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Full Value of Digital –
Spanning the divide
Adrian Joseph and Shane Cassells
Google
A story from life
Attribution +6%
conversion

Conversions
+15% conversion

4 key value driving
FVoD levers

Online2Store
+ 13% sales

Bid Management
–14% CPA
Perfect Attribution Is Impossible…

TV

Print

Product Launches

Pricing

Time between touches

Impression
Rich Media

Click

Creative
Landing Page

Engagement

MicroConversions

Time from conversion
Seasonality

Brand Awareness

Competitors

Multiple Devices
..though being less wrong improves ROI
“We did some analysis of brand sales assisted by generic
search. The growth we are seeing from this is much higher than
we expected; attribution is clearly working for us.‖
— Danny Catapano, PPC Manager, On the Beach

25%
Return On
Investment
The ―Desktop2Store effect‖ has been proven many times

Up to 13%

Up to 10%

Average 6:1

Up to 2x

of offline sales directly
attributable to visits to
a retailer’s website

lift in category-level sales
through up-weighted
Paid Search

offline Return on Ad
Spend (ROAS) from
online advertising

higher in-store
basket size through
online advertising
We have also recently proved the ―Mobile2Store effect‖
Incremental store sales margin from Ad Spend

5:1
incremental store sales margin
in the Test vs. Control areas
Bid optimization makes or breaks ROI
300%

$10,000

Start date

$8,000

200%

$6,000
$4,000

100%

$2,000
0%

$0

1/15/12

2/1/12

2/18/12

3/6/12

3/23/12

4/9/12

88%
of users saw significantly improved
performance of bid strategies

4/26/12
ERS
Revenue

Start date

6000

$3.00
$2.50
$2.00
$1.50
$1.00
$0.50
$0.00

4000
2000
0
2/6/12

2/10/12

2/14/12
actions

2/18/12
CPA

2/22/12

2/26/12

50%
of users more than doubled
conversions at half the CPA
Conversions - small changes, high return
Visits

5,000,000

Does not bounce

4,000,000

80%

Finds a product

2,500,000

63%

Adds to shopping cart

200,000

8%

Starts checkout

150,000

75%

Orders

100,000

67%

Average order value

Gross revenue

What if
this was 70%?
105,000

At € 45?

€ 40

€ 45

€ 4,000,000

+ € 200,000
Thank you

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Google - NOAH13 London

  • 1. Full Value of Digital – Spanning the divide Adrian Joseph and Shane Cassells Google
  • 3. Attribution +6% conversion Conversions +15% conversion 4 key value driving FVoD levers Online2Store + 13% sales Bid Management –14% CPA
  • 4. Perfect Attribution Is Impossible… TV Print Product Launches Pricing Time between touches Impression Rich Media Click Creative Landing Page Engagement MicroConversions Time from conversion Seasonality Brand Awareness Competitors Multiple Devices
  • 5. ..though being less wrong improves ROI “We did some analysis of brand sales assisted by generic search. The growth we are seeing from this is much higher than we expected; attribution is clearly working for us.‖ — Danny Catapano, PPC Manager, On the Beach 25% Return On Investment
  • 6. The ―Desktop2Store effect‖ has been proven many times Up to 13% Up to 10% Average 6:1 Up to 2x of offline sales directly attributable to visits to a retailer’s website lift in category-level sales through up-weighted Paid Search offline Return on Ad Spend (ROAS) from online advertising higher in-store basket size through online advertising
  • 7. We have also recently proved the ―Mobile2Store effect‖ Incremental store sales margin from Ad Spend 5:1 incremental store sales margin in the Test vs. Control areas
  • 8. Bid optimization makes or breaks ROI 300% $10,000 Start date $8,000 200% $6,000 $4,000 100% $2,000 0% $0 1/15/12 2/1/12 2/18/12 3/6/12 3/23/12 4/9/12 88% of users saw significantly improved performance of bid strategies 4/26/12 ERS Revenue Start date 6000 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 4000 2000 0 2/6/12 2/10/12 2/14/12 actions 2/18/12 CPA 2/22/12 2/26/12 50% of users more than doubled conversions at half the CPA
  • 9. Conversions - small changes, high return Visits 5,000,000 Does not bounce 4,000,000 80% Finds a product 2,500,000 63% Adds to shopping cart 200,000 8% Starts checkout 150,000 75% Orders 100,000 67% Average order value Gross revenue What if this was 70%? 105,000 At € 45? € 40 € 45 € 4,000,000 + € 200,000

Notas do Editor

  1. NYT Article on Feb 29th – according to Google and Microsoft competitors with page load speed differences greater then 250 milliseconds or ¼ of a second will be returned to less often by their target users.Aberdeen Group – 1 second delay in page load time = 7% loss in conversions, 11% fewer pages viewed, 16% decrease in customer satisfactionSee also: http://econsultancy.com/uk/blog/9790-slow-loading-websites-cost-retailers-1-73bn-in-lost-sales-each-yearFocus Wright research in 2010 suggests that the average travel user is willing to wait 2-3 seconds max for a page to open.
  2. This is going to be a terrifying concept for some of the people in the audience today but you need to have a web marketing team.A what? We have those. No, I mean that you need your website team and your marketing team to have the same targets. There is no more room for separate departments or reporting lines here. At the very least, developers sitting in another team or department should be incentivised to work with the people responsible for the success of advertising.
  3. 8 seconds is the amount of time the average user spends on a landing page before deciding to leave.There is no such thing as a training class or a manual for a website. People have to be able to grasp the function of the site immediately after scanning the home page – for a few seconds at most.