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

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

3. 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

4. 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

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

6. JobBoardDoctor Survey Results 2016 - 17

12. 2012 was LinkedIN

13. Performance is here and programmatic follows

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

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

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

17. Digital Ads

18. Google Adwords

19. Ad Exchanges, DSP’s and More

20. Machines doing the work for you

21. Mid 90’s - Ad Servers

22. Late 90’s - Ad Networks

23. 2000’s - Ad Exchanges

24. More complexity with DSP’s and SSP’s

25. Does Programmatic Work?

26. Global Advertising Growth - Increasing Everywhere

27. Performance

28. Mobile has surpassed desktop

29. 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 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.

30. History of Recruitment Advertising

31. 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.

32. 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.

33. 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.

34. 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.

35. Do Consumers Believe Performance-Based Pricing Works?

36. 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

37. 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”

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

39. CPC on mobile is higher on average than on desktop

40. Conversion rates on desktop are 2x mobile

41. Mobile CPA is 3x higher than Desktop

42. CPC by Category

43. Conversion Rate by Category

44. CPA by Category

45. CPC Mobile vs. Desktop by Category

46. CR % Mobile vs. Desktop by Category

47. CPA - Mobile vs. Desktop

48. 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

49. All jobs are not created equal
Job ID
Title
Views
Applies
Spend
Conv Rate
CPC
CPA
Account Executive 62 1
£34.22
1.61%
£0.55
Bus Development Manager 56 4
£33.60
7.14%
£0.60
£8.40
Inside Sales Rep
146 8
£24.83
5.47%
£0.17
£3.10
National Recruiter
116 24
£23.85
20.68%
£0.21
£0.99
Marketing Coordinator 78 5
£26.08
6.41%
£0.33
£5.21
Staff Accountant 32
£27.34
9.37%
£0.85
£6.83
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?

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

51. Programmatic Approach – Automate the Process

52. 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

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

54. 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?

55. 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?

56. 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?

57. 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

58. 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

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

60. Programmatic: Drive your business with it

61. Programmatic: Before and After

62. 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

63. 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

64. 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

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

66. 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

67. 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

68. Thank You!
Josh Gampel