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Yahoo! Close The Loop Understanding the Synergy Between Search and Display Advertising Phase 1 Findings
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2 Yahoo! Proprietary and Confidential. ©2006 All Rights Reserved Study Objectives 1 1 2 4 5 3 Agenda Summary of Results Methodology Industry Overview Detailed Results 6 Key Takeaway
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3 Yahoo! Proprietary and Confidential. ©2006 All Rights Reserved Study Objectives To measure the individual and collective impact of search and display advertising in driving lifts in: Onsite Engagement Online Purchasing Offline Purchasing Trademark Searches Study Objectives
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4 Yahoo! Proprietary and Confidential. ©2006 All Rights Reserved Industries Tested Industry Overview Industry:Telecom Testing Period:Feb 1st-Mar 31 st 2006 Base Size Examined: Search & Display: 6,500 Search Only: 1,600 Display Only: 76,000 Industry:Retail Testing Period:March 19 th – April 22 nd 2006 Base Size Examined: Search & Display: 2,100 Search Only: 1,100 Display Only: 46,000 IndustryHome Loans Testing Period:March 1 st – April 30 th 2006 Base Size Examined: Search & Display: 400 Search Only: 1500 Display Only: 9000 Industry:Travel Testing Period:Sept 1 st – Nov 30 th 2005 Base Size Examined: Search & Display: 1,500 Search Only: 4,000 Display Only: 15,000
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5 Yahoo! Proprietary and Confidential. ©2006 All Rights Reserved Study Methodology Dissecting Online Behavior By Level Of Ad Exposure Those exposed to the advertising are matched to a control group that are demographically and behaviorally similar with the exception of advertising exposure. By examining the lifts between our control and exposed groups, we isolate the effectiveness of the advertising in driving activity that wouldn’t have otherwise occurred. 6 * Test is internet wide and not limited to Yahoo Search & Display Advertising Search Advertising OnlyDisplay Advertising Only Exposed Unexposed
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6 Yahoo! Proprietary and Confidential. ©2006 All Rights Reserved What is a lift? A lift measures the effectiveness of the advertising in getting someone to “do something”. We isolate the effectiveness of the advertising by comparing the activity of those who saw the advertising vs. a control group who didn’t see the advertising but are otherwise behaviorally and demographically identical. Are Lifts Comparable? While lifts will indicate which advertising is most effective (and which audience you should look to maximize) – lifts in-and-of-themselves are not directly comparable due to the reach of each form of advertising. Small lifts among a large target are often equivalent to large lifts among a small target. Study Methodology
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7 Yahoo! Proprietary and Confidential. ©2006 All Rights Reserved Summary of Results We Have Lift Off While individual exposure to search or display advertising is effective in driving lifts in visitation, engagement and online & offline purchasing - the advertising is most effective when a user is exposed to both forms of advertising. Exposure to both Search and Display advertising is: The most effective means of driving higher levels of engagement in your category (relative to your competitors) The most effective means of driving online & offline purchases
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8 Yahoo! Proprietary and Confidential. ©2006 All Rights Reserved Grabbing a Greater Share of Category Engagement: More important than just visitation, how can online advertising increase your share of engagement in your category (as measured by time spent & pages viewed)? The most effective means of grabbing a greater share of investment from a consumer (relative to your competitors) is by utilizing both search and display channels holistically Search & Display Lift in Share of Pages Viewed: Lift in Share of Time Spent: Search Only Lift in Share of Pages Viewed: Lift in Share of Time Spent: Display Only* Lift in Share of Pages Viewed: Lift in Share of Time Spent: 68% 66% 54% 49% 4% 3% * Note: Engagement with the display ad itself was not measured in this research. Lift vs. Control Detailed Results
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9 Yahoo! Proprietary and Confidential. ©2006 All Rights Reserved Increasing Online Purchasing: And again, delivering users both search and display advertising is the most effective means of increasing online purchases you wouldn’t have otherwise received. * Lift vs. Control This metric was not tracked for the Home Loans test. Lift In Online Purchases: 50% Display Only 210% Search Only 244% Search & Display Lift In Share of Online Purchases: 23% Display Only 102% Search Only 135% Search & Display Detailed Results
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10 Yahoo! Proprietary and Confidential. ©2006 All Rights Reserved Increasing Offline Purchasing: The effectiveness of the advertising in driving lifts in sales isn’t limited to online purchases, but offline as well. Lift In Offline Purchases: 9% Display Only 42% Search Only 89% Search & Display Detailed Results * Lift vs. Control This metric was not tracked for the Home Loans test. Share of offline purchases was not measured in this test.
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11 Yahoo! Proprietary and Confidential. ©2006 All Rights Reserved Display Increases Trademark Searches 26%: On average, exposure to a display ad increases trademark searches by 26%. * Lift vs. Pre-campaign period YOUR AD HERE Detailed Results
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12 Yahoo! Proprietary and Confidential. ©2006 All Rights Reserved Display Audience Search Audience Solid Lifts, Mass Reach Larger Lifts, Targeted Search & Display Audience Largest Lifts, Highly Targeted Key Takeaways: The Shape of Things
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13 Yahoo! Proprietary and Confidential. ©2006 All Rights Reserved Different advertising works in different ways Key Takeaways Utilize display advertising for building awareness and reinforcing your brand image among a mass audience. And with it’s massive reach, even smaller lifts in online and offline sales can have a BIG impact on your bottom line. Utilize search advertising for reaching your low hanging fruit: in market shoppers looking for what you have to offer. Utilizing search to deliver a relevant experience to a relevant target dramatically increases both online and offline sales. Both Search and Display ads offer the opportunity to increase onsite engagement, and more importantly, online and offline sales.
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14 Yahoo! Proprietary and Confidential. ©2006 All Rights Reserved Maximize the effectiveness of your advertising by delivering consumers both search and display advertising Take advantage of Behavioral Targeting Target in-market shoppers searching for either your brand, or something you offer, with a relevant display ad. Target someone based on their interests. If someone searches for something that’s in line with what your brand stands for, reinforce that association with a relevant display ad. Key Takeaways
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15 Yahoo! Proprietary and Confidential. ©2006 All Rights Reserved Maximize the effectiveness of your advertising by hitting consumers with both search and display advertising Take advantage of relevant brand searches: Exposure to a display ad increases trademark searches. Take advantage of this interest with a search campaign that reinforces your messaging. Key Takeaways
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Yahoo! Proprietary and Confidential. ©2006 All Rights Reserved Contact : kirsch@yahoo-inc.com Q u e s t i o n s ? THANK YOU
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