Perils & Possibilities of Programmatic RecTech 2017 Perils & Possibilities of Programmatic Josh Gampel Recruitics, CEO MAY 2017

Recruitics is an analytics and automation platform that makes it easy for companies to achieve amazing results from their job advertising strategy.

About Me 14 + years in talent acquisition CEO & co-founder of Recruitics Digital Marketing & Creative Staffing Speaker around leveraging SEM for talent acquisition Live in Connecticut w/ wife & 2 kids

Agenda About You! History of Performance and Programmatic Advertising How our industry follows ad:tech Data, Data, Data How a programmatic strategy can create efficiency Case Studies Take Aways

Survey Results from the Doctor About You! Survey Results from the Doctor

JobBoardDoctor Survey Results 2016 - 17

2012 was LinkedIN

Performance is here and programmatic follows

How job advertising is following performance ad buying Evolution How job advertising is following performance ad buying

“Half the money I spend on advertising is wasted; the trouble is I don’t know which half” John Wanamaker (1838-1922)

Ad Exchanges come into play Digital Ads Launch RTB goes Mainstream 1994 2000 2005 2007 2011 DSPs provide access to more data Adwords Launched

Digital Ads

Google Adwords

Ad Exchanges, DSP’s and More

Machines doing the work for you

Mid 90’s - Ad Servers

Late 90’s - Ad Networks

2000’s - Ad Exchanges

More complexity with DSP’s and SSP’s

Does Programmatic Work?

Global Advertising Growth - Increasing Everywhere

Performance

Mobile has surpassed desktop

87% CAGR for Mobile over past 5 years Shift from desktop to mobile Mobile makes up more than 50% of internet advertising revenue for the first time 2016 annual revenues increased on a year-over-year percentage and dollar basis, with Mobile accounting for 50.52% of all revenue. The 5 year CAGR shows that internet advertising growth continues to be fueled by an 87% CAGR in Mobile (compared to 6% growth in non-Mobile revenue over the same period). However, the 5 year CAGR for Mobile decreased from 100% in 2015 and the 5 year CAGR for non-Mobile decreased from 9% in 2015. The compound annual growth rate (CAGR) over the past ten years for internet advertising of 16% has outpaced U.S. current dollar GDP growth of 3% over that period. However, the CAGR decreased from 17% in 2015, suggesting that internet advertising growth may be slowing.

History of Recruitment Advertising

Pay Per Post (1999 - Present) Pricing Model: Customer pays fixed fee to post a single job on a job board. Modeled After… Classified Ads Pros: Predictable, fixed cost. Cons: No guarantee of applicants.

Pay Per Click (2004 - Present) Pricing Model: Customer bids in auction to get clicks on job ad. Modeled After… Google AdWords Pros: You only pay for job seekers who look at your job. No long-term contracts. Cons: Difficult to understand and measure. Paying for clicks, not applicants.

Pay Per Applicant (2012 - Present) Pricing Model: Customer only pays for applicants. Modeled After… “Sourcers” or “Exchanges” Pros: Customer only pays for results. No long-term contracts. Cons: Difficult to guarantee quality.

Pay Per Hire (2012 - Present) Pricing Model: Customer pays % of salary when candidate is hired. Modeled After… Contingency / “perm placement” Pros: Based on ultimate measure of success. Less expensive than using outside recruiter. No long-term contracts. Cons: Only has traction in specialized niches.

Do Consumers Believe Performance-Based Pricing Works?

A look at the data and the complexities that come with Why is programmatic important? A look at the data and the complexities that come with performance ad buying

The Truth About Your CPA CPA varies by: Job Location Skill Company Source Device Type All of these factors contribute to the wide variation we observed in the previous slides and if you are not looking at job level performance this quietly slide away into the “average”

Sample Set of Data - 3 million jobs over the past few weeks

CPC on mobile is higher on average than on desktop

Conversion rates on desktop are 2x mobile

Mobile CPA is 3x higher than Desktop

CPC by Category

Conversion Rate by Category

CPA by Category

CPC Mobile vs. Desktop by Category

CR % Mobile vs. Desktop by Category

CPA - Mobile vs. Desktop

You spend half of your job advertising budget on job postings that don’t convert. 80% JOBS 49% BUDGET 2% APPLIES My aim today is to give you the playbook for how to prevent this result

All jobs are not created equal Job ID Title Views Applies Spend Conv Rate CPC CPA 36058052 Account Executive 62 1 £34.22 1.61% £0.55 36186488 Bus Development Manager 56 4 £33.60 7.14% £0.60 £8.40 36270128 Inside Sales Rep 146 8 £24.83 5.47% £0.17 £3.10 36234117 National Recruiter 116 24 £23.85 20.68% £0.21 £0.99 36291658 Marketing Coordinator 78 5 £26.08 6.41% £0.33 £5.21 36284202 Staff Accountant 32 £27.34 9.37% £0.85 £6.83 36274551 Operations Manger 44 £22.08 18.18% £0.50 £2.76 How much was spent on jobs that didn’t convert to a single application?

How it can create efficiency immediately and drive Programmatic How it can create efficiency immediately and drive margin to your bottom line

Programmatic Approach – Automate the Process

Fundamental Concept - Grouping Jobs Now that you are thinking about job level performance you can use that data to make impact to your job marketing strategy through grouping jobs

Performers Lowest cost per application Higher conversion to registration More applications for less budget High volume of jobseeker interest Higher jobseeker engagement

Over Deliverers While they have some of the same attributes of the performers they run away with applications and waste budget Think Administrative Assistant or Clerk When is enough “enough”? What is the most you would feel comfortable spending on a job?

Challengers These are the jobs that have not received enough traffic to determine their true performance There may be priority positions slipped in here for priority clients HTF jobs also tend to fall into this category Do you care if a job is not getting traffic? What if the job is a priority? Are you willing to be more competitive to get applicants? Are you willing to accept a higher CPA to drive applicants to these jobs?

Non-Converters The Non-converters are the jobs that attract a lot of eyeballs, and potentially spend a lot of money, but don’t result in applicants. How much are you willing to invest in a job and get nothing for it? At what point can you tell that something may be wrong with the job itself?

Grouping Jobs So let me give you the playbook, spend on performers, determine your threshold on overdeliverers, lowest CPA and highest volume Then spend on your challengers and non-converters where often times your priority jobs and hard to fill jobs live-- to an extent you are comfortable with, highest CPA, lowest volume

FOCUS SPEND ONLY ON THE APPLICATIONS YOU NEED The Impact to CPA Buy a click for £1 or an app for £10 in the competitive category and location, and only for £0.25 or £2 app in the less competitive location. FOCUS SPEND ONLY ON THE APPLICATIONS YOU NEED

BUY ONLY THE TRAFFIC YOU NEED The Impact to Traffic BUY ONLY THE TRAFFIC YOU NEED

Programmatic: Drive your business with it

Programmatic: Before and After

How many applications does a job need? Title Location Clicks Applications Cost CPA Account Executive New York, NY 20 1 £25.00 Bus Development Manager London, UK 125 11 £156.25 £14.20 Inside Sales Rep Philadelphia, PA 30 9 £37.50 £14.17 Recruiter San Francisco, CA 85 15 £106.25 £7.08 Marketing Manager Paris, FR 565 65 £286.40 £4.41 Ask the audience – if applicable How many applications will satisfy your clients need? I don’t mean to insinuate this is a simple question to answer but it is an important one to continually ask. Assuming $1.25 Cost Per Click

All goals are not created equal Title Location Clicks Applications Cost CPA Account Executive New York, NY 20 1 £25.00 Bus Development Manager London, UK 125 11 £156.25 £14.20 Inside Sales Rep Philadelphia, PA 30 9 £37.50 £14.17 Recruiter San Francisco, CA 85 15 £106.25 £7.08 Marketing Manager Paris, FR 565 65 £286.40 £4.41 Assuming $1.25 Cost Per Click

All Sources are not equal based on the job I took a snapshot from our clients data to just snapshot conversion rate by vendor in aggregate. This is just conversion rate but doesn’t take into account the competitive marketplace that we exist in Find the bright spots in sources for the traffic you need

Source Diversification Large Global Direct Employer that utilized programmatic buying and recognized.

Case Study 2 Sources - 65% on a single source 42% Decrease in CPA Surgical – determine the bright spots of new sources and maximize your opportunity there. 7 Sources – 27% on a single source

Take Aways Programmatic is Here Performance Based Buying and Selling Our industry will continue to follow ad:tech Efficiency gained forces change Performance Based Buying and Selling Figure out how your business can sell performance Your clients are getting smarter Establish goals Look at your data by every dimension ie source, category Use goals to build out strategy Optimize & Repeat Surgical – determine the bright spots of new sources and maximize your opportunity there. Performance & Programmatic need attention Constantly test

Thank You! Josh Gampel josh@recruitics.com