Search Engine and Display Marketing: Data Challenges Rahul Nim Architect, Efficient Frontier 1 Agenda • What is Online Performance Marketing? – How is it done? – How is performance measured? • What constitutes performance data? • How is it collected? • What are the issues in data collection and analysis? • What is the future of online marketing? 2 Overview Customer Content Ads TV Print Other Search Display Content Content Sites Advertiser Analytics and Tracking Services 3 Display Overview Customer Ad Networks Display Ads Display Sites Advertiser Analytics and Tracking Services 4 Performance Marketing and Information • Companies need to get the most out of their marketing dollars. • How do we measure the performance of those dollars? – Broadcast Media (Traditional, but mind the future) – Direct Marketing Profit = Revenue - Cost Performance = Profit/Cost – Ad Networks – Search Engines – Social Networks and Mobile 5 Marketing on Search Engines and Ad Networks • How do Search Engines make money? – Organic Search Results – Paid Search Results, PPC/CPC model – Content Ads • How do Ad Networks make money? – Premium inventory – Biddable inventory, CPM model 6 Organic and Paid Search Examples 7 Paid Search Concepts • • • • • Advertiser Accounts Campaigns Ad Groups Ads Keywords 8 Search Marketing Optimization • SEO – Landing Page Optimization – Best practices • SEM – Optimally bidding on keywords – Designing effective ads 9 Performance Indicators (SEM) • Impressions • Clicks • Conversions 10 Collecting Performance Data: PixelBased Tracking Click Data Bat.jpg Redirect/Pixel server Conversion Data 3. Redirect … Cricketbats.com 11 Performance Data Elements • Browsers and Cookies, Unique IDs for events • Tracking URLs • What goes into the cookies – Tracking information: relating events to ads • Click and Impression data from search engines and Networks • Conversion data from web servers 12 Tracking Elements • Installed Ad URL url=http://pixel2002.everesttech.net/2002/rq/3/s_3aa8e5aa1261d038a0fe6ff 010d01ed9_2671584663_{keyword}_{creative}/url%3Dhttp%253A//www.vita minshoppe.com/store/en/index.jsp%253FsourceType%253Dps%2526source% 253Dgo%2526adGroup%253DVitamin%2526keyword%253Dvitamins%2526cm _mmc%253DPaid%252520Search-_-Google-_-Vitamin-_-vitamins • Click (generated) URLs http://www.google.com/aclk?sa=L&ai=CHdAMUkv7S8HMpisnwevg7Ac64yWyQGj4YqVCt6g7AQIABACKANQyeOVuwJgye7thsijoBnIAQ GqBBxP0HFcOLaERWbapnR_ZsmWw6q-L_64wP2v93j&sig=AGiWqtw1di18T6otSuXIM6tGzpvtXwmTqg&adurl=http://pixel2002.ever esttech.net/2002/rq/3/s_3aa8e5aa1261d038a0fe6ff010d01ed9_2671584663 _cheap+shoes_creative101/url%3Dhttp%253A//www.vitaminshoppe.com/sto re/en/index.jsp%253FsourceType%253Dps%2526source%253Dgo%2526adGro up%253DVitamin%2526keyword%253Dvitamins%2526cm_mmc%253DPaid%2 52520Search-_-Google-_-Vitamin-_-vitamins 13 Collecting and Using Performance Data • Build – Data generated and collected in-house from Web Servers – Analyzed internally • Buy – Tracking service from providers like Omniture, Google Analytics, Dart – Analytics providers like Core Metrics, Google Analytics – Combined like Efficient Frontier, Kenshoo 14 Collecting Performance Data: Mechanisms • Collecting data for self – First Party Cookies – Setting up web servers to log events • Collecting for clients (as a service provider) – HTTP redirect mechanism – Tracking info – Third party cookies – Javascript 15 Issues • Data quality – Detecting Duplicates – Detecting Click Fraud • Scalability – In collecting the data – In modeling – Redirecting – Example architectures 16 Performance Management in Display Networks • Similarities to SEM – Clicks and Conversions • Differences from SEM (and challenges) – Impressions – Campaign structures – Analysis and modeling – Real-Time Bidding (RTB) 17 So what should you do as a CMO? • People are spending increasing amounts of time on the internet – $6.3 Billion spent in Q4’09 • Develop an effective online marketing strategy – Budget for Online Advertising • Get ready for Online Video 18 …And as a CIO (from data perspective)? • Engage with service providers (Buy) – Evaluate Quality of Services – Evaluate future readiness • As service providers – More data • Social graph data for segmentation • Online video • Display impressions – (Real-time) Biddable media slots 19 References • SEM: http://en.wikipedia.org/wiki/Search_engine_marketing • Online advertising revenues: http://www.iab.net/insights_research/947883/adrevenuer eport • Cookies: http://en.wikipedia.org/wiki/HTTP_cookie • Generating unique IDs for events: http://httpd.apache.org/docs/1.3/mod/mod_unique_id.ht ml • Tracking URLs: http://help.yahoo.com/l/au/yahoo/ysm/sps/start/overview _trackurl.html • Click Fraud: http://en.wikipedia.org/wiki/Click_fraud 20