Google Your Way to Better Digital Marketing Campaigns. October 5th, 2016

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1 Google Your Way to Better Digital Marketing Campaigns October 5th, 2016 Link Walls, VP of Product Management, Digital Marketing Sudi Malloy, Team Lead, US Digital Marketing Services

2 Agenda ChannelAdvisor overview Updated Market Trends Advanced Strategies for Success on PLA s Q&A 2

3 DIGITAL MARKETING WHO WE ARE

4 About ChannelAdvisor We connect retailers and branded manufacturers to new and emerging sources of global demand for their products and provide the most comprehensive set of tools and analytics to optimize their e-commerce businesses. 4

5 Recognized Leader, Trusted by Thousands Source: Internet Retailer Top 500 Guide and ChannelAdvisor company info 5

6 Who We Are ChannelAdvisor Digital Marketing is a comprehensive product advertising solution that serves leading brands and retailers advertising their products on Google, Facebook and other destinations. + hundreds more

7 DIGITAL MARKETING MARKET TRENDS

8 Fundamental Trends Product advertising is becoming the most important medium for retailers and brands.

9 Product Ads Taking Over Search 80% 70% 60% 50% 40% 30% 20% 10% 0% Q Text Ads 44% Product Ads 56% Q Text Ads 34% Product Ads 66% Search advertising has shifted from ten blue links to rich product ads because of the superior consumer experience. Source: ChannelAdvisor Proprietary Data

10 Showcase Shopping Ads Over 40%* of shopping related searches on Google are for broad terms such as living room furniture New ad format enables advertisers to better tell their story outside of one product image Cost per engagement model * Source: Google info

11 Shop the Look Experiment to provide more curated content in Shopping results Featured images come from bloggers, retailers and publishers Aimed at helping shoppers discover what they are looking for

12 Mobile Growth Driving SERP Changes SERP format changes have resulted in equal share of pixel real estate on desktop for PLA s on many queries.

13 More Products per Ad Unit

14 More Products per Ad Unit

15 More Products per Ad Unit Ever evolving landscape of SERP formats makes measurement comparisons challenging important to consider when evaluating Impression and CTR trends.

16 DIGITAL MARKETING ADVANCED STRATEGIES

17 Segmentation for Greater Optimization Product group segmentation isn t enough Powerful levers are created when you segment your campaigns by: Search Queries Branded vs. non-branded search terms Devices Mobile traffic, desktop traffic and tablet traffic Audiences Cart abandoners vs. new visitors

18 Mapping Intent to the Purchase Funnel DISCOVERY PHASE TRANSACT PHASE Running shoes Jogging shoes Nike running shoes Nike Dynasty Nike Air Max Dynasty size 11 Google shows PLA s for searches at every level of the funnel. We know these have very different ROI outcomes. 18

19 Data Study Conversion Rate Analyzed over two million search queries by device across multiple advertisers Search queries that we can identify as being lower funnel convert better regardless of device 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Computers Tablet Mobile Lower Funnel Upper Funnel

20 Query-Driven Shopping Campaigns Typical Query Sets: Brand vs Non Brand (simplest) Title Matches Descriptive Elements (buying signals) Contains Size Contains Color Contains Style Complete and robust product data makes a huge difference here when it comes to differentiating when to show for a search.

21 Query-Driven Shopping Understands the intent of the user s query and matches the bid to that intent Avoids overpaying for broad, non-specific traffic Running shoes Jogging shoes Nike running shoes Avoids missing out on highly qualified traffic Nike Dynasty Nike Air Max Dynasty size 11 21

22 Query-Driven Shopping - Results Revenue increased 500% on 70% increase in ad spend ROAS increased from 5.7 to 18.3 Better targeting and more strategic bidding led to ROAS above target at both funnel levels

23 We Live in a Mobile World

24 Campaigns By Device Type Why You Should Build Campaigns by Device Type: Mobile traffic generally has a lower conversion rate Differences in the types of products sold through mobile Avoids limiting bids due to behavior of other devices Additional Benefits: Ensures highest quality traffic is getting next available ad dollar Provides insight into the micromoments of the consumer

25 Data Study Data analysis revealed key differences in mobile performance vs. desktop computers: Lower-priced products more successful on mobile than desktop Overall conversion rates on mobile were lower High bids on expensive products resulted in mobile inefficiencies Result: Generated 94% of revenue with only 22% of original spend Enabled greater investment in more profitable areas of mobile

26 Audience Segmentation Strategy Past user behaviors are excellent predictors of performance Understanding audience performance allows us to better match expected return to cost, as well as tailor our future messaging 26

27 Avg CPC Data Study $0.90 Google RLSA Audiences $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $ % -500% 0% 500% 1000% 1500% 2000% 2500% 3000% 3500% 4000% ($0.10) ROAS Evaluated audience (RLSA) performance across all campaigns and compared volume, cost and profitability. 27

28 Avg CPC Audience Measurement $0.90 $0.80 $0.70 $0.60 $0.50 $0.40 Google RLSA Audiences High performing audiences allow us to increase bids to drive incremental traffic at strong ROAS $0.30 $0.20 $0.10 $ % -500% 0% 500% 1000% 1500% 2000% 2500% 3000% 3500% 4000% ($0.10) ROAS Identified areas of opportunity to better allocate budget across audiences. 28

29 Avg CPC Audience Measurement $0.90 $0.80 $0.70 $0.60 Google RLSA Audiences Poor performing audiences require further evaluation to determine bid adjustments. $0.50 $0.40 $0.30 $0.20 $0.10 $ % -500% 0% 500% 1000% 1500% 2000% 2500% 3000% 3500% 4000% ($0.10) ROAS Identified areas of opportunity to better allocate budget across audiences. 29

30 Wrap Up PLA s continue rapid growth ensure you have enough budget headroom to take advantage of opportunity this holiday Watch for new formats and plan on needing/using larger images Leverage advanced strategies around search queries, device measurement and audience measurement to drive increased performance.

31 Questions? Contact us: Phone: Newsletter: Blog: Web:

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