How to increase conversions and lower CPA for Google Display Network using

AdMetrica

• The webinar is recorded and will be made available

• The slides will also be available

• Q&A session at the end of the webinar

• Use the Chat box to submit your questions at any time

House Keeping

Marc Poirier

Co-Founder and CMO

Bryan Minor

Chief Scientist

Presenters

WHY DID WE ACQUIRE SCIENCE OPS?

Integration with Acquisio

• The technology we’re about to discuss needs experts to setup and make adjustments

• Fully managed solution for now• We help you sell it to your clients• Focus on accounts with LOTS of conversions• Works GREAT with general interest offers like retail, dating,

magazine subscriptions, membership offers, education, lead gen, etc.

• First integration is already “completed”

About GDN

• No details on exact size of business• Tied with FB for Display Revenue but growing faster

(emarketer)• AVG CTR 0.4% - 10x higher than FB • CPC model• Lots of inefficiencies in market = opportunity!!• Very different from search• Can bring scale to ad campaigns if done right• Can also be a huge disappointment when done wrong• Opportunity for advertisers is significant

ScienceOps

Algorithmic expertise in astrophysics, genetics, and online advertising

Google Display Network

The first technology devoted exclusively to optimizing GDN conversions. The first technology devoted exclusively to optimizing GDN conversions.

AdWords API

The Algorithms of AdMetrica run within Google AdWords (via API).The Algorithms of AdMetrica run within Google AdWords (via API).

Purpose

• CPA target + Conversion volume + Spend control• CPA target + Conversion volume + Spend control

GDN Revenue Growth

Performance Advertising Growth

GDN Display Market Share

18.1272857142858; 59%

6.52471428571427; 21%

5.84; 19%

2011 Display Ad Spend (in Billions $ with and Market Share %)

Other Display

International GDN

US GDN

CPA at volume

Ad Placement?

Scope of AdMetrica

Ad Selection Ad Selection

Thank-you Page

Thank-you Page

Purchase or Registration

Purchase or Registration

URL PlacementURL Placement

Keyword ListsKeyword Lists

Ad CreativeAd Creative

AdMetrica

Client

Landing PageLanding Page

Client

BudgetBudgetBiddingBidding

Variables Optimized

1. Keyword Lists

2. Ad Placement

3. Bid Pricing

4. Budget Control

5. Ad Selection

Five Conv. Variables

Keywords

Keyword lists are constantly (algorithmically) sampled, tested and rewarded according to live performance data and quality score feedback. This gains access to an ever-expanding number of GDN pages that convert.

1. Keyword Lists

Ad Placement

Ad-to-page placements are controlled down to the URL level, increasing a given ad’s relevance (and its CTR) by more closely fitting the ad to the content of the page.

2. Ad Placement

Bids

Algorithms bid in a live and dynamic process that allows for far greater control over bid pricing. This enables either suppression of CPA or, if desired, incremental bid increases to gain conversion volume

3. Bid Pricing

Daily Budget

4. Budget Control

By monitoring of daily budgets hourly, algorithms can allocate budgets only to campaigns that warrant it. This lowers CPA by cutting off underperforming campaigns, and feeds budgets to high performance campaigns.

Ads

Metrics-based analysis allows for comparative performance evaluation between ad creatives This allows for an objective measurement of ad performance.

5. Ad Selection

Not for Humans

To effectively gain conversions at the right price, an enormous number of decisions are made by AdMetrica’s algorithms.

The daily job of properly managing a GDN account (i.e. choosing keyword list combinations, making budgeting adjustments, targeting URL’s for ad placement, and fine tuning bid prices) requires an average of over 100,000 decisions.

For this, a human would be need to make 1.2 decisions every second – with perfect accuracy.

Decisions: 100,000+/day/campaign

2 Stage Conversions

• Stage 1• Customer joins site with a free membership• Customer information acquired

• Stage 2• Conversion event with revenue • Campaign Quality of conversions• Feedback drives the process

2 Stage Conversion Approach

Target = $1.40Mean = 1.39, SD = 0.27

0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 2.2 2.40

20

40

60

80

100

120

140

avgCPA

Freq

uenc

y

Old Bid Algorithm

0.1%-74.9%

75.0%-99.9%

100.0-124.9%

125%-149.9%

150%-174.9%

175.0%-199.9%

200%-224.9%

225%-249.9%

250%-274.9%

275%-299.9%

300%+0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

March 26-31: CPA Accuracy for US

26-Mar-1227-Mar-1228-Mar-1229-Mar-1230-Mar-1231-Mar-12TOTAL

CPA Accuracy as a % of Target(Target Varies by Campaign)

Avg.

# o

f Con

v./C

ampa

igns

New Bid Algorithm

0.1%-74.9%

75.0%-99.9%

100.0-124.9%

125%-149.9%

150%-174.9%

175.0%-199.9%

200%-224.9%

225%-249.9%

250%-274.9%

275%-299.9%

300%+0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

May 18-23: CPA Accuracy for US

18-May-1219-May-1220-May-1221-May-1222-May-1223-May-12TOTAL

CPA Accuracy as a % of Target(Target Varies by Campaign)

Avg.

# o

f Con

v./C

ampa

ign

• CPA decreased• CPC targeting optimization on major solo site – 30% decrease • Mobile advertising

• Dropped overall CPA by 30%+• 35% cheaper than average

• Conversions increased• Mobile increased volume by 180%+• Audiences increased volume by 15%+• More solo site targeting increased volume by 10%+

Case Study #1 – MRD1

• CPA decrease• Decreased by 30% due to fine grain targeting

• Focused optimization of bidding on the very best sites

• Conversion increase• Great solo placement (domain) targeting increased by 40%+• Increased Side door targeting increased by 20%+

Online Dating campaigns

Google Display Network ad engine

Tsunami Effect

Google Display Network conversion engine

AdMetrica captures surges of conversions (and plummeting CPA’s) accompanying sudden spikes in Google’s general search traffic volume.

AdMetrica GDN CPA

Google Search Vol.

AdMetrica GDN Conv #

dddddddddddddddddfdffffggfffffffffffffffffffffffffffffffffffffffffffffgfffffffffffvggd zdddddddddddddddddfdffffggfffffffffffffffffffffffffffffffffffffffffffffgfffffffffffvggd z

Aug 1 2011

Aug 15 2011

Aug 6 2011

Aug 18 2011

Sep 4 2011

1,000

0

2,000

3,000

4,000

5,000

8,000

7,000

6,000

Sep 5 2011

Aug 2 2011

Aug 3 2011

Aug 5 2011

Aug 4 2011

Aug 7 2011

Aug 8 2011

Aug 9 2011

Aug 10 2011

Aug 11 2011

Aug 12 2011

Aug 13 2011

Aug 14 2011

Aug 16 2011

Aug 17 2011

Aug 22 2011

Aug 19 2011

Aug 20 2011

Aug 21 2011

Aug 23 2011

Aug 24 2011

Aug 25 2011

Aug 26 2011

Aug 27 2011

Aug 28 2011

Aug 29 2011

Aug 30 2011

Aug 31 2011

Sep 1 2011

Sep 2 2011

Sep 3 2011

Google Search*(sweepstakes)

AdMetrica GDN Conv.s(sweepstakes)

* Source: Google Trends

Google Search Activity

$ CPA(sweepstakes)

$1.25

$1.50

$1.75

$2.00

$2.25

$2.50

$2.75

$3.00

$3.25

Light Box Sales Funnel

Clients

“The (Google) display network has always been cloaked in mystery, but AdMetrica seems to have cracked the code. This technology allows us to scale faster while lowering costs. I’ve never seen anything quite like it.”

– Joe Davison, eComm. Mgr., Meredith Media

“The (Google) display network has always been cloaked in mystery, but AdMetrica seems to have cracked the code. This technology allows us to scale faster while lowering costs. I’ve never seen anything quite like it.”

– Joe Davison, eComm. Mgr., Meredith Media

“American Family has never seen conversion numbers like this; it took AdMetrica only 3 days to outperform our prior GDN numbers by more than 100%.”“American Family has never seen conversion numbers like this; it took AdMetrica only 3 days to outperform our prior GDN numbers by more than 100%.”

– Scott Krauss, Mtg. Mgr., Am.Family, Time Inc.

1. Paperwork complete2. Provided by client

• Ads for campaigns• Sales funnels (landing page to thank you page)• Performance data on previous efforts • Account access granted for MCC access

3. Kickoff meeting 4. Initial keyword lists created and approved5. Initial launch6. 30 day incubation period

Getting started with AdMetrica

THANK YOU

QUESTIONS?