crm apppp p yroach to display & search - merkle...and email marketing enable our acquisition...

DIGITAL ACQUISITION EFFECTIVENESSEFFECTIVENESSCRM Approach to Display & Searchpp p y

Agenda

Digital Acquisition Overview

Optimizing Acquisition through Display

Display Market Overview

CRM Approach to Display

Optimizing Acquisition through Search

Search Market Overview

Search Case Study: Blue Cross

© 2011 Merkle Inc. All Rights Reserved. Confidential 2

Digital Acquisition Overview


Value Proposition Summary

At Merkle we believe that digital strategy is most effective when it is driven by data and takes in to account the entire customeris driven by data and takes in to account the entire customer experience.

Best in class capabilities in Search, Display, Site, Mobile, Social and Email marketing enable our acquisition strategies to focus on what drives your prospects to become customers instead of just the last step in the conversion process.

Utilizing Merkle’s CRM capabilities to join online and offline data, we create a complete picture of your customers from awareness to acquisition through their relationship with your brand We thento acquisition through their relationship with your brand. We then utilize that picture to build our strategy.


Approach to Integrated Digital Acquisition

Today Market Leaders

Disconnected data across channels Target across channels based on holistic Siloed visibility into what works and

what doesn’tview of the member, online and offline Understand the key points of influence for

members in making purchase decisions

Display Site

SearchSearch

Mobile/SocialEmail

DatabaseDisplay Site

E il

Database

Offline/DMMobile/SocialEmail

Offline/DM


Holistic View of the Customer

Di t M k ti

Marketers need a holistic view of the customer to target effectively across channels.

Site Visits• Site Visit

John• Age 58• Male• Boston

Direct Marketing• Targeting Models• Promotional History• Value• Current Relationship

Brand Marketing

Social• Likes• Social Graph• Facebook App

A Holistic View of the Customer Tells Us…

Search

Customer

W ddiYahoo Finance

Realtor.com

BrowsingEmail• Email Opens

John• Age 58, Male, Boston• Intent• High Value Potential

R i t tWeddings.com

Marketer

• Responsive to cost savings offers

• Ability to target effectively


Consumer Path to Conversion

Tracking today tends to only capture a small portion of consumer interactions and opens us up to losing potential customers to our competitors.

Display

Competitor Ad

Site

Mobile

p p g p per

sionPurchase

Search

Competitor Conversion

Social

mer

Pat

h to

Con

v

Consideration Conversion Occurs

Co pe o Co e s o

Cons

um

Time

Awareness


Acquisition Funnel and Media Usage

A1Awareness

Making the right customers

Consumer Interactions

Media Influence1Media usage can be optimized by analyzing the fractional allocation of conversion by channel.

29% Awareness1 Making the right customers aware of your product via cost effective programs.

35%

ConsiderationConsideration

Customers in market for your product based on

Acquisitionawareness built

C i36%

9

ConversionCustomers with

explicit interest in your product or your

brand

Fractional Allocation of Conversion brandConversion


1. Media influence is dynamic, based on the objective of each specific campaign or program.

How do we get there?

Re-target search users via display using search query data

1

using search query data

2Coordinate message, creative, and member segment targeting

#1 Auto InsuranceWebsite !

2

across all media

Integrate email re-targeting programs Develop mobile search and display programs3 4

Incomplete Applications

Completed Applications Mobile Site


Effective Integration is a Challenge


Display Market Overview


Display Ad Tech Ecosystem

Display: 9 BillionSearch: 17 Billion TV: 70 Billion

VC Investment: 2.5 billionIn DSPs only: 500 million

S L P tSource: Luma Partners


Display Evolution: 1995 ~ 2002

Advertisers buy display direct from publishers

Advertiser & Agency Publisher

$20 CPM

Market Practice

Pricing: $5-$60+ CPMs

Challenges

Price did not reflect value to the buyer

Price was base on negotiation skills Publishers chose individuals to display ads to

based on advertiser guidance

Operational burden: many sites, ad tags Little/No targeting


Display Evolution: 2002 ~ 2007

Ad ti &

Advertisers buy display from multiple ad networks

PublisherAdvertiser & Agency

$530%$3.50

30%$2.45

30%$1.75 $1.75

Market Practice

Pricing: CPA, or CPMs $.10 - $10 Price was base on negotiation skills

Challenges Daisy Chaining Pricing & site transparencyPrice was base on negotiation skills

Ad networks chose individuals to display ads on based on maximizing their margin

Frequency management Data leakage Scale


Display Evolution: 2007 ~ Present

Advertiser &

Advertisers buy display from publishers through technology

DSP SSP or Exchange

Advertiser & Agency

PublisherTechnology Layer

M k t P ti Ch ll

$2.5015%$2.13

15%$1.80 $1.80

Market Practice

Pricing: $.10 - $10, transparent tech fee Price based on analytics & data to value each

impression

Challenges

Confusing landscape, difficult to navigate Slow publisher adoption Change management new processes newimpression

Advertiser chooses individuals to display ads & offers to based on ROI

Change management – new processes, new skill sets


Today: Display Market Partnerships

Specialized entities known as “trading desks “ enable advertisers to navigate the display eco-system today.

Exchanges, SSPs & Value Add Networks DataDSPs & DMPs

Verification, OBA Publishers

p y y y

16© 2011 Merkle Inc. All Rights Reserved. Confidential

CRM Approach to Display


Customer Driven Messaging

Customize creative & offer to individual

Customize the Offer, Geo, or , ,

Product

K d G

Search Keywords Geo Offline Values Daypart Age/GenderExamples:

Keyword GroupRoth IRA

Brokerage AccountMutual Funds

CustomerDatabase

18© 2011 Merkle Inc. All Rights Reserved. Confidential

Customer Planning & Measurement

Plan at the customer level, not the site level

Site Driven Media Plan

Media Buy Acquisition Credit

Creative Frequency

Fox News 0 10

Media Buy Acquisition Credit

Creative Frequency

Fox News 0.2 10

Customer Driven Media Plan

The Knot 0 10Yahoo 1 10Zillow.com 0 10Total 1 40

The Knot 0 10Yahoo 0.8 10Zillow.com 0 10Total 1 10

Last click gets full credit

Total 1 40

Frequency management at the

Total 1 10

credit individual level


Customer Driven Optimization

Tie unit price to customer value

• Value Score = 5• High Potential to Convert

User Profile

$3.25

User Profile

• Value Score = 3• Potential to Convert $1.25

• Value Score = 1• Low Potential

(or Current Customer)


The Data Challenge: Anonymous & Identifiable

Capture anonymous & identifiable interactions for each customer

Anonymous Anonymous Identifiable Identifiable

Grow prospect database Tie anonymous to identifiable

Collect anonymous insights on views, clicks, and site visits such as: Current relationship

Potential ValueTie anonymous to identifiable Follow up with remarketing

efforts

Visits Psychographics Demographics Intent

Potential Value Segmentation


Search Market Overview


Search Hasn’t Changed Much in Ten Years


Or has it?

Google

Yahoo officially powered by Microsoft Yahoo J C Bing J CGoogle

introduces Expandable Map Ads for

Mobile July 29

adCenter And

Google introduces Place Search

Oct 27

Yahoo introduces

Rich Search Assist

Nov 17

J.C. Penney

Link Scheme exposedFeb 12

Bing Travel

partners with

KayakMar. 4

Google introduces

+1Mar. 30

Google introduces Hotel Price

AdsApril 10

J.C. Penney regains Google

RankingsMay 23July 29 Oct. 27 Nov. 17 Feb. 12 Mar. 4 April 10 May 23

June 2010June 2010 January 2011January 2011 June 2011June 2011

Sept. 22 Nov. 3 Jan. 31 Feb. 24 Mar. 23 April 8 May 10

June 2010June 2010 yy

Microsoft Launches

Bing Rewards

Google adds

Twitter Promoted

Tweets

Bing searches increase

by 13% in January

Google introduces “Farmer” algorithm update

Yahoo introduces

Search Direct with answers in the search

b

Gov’t signs off

on Google-ITA Deal

Microsoft buys

Skype

box


The Current State of Search…

“Search Marketing Spend reached $12 billion last year”

“SEO spending i t d t

“73% of adults compare prices online and 69%reached $12 billion last year

– Hitwise

“PPC t d f 56 3%

is expected to reach $3.8 billion by 2013” – eMarketer

prices online and 69% research products online before making a purchase” – Hitwise

“PPC accounted for 56.3% of digital ad spend in 2010” – WG Analysis “In 2011, Online advertising

increased 23% from 2010 and revenue grew 14%”

“Retailers are spending

“PPC is expected to reach $50 billion globally in 2014” Global

“Retailers earned an average of $10 per dollar spent on PPC during the

and revenue grew 14% – IAB

p gnearly 40% of their marketing budget on PPC” – Internet Retailer

2014 – Global Industry Analysts

spent on PPC during the 2010 holiday season” – Kenshoo


Paid Search Tactics


Advanced Search Programs Don’t Just Look At Keywords


Advanced Search Programs….

Analyze the Media Mix


Measure Engagement

Searcher A is only 70% as valuable as Searcher B and should be bought based on that value


Profile Customer Segments

All keywords generate unique customer segmentation interaction that can be: measured/managed/manipulated


Thank You

Matt NaegerExecutive Vice President / Strategy

IMPAQT, A Merkle CompanyQ , p [email protected]

Megan PagliucaMegan PagliucaVice President

Digital Media Optimization & [email protected]


crm apppp p yroach to display & search - merkle...and email marketing enable our acquisition...

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