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Burt’s Bees Paid Search CampaignJune 2014

Agenda

• Search Industry

• Paid + Organic Search

• How Clorox And Burt’s Bees Create Paid Search Campaigns

• Burt’s Bees Paid Search Campaign

• Impact Of Paid Search Campaigns

2

SEARCH INDUSTRY

Total U.S. Search Users Grow Annually

2011 2012 2013 2014 2015 2016150

155

160

165

170

175

180

185

190

195Search Engine Users

Source: eMarketer, U.S. Search Users (searched at least once per month)

Over 1 billion searches a day worldwide

4

US Category Searches are Continuing to Increase

Face & Body Care Category

“natural moisturizer”

5

Google Drives Majority Of Search Volume

Jan-09

Mar-0

9

May-0

9Jul-0

9

Sep-09

Nov-09Jan-10

Mar-1

0

May-1

0Jul-1

0

Sep-10

Nov-10Jan-11

Mar-1

1

May-1

1Jul-1

1

Sep-11

Nov-11Jan-12

Mar-1

2

May-1

2Jul-1

2

Sep-12

Nov-12Jan-13

Mar-1

3

May-1

3Jul-1

3

Sep-13

Nov-13Jan-14

0%

10%

20%

30%

40%

50%

60%

70%

80%

Google Yahoo! Bing Ask AOL

Source: comScore qSearch, U.S. Explicit Core Search

Bing launches

Bing takes over serving of Yahoo

search results

6

Top Of Page Attracts The Most Eyeball

7Source: Enquiro, Eye Tracking II Study

Paid Search Ad Units Dominate Search Results

8

Google Image Results

Organic Results

Paid Search Ads – Traditional

Search

Paid Search Ads - Google Shopping

Ads

Paid Search Ads – Traditional Search

Paid search ad unit

Organic search result

Key:

PAID + ORGANIC SEARCH

48% Of Purchasers Search On Brand and Generic Keywords During their Journey To Conversion

• We want to ensure our potential customers see us at every stage of the conversion funnel

• We control brand image with paid search– Show our best, most up-to-date messages and promotions when consumers are actively

looking to engage with us– Push our competitors further down on the page

10

10Source:

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 Page

CTR: Organic + Paid CTR: Organic Only

25.20%

20.10%

CTRs 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 incremental

11Source:

http://www.google.com/think/research-studies/impact-of-ranking-of-organic-search-results-on-the-incrementality-of-

search-ads.html

AKQA Entertainment eCommerce Client Case Study

• Test Goal: Test the impact of not bidding on Brand terms in paid search

• Test Methodology– Four week period– 15 brand keywords were chosen for the test– Brand terms were alternated daily between active and paused

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Case Study

Case Study: Results and Analysis

Impact of Running Brand Terms

Overall Clicks Overall Orders Overall Tickets

SEM ON 463,269 29,332 75,619

SEM OFF 397,424 23,855 61,135

Loss by Not Running Search (65,845) (5,477) (14,484)

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• Using the client’s 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 sold

Case Study

Case Study: Conclusions & Recommendations

• Database 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 competitor

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Case Study

The 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 terms

Brand Keywords Increase Efficiency For Generic Keywords

Quality Score

Keyword Relevancy

Landing Page

Historical performan

ce

Ad relevancy

Landing Page

Click Through

Rate

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Paid and Organic Search Differences

Key Differences Organic Search Paid Search

Percent of Total Page Clicks ~ 70% (Est) ~ 30% (Est)

Cost No cost per click Cost per click based oncompetitors activity

Time Needed to See Changes Weeks or months Minutes

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HOW CLOROX AND BURT’S BEES CREATE PAID SEARCH CAMPAIGNS

Where do 320,000 Keywords Come From?

Owned & Earned Assets Keyword Tools and Traffic Estimators

Search Query Reports

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*See appendix for estimated search volume recommendations

Using Keywords, We Determine How Many People Are Searching For Relevant Keywords

Total Universe of Relevant Searches*

Prioritized Searches

The Searches We Show For

Total keyword list created by AKQA with Burt’s Bees input

Prioritized searches based on performance, objectives and available budget

% of eligible search queries our ads appear for – usually limited by bid and total budget

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Ad copy is sent to Burt’s Bees for

approval

All new ad copy go live

AKQA measures performance

Best performing ad copy are kept

AKQA writes new ad copy

Ad Copy Creation Process

New IMC, creative, product,

etc.

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BURT’S BEES SEARCH CAMPAIGN

Budget Is Segmented Based On Initiative

22 22

Brand and category terms are funded with eCommerce dollars ($500K FY14)

KPI: 300% ROAS (currently 298% ROAS)

Shopper

IMC

Category

Brand

Clorox eCommerce dollars cover paid search for Shopper testing ($200K FY14)

KPI: Multiple based on test

Media 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 Initiative

ShopperIncremental funding based

on initiative

IMCIncremental funding based on initiative (goal of 25% IS)

CategoryTarget: 15-40%

Impression Share

BrandTarget: 100%

Impression Share

• Baseline Search (Brand and Category)• Coverage for Desktop, Tablet and Mobile

• Tablet and mobile search is ~20%-30% of desktop and rising

• Presence on top product keywords

• IMC Brand support• Support during initiative pulse periods to

capture awareness created through other Media and MarCom efforts and drive engagement with content

• Shopper• Currently 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.com

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IMPACT OF PAID SEARCH CAMPAIGNS

Customers Purchase Multiple Products Per Order

• Our 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 reads

CategoryAOV: $18

Avg CPC: $2.23

BrandAOV: $45

Avg CPC: $0.40

25Top Revenue driving keywords 4/27/14-5/27/14

2010 Online to Store Test

• Objective: 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 weeks– Category: Baby Bee– Markets: 6 markets– Worked with CDI/BDI on performance

2626

THANK YOU

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APPENDIX

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Cost per clicks vary greatly

Keyword Avg. CPC for Pos 1

“insurance” $54.91“lawyer” $42.51“how to remove mold” $5.05“cleaning stains” $3.72“eye cream remover” $3.39“glad” $2.87“garden tomato toner” $2.81“lip shimmer” $2.39“burt’s bees” $0.34“burt bee” $0.21

eCommerce Campaign• Objective: 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 search

• We are achieving ~100% Impression Share for Brand– Loyal consumers use search to find products that aren’t easy to find in store– We are optimizing campaigns to spend on only those keywords that directly drive eCommerce sales– Category 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)

3030

Date Range: 4/27/14 - 5/27/14

Campaign Impressions Clicks Cost Conv. Revenue Avg. Order Value ROASBrand 1,225,000 45,878 $18,466 1,714 $76,827 $44.82 416%Category 478,832 3,299 $7,369 9 $164 $18.22 2%eCommerce Total 1,703,832 49,177 $25,835 1,723 $76,991 $44.68 298%

IMC Campaign

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

• Goal: Engagement Score (Brightening is setting Benchmarks)

• Performance: Brightening– Keywords do not overlap with eCommerce campaign

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

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Impressions Clicks Cost Engagements Weighted Engagements Engagement Score

555,654 5,382 17,149$ 3,753 10,107 1.81

Estimates and Recommendations

• Current 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 Rate

– Focus will be on Phrase and Exact match keywords. Limited reach on Broad recommended

Acne – Campaign Dates TBD

33Source: Google Internal Estimation Tool

Acne - 3 Months EstimateImpression Share Budget Impressions Clicks CTR CPC

100% $250,100 7,036,299 103,343 1.5% $2.4280% $205,277 5,655,000 84,825 1.5% $2.4250% $127,413 3,510,000 52,650 1.5% $2.4225% $63,707 1,755,000 26,325 1.5% $2.4212% $29,999 826,410 12,396 1.5% $2.42

Anti-Aging – April 2015 to June 2015



• 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 Rate


Anti-Aging - 3 Months EstimateImpression Share Budget Impressions Clicks CTR CPC

100% $366,527 6,516,532 160,391 2.5% $2.2980% $296,956 5,187,000 129,675 2.5% $2.2950% $187,551 3,276,000 81,900 2.5% $2.2925% $93,776 1,638,000 40,950 2.5% $2.2915% $55,819 975,000 24,375 2.5% $2.298% $30,001 493,110 13,101 2.7% $2.29

Brightening – Campaign Dates TBD



• 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 Rate


Brightening - 3 Months EstimateImpression Share Budget Impressions Clicks CTR CPC

100% $71,437 2,387,913 19,468 0.8% $3.6780% $58,556 1,911,000 15,960 0.9% $3.3550% $36,773 1,200,000 10,020 0.9% $3.3540% $29,744 963,990 7,900 0.8% $3.89

Holidays


• The 2013 campaign spent $60K which generated about 100% Impression Share based on the keywords (“gift set” and “online exclusive gifts” focused)

• 2012 – 2013 retail paid search spend increased 19%, especially in late November– Similar trend is estimated in 2014, with an emphasis on mobile search growth

By Engine Imp. Clicks CTR Avg Pos CPC Spend

Google 5,569,830 9,760 0.2% 2.6 $4.96 $48,440

MSN 1,901,042 4,739 0.2% 3.2 $2.47 $11,728

Total 7,470,872 14,499 0.2% 2.8 $4.15 $60,168

2013 Gift Sets Performance (Nov. 15 – Dec. 16)

Holidays – October 1, 2014 to December 21, 2014


Date Range: 10/1-12/21

• Recommendations:– Start earlier in the 2013 holiday season to capture people starting to purchase holiday

gifts– 80% Impression Share is recommended to capture a large portion of gift searches since

they are seasonal products• Focus will be on Phrase and Exact match keywords. Limited reach on Broad recommended

Holidays - Entire Campaign EstimateImpression Share Budget Impressions Clicks CTR CPC

100% $184,180 20,404,110 64,874 0.3% $2.8480% $156,848 16,360,000 52,920 0.3% $2.9650% $98,496 10,280,000 33,160 0.3% $2.9710% $19,209 2,020,000 6,440 0.3% $2.98

Lip Crayon – September 2014 to December 2014


• The Lip Crayon product has not launched and Lip Crayon is a small category within Lip Color, leading to low estimated search volume opportunity

• Current proposed $40K budget for four months ($10K/month) will generate an estimated 15% Impression Share, missing ~107K Clicks

• Recommendations:– Expand beyond Lip Crayon keywords to target people searching for lipstick

related products, to have them consider the Lip Crayon product– 25% Impression Share is recommended to capture ~68% more Clicks and focus

on more targeted Clicks that will lead to a higher Engagement Rate• Focus will be on Phrase and Exact match keywords. Limited reach on Broad recommended

Lip Crayon - 4 Months EstimateImpression Share Budget Impressions Clicks CTR CPC

100% $260,733 19,035,298 127,092 0.7% $2.0580% $219,383 15,288,000 107,016 0.7% $2.0550% $137,301 9,568,000 66,976 0.7% $2.0525% $67,158 4,680,000 32,760 0.7% $2.0515% $40,000 2,787,460 19,512 0.7% $2.05

Lip Flavors – September 2014 to March 2015


• Current proposed $70K budget for seven months ($10K/month) will generate an estimated 27% Impression Share, which aligns with our 25% Impression Share recommendation

• Recommendation: Focus on more targeted Clicks that will lead to a higher Engagement Rate with the $70K budget


Lip Flavors - 7 Months EstimateImpression Share Budget Impressions Clicks CTR CPC

100% $259,132 5,661,647 112,603 2.0% $2.3080% $209,300 4,550,000 91,000 2.0% $2.3050% $129,766 2,821,000 56,420 2.0% $2.3027% $70,002 1,521,793 30,436 2.0% $2.30

• Current proposed $60K budget for six months ($10K/month) will generate an estimated 12% Impression Share, missing ~229K Clicks

• Recommendations: – Expand beyond Lip Portfolio keywords to target people searching for lipstick

related products, to have them consider Lip Portfolio products– 16% Impression Share is recommended to capture ~33% more Clicks and focus

on more targeted Clicks that will lead to a higher Engagement Rate• Focus will be on Phrase and Exact match keywords. Limited reach on Broad recommended

Lip Portfolio – January 2015 to June 2015


Lip Portfolio - Six Months EstimateImpression Share Budget Impressions Clicks CTR CPC

100% $503,564 36,352,946 260,187 0.7% $1.9480% $405,174 29,250,000 209,349 0.7% $1.9450% $253,909 18,330,000 131,192 0.7% $1.9416% $80,000 5,775,300 41,335 0.7% $1.9412% $60,002 4,331,652 31,003 0.7% $1.94

JULY AUG SEPT

OCT NOV DEC

Q1JAN FEB MARCH

Q2 Q3 Q4

APR MAY JUNE

Lip Color

Lip Care

Face

Non-IMC product

innovation

Crayons IMC Portfolio (Extensions)

Flavors IMC

Wild for BeesEarth Month30th Anniversary

Holiday

Anti-Aging IMC

Pumpkin Spice

Baby

Cough/Cold

Base Support TBD

New Balm Form-TBD

Always-On TBD

Opportunistic content to support relevant social media conversations, driven by Content Strategy pillars.(Example: Olympics, Valentine’s Day, #TBT

Cherry & Vanilla Lip Balm

Peach Towelettes

Sheer Body Lotions

Beeswax Tube

Cleansers Intense Hydration Brightening

US FY15 Content Calendar

Glossary

• Impressions: The number of times our ad is served in the search engine results

• Clicks: The number of times our ad is clicked on

• Click Through Rate (CTR): The rate at which users click on our ad

• Cost per Click (CPC): The cost for every time a user clicks on our ad

• Impression Share (IS): The rate at which our ads serve (Impressions) in comparison to the number of total impressions available

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AKQA Financial Client Case Study

• Test Goal: Revisit of the PPC/SEO test previously performed– Confirm if anything is lost from having PPC Brand Off

• Test Methodology– Looked at New RU* YoY indices for all three time periods for both channels separately

and in total– Used the indices for Period 1 and Period 3 against FY 13 New RU numbers for Period 2 to

calculate a normalized FY14 New RU value for Period 1 and Period 3– The difference between these normalized values and Period 2 New RUs shows an

estimated shift between the time periods– Period 1 coinciding with Peak causes the data to be biased and therefore unusable

PPC SEO Total2014 P2 New RU 6,094 8,655 14,749 P2 New RU w/ P1 YoY Indices 4,064 13,817 18,014 P2 w/P1 YoY Indices Shift 2,030 (5,162) (3,265) P2 New RU w/ P3 YoY Indices 3,257 10,510 13,844 P2 w/P3 YoY Indices Shift 2,837 (1,855) 905

*Registered Users

Case Study 2

Case Study: Results and Analysis

New RU Brand On/Off PPC/SEO Shift PPC SEO TotalP2:P1 Shift 2,030 -5,162 -3,265P2:P3 Shift 2,837 -1,855 905

• Although SEO took a slight hit, PPC+SEO New RU total saw a net increase of 905 with PPC Brand On

• Approx. increase of 2,837 New RUs to PPC Channel– Actual New RUs brought in by Brand while on was 2,977– Close proximity of Actual New RUs and approx. New RU shift suggests that shift estimates

have a low margin of error

LegendP1 Time Period 1/6/14-1/20/14 (Brand Off)

P2 Time Period From 1/21/14-2/3/14 (Brand On)

P3 Time Period 2/4/14-2/17/14 (Brand Off)

Case Study 2

Case Study: Conclusions & Recommendations

• By having Brand on, although SEO takes a small hit, overall PPC+SEO New RU totals still net positive

• These additional new RUs come in at a relatively efficient incremental CPA when compared to other methods of driving increases in New RUs

• Based on these results, we recommend keeping the Branded PPC campaign running

Case Study 2

Searchers Are Directed To Most Relevant Page

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bb intro to search 060314

Technology

lipstick related

higher engagement

exact match

drive qualified

target people

engagement

testbrand

setting benchmarks