1. Search Engine and Display Marketing: Data Challenges Rahul Nim Architect, Efficient Frontier 1

2. Agenda What is Online Performance Marketing? – How is it done? – How is performance measured? What constitutes performance data? How is it collected? What are the issues in data collection and analysis? What is the future of online marketing? 2

3. Overview 3 Advertiser Customer TV Print Other Search Display Content Analytics and Tracking Services Content Sites Search and Content Ad Campaigns Content Ads Search Ads

4. Display Overview 4 Advertiser Customer Analytics and Tracking Services Display Sites Display Ad Campaigns Display Ads Ad Networks

5. Performance Marketing and Information Companies need to get the most out of their marketing dollars. How do we measure the performance of those dollars? – Broadcast Media (Traditional, but mind the future) – Direct Marketing – Ad Networks – Search Engines – Social Networks and Mobile Profit = Revenue - Cost Performance = Profit/Cost 5

6. Marketing on Search Engines and Ad Networks How do Search Engines make money? – Organic Search Results – Paid Search Results, PPC/CPC model – Content Ads How do Ad Networks make money? – Premium inventory – Biddable inventory, CPM model 6

7. Organic and Paid Search Examples 7

8. Paid Search Concepts Advertiser Accounts Campaigns Ad Groups Ads Keywords 8

9. Search Marketing Optimization SEO – Landing Page Optimization – Best practices SEM – Optimally bidding on keywords – Designing effective ads 9

10. Performance Indicators (SEM) Impressions Clicks Conversions 10

11. Collecting Performance Data: Pixel- Based Tracking Click Data Bat.jpg 1. Click 3. Redirect Cricketbats.com 4. Product Page 5. Purchase Transaction Conversion Data 6. Thank You Page 7. Pixel Request 8. Log Conversion Redirect/Pixel server … 11 2. Log Click

12. Performance Data Elements Browsers and Cookies, Unique IDs for events Tracking URLs What goes into the cookies – Tracking information: relating events to ads Click and Impression data from search engines and Networks Conversion data from web servers 12

13. Tracking Elements Installed Ad URL url=http://pixel2002.everesttech.net/2002/rq/3/s_3aa8e5aa1261d038a0fe6ff 010d01ed9_2671584663_{keyword}_{creative}/url%3Dhttp%253A//www.vita minshoppe.com/store/en/index.jsp%253FsourceType%253Dps%2526source% 253Dgo%2526adGroup%253DVitamin%2526keyword%253Dvitamins%2526cm _mmc%253DPaid%252520Search-_-Google-_-Vitamin-_-vitamins Click (generated) URLs http://www.google.com/aclk?sa=L&ai=CHdAMUkv7S8H- Mpisnwevg7Ac64yWyQGj4YqVCt6g7AQIABACKANQyeOVuwJgye7thsijoBnIAQ GqBBxP0HFcOLaERWbapnR_ZsmWw6q-L_64wP2v93j- &sig=AGiWqtw1di18T6otSuXIM6tGzpvtXwmTqg&adurl=http://pixel2002.ever esttech.net/2002/rq/3/s_3aa8e5aa1261d038a0fe6ff010d01ed9_2671584663 _cheap+shoes_creative101/url%3Dhttp%253A//www.vitaminshoppe.com/sto re/en/index.jsp%253FsourceType%253Dps%2526source%253Dgo%2526adGro up%253DVitamin%2526keyword%253Dvitamins%2526cm_mmc%253DPaid%2 52520Search-_-Google-_-Vitamin-_-vitamins 13

14. Collecting and Using Performance Data Build – Data generated and collected in-house from Web Servers – Analyzed internally Buy – Tracking service from providers like Omniture, Google Analytics, Dart – Analytics providers like Core Metrics, Google Analytics – Combined like Efficient Frontier, Kenshoo 14

15. Collecting Performance Data: Mechanisms Collecting data for self – First Party Cookies – Setting up web servers to log events Collecting for clients (as a service provider) – HTTP redirect mechanism – Tracking info – Third party cookies – Javascript 15

16. Issues Data quality – Detecting Duplicates – Detecting Click Fraud Scalability – In collecting the data – In modeling – Redirecting – Example architectures 16

17. Performance Management in Display Networks Similarities to SEM – Clicks and Conversions Differences from SEM (and challenges) – Impressions – Campaign structures – Analysis and modeling – Real-Time Bidding (RTB) 17

18. So what should you do as a CMO? People are spending increasing amounts of time on the internet – $6.3 Billion spent in Q4’09 Develop an effective online marketing strategy – Budget for Online Advertising Get ready for Online Video 18

19. …And as a CIO (from data perspective) ? Engage with service providers (Buy) – Evaluate Quality of Services – Evaluate future readiness As service providers – More data Social graph data for segmentation Online video Display impressions – (Real-time) Biddable media slots 19

20. References SEM: http://en.wikipedia.org/wiki/Search_engine_marketing Online advertising revenues: http://www.iab.net/insights_research/947883/adrevenuer eport Cookies: http://en.wikipedia.org/wiki/HTTP_cookie Generating unique IDs for events: http://httpd.apache.org/docs/1.3/mod/mod_unique_id.ht ml Tracking URLs: http://help.yahoo.com/l/au/yahoo/ysm/sps/start/overview _trackurl.html http://help.yahoo.com/l/au/yahoo/ysm/sps/start/overview _trackurl.html Click Fraud: http://en.wikipedia.org/wiki/Click_fraud http://en.wikipedia.org/wiki/Click_fraud 20