Clickers study for Tacoda & Starcom,
Total US Online Population, July 2007
Clickers are predominantly
younger (25 - 44) with lower income (under $40K)
© comScore, Inc. Proprietary and Confidential. 31

32. Clicks on display ads are a misleading metric
and don’t reflect brand-building effects
Only use for direct response ad campaigns (or search)
Clicks don’t measure all of a campaign’s sales impact nor the cumulative (latent)
impact of ads
Clicks don’t tell you anything about brand building effects
© comScore, Inc. Proprietary and Confidential. 32

33. “The Role of Search in Consumer Buying”
comScore study with Google
The Three Components of how Search Drives Buying
Direct Online Effects 16%
Latent Online Effects 21%
Latent Offline Effects 63%
Only measuring direct online effects understates ROI by a factor of 6X
Source: Google/comScore “The Role of Search in Consumer Buying” Press Release, March 21, 2006;
based on holiday-related purchases completed online and offline across 11 product categories for 60 days post-search
© comScore, Inc. Proprietary and Confidential. 33

34. The Impact of Display
and
Search Advertising
© comScore, Inc. Proprietary and Confidential. 34

35. Measuring the Holistic Impact of Online Ad Campaigns
200+ studies conducted to assess the impact of paid search and online ads on
online and offline sales
Real world analysis: comScore panelists divided into two matched groups
(exposed and non-exposed to advertising)
– Search only
– Display ads only
– Search and display ads together
– Neither
Passively measured behavior and / or surveys
– Linked to in-store buying through CRM databases, retailer loyalty cards (we have 125
Million card dataset accessible), credit card data, IRI scanner panel
© comScore, Inc. Proprietary and Confidential. 35

36. Display Ads Lift Site Visitation Across All Verticals
Advertiser Site Reach
Weeks 1-4 after first exposure
4.5% % Lift: 46%
Average, N=139 ∆ Lift: 2.1%
6.6%
0.9% % Lift: 114%
Automotive, N=38 ∆ Lift: 1.0%
1.9%
1.3% % Lift: 86%
Finance, N=16 ∆ Lift: 1.1%
2.3%
0.6% % Lift: 77%
CPG & Restaurant, N=10 ∆ Lift: 0.5%
1.1%
9.1% % Lift: 52%
Retail & Apparel, N=21 ∆ Lift: 4.7%
13.8%
7.0% % Lift: 42%
Media & Entertainment, N=24 ∆ Lift: 2.9%
10.0%
5.8% % Lift: 25%
Electronics & Sof tware, N=14
7.2% ∆ Lift: 1.5%
4.8% % Lift: 21%
Travel, N=9
5.8% ∆ Lift: 1.0%
Control Test
© comScore, Inc. Proprietary and Confidential. 36

37. Display ads don’t just increase site visiting: trademark searches also
continue to see a lift over the 4 weeks past exposure to an ad
Results from comScore Campaign Effectiveness Studies
% Making a TM/Brand Search
0.9%
0.7%
0.6%
0.5%
0.5%
0.4%
0.3%
0.2%
% Lif t: 52.3% % Lif t: 46.0% % Lif t: 40.3% % Lif t: 38.1%
Week of f irst Weeks 1-2 af ter Weeks 1-3 af ter Weeks 1-4 af ter
exposure f irst exposure f irst exposure f irst exposure
Control Test
© comScore, Inc. Proprietary and Confidential. 37

38. Clear synergies between search and display in driving online sales
% Making A Purchase on the Advertiser Site
(Retail Only) 5.1%
2.4% 1.9%
1.0% 1.5% 1.1%
Display Only Search Only Search & Display
% Lift: +42% % Lift: +121% % Lift: +173%
Online $$ per 000 Exposed
(Retail Only)
$6,107
$2,724 $2,723
$994 $1,263 $1,548
Display Only Search Only Search & Display
% Lift: +27% % Lift: +76% % Lift: +124%
Control Test
© comScore, Inc. Proprietary and Confidential. 38

39. Online is important but you can’t ignore offline buying either
Higher offline sales lifts are found for search advertising vs. display but when
combined the synergy provides even more lift
Lift generated by online advertising is significant and would not be captured by
a CPC or cookie-based model
Incremental Impact on Offline Sales per (000) Exposed
© comScore, Inc. Proprietary and Confidential. 39

40. Higher reach of display ads often lifts sales more than does search
The overall number of unique people reached by display ads is typically much
higher than search
As a result, even though the sales lift among those exposed to a search ad is
higher, the total dollar sales gained from display ads is often larger than search
due to the smaller lift acting on a larger base
Incremental Impact on Offline Sales per (000) Exposed
81% 119%
% of Total 82%
Exposed
Group
11% 8% 16%
Search & Search Display
Display Only Only Search and Display Search Only Display Only
© comScore, Inc. Proprietary and Confidential. 40

41. Key Points
Online Advertising spend is still growing, but not nearly as fast as it has in the past
When considering the full impact of both Search & Display ROI, you must take into
account the soft dollar metrics
Both Search & Display see most of their value in latent response, both online and
offline
Although Search is the ultimate direct response champion, greater frequency of
exposure to Display ads can drive greater sales through volume of impressions
© comScore, Inc. Proprietary and Confidential. 41

42. Thank You.
Eli Goodman Keith Wilson
egoodman@comscore.com keith.wilson@thesearchagency.com