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PowerPoint Presentation

Burts Bees Paid Search Campaign

June 2014

AgendaSearch Industry

Paid + Organic Search

How Clorox And Burts Bees Create Paid Search Campaigns

Burts Bees Paid Search Campaign

Impact Of Paid Search Campaigns2Search IndustryTotal U.S. Search Users Grow AnnuallySource: eMarketer, U.S. Search Users (searched at least once per month)Over 1 billion searches a day worldwide4US Category Searches are Continuing to Increase

Face & Body Care Category

natural moisturizer5Google Drives Majority Of Search VolumeSource: comScore qSearch, U.S. Explicit Core SearchBing launchesBing takes over serving of Yahoo search results6

Top Of Page Attracts The Most Eyeball7Source: Enquiro, Eye Tracking II StudyPaid Search Ad Units Dominate Search Results8

Google Image ResultsOrganic ResultsPaid Search Ads Traditional SearchPaid Search Ads - Google Shopping AdsPaid Search Ads Traditional SearchPaid search ad unitOrganic search resultKey:Paid + Organic search48% Of Purchasers Search On Brand and Generic Keywords During their Journey To ConversionWe want to ensure our potential customers see us at every stage of the conversion funnel

We control brand image with paid searchShow our best, most up-to-date messages and promotions when consumers are actively looking to engage with usPush our competitors further down on the page1010Source: http://www.google.com/think/research-studies/impact-of-ranking-of-organic-search-results-on-the-incrementality-of-search-ads.html

Visibility Doubles By Showing Up Twice On One Results PageCTRs increase 5.1% when a Brand has an Organic and Paid listing, instead of just an Organic result. And even when advertisers appear in the top ranked organic slot, half of ad clicks are still incremental11Source: http://www.google.com/think/research-studies/impact-of-ranking-of-organic-search-results-on-the-incrementality-of-search-ads.html

11AKQA Entertainment eCommerce Client Case StudyTest Goal: Test the impact of not bidding on Brand terms in paid search

Test MethodologyFour week period15 brand keywords were chosen for the testBrand terms were alternated daily between active and paused12Case StudyAnalysis periodfour complete weeks

Test Methodology15 brand keywords were chosen for the testBrand terms were alternated daily between active and pausedCase Study: Results and AnalysisImpact of Running Brand TermsOverall ClicksOverall OrdersOverall TicketsSEM ON463,269 29,332 75,619 SEM OFF397,424 23,855 61,135 Loss by Not Running Search(65,845)(5,477)(14,484)13Using the clients internal transactional database, during the first two-week period the campaign lost over 65K Clicks and over 14K Tickets

Total spend on brand terms during this time was $17,000$1.17 cost per incremental ticket soldCase StudyCase Study: Conclusions & RecommendationsDatabase shows a significant loss of Clicks, Orders, and Ticket sales when not running branded term paid search

Very low incremental cost per additional ticket sold on brand terms

Keeping paid search live ensures that we are capturing market share and brand recognition from main competitor14Case StudyThe high relevancy of our branded terms generates the highest Quality Scores in our entire account. Adding terms with higher Quality Scores will increase the average and offset some of your lower scored General termsBrand Keywords Increase Efficiency For Generic Keywords15Paid and Organic Search DifferencesKey DifferencesOrganic SearchPaid SearchPercent of Total Page Clicks~ 70% (Est)~ 30% (Est)CostNo cost per clickCost per click based oncompetitors activityTime Needed to See ChangesWeeks or monthsMinutes16How Clorox AND BURTS BEES create paid search campaignsWhere do 320,000 Keywords Come From?Owned & Earned Assets

Keyword Tools and Traffic Estimators

Search Query Reports

18*See appendix for estimated search volume recommendationsUsing Keywords, We Determine How Many People Are Searching For Relevant KeywordsTotal Universe of Relevant Searches*Prioritized SearchesThe Searches We Show ForTotal keyword list created by AKQA with Burts Bees inputPrioritized searches based on performance, objectives and available budget% of eligible search queries our ads appear for usually limited by bid and total budget19Ad Copy Creation ProcessNew IMC, creative, product, etc.

20Burts bees search campaignBudget Is Segmented Based On Initiative2222Brand and category terms are funded with eCommerce dollars ($500K FY14)KPI: 300% ROAS (currently 298% ROAS)ShopperIMCCategoryBrand

Clorox eCommerce dollars cover paid search for Shopper testing ($200K FY14)KPI: Multiple based on testMedia dollars cover paid search for IMC brands only, investment level varies ($189K FY14)KPI: Engagement Score (setting benchmarks now)Target Impression Share Levels Differ Per InitiativeShopperIncremental funding based on initiativeIMCIncremental funding based on initiative (goal of 25% IS)CategoryTarget: 15-40% Impression ShareBrandTarget: 100% Impression Share

Baseline Search (Brand and Category)Coverage for Desktop, Tablet and MobileTablet and mobile search is ~20%-30% of desktop and risingPresence on top product keywords

IMC Brand supportSupport during initiative pulse periods to capture awareness created through other Media and MarCom efforts and drive engagement with content

ShopperCurrently testing the impact of a variety of paid search drivers to determine the impact on the eCommerce channel and level of halo for BurtsBees.com and Amazon.com23Impact of paid search campaignsCustomers Purchase Multiple Products Per OrderOur campaign combines both Brand and Category to balance out CPC and ROAS

CPCs vary per keyword and are based on competitor activity

Customers are purchasing multiple products per order

In comparison, Clorox Disinfecting Wipes (CDW) CPCs were between $1.50-$4.00 in JAS with one of the highest Cleaning BDA readsCategoryAOV: $18Avg CPC: $2.23BrandAOV: $45Avg CPC: $0.40

25Top Revenue driving keywords 4/27/14-5/27/142010 Online to Store TestObjective: Test the impact that a heavy up search strategy has on sales in-store for Baby Bee category

Result: Adjusted retail sales lift of 7.0% to 9.7% and at a 68% share of voice model a $.26 ROI

Test Specifics:Timeline: 19 weeksCategory: Baby BeeMarkets: 6 marketsWorked with CDI/BDI on performance2626Budget: Search campaign: $16K, IRI Analysis: $25K

Baby Bee chosen because of IRI ability to get good data coverage and the team qualitatively knew that pregnancy and becoming a new mom were prime apertures for searching online for baby product information

1 100% SOV concluded at 86% Sacramento-Stockton-Modesto and Phoenix DMAs2 35% SOV concluded at 68% Cleveland and Richmond-Petersburg DMAsControl - dark with no search San Diego and Salt Lake City DMAs THANK YOU27Appendix28Cost per clicks vary greatly

KeywordAvg. CPC for Pos 1insurance$54.91lawyer$42.51how to remove mold$5.05cleaning stains$3.72eye cream remover$3.39glad$2.87garden tomato toner$2.81lip shimmer$2.39burts bees$0.34burt bee$0.21eCommerce CampaignObjective: Drive qualified traffic to BurtsBees.com that result in orders and revenue

Goal: Blended 300% ROAS

Performance:We have yet to hit the point of diminishing returns for paid searchWe are achieving ~100% Impression Share for BrandLoyal consumers use search to find products that arent easy to find in storeWe are optimizing campaigns to spend on only those keywords that directly drive eCommerce salesCategory is small amount spend because a majority of the keywords are currently within IMCs

Other FY14 planning:Launching Google Shopping campaigns (previously called Product Listing Ads [PLAs[)Launching Google Remarketing Lists For Search Ads (RLSA)3030Date Range: 4/27/14 - 5/27/14

IMC CampaignObjective: Drive qualified traffic to BurtsBees.com that engages with the website and IMC content

Goal: Engagement Score (Brightening is setting Benchmarks)

Performance: BrighteningKeywords do not overlap with eCommerce campaign

Other FY14 IMCs:Towelettes (launched late May)Lip Balm (launching in June)3131

Estimates and RecommendationsCurrent proposed $30K budget for three months ($10K/month) will generate an estimated 12% Impression Share, missing ~90K Clicks

Recommendation: 25% Impression Share is recommended to capture ~112% more Clicks and focus on more targeted Clicks that will lead to a higher Engagement RateFocus will be on Phrase and Exact match keywords. Limited reach on Broad recommendedAcne Campaign Dates TBD33Source: Google Internal Estimation Tool

TBDAnti-Aging April 2015 to June 201534Source: Google Internal Estimation ToolCurrent proposed $30K budget for three months ($10K/month) will generate an estimated 8% Impression Share, missing ~147K Clicks

Recommendation: Because of the high search volume opportunity, we recommend 15% Impression Share to capture ~86% more Clicks and focus on more targeted Clicks that will lead to a higher Engagement RateFocus will be on Phrase and Exact match keywords. Limited reach on Broad recommended

3 monthsBrightening Campaign Dates TBD35Source: Google Internal Estimation ToolCurrent proposed $30K budget for three months ($10K/month) will generate an estimated 40% Impression Share, missing ~11K Clicks

Recommendation: Because of the low search volume opportunity, we recommend 50% Impression Share to capture ~27% more Clicks and focus on more targeted Clicks that will lead to a higher Engagement RateFocus will be on Phrase and Exact match keywords. Limited reach on Broad recommended

TBDHolidays36Source: Google Internal Estimation ToolThe 2013 campaign spent $60K which generated about 100% Impression Share based on t