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Transforming
   Search in the
Digital Marketplace
  Dr. Jason Davis
  Director of Search & Data
  jdavis@etsy.com / @jasondavis
(the change)
6 months from inception to
launch
3 engineering teams
3 product launches
5 different functions
1 startup acquisition
4 months to realize success
About Etsy

History of Etsy search

The pitfalls of recency

Relevancy: strategy and goals

Takeaways: what we learned
By the Numbers
1.5B pageviews/month

$525MM sales in 2011

40MM unique visitors/month

800k shops / 150 countries
The beginnings
  June 2005
  the birth of Etsy




2005        2006      2007   2008   2009   2010   2011   2012
SELECT * FROM listings 
WHERE title LIKE 
'%silver%'
ORDER BY creation_tsz;
Text




                               December 2008
                               Solr / Lucene




2005   2006   2007   2008          2009        2010   2011   2012
Text




                                          December 2009
                                          Jason starts at Etsy




2005   2006   2007   2008          2009     2010         2011    2012
Relevancy
“For the next three Thursdays, we will change the
default sorting method for all searches on Etsy,
from recency to relevancy.”
                            Text




                                          January 2010




2005   2006   2007   2008          2009     2010         2011   2012
The recency
 problem
Buyer experience
I was looking for a pink bonnet with blue
polka dots. I searched for "polka dot
bonnet" but all I got were vintage polka
records. Then I wanted a classic rock album
and searched for "rock and roll" and got
nothing but circular stones.
http://www.etsy.com/blog/news/2007/search-what-you-wanted-and-what-you-got/
Predictability
Visibility
Strategy
Better buyer
  experience
Improved search
   relevancy
Better
advertising for
  Search Ads
More search
insight for
Shop Stats
Sequencing
Search Ads
development

April   May   June   July   August   September   October
Core system and architecture

Keyword pricing & analysis

Ad buying experience

Ad quality

Integration with search
Search
improvements

April   May   June   July   August   September   October
Side by side
testing
Tweaking &
tuning
Experimental
analysis
July 21, 2011
                            Shop Stats with referrals




April   May   June   July           August     September   October
“We plan to move search by relevancy
   to the default search setting once we
   feel this is the strongest site
   experience.”              Natalie on the Blog
http://www.etsy.com/blog/en/2011/putting-your-shop-on-top-etsy%E2%80%99s-most-relevant-
                                                                                search/




                                                 July 28, 2011
                                                 Announcing the switch




    April       May           June        July         August     September   October
“As we continue to develop search
sorted by relevancy, our goal is to
make this the default site
                                  Frank in the Forums
experience.”http://www.etsy.com/teams/7718/site-help/discuss/8755739/




                                         July 28, 2011
                                         Announcing the switch




  April     May        June       July         August    September   October
“With more buyers coming to the site
     over the holidays, we know it’s critical
     that we improve the search experience on
     Etsy. We want to make those changes
     well in advance of the holiday season to
     give you plenty of time to prepare, so
     we’ve begun communicating what
     changes you may need to make to your
                                                              Notes from Chad
     listings”
http://www.etsy.com/blog/en/2011/keeping-it-relevant-default-search-is-now-sort-by-relevancy/




                                                       August 1, 2011
                                                       A note from our CEO




      April        May           June         July          August     September   October
August 9, 2011
                            Switch flipped to relevancy




April   May   June   July    August     September   October
September 1, 2011
                                     Surprise!




April   May   June   July   August   September   October
September 20, 2011
                               Search ads available for purchase




April   May   June   July   August    September   October
September 28, 2011
                                            Search ads go live




April   May   June   July   August   September   October
Takeaways
Make hard
decisions
Understand
   your
customers
Communicate
   Set
Ship
awesome
  stuff
Resources
Code as Craft blog
http://codeascraft.etsy.com/

Slides (including these)
http://www.slideshare.net/etsy

Github
http://github.com/etsy/

Join in the fun
http://www.etsy.com/careers/
Transforming Search in the Digital Marketplace

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Transforming Search in the Digital Marketplace

  • 1. Transforming Search in the Digital Marketplace Dr. Jason Davis Director of Search & Data jdavis@etsy.com / @jasondavis
  • 3. 6 months from inception to launch 3 engineering teams 3 product launches 5 different functions 1 startup acquisition 4 months to realize success
  • 4. About Etsy History of Etsy search The pitfalls of recency Relevancy: strategy and goals Takeaways: what we learned
  • 5.
  • 6. By the Numbers 1.5B pageviews/month $525MM sales in 2011 40MM unique visitors/month 800k shops / 150 countries
  • 7. The beginnings June 2005 the birth of Etsy 2005 2006 2007 2008 2009 2010 2011 2012
  • 9.
  • 10. Text December 2008 Solr / Lucene 2005 2006 2007 2008 2009 2010 2011 2012
  • 11. Text December 2009 Jason starts at Etsy 2005 2006 2007 2008 2009 2010 2011 2012
  • 12. Relevancy “For the next three Thursdays, we will change the default sorting method for all searches on Etsy, from recency to relevancy.” Text January 2010 2005 2006 2007 2008 2009 2010 2011 2012
  • 14. Buyer experience I was looking for a pink bonnet with blue polka dots. I searched for "polka dot bonnet" but all I got were vintage polka records. Then I wanted a classic rock album and searched for "rock and roll" and got nothing but circular stones. http://www.etsy.com/blog/news/2007/search-what-you-wanted-and-what-you-got/
  • 18. Better buyer experience Improved search relevancy
  • 22. Search Ads development April May June July August September October
  • 23. Core system and architecture Keyword pricing & analysis Ad buying experience Ad quality Integration with search
  • 24. Search improvements April May June July August September October
  • 28. July 21, 2011 Shop Stats with referrals April May June July August September October
  • 29. “We plan to move search by relevancy to the default search setting once we feel this is the strongest site experience.” Natalie on the Blog http://www.etsy.com/blog/en/2011/putting-your-shop-on-top-etsy%E2%80%99s-most-relevant- search/ July 28, 2011 Announcing the switch April May June July August September October
  • 30. “As we continue to develop search sorted by relevancy, our goal is to make this the default site Frank in the Forums experience.”http://www.etsy.com/teams/7718/site-help/discuss/8755739/ July 28, 2011 Announcing the switch April May June July August September October
  • 31. “With more buyers coming to the site over the holidays, we know it’s critical that we improve the search experience on Etsy. We want to make those changes well in advance of the holiday season to give you plenty of time to prepare, so we’ve begun communicating what changes you may need to make to your Notes from Chad listings” http://www.etsy.com/blog/en/2011/keeping-it-relevant-default-search-is-now-sort-by-relevancy/ August 1, 2011 A note from our CEO April May June July August September October
  • 32. August 9, 2011 Switch flipped to relevancy April May June July August September October
  • 33. September 1, 2011 Surprise! April May June July August September October
  • 34.
  • 35. September 20, 2011 Search ads available for purchase April May June July August September October
  • 36. September 28, 2011 Search ads go live April May June July August September October
  • 39. Understand your customers
  • 40. Communicate Set
  • 42. Resources Code as Craft blog http://codeascraft.etsy.com/ Slides (including these) http://www.slideshare.net/etsy Github http://github.com/etsy/ Join in the fun http://www.etsy.com/careers/

Notas do Editor

  1. \n
  2. Last summer, Etsy changed its default sort ranking from recency sorting to relevancy sorting. In many levels, the change was seemingly innocuous, consisting of a few changed pixels and a couple of lines of code.\n
  3. Behind the scenes, the change involved a substantial effort, including collaboration between engineering, product, marketing, support, and finance.\nA big part of the change was the launch of Etsy’s first performance-based keyword ad system called search ads. Search ads inventory today is sold out.\n
  4. An overview of what I’ll be covering today.\n
  5. Etsy is the world’s handmade marketplace\n
  6. \n
  7. Etsy was founded in June of 2005. The site offered basic functionality to buy, sell, and search.\n
  8. Etsy’s initial search technology wasn’t too much different from this. While simple, this form of searching could easily be gamed by sellers by simply “renewing” their item, which updated their creation_tsz timestamp.\n
  9. An entire culture and cottage industry grew around keeping your creation_tsz as recent as possible.\n
  10. As Etsy grew, we encountered scaling issues. Our search was modernized in late 2008. However, seller behavior around renewing and expectations around sorting by recency were set at this point. The new technology launched largely behind the scenes; the sorting behavior from a user’s perspective was unchanged.\n
  11. \n
  12. Relevancy Thursdays was a fun science experiment. We learned a lot, and not all sellers found it to be very fun.\n
  13. \n
  14. Sorting by recency provides a sub-optimal buyer experience.\n
  15. Renewing a listing costs $0.20, and the effect of renewing was highly unpredictable. It could vary based on category, time of day, and season.\n
  16. Other than search on etsy.com, sellers had very little visibility into their shop’s performance.\n
  17. I’m here today to talk about strategy....\n
  18. Improving search relevancy would lead to a better buyer experience. Moving towards black-box search sorting enabled us to take control of search and set direction.\n
  19. We wanted to build an advertising product that was performance based, simple to understand, and measurable.\n
  20. Understanding shop performance from an analytics point of view is critical\n
  21. So, we launched a new ad product, new seller analytics, and switched the default sort order of search. What order did we do this in? \n
  22. Search ads was a large undertaking and took many months of development effort. Components include keyword selection, keyword pricing, statistical problems around scheduling, billing, and the buying console\n
  23. An overview of what I’ll be covering today.\n
  24. Before making the switch to relevancy, we made several key improvements to our search ranking algorithms. \n
  25. We used human raters to judge improvements in search quality via a side by side testing tool that we developed in house.\n
  26. \n
  27. We ran dozens of 1% search experiments on Etsy.com and carefully measured changes in response\n
  28. Our first major release was shop stats. Before making any changes to search or ad campaigns, we felt it was critically important for sellers to understand the data behind their shop.\n
  29. When we announced our intentions to make the switch, our communications spanned several sources, including the blog and the forums. This was an important announcement and we wanted to make sure it was heard.\n
  30. When we announced our intentions to make the switch, our communications spanned several sources, including the blog and the forums. This was an important announcement and we wanted to make sure it was heard.\n
  31. Affirmation from Chad was an important part of our communications strategy. It stressed the importance of this initiative to our sellers.\n\n
  32. We made the switch to relevancy before releasing an advertising alternative. The lack of clear search advertising options for sellers also represented lost revenue for Etsy. We felt that this reinforced our message that this change was best for the marketplace.\nPriori to the switch, over 90% of all searches were sorted by recency. After the switch, over 90% of searches were sorted by relevance.\n
  33. \n
  34. \n
  35. \n
  36. \n
  37. What did we learn?\n
  38. Doing this wasn’t easy. It was disruptive to the marketplace. But we felt it was necessary.\n
  39. At Etsy, we have two primary customers.\nSellers are much more outspoken. We listened to them very carefully, and thought very hard. Some sellers were very unhappy with the change.\nBuyers are much quieter. They spoke through quantitative improvements we saw with our search changes.\n
  40. We communicated with our sellers early and often. We set direction both through our standard channels (blogs, forums, etc.), but also through our actions.\n
  41. Without great products, this would have all failed.\n
  42. \n
  43. \n