may 14-15, 2014 | icc excel, london...better rpc and roi: adobe on adobe 22 +66.6% +70.4% 19.5% 5.7%...
TRANSCRIPT
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. #AdobeSummit
May 14-15, 2014 | ICC ExCel, London
Learn more at summit.adobe.com/emea #AdobeSummit
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. #AdobeSummit
Leveraging Analytics Data for Large-scale Ad Optimisation Dr. Abhishek Pani | Sr. Principal Scientist, Adobe
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. #AdobeSummit 3
Data sparsity in
Leverage user behavior data from web analytics tools
big data era
E .g . Ad Optimisation
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. #AdobeSummit 4
Abhishek Pani Sr. Principal Scientist, Adobe
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. #AdobeSummit 5
Agenda
1 | Adobe Media Optimizer (AMO) and Adobe Analytics Integration
2 | Data in Ad Optimisation
3 | Why and how to leverage Analtyics data in AMO
4 | Examples and results
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. #AdobeSummit 6
Agenda
1 | Adobe Media Optimizer (AMO) and Adobe Analytics Integration
2 | Data in Ad Optimisation
3 | Why and how to leverage Analtyics data in AMO
4 | Examples and results
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. #AdobeSummit
Analytics and Media Optimizer in Adobe Marketing Cloud
7
Media Optimizer Analytics
Tell the story of what’s happening in your business through data using high-performance, real-time analytics across online and off line marketing channels
Best of breed portfolio and rules based ad management with intelligent campaign forecasting and targeted ad delivery for data optimised advertising
Track and understand users’ behavior
Optimise your ads
Site Behavior Data (Site Engagement and Conversion Metrics)
Ads Data (Search Engine Metrics)
Focus on: How Media Optimizer leverages user behavior data from Analytics to enhance
ad optimisation
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. #AdobeSummit 8
Agenda
1 | Adobe Media Optimizer (AMO) and Adobe Analytics Integration
2 | Data in Ad Optimisation
3 | Why and how to leverage Analtyics data in AMO
4 | Examples and results
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. #AdobeSummit
Types of Ads AMO optimises
9
Desktop
Tablet
Mobile
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Bid optimisation problem in Search Engine Marketing (SEM)
Bid $4.55 Pay $0.64
Bid $2.89 Pay $0.42
Bid $2.41 Pay $0.36
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. #AdobeSummit
Ad Optimisation Workflow
11
Clicks
Positions
Impressions
Click Through Rate (CTR)
Cost Per Click (CPC)
Conversion Rate
Revenue Per Click
Optimizer
Publishers (e.g., search engines)
Tracking cookies
3rd party
Advertisers
……
Optimisation Engine Predictive Models Data Collection
Constraints (budget, min bid, max bid,
etc.)
Optimal Decisions
(bids, budgets, ads targeting)
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. #AdobeSummit
Ad Optimisation Workflow
12
Clicks
Positions
Impressions
Click Through Rate (CTR)
Cost Per Click (CPC)
Conversion Rate
Revenue Per Click
Publishers (e.g., search engines)
Tracking cookies
3rd party
Advertisers
……
Optimisation Engine Predictive Models Data Collection
Optimizer
Constraints (budget, min bid, max bid,
etc.)
Optimal Decisions
(bids, budgets, ads targeting)
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. #AdobeSummit 13
Data is…
Ultimate source of signals and premise of everything in ad optimisation
More Data beats Complicated Algorithms
Scalable Algorithms – Low Computational Complexity
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Available to Media Optimizer® through integration with Analytics®
Data collection throughout the conversion funnel
14
Keyword searching
Ads impression
Click
Conversion
After-click behaviours Website navigation Time spend Page views Other engagement activities
Feeds from Search Engine
• Tracked by Search Engine Marketing (SEM) vendors
• And/or feeds from the advertisers
Usually not available to SEM vendors
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. #AdobeSummit
Data availability: Integrated vs. Non-integrated
15
Adobe Others
N/A The Differentiator
Powered by Adobe Analytics®
Site behavior
+ Engagement
Metrics
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. #AdobeSummit 16
Agenda
1 | Adobe Media Optimizer (AMO) and Adobe Analytics Integration
2 | Data in Ad Optimisation
3 | Why and how to leverage Analtyics data in AMO
4 | Examples and results
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. #AdobeSummit
17
Keyword Keyword No.1 Keyword No.2
Clicks 3 3
Site behavior
• Visited 5 pages per click in average
• No bounces • Watched video twice
• Revisited the website later after closing the browser
• ……
• Less than one page view per click
• 2 bounces out of 3 clicks • No video watch
• No revisit • ……
Conversions 0 0
Q: Which “long tail” keyword has a higher revenue per click prediction?
Why site behavior data are critically important Looks more promising
Top funnel
Middle funnel
Bottom funnel
®
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. #AdobeSummit
Example of engagement metrics available through analytics
18
Revenue Signals
Time spent on the site in the first visit
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How to use the data in the predictive models
19
Site behavior and engagement data
from Adobe Analytics
Existing hierarchical revenue prediction
model in Media Optimizer
Revenue prediction model based on
Adobe Analytics data
Ensemble revenue prediction model
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. #AdobeSummit 20
Agenda
1 | Adobe Media Optimizer (AMO) and Adobe Analytics Integration
2 | Data in Ad Optimisation
3 | Why and how to leverage Analtyics data in AMO
4 | Examples and results
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. #AdobeSummit
Better forecasting: Adobe on Adobe (Closer to 100% is better)
21
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
1 2 3 4 5 6 7 8 9 10 11 12
Acc
urac
y (1
00%
is th
e be
st)
Portfolio
old model
new model
82.26% Accurate
92.03% Accurate
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. #AdobeSummit
Better RPC and ROI: Adobe on Adobe
22
+66.6%
+70.4%
19.5%
5.7%
RPC ROI Portfolio A Portfolio B
RPC ROI
Pre Post
Pre Post
* * Daily spends are controlled in the analysis. Performance changes may also be partially attributed to other uncontrolled factors, such as seasonality, trending, special event (e.g., promotion, new product announcement), portfolio composition changes, and etc. ** Effects of seasonality and other factors are partially adjusted through performances of similar portfolios in the same periods
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. #AdobeSummit
0
1
2
3
4
5
6
0
5
10
15
20
25
bid
in $
clic
ks p
er d
ay
clickbidposition7 per. Mov. Avg. (click)
How the new model promote promising tail keywords (“photoshop cost”)
23
0.002
0.02
rpc(revenue per click)_estimation_oldmodelrpc_estimation_newmodelrpc_actual
Switched to new model (May 3rd)
Rev
enue
per
clic
k
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Travel site in Asia-Pacific
24
% Change (Post vs Pre) Total Cost -18%
Total Revenue +11% Return On Advertising
Spend (ROAS) +36%
Post (14 days) vs. Pre (14 days) New model switched on Jan 22, 2014
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. #AdobeSummit
Online retailer in EMEA
25
% Change (Post vs Pre) ROAS +27%
Revenue-Generating Keywords
+13%
Two control portfolios had no performance changes
Post (7 days) vs. Pre (7 days) New model switched on Oct 21, 2013
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Performance Analysis – Pre v/s Post
26
65 clients; 380 portfolios Post (14 days) vs. Pre (14 days)
Mean change
Lower bound of 95% CI
Upper bound of 95% CI
ROAS +15.5% +12.4% +18.7% Revenue per click (RPC) +6.5% +3.5% +9.5%
Revenue-generating keywords +5.1% +2.5% +7.6%
* Daily spends and client differences are controlled in the analysis. Performance changes may also be partially attributed to other uncontrolled factors, such as seasonality, trending, special event (e.g., promotion, new product announcement), portfolio composition changes, and etc.
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. #AdobeSummit
Performance Breakdown by Domain
27
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
Automotive Ecommerce Education Finance Lifestyle &Entertainment
Retail Technology Travel
Average ROI Lift (%)
Average ROI Lift (%)
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. #AdobeSummit
Key benefits of the integrated approach
Significant accuracy lift
Guided learning
Discovering “hidden treasures” with limited learning budgets
Improving RPC and ROAS
Managing portfolio risk
28
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. #AdobeSummit 29
Agenda
1 | Adobe Media Optimizer (AMO) and Adobe Analytics Integration
2 | Data in Ad Optimisation
3 | Why and how to leverage Analtyics data in AMO
4 | Examples and results
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. #AdobeSummit 30
Key Takeaways
Site behavior data is highly valuable for ad
optimisation
1 Adobe leverages
those data through integration and
agorithms
2 1⊕1 >> 2
3
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. #AdobeSummit 31
Call to Action
1 | Ensure you have the ability to access site behavior data in your ad optimisation system
2 | Leverage those data through either automated predictive modeling or insights generation
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. #AdobeSummit 32
Questions and Answers
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. #AdobeSummit
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Abhishek Pani [email protected]
© 2014 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. #AdobeSummit
May 14-15, 2014 | ICC ExCel, London
Learn more at summit.adobe.com/emea #AdobeSummit